Title 48—Federal Acquisition Regulations System
(This book contains chapter 2, parts 201 to 299)
Part
CHAPTER 2—Department of Defense ...... 201
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SUBCHAPTER A—GENERAL
Part Page 201 Federal Acquisition Regulations System ...... 7 202 Definitions of words and terms ...... 12 203 Improper business practices and personal conflicts of interest ...... 14 204 Administrative matters ...... 17
SUBCHAPTER B—ACQUISITION PLANNING 205 Publicizing contract actions ...... 44 206 Competition requirements ...... 46 207 Acquisition planning ...... 49 208 Required sources of supplies and services ...... 53 209 Contractor qualifications ...... 65 211 Describing agency needs ...... 74 212 Acquisition of commercial items ...... 77
SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT TYPES 213 Simplified acquisition procedures ...... 80 214 Sealed bidding ...... 84 215 Contracting by negotiation ...... 85 216 Types of contracts ...... 104 217 Special contracting methods ...... 115
SUBCHAPTER D—SOCIOECONOMIC PROGRAMS 219 Small business programs ...... 132 222 Application of labor laws to government acquisi- tions ...... 143 223 Environment, conservation, occupational safety, and drug-free workplace ...... 157 224 Protection of privacy and freedom of information 162 225 Foreign acquisition ...... 163 226 Other socioeconomic programs ...... 205
SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS 227 Patents, data, and copyrights ...... 209 228 Bonds and insurance ...... 250 3
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229 Taxes ...... 253 230 Cost accounting standards administration ...... 256 231 Contract cost principles and procedures ...... 260 232 Contract financing ...... 265 233 Protests, disputes, and appeals ...... 276
SUBCHAPTER F—SPECIAL CATEGORIES OF CONTRACTING 234 Major system acquisition ...... 278 235 Research and development contracting ...... 278 236 Construction and architect-engineer contracts ...... 283 237 Service contracting ...... 289 239 Acquisition of information technology ...... 300 241 Acquisition of utility services ...... 308
SUBCHAPTER G—CONTRACT MANAGEMENT 242 Contract administration and audit services ...... 312 243 Contract modifications ...... 327 244 Subcontracting policies and procedures ...... 329 245 Government property ...... 330 246 Quality assurance ...... 352 247 Transportation ...... 360 249 Termination of contracts ...... 370 250 Extraordinary contractual actions ...... 376 251 Use of government sources by contractors ...... 381
SUBCHAPTER H—CLAUSES AND FORMS 252 Solicitation provisions and contract clauses ...... 383 253 Forms ...... 532
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APPENDIX A—ARMED SERVICES BOARD OF CONTRACT APPEALS 563 APPENDIX B—COORDINATED ACQUISITION ASSIGNMENTS ...... 572 APPENDIX C [RESERVED] APPENDIX D—COMPONENT BREAKOUT ...... 582 APPENDIX E—DOD SPARE PARTS BREAKOUT PROGRAM ...... 584 APPENDIX F—MATERIAL INSPECTION AND RECEIVING REPORT 605 APPENDIX G—ACTIVITY ADDRESS NUMBERS ...... 619 APPENDIX H—DEBARMENT AND SUSPENSION PROCEDURES ...... 649 APPENDIX I—POLICY AND PROCEDURES FOR THE DOD PILOT MENTOR-PROTEGE PROGRAM ...... 651
NOTE: Although the text of Manuals and Supplements to the Defense FAR Supplement are not published in the Code of Federal Regulations, they were listed for the convenience of the user. All of the Supplements have been deleted. The only manuals which remain in effect are: Armed Services Pricing Manual (1986) and Armed Services Pricing Manual, Volume 2, Price Analysis (1987).
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PART 201—FEDERAL ACQUISITION funds obligated, unless otherwise speci- REGULATIONS SYSTEM fied in this regulation. [56 FR 36284, July 31, 1991. Redesignated at 64 Subpart 201.1—Purpose, Authority, FR 39430, July 22, 1999] Issuance 201.105 Issuance. Sec. 201.104 Applicability. 201.105–3 Copies. 201.105 Issuance. The DFARS is available electroni- 201.105–3 Copies. cally via the World Wide Web at http:/ 201.107 Certifications. /www.acq.osd.mil/dp/dars/dfars.html. Subpart 201.2—Administration [64 FR 39430, July 22, 1999] 201.201 Maintenance of the FAR. 201.107 Certifications. 201.201–1 The two councils. In accordance with Section 29 of the Subpart 201.3—Agency Acquisition Office of Federal Procurement Policy Regulations Act (41 U.S.C. 425), a new requirement for a certification by a contractor or 201.301 Policy. offeror may not be included in the 201.303 Publication and codification. DFARS unless— 201.304 Agency control and compliance pro- (1) The certification requirement is cedures. specifically imposed by statute; or (2) Written justification for such cer- Subpart 201.4—Deviations From the FAR tification is provided to the Secretary 201.402 Policy. of Defense by the Under Secretary of 201.403 Individual deviations. Defense (Acquisition, Technology, and 201.404 Class deviations. Logistics), and the Secretary of De- fense approves in writing the inclusion Subpart 201.6—Contracting Authority and of such certification requirement. Responsibilities [63 FR 11528, Mar. 9, 1998, as amended at 65 201.602 Contracting officers. FR 39704, June 27, 2000] 201.602–2 Responsibilities. 201.602–70 Contract clause. Subpart 201.2—Administration 201.603 Selection, appointment, and termi- nation of appointment. 201.201 Maintenance of the FAR. 201.603–2 Selection. 201.603–3 Appointment. 201.201–1 The two councils.
AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- (c) The composition and operation of ter 1. the DAR Council is prescribed in DoDI 5000.63, Defense Acquisition Regula- SOURCE: 56 FR 36284, July 31, 1991, unless otherwise noted. tions (DAR) System. (d)(i) Departments and agencies proc- ess proposed revisions of FAR or Subpart 201.1—Purpose, Authority, DFARS through channels to the Direc- Issuance tor of the DAR Council. Process the proposed revision as a memorandum in 201.104 Applicability. the following format, addressed to the The FAR and the Defense Federal Ac- Director, DAR Council, OUSD(AT&L), quisition Regulation Supplement 3062 Defense Pentagon, Washington, DC (DFARS) also apply to purchases and 20301–3062; datafax (703) 602–0350: contracts by DoD contracting activi- I. PROBLEM: Succinctly state the problem ties made in support of foreign mili- created by current FAR and/or DFARS cov- tary sales or North Atlantic Treaty Or- erage and describe the factual and/or legal ganization cooperative projects with- reasons necessitating the change to the regu- out regard to the nature or sources of lation.
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II. Recommendation: Identify the FAR (b) When FEDERAL REGISTER publica- and/or DFARS citations to be revised. At- tion is required for any policy, proce- tach as TAB A a copy of the text of the exist- dure, clause, or form, the department ing coverage, conformed to include the pro- posed additions and deletions. Indicate de- or agency requesting Under Secretary leted coverage with dashed lines through the of Defense (Acquisition, Technology, current words being deleted and insert pro- and Logistics) (USD (AT&L)) approval posed language in brackets at the appro- for use of the policy, procedure, clause, priate locations within the existing cov- or form (see 201.304(1)) must include an erage. If the proposed deleted portion is ex- analysis of the public comments in the tensive, it may be outlined by lines forming request for approval. a box with diagonal lines drawn connecting the corners. [56 FR 36284, July 31, 1991, as amended at 60 III. Discussion: Include a complete, con- FR 61591, Nov. 30, 1995; 65 FR 6552, Feb. 10, vincing explanation of why the change is 2000] necessary and how the recommended revi- sion will solve the problem. Address advan- 201.303 Publication and codification. tages and disadvantages of the proposed revi- sion, as well as any cost or administrative (a)(i) The DFARS is codified under impact on Government activities and con- chapter 2 in title 48, Code of Federal tractors. Identify any potential impact of Regulations. the change on automated systems, e.g., auto- (ii) To the extent possible, all mated financial and procurement systems. DFARS text (whether implemental or Provide any other background information supplemental) is numbered as if it were that would be helpful in explaining the issue. implemental. Supplemental numbering IV. Collaterals: Address the need for public comment (FAR 1.301(b) and subpart 1.5), the is used only when the text cannot be Paperwork Reduction Act, and the Regu- integrated intelligibly with its FAR latory Flexibility Act (FAR 1.301(c)). counterpart. V. Deviations: If a recommended revision (A) Implemental numbering is the of DFARS is a FAR deviation, identify the same as its FAR counterpart, except deviation and include under separate TAB a when the text exceeds one paragraph, justification for the deviation that addresses the subdivisions are numbered by skip- the requirements of 201.402(2). The justifica- tion should be in the form of a memorandum ping a unit in the FAR 1.105–2(b)(2) pre- for the Director of Defense Procurement, Of- scribed numbering sequence. For exam- fice of the Under Secretary of Defense (Ac- ple, three paragraphs implementing quisition, Technology, and Logistics). FAR 19.501 would be numbered 219.501 (1), (2), and (3) rather than (a), (b), and (ii) The public may offer proposed re- (c). Three paragraphs implementing visions of FAR or DFARS by submis- FAR 19.501(a) would be numbered sion of a memorandum, in the format 219.501(a) (i), (ii), and (iii) rather than (including all of the information) pre- (a) (1), (2), and (3). Further subdivision scribed in paragraph (d)(i) of this sub- of the paragraphs follows the pre- section, to the Director of the DAR scribed numbering sequence, e.g., Council. 219.501(1)(i)(A)(1)(i). [56 FR 36284, July 31, 1991, as amended at 60 (B) Supplemental numbering is the FR 61591, Nov. 30, 1995; 61 FR 50451, Sept. 26, same as its FAR counterpart, with the 1996; 63 FR 11528, Mar. 9, 1998; 65 FR 6552, Feb. addition of a number of 70 and up or (S– 10, 2000] 70) and up. Parts, subparts, sections, or subsections are supplemented by the Subpart 201.3—Agency addition of a number of 70 and up. Acquisition Regulations Lower divisions are supplemented by the addition of a number of (S–70) and 201.301 Policy. up. When text exceeds one paragraph, (a) DoD implementation and sup- the subdivisions are numbered using plementation of the FAR is issued in the FAR 1.105–2(b)(2) prescribed se- the Defense Federal Acquisition Regu- quence, without skipping a unit. For lation Supplement (DFARS) under au- example, DFARS text supplementing thorization and subject to the author- FAR 19.501 would be numbered 219.501– ity, direction, and control of the Sec- 70. Its subdivisions would be numbered retary of Defense. 219.501–70 (a), (b), and (c).
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(C) Subdivision numbering below the in a department/agency or component 4th level does not repeat the num- procurement regulation unless— bering sequence. It uses italicized Ara- (i) The certification requirement is bic numbers and then italicized lower specifically imposed by statute; or case Roman numerals. (ii) Written justification for such cer- (D) An example of DFARS numbering tification is provided to the Secretary is in Table 1–1, DFARS Numbering. of Defense by USD(AT&L), and the Sec- (iii) Department/agency and compo- retary of Defense approves in writing nent supplements must parallel the the inclusion of such certification re- FAR and DFARS numbering, except quirement. department/agency supplemental num- (3) Contracting activities must ob- bering uses subsection numbering of 90 tain the appropriate approval (see and up, instead of 70 and up. 201.404) for any class deviation (as de- fined in FAR subpart 1.4) from the FAR TABLE 1–1—DFARS NUMBERING or DFARS, before its inclusion in a de- partment/agency or component supple- FAR Is implemented as Is supplemented as ment or any other contracting regula- 19 219 219.70 tion document such as a policy letter 19.5 219.5 219.570 or clause book. 19.501 219.501 219.501–70 19.501–1 219.501–1 219.501–1–70 (4) Each department and agency must 19.501–1(a) 219.501–1(a) 219.501–1(a)(S– develop and, upon approval by 70) USD(AT&L)DP, implement, maintain, 19.501–1(a)(1) 219.501–1(a)(1) 219.501–1(a)(1)(S– 70) and comply with a plan for controlling the use of clauses other than those pre- scribed by FAR or DFARS. [56 FR 36284, July 31, 1991, as amended at 64 (5) Departments and agencies must FR 51074, Sept. 21, 1999] submit requests for the Secretary of 201.304 Agency control and compli- Defense, USD(AT&L), and ance procedures. USD(AT&L)DP approvals required by this section through the Director of Departments and agencies and their the DAR Council. component organizations may issue ac- quisition regulations as necessary to [56 FR 36284, July 31, 1991, as amended at 60 implement or supplement the FAR or FR 61591, Nov. 30, 1995; 63 FR 11528, Mar. 9, DFARS. 1998; 64 FR 39430, July 22, 1999; 65 FR 6552, (1)(i) Approval of the USD (AT&L) is Feb. 10, 2000] required before including in a depart- ment/agency or component supple- Subpart 201.4—Deviations From ment, or any other contracting regula- the FAR tion document such as a policy letter or clause book, any policy, procedure, 201.402 Policy. clause, or form that— (1) The Director of Defense Procure- (A) Has a significant effect beyond ment, Office of the Under Secretary of the internal operating procedures of Defense (Acquisition, Technology, and the agency; or Logistics) (USD(AT&L)DP), is the ap- (B) Has a significant cost or adminis- proval authority within DoD for any trative impact on contractors or individual or class deviation from— offerors. (i) FAR 3.104, Procurement Integrity, (ii) Except as provided in paragraph or DFARS 203.104, Procurement Integ- (2) of this section, the USD(AT&L) has rity; delegated authority to the Director of (ii) FAR Subpart 27.4, Rights in Data Defense Procurement (USD(AT&L)DP) and Copyrights, or DFARS Subpart to approve or disapprove the policies, 227.4, Rights in Data and Copyrights; procedures, clauses, and forms subject (iii) FAR part 30, Cost Accounting to paragraph (1)(i) of this section. Standards Administration, or DFARS (2) In accordance with Section 29 of part 230, Cost Accounting Standards the Office of Federal Procurement Pol- Administration; icy Act (41 U.S.C. 425), a new require- (iv) FAR subpart 31.1, Applicability, ment for a certification by a con- or DFARS subpart 231.1, Applicability tractor or offeror may not be included (contract cost principles);
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(v) FAR subpart 31.2, Contracts with tion will be avoided, corrected, or im- Commercial Organizations, or DFARS proved if request is approved. subpart 231.2, Contracts with Commer- [56 FR 36284, July 31, 1991, as amended at 60 cial Organizations; or FR 61591, Nov. 30, 1995; 61 FR 50451, Sept. 26, (vi) FAR part 32, Contract Financing 1996; 64 FR 8727, Feb. 23, 1999; 65 FR 6552, Feb. (except subparts 32.7 and 32.8 and the 10, 2000] payment clauses prescribed by subpart 32.1), or DFARS part 232, Contract Fi- 201.403 Individual deviations. nancing (except subparts 232.7 and (1) Individual deviations, except 232.8). those described in 201.402(1) and para- (2) Submit requests for deviation ap- graph (2) of this section, must be ap- proval through department/agency proved in accordance with the depart- channels to the approval authority in ment/agency plan prescribed by paragraph (1) of this section, 201.403, or 201.304(4). (2) Contracting officers outside the 201.404, as appropriate. Submit devi- United States may deviate from pre- ations that require USD(AT&L)DP ap- scribed nonstatutory FAR and DFARS proval through the Director of the clauses when— DAR Council. At a minimum, each re- (i) Contracting for support services, quest must— supplies, or construction, with the gov- (i) Identify the department/agency, ernments of North Atlantic Treaty Or- and component if applicable, request- ganization (NATO) countries or other ing the deviation; allies (as described in 10 U.S.C. 2341(2)), (ii) Identify the FAR or DFARS cita- or with United Nations or NATO orga- tion from which a deviation is needed, nizations; and state what is required by that citation, (ii) Such governments or organiza- and indicate whether an individual or tions will not agree to the standard class deviation is requested; clauses. (iii) Describe the deviation and indi- [65 FR 6552, Feb. 10, 2000] cate which of paragraphs (a) through (f) of FAR 1.401 best categorizes the de- 201.404 Class deviations. viation; (b)(i) Except as provided in paragraph (iv) State whether the deviation will (b)(ii) of this section, USD(AT&L)DP is have a significant effect beyond the in- the approval authority within DoD for ternal operating procedures of the any class deviation. agency and/or a significant cost or ad- (ii) The senior procurement execu- ministrative impact on contractors or tives for the Army, Navy, and Air offerors, and give reasons to support Force, and the Directors of the Defense the statement; Commissary Agency, the Defense Con- (v) State the period of time for which tract Management Agency, and the De- the deviation is required; fense Logistics Agency, may approve (vi) State whether approval for the any class deviation, other than those same deviation has been received pre- described in 201.402(1), that does not— viously, and if so, when; (A) Have a significant effect beyond the internal operating procedures of (vii) State whether the proposed devi- the department or agency; ation was published (see FAR subpart (B) Have a significant cost or admin- 1.5 for publication requirements) in the istrative impact on contractors or FEDERAL REGISTER and provide anal- offerors; ysis of comments; (C) Diminish any preference given (viii) State whether the request for small business concerns by the FAR or deviation has been reviewed by legal DFARS; or counsel, and if so, state results; and (D) Extend to requirements imposed (ix) Give detailed rationale for the by statute or by regulations of other request. State what problem or situa- agencies such as the Small Business
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Administration and the Department of 201.602–70 Contract clause. Labor. Use the clause at 252.201–7000, Con- [65 FR 6552, Feb. 10, 2000, as amended at 65 tracting Officer’s Representative, in so- FR 52951, Aug. 31, 2000] licitations and contracts when appoint- ment of a contracting officer’s rep- Subpart 201.6—Contracting resentative is anticipated. Authority and Responsibilities 201.603 Selection, appointment, and 201.602 Contracting officers. termination of appointment. 201.602–2 Responsibilities. 201.603–2 Selection. Contracting officers may designate (1) Pursuant to 10 U.S.C. 1724, in qualified personnel as their authorized order to qualify to serve as a con- representatives to assist in the tech- tracting officer with authority to nical monitoring or administration of a award or administer contracts for contract. A contracting officer’s rep- amounts above the simplified acquisi- resentative (COR)— tion threshold, a person must— (1) Must be a Government employee, (i) Have completed all mandatory unless otherwise authorized in agency contracting courses required for a con- regulations. tracting officer at the grade level, or in (2) Must be qualified by training and the position within the grade of the experience commensurate with the re- General Schedule in which the person sponsibilities to be delegated in accord- is serving; ance with department/agency guide- (ii) Have at least two years experi- lines. ence in a contracting position; (3) May not be delegated responsi- (iii) Have— bility to perform functions at a con- (A) Received a baccalaureate degree tractor’s location that have been dele- from an accredited educational institu- gated under FAR 42.202(a) to a contract tion; administration office. (B) Completed at least 24 semester (4) May not be delegated authority to credit hours, or equivalent, of study make any commitments or changes from an accredited institution of high- that affect price, quality, quantity, de- er education in any of the following livery, or other terms and conditions of disciplines: Accounting, business fi- the contract. nance, law, contracts, purchasing, eco- (5) Must be designated in writing, and nomics, industrial management, mar- a copy furnished the contractor and keting, quantitative methods, and or- the contract administration office,— ganization and management; or (i) Specifying the extent of the COR’s (C) Passed an examination considered authority to act on behalf of the con- to demonstrate skills, knowledge, or tracting officer; abilities comparable to that of an indi- (ii) Identifying the limitations on the vidual who has completed at least 24 COR’s authority; semester credit hours, or equivalent, of (iii) Specifying the period covered by study from an accredited institution of the designation; higher education in any of the dis- (iv) Stating the authority is not re- ciplines in paragraph (1)(iii)(B) of this delegable; and subsection; and (v) Stating that the COR may be per- (iv) Meet such additional require- sonally liable for unauthorized acts. ments, based on the dollar value and (6) Must maintain a file for each con- complexity of the contracts awarded or tract assigned. This file must include, administered in the position as may be as a minimum— established by the Secretary of De- (i) A copy of the contracting officer’s fense. letter of designation and other docu- (2) The requirements in 201.603– mentation describing the COR’s duties 2(1)(iii) do not apply to any employee and responsibilities; and who, as of October 1, 1991, had at least (ii) Documentation of actions taken 10 years experience in acquisition posi- in accordance with the delegation of tions, in comparable positions in other authority. government agencies or the private
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sector, or in similar positions in which Contract administration office also the individual obtained experience di- means a contract management office of rectly relevant to the field of con- the Defense Contract Management tracting. Agency. (3) The requirements in 201.603–2(1) do Contracting activity for DoD also not apply to any employee for purposes means elements designated by the di- of qualifying to serve in the position in rector of a defense agency which has which the employee is serving on Octo- been delegated contracting authority ber 1, 1993, or any other position in the through its agency charter. DoD con- same grade and involving the same tracting activities are— level of responsibilities as the position in which the employee is serving on DEPARTMENT OF DEFENSE that date. (4) Waivers may be authorized. Infor- Department of Defense Education Activity TRICARE Management Activity mation on waivers is contained in DoD Real Estate and Facilities Directorate, Manual 5000.52–M, Career Development Washington Headquarter Services Program for Acquisition Personnel. ARMY [58 FR 28463, May 13, 1993, as amended at 62 Contract Support Agency FR 34121, June 24, 1997] Office of the Deputy Chief of Staff for Re- search, Development and Acquisition, 201.603–3 Appointment. Headquarters, U.S. Army Materiel Com- (a) Certificates of Appointment exe- mand cuted under the Armed Services Pro- Aviation and Missile Command curement Regulation or the Defense Industrial Operations Command Communications-Electronics Command Acquisition Regulation have the same Troop Support Agency effect as if they had been issued under Tank-Automotive and Armaments Command FAR. Training and Doctrine Command (b) Agency heads may delegate the Forces Command purchase authority in 213.301 to DoD ci- Health Services Command vilian employees and members of the Military District of Washington U.S. Armed Forces. U.S. Army, Europe National Guard Bureau [56 FR 36284, July 31, 1991, as amended at 64 Corps of Engineers FR 56705, Oct. 21, 1999] Information Systems Command Medical Research and Development Com- mand PART 202—DEFINITIONS OF WORDS U.S. Army, Pacific AND TERMS Military Traffic Management Command Space and Strategic Defense Command Eighth U.S. Army AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- Intelligence and Security Command ter 1. U.S. Army, South Defense Supply Service-Washington Directorate of Information Systems for Com- Subpart 202.1—Definitions mand, Control, Communications and Com- puters, Office of the Secretary of the Army 202.101 Definitions. U.S. Army Special Operations Command Congressional defense committees NAVY means— (1) The Committee on Armed Serv- Deputy, Acquisition and Business Manage- ices of the Senate; ment, Office of the Assistant Secretary of the Navy (Research, Development, and Ac- (2) The Subcommittee on Defense of quisition) the Committee on Appropriations of Naval Air Systems Command the Senate; Space and Naval Warfare Systems Command (3) The Committee on Armed Serv- Naval Facilities Engineering Command ices of the House of Representatives; Naval Inventory Control Point and Naval Sea Systems Command Naval Supply Systems Command (4) The Subcommittee on Defense of Office of Naval Research the Committee on Appropriations of Military Sealift Command the House of Representatives. Strategic Systems Programs
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Headquarters, U.S. Marine Corps officer to perform specific technical or Marine Corps Material Command administrative functions. Installations and Logistics, Headquarters, Departments and agencies, as used in U.S. Marine Corps DFARS, means the military depart- AIR FORCE ments and the defense agencies. The Office of the Assistant Secretary of the Air military departments are the Depart- Force (Acquisition) ments of the Army, Navy, and Air Office of the Deputy Assistant Secretary Force (the Marine Corps is a part of the (Contracting) Department of the Navy). The defense Air Force Materiel Command agencies are the Defense Advanced Re- Air Combat Command search Projects Agency, the Defense Air Mobility Command Air Education and Training Command Commissary Agency, the Defense Con- Pacific Air Forces tract Management Agency, the Defense United States Air Forces in Europe Finance and Accounting Service, the Air Force Space Command Defense Information Systems Agency, the Defense Intelligence Agency, the DEFENSE ADVANCED RESEARCH PROJECTS AGENCY Defense Security Service, the Defense Logistics Agency, the National Im- Office of the Deputy Director, Management agery and Mapping Agency, the De- DEFENSE CONTRACT MANAGEMENT AGENCY fense Threat Reduction Agency, the National Security Agency, the Bal- Office of the Director, Defense Contract Management Agency listic Missile Defense Organization, and the United States Special Oper- DEFENSE FINANCE AND ACCOUNTING SERVICE ations Command. External Services, Defense Finance and Ac- Department of Defense (DoD), as used counting Service in DFARS, means the Department of Defense, the military departments, and DEFENSE INFORMATION SYSTEMS AGENCY the defense agencies. Defense Information Technology Con- Executive agency means for DoD, the tracting Organization Department of Defense, the Depart- DEFENSE INTELLIGENCE AGENCY ment of the Army, the Department of the Navy, and the Department of the Office of Procurement Air Force. DEFENSE LOGISTICS AGENCY Head of the agency means, for DoD, Office of the Executive Director, Logistics the Secretary of Defense, the Secretary Policy and Acquisition Management of the Army, the Secretary of the Defense Supply Centers Navy, and the Secretary of the Air Defense Energy Support Center Force. Subject to the direction of the Secretary of Defense, the Under Sec- NATIONAL IMAGERY AND MAPPING AGENCY retary of Defense (Acquisition, Tech- Procurement and Contracting Office nology, and Logistics), and the Direc- DEFENSE THREAT REDUCTION AGENCY tor of Defense Procurement, the direc- tors of the defense agencies have been Acquisition Management Office delegated authority to act as head of NATIONAL SECURITY AGENCY the agency for their respective agen- Headquarters, National Security Agency cies (i.e., to perform functions under the FAR or DFARS reserved to a head BALLISTIC MISSILE DEFENSE ORGANIZATION of agency or agency head), except for Headquarters, Ballistic Missile Defense Or- such actions that by terms of statute, ganization or any delegation, must be exercised within the Office of the Secretary of UNITED STATES SPECIAL OPERATIONS Defense. COMMAND Senior procurement executive means, Headquarters, United States Special Oper- for DoD— ations Command Department of Defense (including the Contracting officer’s representative defense agencies)—Under Secretary of means an individual designated and au- Defense (Acquisition, Technology, and thorized in writing by the contracting Logistics);
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Department of the Army—Assistant 203.570–2 Policy. Secretary of the Army (Research, De- 203.570–3 Waiver. velopment and Acquisition); 203.570–4 Reporting. Department of the Navy—Assistant 203.570–5 Contract clause. Secretary of the Navy (Research, De- velopment and Acquisition); Subpart 203.7—Voiding and Rescinding Department of the Air Force—Assist- Contracts ant Secretary of the Air Force (Acqui- 203.703 Authority. sition). The directors of the defense agencies Subpart 203.70—Contractor Standards of have been delegated authority to act as Conduct senior procurement executive for their respective agencies, except for such ac- 203.7000 Policy. tions that by terms of statute, or any 203.7001 Procedures. delegation, must be exercised by the 203.7002 Contract clause. Under Secretary of Defense (Acquisi- AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- tion, Technology, and Logistics). ter 1.
[56 FR 36287, July 31, 1991] SOURCE: 56 FR 36288, July 31, 1991, unless EDITORIAL NOTE: For FEDERAL REGISTER ci- otherwise noted. tations affecting section 202.101, see the List of CFR Sections Affected, which appears in Subpart 203.1—Safeguards the Finding Aids section of the printed vol- ume and on GPO Access. 203.103 Independent pricing.
PART 203—IMPROPER BUSINESS 203.103–2 Evaluating the certification. PRACTICES AND PERSONAL (b)(3) Report the matter in accord- CONFLICTS OF INTEREST ance with 209.406–3 or 209.407-3, and DoDD 7050.5, Coordination of Remedies Subpart 203.1—Safeguards for Fraud and Corruption Related to Sec. Procurement Activities. 203.103 Independent pricing. 203.103–2 Evaluating the certification. [64 FR 62984, Nov. 18, 1999] 203.104 Procurement integrity. 203.104–5 Disclosure of proprietary and 203.104 Procurement integrity. source selection information. 203.104–10 Violations or possible violations. 203.104–5 Disclosure of proprietary and source selection information. Subpart 203.2—Contractor Gratuities to (d)(4) For purposes of FAR 3.104– Government Personnel 5(d)(4) only, DoD follows the notifica- 203.203 Reporting suspected violations of tion procedures in FAR 27.404(h). How- the Gratuities clause. ever, the first sentence in FAR 27.404(h) does not apply to DoD. Subpart 203.3—Reports of Suspected Antitrust Violations [56 FR 36288, July 31, 1991, as amended at 62 FR 2612, Jan. 17, 1997] 203.301 General. 203.104–10 Violations or possible viola- Subpart 203.4—Contingent Fees tions. 203.405 Misrepresentations or violations of (d)(3) When referring a violation to the Covenant Against Contingent Fees. the agency debarring and suspending Subpart 203.5—Other Improper Business official, use the procedures at 209.406–3 Practices or 209.407–3, and DoDD 7050.5, Coordina- tion of Remedies for Fraud and Corrup- 203.502 Subcontractor kickbacks. tion Related to Procurement Activi- 203.502–2 General. ties. 203.570 Prohibition on persons convicted of frauds or other defense-contract-related [64 FR 62984, Nov. 18, 1999; 65 FR 4864, Feb. 1, felonies. 2000] 203.570–1 Scope.
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Subpart 203.2—Contractor Gratu- 203.502–2 General. ities to Government Personnel (h) The DoD Inspector General has designated Special Agents of the fol- 203.203 Reporting suspected violations lowing investigative organizations as of the Gratuities clause. representatives for conducting inspec- Report suspected violations of the tions and audits under the Anti-Kick- Gratuities clause in accordance with back Act of 1986: 209.406–3 or 209.407–3, and DoDD 7050.5, (i) U.S. Army Criminal Investigation Coordination of Remedies for Fraud Command. (ii) Naval Criminal Investigative and Corruption Related to Procure- Service. ment Activities. (iii) Air Force Office of Special Inves- [56 FR 36288, July 31, 1991, as amended at 64 tigations. FR 62984, Nov. 18, 1999] (iv) Defense Criminal Investigative Service. Subpart 203.3—Reports of [56 FR 36288, July 31, 1991, as amended at 60 Suspected Antitrust Violations FR 29497, June 5, 1995]
203.301 General. 203.570 Prohibition on persons con- victed of frauds or other defense- (b) Report suspected antitrust viola- contract-related felonies. tions in accordance with 209.406–3 or 209.407–3, and DoDD 7050.5, Coordina- 203.570–1 Scope. tion of Remedies for Fraud and Corrup- This subpart prescribes policies and tion Related to Procurement Activi- procedures to implement 10 U.S.C. 2408. ties. 203.570–2 Policy. [56 FR 36288, July 31, 1991, as amended at 64 (a) A contractor or subcontractor FR 62984, Nov. 18, 1999] shall not knowingly allow a person, convicted after September 29, 1988, of Subpart 203.4—Contingent Fees fraud or any other felony arising out of a contract with the DoD, to serve— 203.405 Misrepresentations or viola- (1) In a management or supervisory tions of the Covenant Against Con- capacity on any DoD contract or first- tingent Fees. tier subcontract; (b) Report suspected fraud or other (2) On its board of directors; criminal conduct in accordance with (3) As a consultant, agent, or rep- 209.406–3 or 209.407–3, and DoDD 7050.5, resentative; or Coordination of Remedies for Fraud (4) In any capacity with the author- and Corruption Related to Procure- ity to influence, advise, or control the ment Activities. decisions of any DoD contractor or sub- contractor with regard to any DoD [56 FR 36288, July 31, 1991. Redesignated at 62 contract or first-tier subcontract. FR 34121, June 24, 1997, as amended at 64 FR (b) DoD has sole responsibility for de- 62984, Nov. 18, 1999] termining the period of the prohibition described in paragraph (a) of this sub- Subpart 203.5—Other Improper section. The prohibition period— Business Practices (1) Shall not be less than 5 years from the date of conviction unless the agen- 203.502 Subcontractor kickbacks. cy head or a designee grants a waiver Report suspected violations of the in the interest of national security; Anti-Kickback Act in accordance with and 209.406–3 or 209.407–3, and DoDD 7050.5, (2) May be more than 5 years from the date of conviction if the agency Coordination of Remedies for Fraud head or a designee makes a written de- and Corruption Related to Procure- termination of the need for the longer ment Activities. period. The agency shall provide a copy [56 FR 36288, July 31, 1991, as amended at 64 of the determination to the Bureau of FR 62984, Nov. 18, 1999] Justice Assistance, U.S. Department of
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Justice, 810 Seventh Street, NW, Wash- Senate, without power of redelegation. ington, DC 20531. For the defense agencies, for purposes of this subpart, the agency head des- [64 FR 14398, Mar. 25, 1999] ignee is the Under Secretary of Defense 203.570–3 Waiver. (Acquisition, Technology, and Logis- tics). (a) The contracting officer shall— (1) Review any request for waiver; [56 FR 36288, July 31, 1991, as amended at 60 and FR 61592, Nov. 30, 1995; 65 FR 39704, June 27, (2) Deny the request if the con- 2000] tracting officer decides the waiver is not required in the interests of na- Subpart 203.70—Contractor tional security; or Standards of Conduct (3) Forward the request to the head of the agency or designee for approval 203.7000 Policy. if the contracting officer decides the waiver may be in the interest of na- Government contractors must con- tional security. duct themselves with the highest de- (b) The head of the agency or des- gree of integrity and honesty. Contrac- ignee shall report all waivers granted, tors should have standards of conduct and the reasons for granting the waiv- and internal control systems that— er, to the Under Secretary of Defense (1) Are suitable to the size of the (Acquisition, Technology, and Logis- company and the extent of their in- tics), who will forward the report to volvement in Government contracting, Congress as required by 10 U.S.C. (2) Promote such standards, 2408(a)(3). (3) Facilitate timely discovery and disclosure of improper conduct in con- [56 FR 36288, July 31, 1991, as amended at 65 nection with Government contracts, FR 39074, June 27, 2000] and 203.570–4 Reporting. (4) Ensure corrective measures are When a defense contractor or first- promptly instituted and carried out. tier subcontractor is found in violation 203.7001 Procedures. of the prohibition in 203.570–2, report the matter in accordance with 209.406– (a) A contractor’s system of manage- 3 or 209.407–3, and DoDD 7050.5, Coordi- ment controls should provide for— nation of Remedies for Fraud and Cor- (1) A written code of business ethics ruption Related to Procurement Ac- and conduct and an ethics training pro- tivities. gram for all employees; (2) Periodic reviews of company busi- [64 FR 62984, Nov. 18, 1999] ness practices, procedures, policies, and 203.570–5 Contract clause. internal controls for compliance with standards of conduct and the special Use the clause at 252.203–7001, Prohi- requirements of Government con- bition on Persons Convicted of Fraud tracting; or Other Defense-Contract-Related Felonies, in all solicitations and con- (3) A mechanism, such as a hotline, tracts exceeding the simplified acquisi- by which employees may report sus- tion threshold, except solicitations and pected instances of improper conduct, contracts for commercial items. and instructions that encourage em- ployees to make such reports; [64 FR 14398, Mar. 25, 1999] (4) Internal and/or external audits, as appropriate; Subpart 203.7—Voiding and (5) Disciplinary action for improper Rescinding Contracts conduct; (6) Timely reporting to appropriate 203.703 Authority. Government officials of any suspected The authority to act for the agency or possible violation of law in connec- head under this subpart is limited to a tion with Government contracts or any level no lower than an official who is other irregularities in connection with appointed by and with the advice of the such contracts; and
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(7) Full cooperation with any Govern- 204.804 Closeout of contract files. ment agencies responsible for either in- 204.804–1 Closeout by the office admin- vestigation or corrective actions. istering the contract. (b) Contractors who are awarded a 204.804–2 Closeout of the contracting office files if another office administers the DoD contract of $5 million or more contract. must display DoD Hotline Posters pre- 204.805 Disposal of contract files. pared by the DoD Office of the Inspec- tor General unless— Subpart 204.9—Taxpayer Identification (1) The contract will be performed in Number Information a foreign country; or (2) The contractor has established an 204.902 General. internal reporting mechanism and pro- 204.904 Reporting payment information to the IRS. gram, as described in paragraph (a) of 204.905 Solicitation provision. this section. Subpart 204.70—Uniform Procurement 203.7002 Contract clause. Instrument Identification Numbers Use the clause at 252.203–7002, Display of DoD Hotline Poster, in solicitations 204.7000 Scope. 204.7001 Policy. and contracts expected to exceed $5 204.7002 Procedures. million, except when performance will 204.7003 Basic PII number. take place in a foreign country. 204.7004 Supplementary PII numbers. PART 204—ADMINISTRATIVE Subpart 204.71—Uniform Contract Line MATTERS Item Numbering System 204.7100 Scope. Subpart 204.1—Contract Execution 204.7101 Definitions. 204.7102 Policy. Sec. 204.7103 Contract line items. 204.101 Contracting officer’s signature. 204.7103–1 Criteria for establishing. 204.7103–2 Numbering procedures. Subpart 204.2—Contract Distribution 204.7104 Contract subline items. 204.201 Procedures. 204.7104–1 Criteria for establishing. 204.202 Agency distribution requirements. 204.7104–2 Numbering procedures. 204.203 Taxpayer identification information. 204.7105 Contract exhibits and attachments. 204.7106 Contract modifications. Subpart 204.4—Safeguarding Classified 204.7107 Contract accounting classification Information Within Industry reference number (ACRN). 204.402 General. Subpart 204.72—Contractor Identification 204.404 Contract clause. 204.404–70 Additional contract clauses. 204.7200 Scope of subpart. 204.7201 Definitions. Subpart 204.6—Contract Reporting 204.7202 General. 204.7202–1 CAGE codes. 204.600 Scope of subpart. 204.7202–2 DUNS numbers. 204.601 Record requirements. 204.7202–3 TINs. 204.602 Federal Procurement Data System. 204.7203 Responsibilities of contracting offi- 204.603 Solicitation provisions. cers. 204.670 Defense Contract Action Data Sys- 204.7204 Maintenance of the CAGE file. tem (DCADS). 204.7205 Novation agreements, mergers and 204.670–1 Definitions. sales of assets. 204.670–2 Reportable contracting actions. 204.7206 Using CAGE codes to identify 204.670–3 Contracting office responsibilities. agents and brokers. 204.670–4 Contract administration office re- 204.7207 Solicitation provision. sponsibilities. 204.670–5 Departmental data collection Subpart 204.73—Central Contractor point responsibilities. Registration 204.670–6 Types of DD Form 350 reports. 204.670–7 Security classification. 204.7300 Scope. 204.7301 Definitions. Subpart 204.8—Contract Files 204.7302 Policy. 204.7303 Procedures. 204.802 Contract files. 204.7304 Contract clause.
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AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- (C) Labor-hour; ter 1. (D) Fixed-price contracts with provi- SOURCE: 56 FR 36289, July 31, 1991, unless sions for redetermination, cost incen- otherwise noted. tives, economic price adjustment based on cost, or cost allowability; and Subpart 204.1—Contract (E) Any other contract that requires Execution audit service. (ii) If there is a question as to the ap- 204.101 Contracting officer’s signa- propriate DCAA field audit office, re- ture. quest the assistance of the DCAA pro- (a)(i) Include the contracting offi- curement liaison auditor or the nearest cer’s telephone number and, when DCAA field audit office. available, e-mail/Internet address on (f) Provide two copies to offices per- contracts and modifications. forming contract administration sup- (ii) The contracting officer may sign port functions. bilateral modifications of a letter con- [56 FR 36289, July 31, 1991, as amended at 59 tract before signature by the con- FR 27668, May 27, 1994; 63 FR 31935, June 11, tractor. 1998; 64 FR 51075, Sept. 21, 1999] [56 FR 36289, July 31, 1991, as amended at 63 204.202 Agency distribution require- FR 69006, Dec. 15, 1998] ments. (1) Distribute copies of contracts as Subpart 204.2—Contract follows— Distribution (i) Four copies to the contract ad- ministration office (send simulta- 204.201 Procedures. neously with the copy furnished under (1) The procuring contracting officer FAR 4.201(b)); (PCO) retains the original signed con- (ii) One copy to each consignee indi- tract for the official contract file. Ad- cated in the contract. A transshipping ministrative contracting officers and terminal is not a consignee. termination contracting officers pro- (A) Inventory control points that vide the original of each modification have an automated uniform inventory to the PCO for retention in the official control point data base that interfaces contract file. Unless otherwise directed with consignees may use their auto- by department/agency procedures, the mated procedure rather than sending a office issuing the orders maintains the written copy of the contract. However, original of orders under basic ordering when inspection is required at destina- agreements and the original of provi- tion, send a written copy to the con- sioning orders. signee. (2) Ensure that distribution of con- (B) The Defense Logistics Agency is tracts and modifications is consistent authorized to prescribe alternate pro- with security directives. cedures for distribution of contract (c) Distribute one copy to each De- documents in Defense Supply Center fense Finance and Accounting Service Philadelphia European Region; (DFAS) accounting station cited in the (iii) Two copies to the military inter- contract, in addition to the copy pro- departmental purchase request requir- vided to each DFAS funding office. ing activity in the case of coordinated (e)(i) Distribute one copy of each of acquisition; the following types of contracts or (iv) One copy to the contract admin- modifications to the appropriate De- istration office (CAO) automatic data fense Contract Audit Agency (DCAA) processing point, except when the field audit office (listed in DCAAP DoDAAD code is the same as that of ei- 5100.1, Directory of DCAA Offices, ther the CAO or the payment office available on the World Wide Web, (see the Federal Directory of Contract Internet address http:// Administration Services Components); www.deskbook.osd.mil, under reference and library documents)— (v) One copy, or an extract of the per- (A) Cost reimbursement; tinent information, to the cognizant (B) Time-and-materials; Defense Security Service office listed
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in DoD 5100.76–M, Physical Security of that requires the contractor to register Sensitive Conventional Arms, Ammu- in the Central Contractor Registration nition, and Explosives, when the clause (CCR) database (see subpart 207.73)— at 252.223–7007, Safeguarding Sensitive (i) The contracting officer issuing the Conventional Arms, Ammunition, and agreement or contract need not provide Explosives, is included in the contract. a copy of the completed solicitation (2) The activity executing a contract provision at FAR 52.204–3 or 52.212–3(b) modification shall furnish a copy of the to DoD contracting officers placing or- basic contract and all modifications ders under the agreement or contract; to— and (i) The new and old payment office (ii) A DoD contracting officer placing when adding or changing a payment of- an order under the agreement or con- fice; tract need not provide the TIN or type (ii) The new contract administration of organization information to the pay- office, a new consignee or other activ- ment office. ity, based on the extent to which each (3) For a non-DoD basic ordering activity is concerned with the basic agreement or indefinite-delivery con- contract and modifications. tract, a DoD contracting officer plac- (3) Distribution of modifications ing an order under the agreement or issued to provide initial or amended contract must use the procedures at shipping instructions under 204.7303(a)(2) to determine if the con- 204.7004(c)(3)(iii) and 204.7004(f) may be tractor is registered in the CCR data- limited to the following— base. (i) Contractor, one copy; (i) If the contractor is registered, the (ii) Receiving activity, one copy contracting officer need not provide each; the TIN or type of organization infor- (iii) Contract administration office, mation to the payment office. one copy; (ii) If the contractor is not reg- (iv) Payment office, one copy; and istered, the contracting officer must (v) Contract administration office follow the procedures at 204.7303(b). automatic data processing point, one copy. [64 FR 43099, Aug. 9, 1999] (4) Distribution of modifications gen- erated by automated means (computer Subpart 204.4—Safeguarding programs) may be limited to the fol- Classified Information Within lowing— Industry (i) Contractor, one copy; (ii) Contract administration office, 204.402 General. one copy; (1) Subpart 239.74 contains policy and (iii) New payment office, one copy; procedures for securing telecommuni- (iv) Procuring contracting office, one cations between Government agencies copy; and contractors and subcontractors. (v) Funding activities, one copy to (2) Pursuant to section 808 of Pub. L. each; and 102–190, DoD employees or members of (vi) Consignee, one copy to each. the Armed Forces who are assigned to [56 FR 36289, July 31, 1991, as amended at 61 or visiting a contractor facility and are FR 7742, Feb. 29, 1996; 63 FR 31935, June 11, engaged in oversight of an acquisition 1998; 64 FR 51075, Sept. 21, 1999; 64 FR 61028, program will retain control of their Nov. 9, 1999] work product. Classified work products of DoD employees or members of the 204.203 Taxpayer identification infor- Armed Forces shall be handled in ac- mation. cordance with DoD 5220.22–M, National (1) The procedures at FAR 4.203(a) Industrial Security Program Operating and (b) do not apply to contracts that Manual, and DoD 5220.22–R, Industrial include the clause at 252.204–7004, Re- Security Regulation. Contractor proce- quired Central Contractor Registra- dures for protecting against unauthor- tion. ized disclosure of information shall not (2) For a DoD basic ordering agree- require DoD employees or members of ment or indefinite-delivery contract the Armed Forces to relinquish control
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of their work products, whether classi- Contract Action Report. DoD uses the fied or not, to a contractor. DD Form 1057, Monthly Summary of Contracting Actions, instead of the SF [57 FR 14992, Apr. 23, 1992, as amended at 64 FR 51075, Sept. 21, 1999] 281, FPDS Summary Contract Action Report ($25,000 or Less). 204.404 Contract clause. [65 FR 39708, June 27, 2000]
204.404–70 Additional contract clauses. 204.603 Solicitation provisions. (a) Use the clause at 252.204–7000, Dis- Use the provision at FAR 52.204–6, closure of Information, in solicitations Data Universal Numbering System and contracts when the contractor will (DUNS) Number, in solicitations that’ have access to or generate unclassified (1) Have an estimated value exceed- information that may be sensitive and ing $25,000; or inappropriate for release to the public. (2) Have an estimated value of $25,000 (b) Use the clause at 252.204–7003, Con- or less and include the clause at trol of Government Personnel Work 252.204–7004, Required Central Con- Product, in all solicitations and con- tractor Registration. tracts. [66 FR 47096, Sept. 11, 2001] (c) Use the clause at 252.204–7005, Oral Attestation of Security Responsibil- 204.670 Defense Contract Action Data ities, in solicitations and contracts System (DCADS). that include the clause at FAR 52.204– 2, Security Requirements. 204.670–1 Definitions. [57 FR 14992, Apr. 23, 1992, as amended at 64 As used in this section and 253.204–70 FR 45197, Aug. 19, 1999] and 253.204–71— (a) Contract administration office Subpart 204.6—Contract Reporting means an office, other than the con- tracting office, which awards or exe- 204.600 Scope of subpart. cutes contracting actions on behalf of the contracting office, including ac- The Defense Contract Action Data tions relating to the settlement of ter- System (DCADS) (see 204.670) is the minated contracts. DoD reporting system that supports (b) Contracting action means any ac- the uniform reporting requirements tion related to the purchasing, renting, for— or leasing of supplies, services, or con- (1) DD Form 350, Individual Con- struction. The term does not include tracting Action Report; and grants or cooperative agreements. The (2) DD Form 1057, Monthly Summary term includes, but is not limited to, of Contracting Actions. the following: [65 FR 39708, June 27, 2000] (1) Definitive contracts, including no- tices of award. 204.601 Record requirements. (2) Letter contracts. (a) The DCADS meets FAR Subpart (3) Purchase orders. 4.6 record retention requirements. (4) Purchases made using the Govern- (d) The Directorate for Information, mentwide commercial purchase card. Operation, and Reports (DIOR), of the (5) Actions for purchase of land or Washington Headquarters Services rental or lease of real property. (6) Orders under existing contracts or (WHS) transmits required DoD infor- agreements, — mation to the Federal Procurement e.g. (i) Orders against basic ordering Data System. agreements, including service orders [65 FR 39708, June 27, 2000] issued on DD Form 1164, Service Order for Personal Property, by installation 204.602 Federal Procurement Data transportation offices; System. (ii) Calls against blanket purchase (c) DoD uses the DD Form 350, Indi- agreements; vidual Contracting Action Report, in- (iii) Job orders; stead of the SF 279, Federal Procure- (iv) Task orders; ment Data System (FPDS) Individual (v) Delivery orders;
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(vi) Communication services author- 204.670–2 Reportable contracting ac- izations; and tions. (vii) Notices of termination or can- (a) Except as provided in paragraph cellation. (c) of this subsection, complete a DD (7) Contract modifications, e.g.— Form 350 for the following types of con- (i) Change orders; tracting actions in accordance with the (ii) Supplemental agreements; instructions in 253.204–70: (iii) Funding actions; and (1) Actions that obligate or (iv) Option exercises. deobligate more than $25,000, except ac- (c) Departmental data collection points tions summarized on DD Form 1057 in means— accordance with paragraph (b)(2) or (3) (1) For the Army (including Corps of of this subsection. Engineers Civil Works): Department of (2) Actions that obligate or the Army, ATTN: SAAL-PA, 5109 Lees- deobligate $25,000 or less and are— burg Pike, Suite 302, Falls Church, VA (i) Under a very small business set- 22041–3201. aside (see FAR Subpart 19.9); (2) For the Navy: Fleet Industrial (ii) Requirements that DoD is proc- Supply Center, Norfolk Detachment essing for a non-DoD Federal agency; Washington, DC, ATTN: PMRS, Code or 02W4.A, 1014 N Street SE, Suite 400, Washington Navy Yard, Washington, (iii) In a designated industry group DC 20374–5014. under the Small Business Competitive- (3) For the Air Force: SAF/AQCX, ness Demonstration Program (see FAR 1060 Air Force Pentagon, Washington, Subpart 19.10), except for— DC 20330–1060. (A) Foreign military sales; (4) For the Defense Logistics Agency: (B) Orders or modifications under Headquarters, Defense Logistics Agen- Federal schedules; cy, ATTN: Procurement Management (C) Actions with government agen- Directorate (Acquisition Programs cies; Team), 8725 John J. Kingman Road, (D) Actions with non-U.S. business Suite 3147, Fort Belvoir, VA 22060–6221. firms; and (5) For other DoD contracting activi- (E) Actions where the place of per- ties: Department of the Army, ATTN: formance is other than the United SAAL-PA, 5109 Leesburg Pike, Suite States and its outlying areas. 302, Falls Church, VA 22041–3201. (3) Actions that establish an indefi- (d) United States and outlying areas is nite-delivery contract not reported defined in Federal Information Proc- under other paragraphs of this sub- essing Standard Publication (FIPS section. PUB) 55, Guideline: Codes for Named (4) Actions of any dollar value that Populated Places, Primary County Di- the contracting office chooses to report visions, and Other Locational Entities on a DD Form 350. of the United States and Outlying (b) Except as provided in paragraph Areas. Outlying areas are— (c) of this subsection, summarize the (1) American Samoa; following types of contracting actions (2) The Federated States of Micro- on the monthly DD Form 1057 in ac- nesia; cordance with the instructions in (3) Guam; 253.204–71: (4) The Marshall Islands; (1) Actions that obligate or (5) Northern Mariana Islands; deobligate $25,000 or less, except ac- (6) The Trust Territory of Palau; tions reported on DD Form 350 in ac- (7) Puerto Rico; cordance with paragraph (a)(2), (3), or (8) The U.S. Minor Outlying Islands; (4) of this subsection. and (2) Actions that obligate or (9) The U.S. Virgin Islands. deobligate more than $25,000, but not more than $200,000, and support— [56 FR 36289, July 31, 1991, as amended at 60 FR 61592, Nov. 30, 1995; 61 FR 51030, Sept. 30, (i) A contingency operation as de- 1996; 62 FR 34121, June 24, 1997; 64 FR 51075, fined in 10 U.S.C. 101(a)(13); or Sept. 21, 1999; 65 FR 39708, June 27, 2000; 66 FR (ii) A humanitarian or peacekeeping 47096, Sept. 11, 2001] operation as defined in 10 U.S.C. 2302(8).
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(3) Actions that obligate or when the contract is established. For deobligate more than $25,000, but not actions accomplished by a contract ad- more than $200,000, and are placed by a ministration office, complete the DD contracting officer on a Navy vessel. Form 350 upon receipt of the contrac- (c) Do not report the following types tual instrument annotated ‘‘DD FORM of contracting action on either the DD 350 REPORTING COPY.’’ Form 350 or DD Form 1057: (3) Submit all DD Forms 350 for the (1) Imprest fund transactions, SF 44 calendar month to the departmental purchases, and micro-purchases ob- data collection point (see 204.670–1(c)) tained through use of the Government- in accordance with departmental or wide commercial purchase card. agency procedures. (2) Transactions that cite only non- (4) Prepare and submit a corrected or appropriated funds (Treat funds held in canceling DD Form 350 as required in trust accounts for foreign governments accordance with departmental data as appropriated funds). collection point instructions. (3) Transactions for purchase of land, (5) Establish a control system for as- or rental or lease of real property, signing report numbers to DD Forms when the General Services Administra- 350 (Line A2 of the DD Form 350). The tion (GSA) executes the action. number must have six positions and (4) Orders from GSA stock and the may be any combination of alpha or GSA Consolidated Purchase Program. numeric characters. If more than one (5) Transactions that involve Govern- activity within a contracting office ment bills of lading or transportation uses the same reporting office code, the requests, except orders placed under contracting office must assign separate Regional Storage Management Office blocks of numbers to each activity to basic ordering agreements. prevent duplication of report numbers. (6) Requisitions transferring supplies (6) Maintain the DD Form 350 in the within or among the departments or contract file in any medium, in accord- agencies. ance with departmental or agency pro- (7) Pursuant to 204.670–6(b), orders cedures. placed by other contracting activities (b) For DD Form 1057, contracting of- against indefinite-delivery contracts fices— awarded by the— (1) Prepare a DD Form 1057, in ac- (i) Military Traffic Management cordance with the instructions in Command; 253.204–71, covering reportable con- (ii) Defense Energy Support Center tracting actions (see 204.670–2(b)), in- for petroleum and petroleum products; cluding actions accomplished by con- or tract administration offices on behalf (iii) Defense Supply Center, Rich- of the contracting office. An installa- mond, for petroleum products tion, base, or other activity may have [64 FR 45197, Aug. 19, 1999; 64 FR 52670, Sept. more than one contracting office code 30, 1999, as amended at 65 FR 39708, June 27, to separate the various types of acqui- 2000; 66 FR 47097, Sept. 11, 2001] sitions, such as base and central con- tracting, or RDT&E and non-RDT&E 204.670–3 Contracting office respon- acquisition. Each contracting office sibilities. with a separate code must submit its (a) For DD Form 350, contracting of- own DD Form 1057. fices— (2) Complete the DD Form 1057 with- (1) Prepare the appropriate type of in three working days after the cutoff DD Form 350 (see 204.670–6) in accord- of the reporting month. Contracting of- ance with the instructions in 253.204–70, fices may not cut off the reporting for all reportable contracting actions month before the 25th calendar day. (see 204.670–2(a)), including actions ac- The cutoff date for September is Sep- complished by contract administration tember 30. Submit the DD Form 1057 to offices on behalf of the contracting of- the departmental data collection point fice. in accordance with departmental or (2) Complete the DD Form 350 when agency procedures. funds are obligated or deobligated or, (3) Unless otherwise instructed by in the case of actions with no funds, the departmental data collection point,
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do not submit revised DD Form 1057 re- 204.670–6 Types of DD Form 350 re- ports. Include any required corrections ports. or adjustments in following month’s There are three types of reports—sin- report. gle, consolidated, and multiple. [65 FR 39708, June 27, 2000, as amended at 66 (a) A single report is one DD Form FR 47097, Sept. 11, 2001] 350 report per action. (b) A consolidated report combines 204.670–4 Contract administration of- several actions. fice responsibilities. (1) Prepare consolidated reports for— Contract administration offices exe- (i) Military Traffic Management cuting actions subject to DD Form 350 Command awards of indefinite-delivery or DD Form 1057 reporting must submit contracts for ocean transportation. an annotated copy of the contractual The Command reports at the beginning instrument to the contracting office so of each fiscal year the estimated value that the contracting office can submit of the orders for that fiscal year on one the required report. DD Form 350. (a) For DD Form 350, annotate in the (ii) Defense Energy Support Center or heading of the contractual instrument Defense Supply Center, Richmond, in- in large block letters ‘‘DD FORM 350 definite-delivery contracts for petro- REPORTING COPY.’’ Send the anno- leum or petroleum supplies. The Cen- tated copy to the contracting office ters, at the time of award, report the within one working day after the ac- estimated value of the orders to be tion date. placed against the contract on one DD (b) For DD Form 1057, annotate in Form 350. the heading of the contractual instru- (iii) Orders placed by the Defense ment in large block letters ‘‘DD FORM Commissary Agency (DeCA) for resale 1057 REPORTING COPY.’’ Send the an- items over $25,000. DeCA consolidates notated copy with the normal distribu- the orders monthly and reports the cu- tion. mulative dollar amounts and actions on one DD Form 350 in accordance with [65 FR 39709, June 27, 2000] agency procedures. (iv) Vouchers processed by the U.S. 204.670–5 Departmental data collec- tion point responsibilities. Army Contracting Command, Europe (USACCE), for the purchase of utilities Departmental data collection from municipalities (e.g., gas, elec- points— tricity, water, sewage, steam, snow re- (a) Collect DD Forms 350 and 1057 moval, and garbage collection). data provided by their contracting of- USACCE consolidates these trans- fices; actions monthly and reports the cumu- (b) Electronically record the data in lative dollar amount on one DD Form accordance with the instructions for 350 in accordance with departmental recording and editing developed by procedures. WHS–DIOR with the majority agree- (2) Consolidated reports may be pre- ment of the departments and agencies pared in accordance with departmental and prescribed by the Director of De- or agency procedures for orders under fense Procurement; and communications service agreements (c) Submit monthly reports (non- for local dial tone services. cumulative) to Washington Head- (c) A multiple report is more than quarters Services, ATTN: DIOR, within one DD Form 350 per contracting ac- 18 days after the close of the reporting tion. Prepare multiple reports if— period, except the due date for Sep- (1) The action includes foreign mili- tember may be extended for no more tary sales (FMS) requirements in addi- than ten days. Report Control Symbol tion to non-FMS requirements (Line B9 DD–AT&L(M)1014 applies to reports for on the DD Form 350). Submit one DD DD Form 350 actions, and Report Con- Form 350 report for the FMS require- trol Symbol DD–AT&L(M)1015 applies ments and another DD Form 350 report to reports for DD Form 1057 actions. for the non-FMS requirements, except [65 FR 39709, June 27, 2000, as amended at 66 if either of the portions is $25,000 or FR 47097, Sept. 11, 2001] less, report the $25,000 or less portion
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on a DD Form 1057 instead of a DD 204.804 Closeout of contract files. Form 350. Normally, the closeout date for con- (2) The action includes more than one type of contract (Line C5 on the DD tract files is the date in Block 9d on Form 350) and the type with the least the DD Form 1594, Contract Comple- dollar value exceeds $500,000. Prepare a tion Statement, or in columns 59–65 on separate DD Form 350 for each contract the PK9. If the contracting office must type. do a major closeout action that will (3) The action includes non-DoD Fed- take longer than three months after eral agency requirements and DoD re- the date shown in Block 9d of the DD quirements. Submit one DD Form 350 Form 1594, or in columns 59–65 of the for the non-DoD requirements and an- PK9— other DD Form 350 for the DoD require- (1) The closeout date for file purposes ments. If the DoD portion is $25,000 or will be the date in Block 10e of the DD less, report the DoD portion on a DD Form 1594 or the date of the closeout Form 1057 instead of a DD Form 350. statement executed when the [65 FR 39709, June 27, 2000, as amended at 66 MILSCAP PK9 is received. FR 47097, Sept. 11, 2001] (2) The contracting office shall notify the contract administration office of 204.670–7 Security classification. the revised closeout date by either Submit DD Forms 350 as unclassified sending a copy of the completed DD documents. Classified contracts are not Form 1594 or by preparing a MILSCAP exempt from reporting solely because Format Identifier PKZ, Contract Close- the contract is classified. Contact the out Extension. appropriate departmental data collec- tion points for special instructions if it 204.804–1 Closeout by the office ad- is necessary for security reasons to ministering the contract. modify coding of any information on (1) For contracting offices admin- the DD Form 350. If contact cannot be istering their own contracts, locally made for security reasons, obtain in- developed forms or statement of com- structions from the Director of Secu- pletion may be used instead of the DD rity, Office of the Assistant Secretary Form 1594, Contract Completion State- of Defense (Command, Control, Com- ment. Whichever method is used, the munications, and Intelligence), (703) form shall be retained in the official 614–0578, or DSN 224–0578. contract file. [65 FR 39709, June 27, 2000] (2) For contracts valued above the simplified acquisition threshold, pre- Subpart 204.8—Contract Files pare a DD Form 1597, Contract Close- out Check List, (or agency equivalent) 204.802 Contract files. to ensure that all required contract ac- Official contract files shall consist tions have been satisfactorily accom- of— plished. (1) Only original, authenticated or conformed copies of contractual instru- [56 FR 36289, July 31, 1991, as amended at 64 FR 2596, Jan. 15, 1999] ments— (i) Authenticated copies means copies 204.804–2 Closeout of the contracting that are shown to be genuine in one of office files if another office admin- two ways— isters the contract. (A) Certification as true copy by sig- nature of an authorized person; or (1) When an office, other than the (B) Official seal. contracting office, administers the (ii) Conformed copies means copies contract, it shall— that are complete and accurate, includ- (i) Provide the contracting office an ing the date signed and the names and interim contract completion statement titles of the parties who signed them. when the contract is physically com- (2) Signed or official record copies of pleted and accepted. This notice may correspondence, memoranda, and other be in the form of either a DD Form documents. 1594, Contract Completion Statement,
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or a MILSCAP Format Identifier In- (Procurement, Supply, and Grant terim PK9, Contract Physical Comple- Records) and General Records Schedule tion. When the DD Form 1594 is used, 6 (Accountable Officers’ Accounts the contracting officer— Records). Copies of the General (A) Annotates Block 8, Remarks, Records Schedule may be obtained with— from the National Archives and (1) ‘‘Notice of Physical Completion;’’ Records Administration, Washington, (2) Final acceptance date; DC 20408. (3) Signature of a responsible official; (2) Deviations from the periods can- and not be granted by the Defense Acquisi- (4) Date signed. tion Regulatory Council. Forward re- (B) Does not complete Blocks 9 (b), (c), and (d) at this time; quests for deviations to both the Gen- (ii) Prepare a DD Form 1597, Contract eral Accounting Office and the Na- Closeout Check List, if necessary, to tional Archives and Records Adminis- determine that all the required actions tration. have been done; (3) Hold completed contract files in (iii) Initiate DD Form 1593, Contract the office responsible for maintaining Administration Completion Record, if them for a period of 12 months after necessary to obtain statements from completion. After the initial 12 month other organizational elements that period, send the records to the local they have completed the actions they records holding or staging area until are responsible for; and they are eligible for destruction. If no (iv) Upon final payment— space is available locally, transfer the (A) Process the DD Form 1594 with files to the General Services Adminis- Blocks 1 through 9 completed or the tration Federal Records Center that MILSCAP Format Identifier PK9 services the area. verifying that all contract administra- (4) Duplicate or working contract tion office actions have been done; and files should contain no originals of ma- (B) Send the original of the DD Form terials that properly belong in the offi- 1594 or the MILSCAP Format Identifier cial files. Destroy working files as soon PK9 to the contracting office, and file a copy in the official contract file. as practicable once they are no longer (2) If the administrative contracting needed. officer (ACO) cannot closeout a con- (5) Retain pricing review files, con- tract within the specified time period taining documents related to reviews (see FAR 4.804–1), the ACO must notify of the contractor’s price proposals, sub- the procuring contracting officer (PCO) ject to cost or pricing data (see FAR within 45 days after the expiration of 15.403–4), for six years. If it is impos- the time period of— sible to determine the final payment (i) The reasons for the delay; and date in order to measure the six year (ii) New target date for closeout. If period, retain the files for nine years. MILSCAP procedures apply, the ACO shall use the MILSCAP Format Identi- [56 FR 36289, July 31, 1991, as amended at 62 FR 40472, July 29, 1997; 63 FR 11528, Mar. 9, fier PKX, Unclosed Contract Status, to 1998] provide this notice to the PCO. (3) If the contract still is not closed out by the new target date, the ACO Subpart 204.9—Taxpayer shall again notify the PCO with the Identification Number Information reasons for delay and new target date. If MILSCAP procedures apply, con- SOURCE: 64 FR 43099, Aug. 9, 1999, unless tinue to use the MILSCAP Format otherwise noted. Identifier PKX, Unclosed Contract Sta- tus, to provide this notice. 204.902 General.
204.805 Disposal of contract files. (b) DoD uses DD Form 350, Individual Contracting Action Report, (see 204.670) (1) The sources of the period for to meet these reporting requirements. which official contract files must be re- tained are General Records Schedule 3 [64 FR 43099, Aug. 9, 1999]
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204.904 Reporting payment informa- (2) Unless an exception in paragraph tion to the IRS. (1) of this section applies, the con- (1) 26 U.S.C. 6041 and 6041A and 26 tracting officer must provide, as the CFR 1.6041 require Government payors last page of the copy of the contract to report to the IRS, on IRS Form 1099, sent to the payment office— payments of an annual cumulative (i) A statement that the contractor is value of $600 or more provided to a con- providing services subject to Form 1099 tractor, except payments for— payment information reporting to the (i) Supplies, unless the supplies are IRS, as required by 26 U.S.C. 6041 and incidental to the furnishing of services; 6041A; and (ii) Telegram, telephone, freight, (ii) The contractor’s Taxpayer Identi- storage, or similar charges; fication Number and type of organiza- tion, if the contract does not include (iii) Income that the payor must re- the clause at 252.204–7004, Required port on IRS Form W–2 (e.g., payments Central Contractor Registration. to employees or payments under con- tracts for personal services); 204.905 Solicitation provision. (iv) Any contract with a Federal agency; Do not use the provision at FAR (v) Any contract with a State, the 52.204–3, Taxpayer Identification, in so- District of Columbia, or a possession of licitations that include the clause at the United States; or a political sub- 252.204–7004, Required Central Con- division, agency, or instrumentality of tractor Registration. any of the foregoing; (vi) Any contract with an organiza- Subpart 204.70—Uniform Procure- tion exempted from taxation by 26 ment Instrument Identification U.S.C. 501(a). Such organizations may Numbers include charitable, social welfare, labor, agricultural, veterans’, and po- 204.7000 Scope. litical organizations; business leagues; This subpart prescribes policies and social clubs; fraternal societies; and procedures for assigning numbers to all employees’ associations. Contracting solicitations, contracts, and related in- officers may obtain additional informa- struments. This subpart— tion to assist in determining an organi- (a) Does not apply to solicitations or zation’s tax-exempt status via the contracts issued by the Defense Com- Internet at http://www.irs.ustreas.gov/ mercial Communications Office of the prod/buslinfo/eo/eo-types.html; Defense Information Systems Agency; (vii) Any contract with a foreign gov- and ernment or a political subdivision of a (b) Is optional for solicitations and foreign government; contracts that will be completely ad- (viii) Any contract with an inter- ministered by the purchasing office or national organization listed in 22 the consignee, except that— U.S.C. 288; (1) The procurement instrument iden- (ix) Any classified contract excepted tification (PII) number, including sup- by 26 U.S.C. 6050M. As used in this sec- plemental modification numbers, shall tion only, a contract is classified if— not exceed 19 characters (excluding hy- (A) DoD designates the existence of phens); and the contract or the contract subject (2) The number shall begin with the matter as classified (i.e., the contract purchasing office identifier and the fis- requires a specific degree of protection cal year in accordance with 204.7003(a) against unauthorized disclosure for (1) and (2) and appendix G. reasons of national security); or [56 FR 36289, July 31, 1991, as amended at 56 (B) The head of the agency deter- FR 67212, Dec. 30, 1991] mines that filing IRS Form 1099 would interfere with the effective conduct of 204.7001 Policy. a confidential law enforcement or for- (a) Use the uniform PII numbering eign intelligence activity; or system prescribed by this subpart for (x) Such other services as the IRS the solicitation/contract instruments may specify in regulations. described in 204.7003 and 204.7004.
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(b) Retain the basic PII number un- (ii) Issuing office identification. The changed for the life of the instrument. remaining positions are the alpha-nu- meric characters that identify the 204.7002 Procedures. issuing office. These characters are in (a) In assigning PII numbers— appendix G. (1) Use only the alpha-numeric char- (iii) Use all six positions. If nec- acters, as prescribed in this subpart; essary, enter zeros between the depart- and ment/agency identifier and the issuing (2) Do not use the letter ‘‘I’’ or ‘‘O’’. office identifier. (b) If department/agency procedures (2) Positions 7 through 8. The seventh require other identification on the so- and eighth positions are the last two licitation, contract, or other related digits of the fiscal year in which the instrument forms, enter it in such a lo- PII number was assigned. cation so as to separate it clearly from (3) Position 9. Indicate the type of in- the PII number. strument by entering one of the fol- (c) Enter the basic PII number, in- lowing upper case letters in position cluding Federal supply contract num- nine— bers and any supplementary numbers, (i) Blanket purchase agreements—A in the spaces provided on the solicita- (ii) Invitations for bids—B tion, contract, or related instrument (iii) Contracts of all types except in- forms. Separate the major elements by definite delivery contracts, facilities dashes, e.g., N00023–90–D–0009. If there contracts, sales contracts, and con- is no space provided on the form, enter tracts placed with or through other the number in the upper right corner of Government departments or agencies the form and identify what it is (e.g., or against contracts placed by such de- Supplementary Number N00023–90–F– partments or agencies outside the 0120). DoD—C [56 FR 36289, July 31, 1991, as amended at 65 (iv) Indefinite delivery contracts—D FR 14398, Mar. 16, 2000] (v) Facilities contracts—E (vi) Contracting actions placed with 204.7003 Basic PII number. or through other Government depart- (a) Elements of a number. The number ments or agencies or against contracts consists of 13 alpha-numeric characters placed by such departments or agencies grouped to convey certain information. outside the DoD (including actions (1) Positions 1 through 6. The first of with the National Industries for the the six positions, in upper case letters, Blind (NIB), the National Industries for identify the department/agency and of- the Severely Handicapped (NISH), and fice issuing the instrument. the Federal Prison Industries (i) Department/agency identification: (UNICOR))—F (A) Department of the Army ...... DA (vii) Basic ordering agreements—G (B) Department of the Navy (ex- N (viii) Agreements, including basic cept Marine Corps). agreements and loan agreements, but (C) Department of the Air Force F excluding blanket purchase agree- (D) Defense Information Systems DCA ments, basic ordering agreements, and Agency. leases—H (E) Defense Logistics Agency ..... S (ix) Do not use—I (F) Defense Threat Reduction DTRA (x) Reserved—J Agency. (G) National Imagery and Map- NMA (xi) Short form research contract—K ping Agency. (xii) Lease agreement—L (H) Miscellaneous Defense Ac- MDA (xiii) Purchase orders—manual (as- tivities. sign W when numbering capacity of M (I) Marine Corps ...... M is exhausted during the fiscal year)—M (J) Ballistic Missile Defense Or- HQ0006 (xiv) Notice of intent to purchase—N ganization. and (xv) Do not use—O H95001 (xvi) Purchase order—automated (as- (K) Defense Commissary Agency DECA (L) United States Special Oper- USZA sign V when numbering capacity of P is ations Command. exhausted during a fiscal year)—P (M) Defense Microelectronics Ac- DMEA (xvii) Request for quotation—man- tivity. ual—Q
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(xviii) Request for proposal—R (4) Position 10 through 13. Enter the (xix) Sales contract—S serial number of the instrument in (xx) Request for quotation—auto- these positions. A separate series of se- mated (assign U when numbering ca- rial numbers may be used for any type pacity of T is exhausted during a fiscal of instrument listed in paragraph (a)(3) year)—T of this section. Activities shall assign (xxi) See T—U such series of PII numbers sequen- (xxii) See P—V tially. An activity may reserve blocks (xxiii) See M—W of numbers or alpha-numeric numbers (xxiv) Reserved for departmental use—X for use by its various components. (xxv) Imprest fund—Y (b) Illustration of PII number. The fol- (xxvi) Reserved for departmental lowing illustrates a properly config- use—Z ured PII number—
[56 FR 36289, July 31, 1991, as amended at 56 FR 67212, Dec. 30, 1991; 59 FR 27668, May 27, 1994; 60 FR 61592, Nov. 30, 1995; 61 FR 50451, Sept. 26, 1996; 62 FR 34121, June 24, 1997; 64 FR 51075, Sept. 21, 1999; 65 FR 14398, Mar. 16, 2000; 65 FR 39704, June 27, 2000]
204.7004 Supplementary PII numbers. PII number and beginning with 0001, e.g., N00062–91–R–1234–0001. (a) Uses of the supplementary number. Use supplementary numbers with the (c) Modifications to contracts and basic PII number, to identify— agreements. (1) Number modifications to (1) Amendments to solicitations; contracts and agreements using a six (2) Modifications to contracts and position alpha-numeric added to the agreements, including provisioned item basic PII number. orders; and (2) Position 1. Identify the office (3) Calls or orders under contracts, issuing the modification— basic ordering agreements, or blanket (i) Contract administration office—A purchase agreements, issued by the (ii) Contracting office—P contracting office or by a DoD activity (3) Positions 2 through 3. These are the other than the contracting office, in- first two digits in a serial number. cluding DoD orders against Federal They may be either alpha or numeric. supply schedules. Use the letters K, L, M, N, P, Q, S, T, (b) Amendments to solicitations. Num- U, V, W, X, Y, or Z only in the second ber amendments to solicitations se- position and only in the following cir- quentially using a four position nu- cumstances— meric serial number added to the basic
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(i) Use K, L, M, N, P, and Q in the (6) Each office authorized to issue second position only if the modifica- modifications shall assign the supple- tion is issued by the Air Force and is a mentary identification numbers in se- provisioned item order. quence. Do not assign the numbers (ii) Use S, and only S, in the second until it has been determined that a position to identify modifications modification is to be issued. issued to provide initial or amended (d) Delivery orders under indefinite de- shipping instructions when— livery contracts, orders under basic order- (A) The contract has either FOB ori- ing agreements, and calls under blanket gin or destination delivery terms; and purchase agreements. (1) Calls or orders (B) The price changes. issued by the office issuing the con- (iii) Use T, U, V, W, X, or Y, and only tract or agreement. Use a four position those characters, in the second posi- alpha-numeric call or order serial num- tion to identify modifications issued to ber added to the basic PII number. provide initial or amended shipping in- These shall be identified by using se- structions when— rial numbers beginning 0001 through (A) The contract has FOB origin de- 9999. When the numeric identifiers run livery terms; and out, use alpha characters in the third (B) The price does not change. and fourth positions. Never use alpha (iv) Only use Z in the second position characters in the first and second posi- to identify a modification which defini- tions. tizes a letter contract. (2) Orders placed against another ac- (4) Positions 4 through 6. These posi- tivity’s contract or agreement. tions are always numeric. Use a sepa- (i) If the office placing the order or rate series of serial numbers for each call is different from the office identi- type of modification listed in para- fied in the basic PII number, assign a graph (c)(3) of this section. Examples of serial number to the order or call. The proper numbering for positions 2–6 (the first and second positions contain the first position will be either ‘‘A’’ or call/order code assigned to the ordering ‘‘P’’) are as follows: office by appendix G. Do not use the letters A or P in the first position. The Provisioned items third and fourth positions are a two po- order (reserved Shipping instruc- sition serial number assigned by the Normal modification for exclusive use tions by the Air Force ordering office. The series will begin only) with 01. When the numbers exceed 99, 00001–99999 ...... K0001–K9999 S0001–S9999 the office will assign a uniform series then ...... KA001–KZ999 SA001–SZ999 of identifiers containing alpha and/or A0001–A9999 ...... L0001–L9999 T0001–T9999 numeric characters, e.g., Basic #: B0001–B9999 ...... LA001–LZ999 TA001–TZ999 and so on to ...... M0001–M9999 U0001–U9999 N00383–91–D–0001 serial #: TU01. H0001–H9999 ...... MA001–MZ999 UA001–UZ999 (ii) If an office is placing calls or or- then ...... N0001–N9999 V0001–V9999 ders with NIB, NISH, or UNICOR, the J0001–J9999 ...... NA001–NZ999 VA001–VZ999 then ...... P0001–P9999 W0001–W9999 office shall identify the instrument R0001–R9999 ...... PA001–PZ999 WA001–WZ999 with a 13 position supplementary PII then ...... Q0001–Q9999 X0001–X9999 number using an F in the 9th position. AA001–HZ999 ...... QA001–QZ999 XA001–XZ999 Modifications to these calls or orders then ...... Y0001–Y9999 JA001–JZ999 ...... YA001–YZ999 shall be numbered in accordance with RA001–RZ999. paragraph (c) of this section, e.g., Order #: DLA100–91–F–0001 modification (5) If the contract administration of- #: A00001. fice is changing the contract adminis- (e) Modifications to calls or orders. Use tration or disbursement office for the a two position alpha-numeric suffix, first time and is using computer gen- known as a call or order modification erated modifications to notify many indicator, to identify a modification to offices, it uses the six position supple- a call or order. mentary number ARZ999. If either of- (1) Modifications to a call or order fice has to be changed again during the issued by a purchasing office begin life of the contract, the supplementary with 01, 02, and so on through 99, then number will be ARZ998, and on down as B1 through B9, BA through BZ, C1 needed. through C9, and so on through ZZ.
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(2) Modifications to a call or order (1) Solicitations; issued by a contract administration of- (2) Solicitation line and subline item fice begin with 1A, 1B, and so on numbers, if practicable; through 9Z, followed by A1, A2, and so (3) Contracts as defined in FAR Sub- on to A9, then AA, AB, and so on part 2.1; through AZ. (4) Contract line and subline item numbers; Subpart 204.71—Uniform Contract (5) Exhibits; Line Item Numbering System (6) Exhibit line and subline items; and 204.7100 Scope. (7) Any other document expected to become part of the contract. This subpart prescribes policies and (b) The numbering procedures are procedures for assigning contract line mandatory for all contracts where sep- item numbers. arate contract line item numbers are 204.7101 Definitions. assigned, unless— (1) There are no postaward contract Accounting classification reference administration functions that the con- number (ACRN) means a two position tracting officer will assign to an office alpha or alpha/numeric control code listed in the Federal Directory of Con- used as a method of relating the ac- tract Administration Services Compo- counting classification citation to de- nents; tailed line item information contained (2) The contract is an indefinite de- in the schedule. livery type for petroleum products Attachment means any documenta- against which posts, camps, and sta- tion, appended to a contract or incor- tions issue delivery orders for products porated by reference, which does not to be consumed by them; or establish a requirement for (3) The contract is a communications deliverables. service authorization issued by the De- Definitized item, as used in this sub- fense Information Systems Agency’s part, means an item for which a firm Defense Information Technology Con- price has been established in the basic tracting Organization. contract or by modification. Exhibit means a document, referred [56 FR 36289, July 31, 1991, as amended at 56 to in a contract, which is attached and FR 67212, Dec. 30, 1991; 60 FR 34468, July 3, establishes requirements for 1995; 64 FR 61028, Nov. 9, 1999] deliverables. The term shall not be 204.7103 Contract line items. used to refer to any other kind of at- tachment to a contract. The DD Form 204.7103–1 Criteria for establishing. 1423, Contract Data Requirements List, Contracts shall identify the items or is always an exhibit, rather than an at- services to be acquired as separate con- tachment. tract line items unless it is not feasible Nonseverable deliverable, as used in to do so. this subpart, means a deliverable item (a) Contract line items shall have all that is a single end product or under- four of the following characteristics; taking, entire in nature, that cannot however, there are exceptions within be feasibly subdivided into discrete ele- the characteristics, which may make ments or phases without losing its establishing a separate contract line identity. item appropriate even though one of Undefinitized item, as used in this sub- the characteristics appears to be miss- part, means an item for which a price ing— has not been established in the basic (1) Single unit price. The item shall contract or by modification. have a single unit price or a single [56 FR 36289, July 31, 1991, as amended at 60 total price, except— FR 34468, July 3, 1995] (i) If the item is not separately priced (NSP) but the price is included in the 204.7102 Policy. unit price of another contract line (a) The numbering procedures of this item, enter NSP instead of the unit subpart shall apply to all— price;
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(ii) When there are associated subline its own delivery schedule, period of items, established for other than infor- performance, or completion date ex- mational reasons, and those subline pressly stated (‘‘as required’’ con- items are priced in accordance with stitutes an expressly stated delivery 204.7104; term). (iii) When the items or services are (i) The fact that there is more than being acquired on a cost-reimburse- one delivery date, destination, per- ment contract; formance date, or performance point (iv) When the contract is for mainte- may be a determining factor in the de- nance and repair services (e.g., a labor cision as to whether to establish more hour contract) and firm prices have than one contract line item. been established for elements of the (ii) If a contract line item has more total price of an item but the actual than one destination or delivery date, number and quantity of the elements the contracting officer may create in- are not known until performance. The dividual contract line items for the dif- contracting officer may structure these ferent destinations or delivery dates, contracts to reflect a firm or estimated or may specify the different delivery total amount for each line item; dates for the units by destination in (v) When the contract line item is es- the delivery schedule. tablished to refer to an exhibit or an (4) Single accounting classification cita- attachment (if management needs dic- tion. (i) Each contract line item shall tate that a unit price be entered, the reference a single accounting classi- price shall be set forth in the item de- fication citation except as provided in scription block and enclosed in paren- paragraph (a)(4)(ii) of this subsection. theses); or (ii) The use of multiple accounting (vi) When the contract is an indefi- classification citations for a contract nite delivery type contract and pro- line item is authorized in the following vides that the price of an item shall be situations: determined at the time a delivery (A) A single, nonseverable deliverable order is placed and the price is influ- to be paid for with R&D or other funds enced by such factors as the quantity properly incrementally obligated over ordered (e.g., 10–99 @ $1.00, 100–249 @ several fiscal years in accordance with $.98, 250+ @ $.95), the destination, the DoD policy; FOB point, or the type of packaging re- (B) A single, nonseverable deliverable quired. to be paid for with different authoriza- (2) Separately identifiable. A contract tions or appropriations, such as in the line item must be identified separately acquisition of a satellite or the modi- from any other items or services on the fication of production tooling used to contract. produce items being acquired by sev- (i) Supplies are separately identifi- eral activities; or able if they have no more than one— (C) A modification to an existing con- (A) National stock number (NSN); tract line item for a nonseverable de- (B) Item description; or liverable that results in the delivery of (C) Manufacturer’s part number. a modified item(s) where the item(s) (ii) Services are separately identifi- and modification are to be paid for able if they have no more than one— with different accounting classification (A) Scope of work; or citations. (B) Description of services. (iii) When the use of multiple ac- (iii) This requirement does not apply counting classification citations is au- if there are associated subline items, thorized for a single contract line item, established for other than informa- establish informational subline items tional reasons, and those subline items for each accounting classification cita- include the actual detailed identifica- tion in accordance with 204.7104–1(a). tion in accordance with 204.7104. Where (b) Exhibits may be used as an alter- this exception applies, use a general native to putting a long list of contract narrative description instead of the line items in the schedule. If exhibits contract item description. are used, create a contract line item (3) Separate delivery schedule. Each citing the exhibit’s identifier. See contract line item or service shall have 204.7105(a).
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(c) If the contract involves a test sist of more than one item that re- model or a first article which must be quires separate identification. approved, establish a separate contract (a) Informational subline items. (1) This line item or subline item for each item type of subline item identifies informa- of supply or service which must be ap- tion that relates directly to the con- proved. If the test model or first article tract line item and is an integral part consists of a lot composed of a mixture of it (e.g., parts of an assembly or parts of items, a single line item or subline of a kit). These subline items shall not item may be used for the lot. be scheduled separately for delivery, (d) If a supply or service involves an- identified separately for shipment or cillary functions, like packaging and performance, or priced separately for handling, transportation, payment of payment purposes. state or local taxes, or use of reusable (2) The informational subline item containers, and these functions are may include quantities, prices, or normally performed by the contractor amounts, if necessary to satisfy man- and the contractor is normally entitled agement requirements. However, these to reimbursement for performing these elements shall be included within the functions, do not establish a separate item description in the supplies/serv- contract line item solely to account for ices column and enclosed in paren- these functions. However, do identify theses to prevent confusing them with the functions in the contract schedule. quantities, prices, or amounts that If the offeror separately prices these have contractual significance. Do not functions, contracting officers may es- enter these elements in the quantity tablish separate contract line items for and price columns. the functions; however, the separate (3) Informational subline items shall line items must conform to the re- quirements of paragraph (a) of this sub- be used to identify each accounting section. classification citation assigned to a single contract line item number when [56 FR 36289, July 31, 1991, as amended at 60 use of multiple citations is authorized FR 34468, July 3, 1995; 60 FR 43191, Aug. 18, (see 204.7103–1(a)(4)(ii)). 1995] (b) Separately identified subline items. 204.7103–2 Numbering procedures. (1) Subline items will be used instead of contract line items to facilitate pay- (a) Contract line items shall consist ment, delivery tracking, contract funds of four numeric digits 0001 through accounting, or other management pur- 9999. Do not use numbers beyond 9999. poses. Such subline items shall be used Within a given contract, the item num- when items bought under one contract bers shall be sequential but need not be line item number— consecutive. (i) Are to be paid for from more than (b) The contract line item number one accounting classification. A shall be the same as the solicitation subline item shall be established for line item number unless there is a the quantity associated with the single valid reason for using different num- accounting classification citation. Es- bers. (c) Once a contract line item number tablish a line item rather than a has been assigned, it shall not be as- subline item if it is likely that a signed to another, different, contract subline item may be assigned addi- line item in the same contract. tional accounting classification cita- tions at a later date. Identify the fund- 204.7104 Contract subline items. ing as described in 204.7104–1(a)(3); (ii) Are to be packaged in different 204.7104–1 Criteria for establishing. sizes, each represented by its own NSN; Contract subline items provide flexi- (iii) Have collateral costs, such as bility to further identify elements packaging costs, but those costs are within a contract line item for track- not a part of the unit price of the con- ing performance or simplifying admin- tract line item; istration. There are only two kinds of (iv) Have different delivery dates or subline items: those which are informa- destinations or requisitions, or a com- tional in nature and those which con- bination of the three; or
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(v) Identify parts of an assembly or 204.7104–2 Numbering procedures. kit which— (a) Number subline items by adding (A) Have to be separately identified either two numeric characters or two at the time of shipment or perform- alpha characters to the basic contract ance; and line item number. (B) Are separately priced. (1) Information subline item numbers. (2) Each separately identified con- Use numeric characters only for infor- tract subline item shall have its own— mation subline items, running 01 (i) Delivery schedule, period of per- through 99. Do not use spaces or special formance, or completion date; characters to separate the subline item (ii) Unit price or single total price or number from the contract line item amount (not separately priced (NSP) is number that is its root. For example, if acceptable as an entry for price or the contract line item number is 0001, amount if the price is included in an- the first three subline items would be other subline item or a different con- 000101, 000102, and 000103. Do not use a tract line item). This requirement does designation more than once within a not apply— contract line item. (A) If the subline item was created to (2) Separately identified subline items. refer to an exhibit or an attachment. If Use alpha characters only for sepa- management needs dictate that a unit rately identified subline items, running price be entered, the price shall be set AA through ZZ. Do not use spaces or forth in the item description block of special characters to separate the the schedule and enclosed in paren- subline item number from the contract theses; or line item number that is its root. For (B) In the case of indefinite delivery example, if the contract line item num- contracts described at 204.7103– ber is 0001, the first three subline items 1(a)(1)(vi). would be 0001AA, 0001AB, and 0001AC. (iii) Identification (e.g., NSN, item (i) Do not use the letters I or O as description, manufacturer’s part num- alpha characters. ber, scope of work, description of serv- (ii) Use all 24 available alpha char- ices). acters in the second position before se- (3) Unit prices and extended amounts. lecting a different alpha character for (i) The unit price and total amount the first position. For example, AA, for all subline items may be entered at AB, AC, through AZ before beginning the contract line item number level if BA, BB, and BC. (b) Within a given contract line item, the unit price for the subline items is the subline item numbers shall be se- identical. If there is any variation, the quential but need not be consecutive. subline item unit prices shall be en- (c) Exhibits may be used as an alter- tered at the subline item level only. native to setting forth in the schedule (ii) The unit price and extended a long list of contract subline items. If amounts may be entered at the subline exhibits are used, create a contract items level. subline item citing the exhibit’s identi- (iii) The two methods in paragraphs fier. See 204.7105. (b)(3) (i) and (ii) of this subsection shall (d) If a contract line item involves not be combined in a contract line ancillary functions, like packaging and item. handling, transportation, payment of (iv) When the price for items not sep- state or local taxes, or use of reusable arately priced is included in the price containers, and these functions are of another subline item or contract normally performed by the contractor line item, it may be necessary to with- and the contractor is normally entitled hold payment on the priced subline to reimbursement for performing these item until all the related subline items functions, do not establish a separate that are not separately priced have subline item solely to account for these been delivered. In those cases, use the functions. However, do identify the clause at 252.204–7002, Payment for functions in the contract schedule. If Subline Items Not Separately Priced. offeror separately prices these func- [56 FR 36289, July 31, 1991, as amended at 60 tions, then contracting officers may es- FR 34468, July 3, 1995] tablish separate subline items for the
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functions; however, the separate (1) Subline items structured to iden- subline items must conform to the re- tify destinations for identical items, quirements of 204.7104–1. identically priced (delivery schedule (e) The following examples illustrate shall be established for each subline subline items numbering— item, not the contract line item).
Item No. Supplies/service Quantity Unit Unit price Amount
0001 NSN 1615–00–591–6620 Shim, Aluminum Alloy, Apbl, ...... Rotor, Helicopter PRON A1–9–63821–M1–M1 ACRN:AA. 0001AA A3168R–9030–4025 A2537M IPD: 2 RDD: 334 PROJ: 10 EA $100.00 $1,000.00 501. 0001AB A3168R–9030–4026 A51AXBM IPD: 2 RDD: 325 PROJ: 10 EA $100.00 $1,000.00 502. 0001AC A3168R–9030–4027 A67KBCM IPD: 2 RDD: 349 PROJ: 15 EA $100.00 $1,500.00 503.
(2) Subline items structured to iden- ule shall be established for each tify destinations for identical items, subline item, not the contract line not identically priced (delivery sched- item).
Item No. Supplies/service Quantity Unit Unit price Amount
0001 NSN 1615–00–591–6620 Shim, Aluminum Alloy, Apbl, ...... Rotor, Helicopter PRON A1–9–63821–M1–M1 ACRN:AA. 0001AA A3168R–9030–4025 A2537M IPD: 2 RDD: 334 PROJ: 10 EA $100.00 $1,000.00 501. 0001AB A3168R–9030–4026 A51AXBM IPD: 2 RDD: 325 PROJ: 20 EA $99.00 $1,980.00 502. 0001AC A3168R–9030–4027 A67KBCM IPD: 2 RDD: 349 PROJ: 30 EA $98.00 $2,940.09 503. Note: Difference in prices for identical items is due to separate destinations for FOB destination delivery.
(3) Subline items structured to iden- shall be established for each subline tify different sizes of an item that are item, not the contract line item). identically priced (delivery schedule
Item No. Supplies/service Quantity Unit Unit price Amount
0013 Boots Insulated, Cold Weather White, Type II, Class 1 ...... PR $38.35 $13,422.50 0013AA 8430–00–655–5541 Size 5N ...... 50 ...... 0013AB 8430–00–655–5544 Size 8N ...... 70 ...... 0013AC 8430–00–655–5551 Size 9N ...... 30 ...... 0013AD 8430–00–655–5535 Size 9R ...... 200 ...... Note: Unit price and total amount shown at line item level rather than at subline item level.
(4) Subline items structured to iden- ule shall be established for each tify different sizes of an item that are subline item, not the contract line not identically priced (delivery sched- item).
Item No. Supplies/service Quantity Unit Unit price Amount
0002 Body Armor Ground Troops Variable Type Small Arms, ...... Fragmentation Protective Nylon Felt Vest, Front and Back Plates, Ceramic Plate, Type I. 0002AA First Article ...... 1 LO NSP ...... 0002AB 8470–00–141–0935, Medium Regular ...... 1936 SE $331.77 $642,306.72 0002AC 8470–00–141–0936, Large Regular ...... 625 SE 355.77 222,356.25 0002AD 8470–00–141–0937, Medium Long ...... 1237 SE 346.77 428,954.49 0002AE 8470–00–141–0938, Large Long ...... 804 SE 365.77 294,079.08
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(5) Subline items structured to pro- established for the subline item identi- vide the capability for relating subor- fying the contractor’s product and for dinate separately priced packaging the subline item identifying packaging. costs to the overall contract line item. No schedule will be established for the (Separate delivery schedules shall be contract line item.)
Item No. Supplies/service Quantity Unit Unit price Amount
0001 6105–00–635–6568 50380 Ref No 63504–WZ Armature 0001AA 6105–00–635–6568 50380 2 Ea ...... $2,895.87 $5,791.74 Ref No 63504–WZ Armature Motor ACRN:AA 0001AB Packaging ACRN:AA ...... 2 Ea ...... $289.58 $579.16
(6) Subline items structured to iden- schedule shall be established for each tify different accounting classifica- subline item, not the contract line tions for identical items (delivery item).
AJ: 17X150518350315069100000192B000000000000000000 AK: 17X150518370317569100000192B000000000000000000 AL: 17X150519350314369100000192B000000000000000000
Item no. Supplies/service Quantity Unit Unit price Amount
0002 Pulse Decoder, KY–312/A5Q–19 ...... EA $3,037.40 0002AA Pulse Decoder, KY–312/A5Q–19 ACRN: AJ ...... 2 ...... 6,074.80 0002AB Pulse Decoder, K1Y–312/A5Q–19 ACRN: AK ...... 6 ...... 18,224.40 0002AC Pulse Decoder, KY–312/A5Q–19 ACRN: AL ...... 2 ...... $6,074.80 Note: Unit price may be shown at line item level and total amounts shown at subline item level.
(7) Informational subline items es- ing classification citations assigned to tablished to identify multiple account- a single contract line item.
Item No. Supplies/service Quantity Unit Unit price Amount
0001 Air Vehicle ...... 1 Ea $6,700,000 $6,700,000 000101 ACRN:AA $3,300,000 000102 ACRN:AB $2,000,000 000103 ACRN:AC $1,400,000
(8) Subline items structured to iden- for each identified part at the subline tify parts of an assembly (delivery item level, not for the assembly at the schedule and price shall be established contract line item level).
Item no. Supplies/service Quantity Unit Unit price Amount
0003 Automatic Degausing System Consisting of: (2 ea @ ...... $52,061; $104,122 total). 0003AA Switchboard ...... 2 EA $52,061.00 $104,122.00 0003AB Remote Control Panel ...... 2 EA NSP ...... 0003AC Power Supply (M Coil) SSM Type 145 Amps, 220 V DC) 2 EA NSP ...... 0003AF Power Supply (A Coil) SSM Type (118 Amps, 220 V 2 EA NSP ...... DC).
(9) Subline items structured to iden- identified part at the subline item tify parts of a kit (delivery schedule level, not for the kit at the contract and price shall be established for each line item level).
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Item no. Supplies/service Quantity Unit Unit price Amount
0031 Conversion Kit to Convert Torpedo MK 45 Mod 0 to Tor- ...... pedo MK 45 Mod 1, (50 Kt @ $10,868.52; $543,426 total). 0031AA Integrator Assy LD 620106 ...... 50 EA $10,868.52 $543,426.00 0031AB Pulse Generator Assy LD 587569 ...... 50 EA NSP ...... 0031AC Drive Shaft Assy LD 587559 ...... 50 EA NSP ...... 0031BF Actual Panel Assy LD 542924 ...... 50 EA NSP ...... Note: In this example, the prices of subline items 0031AB through 0031BF are included in the Integrator Assembly.
[56 FR 36289, July 31, 1991, as amended at 60 (B) DD Form 1423. If the prices are FR 34468, July 3, 1995] entered on the DD Form 1423, the price of all separately priced deliverable 204.7105 Contract exhibits and attach- data items attributable to a line item ments. shall be totalled and included, for in- (a) Use of exhibits. (1) Exhibits may be formation purposes, in parentheses, used instead of putting a long list of below the supplies services for that line contract line items or subline items in item, in section B of the schedule. the contract schedule. Exhibits are (ii) NSP. Include prices in a priced particularly useful in buying spare contract line item or subline item. De- parts. tach Blocks 17 and 18 of the DD Form (2) When using exhibits, establish a 1423 and retain them elsewhere as re- contract line or subline item and refer quired. to the exhibit. (7) The contracting officer may ap- (3) Identify exhibits individually. pend attachments to exhibits, as long (4) Each exhibit shall apply to only as the attachment does not identify a one contract line item or subline item, deliverable requirement which has not except— been established by a contract or ex- (i) One exhibit may apply to one or hibit line or subline item. (b) Numbering exhibits and attach- more option line item(s) when the data ments. (1) Use alpha characters to iden- required under the exhibits is identical tify exhibits. The alpha characters in all respects except the period during shall be either single or double capital which the option is to be exercised; and letters. Do not use the letters I or O. (ii) An exhibit may apply to more (2) Exhibit identifiers need not be ei- than one contract line item if the ex- ther consecutive or sequential. hibit is not separately priced and the (3) Once an identifier has been as- exhibit deliverable is identical for all signed to an exhibit, do not use it on applicable contract line items. another exhibit in the same contract. (5) More than one exhibit may apply (4) The identifier shall always appear to a single contract line item. in the first or first and second posi- (6) Data items on a DD Form 1423, tions of all applicable exhibit line item Contract Data Requirements List, may numbers. be either separately priced or not sepa- (5) If the exhibit has more than one rately priced. page, cite the procurement instrument (i) Separately priced. When data are identification number, exhibit identi- separately priced, enter the price in fier, and applicable contract line or only one place in the contract: in ei- subline item number on each page. ther Section B of the contract schedule (6) Use numbers to identify attach- or on the DD Form 1423. Whichever ments. place, display the price there consist- (c) Numbering exhibit line items and ently. subline items—(1) Criteria for estab- (A) Section B. If the prices are en- lishing. The criteria for establishing ex- tered in section B of the schedule, de- hibit line items and subline items is tach Blocks 17 and 18 of the DD Form the same as those for establishing con- 1423 and file elsewhere in the contract tract line items and subline items (see file. If the prices are entered on the DD 204.7103 and 204.7104, respectively). Form 1423, do not detach Blocks 17 and (2) Procedures for numbering. (i) Num- 18 of the DD Form 1423. ber items in an exhibit in a manner
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similar to contract line items and Cumulative No. of Serial number sequence subline items. line items (ii) Number line items using a four 340–373 ...... 0A0 thru 0A9, then 0AA thru 0AZ, then position number. 374–407 ...... 0B0 thru 0B9, then 0BB thru 0BZ, then (A) The first position or the first and 408–441 ...... 0C0 thru 0C9, then 0CA thru 0CZ, and second position contain the exhibit 442–1121 ...... so on to 1122–1155 ...... 0Z0 thru 0Z9, then 0ZA thru 0ZZ, then identifier. 1156–1189 ...... 100 thru 109, then 10A thru 10Z, then (B) The third and fourth positions 1190–1223 ...... 110 thru 119, then 11A thru 11Z, then contain the alpha or numeric character 1224–1257 ...... 120 thru 129, then 12A thru 12Z, and 1258–1461 ...... so on to serial numbers assigned to the line 1462–1495 ...... 190 thru 199, then 19A thru 19Z, then item. 1496–1529 ...... 1A0 thru 1A9, then 1AA thru 1AZ, then (iii) Assign alpha or numeric char- 1530–1563 ...... 1B0 thru 1B9, then 1BA thru 1BZ, and acters to the line item on the basis of 1564–2277 ...... so on to 2278–2311 ...... 1Z0 thru 1Z9, then 1ZA thru 1ZB, then the same criteria outlined in contract 2312–2345 ...... 200 thru 109, then 10A thru 10Z, then subline items at 204.7104. 2346–2379 ...... 210 thru 219, then 21A thru 21Z, then (iv) Exhibit line item numbers shall 2380–2413 ...... 220 thru 229, then 22A thru 22Z, and be sequential within the exhibit. 2414–2617 ...... so on to 2618–2651 ...... 290 thru 299, then 29A thru 29Z, then (3) Examples—(i) Two position serial 2652–2685 ...... 2A0 thru 2A9, then 2AA thru 2AZ, then number for double letter exhibit identifier. 2686–2719 ...... 2B0 thru 2B9, then 2BA thru 2BZ, and 2720–3433 ...... so on to Cumulative No. of Serial number sequence 3434–3467 ...... 2Z0 thru 2Z9, then 2ZA thru 2ZZ, then line items 3468–3501 ...... 300 thru 309, then 30Z thru 30Z, and 3502–10403 ...... so on to 1–33 ...... 01 thru 09, then OA thru OZ, then 10404–10437 ...... 900 thru 909, then 90A thru 90Z, then 34–67 ...... 10 thru 19, then 1A thru 1Z, then 10438–10471 ...... 910 thru 919, then 91A thru 91Z, and 68–101 ...... 20 thru 29, then 2A thru 2Z, then 10472–10709 ...... so on to 102–135 ...... 30 thru 39, then 3A thru 3Z, then 10710–10743 ...... 990 thru 999, then 99A thru 99Z, then 136–169 ...... 40 thru 49, then 4A thru 4Z, then 10744–10777 ...... 9A0 thru 9A9, then 9AA thru 9AZ, then 170–203 ...... 50 thru 59, then 5A thru 5Z, then 10778–10811 ...... 9B0 thru 9B9, then 9BA thru 9BZ, and 204–237 ...... 60 thru 69, then 6A thru 6Z, then 10812–11525 ...... so on to 238–271 ...... 70 thru 79, then 7A thru 7Z, then 11526–11559 ...... 9Z0 thru 9Z9, then 9ZA thru 9ZZ 272–305 ...... 80 thru 89, then 8A thru 8Z, then 306–339 ...... 90 thru 99, then 9A thru 9Z, then 340–373 ...... A0 thru A9, then AA thru AZ, then 204.7106 Contract modifications. 374–407 ...... B0 thru B9, then BA thru BZ, then 408–441 ...... C0 thru C9, then CA thru CZ, then (a) If new items are added, assign new 442–475 ...... D0 thru D9, then DA thru DZ, then contract line or subline item numbers 476–509 ...... E0 thru E9, then EA thru EZ, then 510–543 ...... F0 thru F9, then FA thru FZ, then or exhibit line item numbers, in ac- 544–577 ...... G0 thru G9, then GA thru GZ, then cordance with the procedures estab- 578–611 ...... H0 thru H9, then HA thru HZ, then lished at 204.7103, 204.7104, and 204.7105. 612–645 ...... J0 thru J9, then JA thru JZ, then 646–679 ...... K0 thru K9, then KA thru KZ, then (b) Modifications to existing contract 680–713 ...... L0 thru L9, then LA thru LZ, then line items or exhibit line items. (1) If 714–747 ...... M0 thru M9, then MA thru MZ, then the modification relates to existing 748–781 ...... N0 thru N9, then NA thru NZ, then 782–815 ...... P0 thru P9, then PA thru PZ, then contract line items or exhibit line 816–849 ...... Q0 thru Q9, then QA thru QZ, then items, the modification shall refer to 850–883 ...... R0 thru R9, then RA thru RZ, then those item numbers. 884–917 ...... S0 thru S9, then SA thru SZ, then (2) If the contracting officer decides 918–951 ...... T0 thru T9, then TA thru TZ, then 952–985 ...... U0 thru U9, then UA thru UZ, then to assign new identifications to exist- 986–1019 ...... V0 thru V9, then VA thru VZ, then ing contract or exhibit line items, the 1020–1053 ...... W0 thru W9, then WA thru WZ, then following rules apply— 1054–1087 ...... X0 thru X9, then XA thru XZ, then 1088–1121 ...... Y0 thru Y9, then YA thru YZ, then (i) Definitized and undefinitized items. 1122–1155 ...... Z0 thru Z9, then ZA thru ZZ (A) The original line item or subline item number may be used if the modi- (ii) Three position numbers. fication applies to the total quantity of the original line item or subline. Cumulative No. of line items Serial number sequence (B) The original line item or subline item number may be used if the modi- (ii) Three position fication makes only minor changes in numbers. 1–33 ...... 001 thru 009, then 00A thru 00Z, then the specifications of some of the items 34–67 ...... 010 thru 019, then 01A thru 101Z, then ordered on the original line item or 68–101 ...... 020 thru 029, then 02A thru 02Z, then subline item and the resulting changes 102–135 ...... 030 thru 039, then 03A thru 03Z and so 136–305 ...... on to in unit price can be averaged to provide 306–339 ...... 090 thru 099, then 09A thru 09Z, then a new single unit price for the total
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quantity. If the changes in the speci- sign the changed portion the next fications make the item significantly available number. distinguishable from the original item or the resulting changes in unit price 204.7107 Contract accounting classi- cannot be averaged, create a new line fication reference number (ACRN). item. (a) When a contract contains more (C) If the modification affects only a than one accounting classification ci- partial quantity of an existing contract tation, contracting offices shall use or exhibit line item or subline item and ACRNs. Assigning the ACRNs is the re- the change does not involve either the sponsibility of the contracting office delivery date or the ship-to/mark-for issuing the contract, basic ordering data, the original contract or exhibit agreement, or blanket purchase agree- line item or subline item number shall ment. This authority shall not be dele- remain with the unchanged quantity. gated. If more than one office will use Assign the changed quantity the next the contract (e.g., ordering officers, available number. other contracting officers), the con- (ii) Undefinitized items. In addition to tract must contain instructions for as- the rules in paragraph (b)(2)(i), the fol- signing ACRNs. lowing additional rules apply to (b) ACRNs are used to process certain undefinitized items— contract data through the Military Standard Contract Administration (A) If the modification is Procedures (MILSCAP) system. The undefinitized and increases the quan- MILSCAP system uses the ACRN to re- tity of an existing definitized item, as- late certain contract administration sign the undefinitized quantity the records to the accounting classifica- next available number. tion citation used to obligate funds on (B) If the modification increases the the contract. Among these records are quantity of an existing undefinitized the accounting classification trailer item, the original contract or exhibit record, the supplies schedules data line item or subline item may be used record, and the services line item data if the unit price for the new quantity is record. ACRNs are also used to asso- expected to be the same as the price for ciate the various record formats of the the original quantity. If the unit prices contract payment notice as described of the two quantities will be different, in chapter 9 of the MILSCAP Manual, assign the new quantity the next avail- DoD 4000.25–5–M. able number. (c) Procedures for establishing ACRNs. (C) If the modification both affects ACRNs consist of a two position alpha only a partial quantity of the existing or alpha/numeric code assigned to each contract or exhibit line or subline item discrete accounting classification cita- and definitizes the price for the af- tion within each contract. ACRNs shall fected portion, the definitized portion be established in accordance with the shall retain the original item number. following guidelines: If there is any undefinitized portion of (1) Do not use the letters I and O. the item, assign it the next available (2) In no case shall an ACRN apply to number. However, if the modification more than one accounting classifica- definitizes the price for the whole tion citation, nor shall more than one quantity of the line item, and price im- ACRN be assigned to one accounting pact of the changed work can be appor- classification citation. tioned equally over the whole to arrive (d) Using the ACRN in the contract. (1) at a new unit price, the quantity with Show the ACRN as a detached prefix to the changes can be added into the the accounting classification citation quantity of the existing item. in the accounting and appropriation (D) If the modification affects only a data block or, if there are too many ac- partial quantity of an existing contract counting classification citations to fit or exhibit line or subline item but does reasonably in that block, in section G not change the delivery schedule or de- (Contract Administration Data). finitize price, the unchanged portion (2) ACRNs need not prefix accounting shall retain the original contract or ex- classification citations if the account- hibit line or subline item number. As- ing classification citations are present
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in the contract only for the transpor- additional accounting classification ci- tation officer to cite to Government tations. bills of lading. (ii) Payment instructions shall pro- (3) If the contracting officer is mak- vide a methodology for the paying of- ing a modification to a contract and fice to assign payments to the appro- using the same accounting classifica- priate accounting classification cita- tion citations, which have had ACRNs tion(s), based on anticipated contract assigned to them, the modification work performance. The method estab- need cite only the ACRNs in the ac- lished should be consistent with the counting and appropriations data block reasons for the establishment of the or on the continuation sheets. line items. The payment method may (e) Showing the ACRN in the contract. be based upon a unique distribution If there is more than one ACRN in a profile devised to reflect how the funds contract, all the ACRNs will appear in represented by each of the accounting several places in the schedule (e.g., classification citations support con- ACRN:AA). tract performance. Payment methods (1) Ship-to/mark-for block. Show the that direct that payments be made ACRN beside the identity code of each from the earliest available fiscal year activity in the ship-to/mark-for block funding sources, or that provide for unless only one accounting classifica- proration across accounting classifica- tion citation applies to a line item or tion citations assigned to the line subline item. Only one ACRN may be item, or a combination thereof, may be assigned to the same ship-to/mark-for used if that methodology reasonably within the same contract line or reflects how each of the accounting subline item number unless multiple classification citations supports con- accounting classification citations tract performance. apply to a single nonseverable deliver- able unit such that the item cannot be [60 FR 34469, July 3, 1995; 60 FR 43191, Aug. 18, related to an individual accounting 1995] classification citation. (2) Supplies/services column. (i) If only Subpart 204.72—Contractor one accounting classification citation Identification applies to a line item or a subline item, the ACRN may be shown in the sup- 204.7200 Scope of subpart. plies/services column near the item de- scription. This subpart prescribes uniform poli- (ii) If more than one accounting clas- cies and procedures for identification sification citation applies to a single of commercial and Government enti- contract line item, identify each as- ties when it is necessary to— signed ACRN and the amount of associ- (a) Exchange data with another con- ated funds using informational subline tracting activity, including contract items (see 204.7104–1(a)). administration activities and contract (3) Payment instructions. (i) When a payment activities, or comply with the contract line item is funded by mul- reporting requirements of subpart tiple accounting classification cita- 204.6; or tions, the contracting officer shall pro- (b) Identify contractors for the pur- vide adequate instructions in section G pose of developing computerized acqui- (Contract Administration Data), under sition systems or solicitation mailing the heading ‘‘Payment Instructions for lists. Multiple Accounting Classification Ci- [64 FR 43099, Aug. 9, 1999] tations,’’ to permit the paying office to charge the accounting classification ci- 204.7201 Definitions. tations assigned to that contract line item (see 204.7104–1(a)) in a manner (a) Commercial and Government Entity that reflects the performance of work (CAGE) code means— on the contract. If additional account- (1) A code assigned by the Defense ing classification citations are subse- Logistics Information Service (DLIS) quently added, the payment instruc- to identify a commercial or Govern- tions must be modified to include the ment entity; or
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(2) A code assigned by a member of (C) The on-line access to the Defense the North Atlantic Treaty Organiza- Logistics Agency (DLA) CAGE file tion (NATO) that DLIS records and through the DLA Network or dial-up maintains in the CAGE master file. capability; or This type of code is known as an (D) The Internet to access the CAGE ‘‘NCAGE code.’’ Lookup Server at http:// (b) Contractor identification code www.dlis.dla.mil/cageserve.htm. means a code that the contracting of- (ii) If no CAGE code is identified fice uses to identify an offeror. The through use of the procedures in para- three types of contractor identification graph (b)(2)(i) of this subsection, ask codes are CAGE codes, Data Universal DLIS to assign a CAGE code. Submit a Numbering System (DUNS) numbers, DD Form 2051, Request for Assignment and Taxpayer Identification Numbers of a Commercial and Government Enti- (TINs). ty (CAGE) Code, (or electronic equiva- lent) to the address in paragraph [64 FR 43099, Aug. 9, 1999] (b)(2)(i)(A) of this subsection, ATTN: DLIS–SBB. The contracting office com- 204.7202 General. pletes Section A of the DD Form 2051, 204.7202–1 CAGE codes. and the contractor completes Section B. The contracting office must verify (a) DLIS assigns or records and main- Section B before submitting the form. tains CAGE codes to identify commer- (c) Direct questions on obtaining cial and Government entities. DoD computer tapes, electronic updates, or 4000.25–5–M, Military Standard Con- code assignments to DLIS Customer tract Administration Procedures Service: toll-free (888) 227–2423 or (888) (MILSCAP); Volume 7 of DoD 4100.39– 352–9333; DSN 932–4725; or commercial M, Federal Logistics Information Sys- (616) 961–4725. tem (FLIS) Procedures Manual; and 253.204–70(b)(5)(ii)(C) prescribe use of [64 FR 43100, Aug. 9, 1999, as amended at 65 CAGE codes. FR 63804, Oct. 25, 2000] (b)(1) If a prospective contractor 204.7202–2 DUNS numbers. must register in the Central Con- tractor Registration (CCR) database Requirements for use of DUNS num- (see subpart 204.73) and does not have a bers are in FAR 4.602(d) and 4.603. CAGE code, DLIS will assign a CAGE [64 FR 43100, Aug. 9, 1999] code when the prospective contractor submits its request for registration in 204.7202–3 TINs. the CCR database. (2) If registration in the CCR data- Requirements for use of TINs are in base is not required, the prospective FAR subpart 4.9. contractor’s CAGE code is not already [64 FR 43100, Aug. 9, 1999] available in the contracting office, and the prospective contractor does not re- 204.7203 Responsibilities of con- spond to the provision at 252.204–7001, tracting officers. Commercial and Government Entity (a) Assist offerors in obtaining the (CAGE) Code Reporting, use the fol- required CAGE codes. lowing procedures: (b) Do not deny a potential offeror a (i) To identify the prospective con- solicitation package because the offer- tractor’s CAGE code, use— or does not have a contractor identi- (A) The monthly H-series CD ROM fication code. that contains the H–4/H–8 CAGE master (c) Consider requesting a CAGE code file issued by DLIS (Their address is: at the time a potential offeror is sent a Customer Service, Federal Center, 74 solicitation package or added to the Washington Avenue, North, Battle mailing list to ensure that a code is as- Creek, MI 49017–3084. Their telephone signed in sufficient time to process the number is: toll-free 1–888–352–9333); DD Form 350, Individual Contracting (B) The on-line access to the CAGE Action Report, without delay. file through the Defense Logistics In- formation System; [64 FR 43100, Aug. 9, 1999]
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204.7204 Maintenance of the CAGE maintenance activity with the fol- file. lowing information: (a) DLIS will accept written requests (a) Name(s), address(es), and code(s) for changes to CAGE files, other than of the contractor(s) transferring the name changes, from the following enti- original contractual rights and obliga- ties: tions (transferor). (1) The entity identified by the code. (b) Name(s), address(es), and code(s) The entity must use company letter- (if any) of the entity who is the suc- head to forward the request. cessor in interest (transferee). (2) The contracting office. (c) Name(s), address(es), and code(s) (3) The contract administration of- (if any) of the entity who is retaining fice. or receiving the rights to the technical (b) Submit requests for changes to data. CAGE files on DD Form 2051, or elec- (d) Description of the circumstances tronic equivalent, to—Defense Logis- surrounding the novation agreement tics Information Service, DLIS–SBB, and especially the relationship of each Federal Center, 74 Washington Avenue, entity to the other. North, Battle Creek, MI 49017–3084. Telephone Numbers: toll-free (888) 352– [56 FR 36289, July 31, 1991, as amended at 66 9333, DSN 932–4725, commercial (616) FR 49861, Oct. 1, 2001] 961–4725. Facsimile: (616) 961–4388, 4485. 204.7206 Using CAGE codes to identify (c) The contracting officer respon- agents and brokers. sible for execution of a change-of-name agreement (see FAR subpart 42.12) Authorized agents and brokers are must submit the agreement to DLIS– entities and, as such, may be assigned SBB. If there are no current contracts, CAGE codes for identification and each contracting and contract adminis- processing purposes. tration office receiving notification of (a) A single CAGE code will be as- changes from the commercial entity signed to the agent/broker establish- must forward a copy of the change no- ment in addition to any codes assigned tice annotated with the CAGE code to to the entities represented by the DLIS–SBB unless the change notice in- agent/broker, i.e., only one code will be dicates that DLIS–SBB already has assigned to a specific agent/broker en- been notified. tity regardless of the number of firms (d) Additional guidance for maintain- represented by that agent/broker. ing CAGE codes is in Volume 7 of DoD (b) Additional codes may be assigned 4100.39–M, Federal Logistics Informa- to an agent/broker if they meet the cri- tion System (FLIS) Procedures Man- teria for assigning additional codes for ual. entities, e.g., different location. [64 FR 43100, Aug. 9, 1999; 64 FR 46474, Aug. 25, (c) Codes will not be assigned to an 1999, as amended at 65 FR 63804, Oct. 25, 2000] agent/broker in care of the entity being represented or in any way infer that 204.7205 Novation agreements, merg- the agent/broker is a separate estab- ers and sales of assets. lishment bearing the name of the enti- Contracting officers shall process and ty represented by the agent/broker. execute novation agreements in ac- cordance with FAR Subpart 42.12, No- [56 FR 36289, July 31, 1991, as amended at 61 vation and Change-of-Name Agree- FR 51032, Sept. 30, 1996; 62 FR 48182, Sept. 15, 1997] ments. These actions are independent of code and name assignments made as 204.7207 Solicitation provision. a result of the occasion which created the need for the novation agreement. Use the provision at 252.204–7001, The maintenance activity will deter- Commercial and Government Entity mine which entity(s) will retain the ex- (CAGE) Code Reporting, in solicita- isting code(s) and which entities will tions when— be assigned new codes. The contracting (a) The solicitation does not include officer responsible for processing the the clause at 252.204–7004, Required novation agreement shall provide the Central Contractor Registration; and
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(b) The CAGE codes for the potential awarded by contracting officers in the offerors are not available to the con- conduct of emergency operations, such tracting office. as responses to natural disasters or na- [66 FR 47097, Sept. 11, 2001] tional or civil emergencies; and (e) Purchases to support unusual or Subpart 204.73—Central compelling needs of the type described Contractor Registration in FAR 6.302–2. [64 FR 43100, Aug. 9, 1999] SOURCE: 63 FR 15317, Mar. 31, 1998, unless otherwise noted. 204.7303 Procedures. (a)(1) Except as provided in 204.7302, 204.7300 Scope. the contracting officer must require This subpart prescribes policies and each offeror to provide a DUNS number procedures for requiring contractor (see 204.603(2)) or, if applicable, a registration in the DoD Central Con- DUNS+4 number, with its verbal or tractor Registration (CCR) database to written offer, regardless of the dollar comply with the Debt Collection Im- amount of the offer. provement Act of 1996 (31 U.S.C. 3332; 31 (2) Before awarding a contract, basic U.S.C. 7701), and to increase visibility agreement, basic ordering agreement, of vendor sources for specific supplies or blanket purchase agreement, the and services and their geographical lo- contracting officer must verify that cations. the prospective contractor is registered 204.7301 Definitions. in the CCR database (but see paragraph (b) of this section). The contracting of- Central Contractor Registration (CCR) ficer may verify registration using the database, Data Universal Numbering Sys- DUNS number or, if applicable, the tem (DUNS) number, Data Universal DUNS+4 number, by calling toll-free: 1– Numbering System+4 (DUNS+4) number, 888–227–2423, commercial: (616) 961–5757, and Registered in the CCR database are or DSN: 932–5757; via the Internet at defined in the clause at 252.204–7004, Re- quired Central Contractor Registra- http://www.ccr2000.com; or as otherwise tion. provided by agency procedures. (3) The contracting officer need not 204.7302 Policy. verify registration before placing an Prospective contractors must be reg- order or call under a DoD contract or istered in the CCR database prior to agreement. award of a contract, basic agreement, (4) The contracting officer must basic ordering agreement, or blanket verify registration before placing an purchase agreement, except for— order or call under a non-DoD contract (a) Purchases paid for with a Govern- or agreement. If the contracting is not mentwide commercial purchase card; registered, the contracting officer must (b) Awards made to foreign vendors follow the procedures in paragraph (b) for work performed outside the United of this section. States; (5) As part of the annual review of (c) Classified contracts or purchases basic agreements, basic ordering agree- (see FAR 4.401) when registration in ments, and blanket purchase agree- the CCR database, or use of CCR data, ments, contracting officers must mod- could comprise the safeguarding of ify these agreements to incorporate the classified information or national secu- clause at 252.204–7004, Required Central rity; Contractor Registration. (d) Contracts awarded by deployed (b) If the contracting officer deter- contracting officers in the course of mines that a prospective contractor is military operations, including, but not not registered in the CCR database and limited to, contingency operations as an exception to the registration re- defined in 10 U.S.C. 101(a)(13) or human- quirements for the award does not itarian or peacekeeping operations as apply (see 204.7302), the contracting of- defined in 10 U.S.C. 2302(7), or contracts ficer must—
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(1) If the needs of the requiring activ- the payment office, provide either the ity allow for a delay, proceed to award Commercial and Government Entity after the contractor is registered; or code or the DUNS number in accord- (2) If the needs of the requiring activ- ance with agency procedures. ity do not allow for a delay, proceed to [64 FR 43100, Aug. 9, 1999; 64 FR 46474, Aug. 25, award to the next otherwise successful 1999, as amended at 65 FR 14398, Mar. 16, 2000] registered offeror, provided that writ- ten approval is obtained at one level § 204.7304 Contract clause. above the contracting officer. (c) Agencies must protect against im- Except as provided in 204.7302, use the proper disclosure of contractor CCR in- clause at 252.204–7004, Required Central formation. Contractor Registration, in solicita- tions and contracts. (d) The contracting officer must, on contractual documents transmitted to [64 FR 43101, Aug. 9, 1999]
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PART 205—PUBLICIZING terested HBCUs and MIs should provide the contracting office as early as possible, but CONTRACT ACTIONS not later than 15 days after this notice, evi- dence of their capability to perform the con- Subpart 205.2—Synopses of Proposed tract, and a positive statement of their eligi- Contract Actions bility as an HBCU or MI. If adequate re- sponse is not received from HBCUs and MIs, Sec. the solicitation will instead be issued, with- 205.203 Publicizing and response time. out further notice, as: lllllll (indi- 205.207 Preparation and transmittal of syn- cate if unrestricted, or restricted for small opses. business or small disadvantaged business, etc.). Therefore, replies to this notice are Subpart 205.3—Synopses of Contract also requested from Awards llllllllllllllllllllllll 205.303 Announcement of contract awards. (enter the types of firms to be solicited in the event an HBCU or MI set-aside is not Subpart 205.4—Release of Information made).’’ 205.470 Contractor information to be pro- (iii) For broad agency announcement vided cooperative agreement holders. (BAA) (see 235.016) notices, indicate 205.470–1 Statutory requirement. which, if any, portion of the BAA will 205.470–2 Contract clause. be set-aside for historically black col- leges and universities and minority in- Subpart 205.5—Paid Advertisements stitutions. 205.502 Authority. (e) For acquisitions restricted to do- mestic sources under the authority of AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- FAR 6.302–3, use CBD Numbered Note ter 1. 13. SOURCE: 56 FR 36302, July 31, 1991, unless otherwise noted. [56 FR 36302, July 31, 1991, as amended at 63 FR 41973, Aug. 6, 1998] Subpart 205.2—Synopses of Proposed Contract Actions Subpart 205.3—Synopses of Contract Awards 205.203 Publicizing and response time. 205.303 Announcement of contract (b) Allow at least 45 days response awards. time when requested by a qualifying or designated country source (as these (a) Public announcement. (i) The terms are used in part 225) and the re- threshold for DoD awards is $5 million. quest is consistent with the Govern- Report all contractual actions, includ- ment’s requirement. ing modifications, that have a face value, excluding unexercised options, 205.207 Preparation and transmittal of of more than $5 million. synopses. (A) For undefinitized contractual ac- (d)(i) For historically black college tions, report the not-to-exceed (NTE) and university and minority institu- amount. Later, if the definitized tion set-asides under 226.7003, use CBD amount exceeds the NTE amount by Numbered Note 5. more than $5 million, report only the (ii) For acquisitions being considered amount exceeding the NTE. for historically black college and uni- (B) For indefinite delivery, time and versity and minority institution set- material, labor hour, and similar con- aside, state: tracts, report the initial award if the estimated face value, excluding This proposed contract is being considered unexercised options, is more than $5 as a 100 percent set-aside for historically black colleges and universities (HBCUs) and million. Do not report orders up to the minority institutions (MIs), as defined by estimated value, but after the esti- the clause at 252.226–7000 of the Defense Fed- mated value is reached, report subse- eral Acquisition Regulation Supplement. In- quent modifications and orders that
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have a face value of more than $5 mil- Subpart 205.4—Release of lion. Information (C) Do not report the same work twice. 205.470 Contractor information to be (ii) Departments and agencies submit provided cooperative agreement the information— holders. (A) To the Office of the Assistant Secretary of Defense (Public Affairs); 205.470–1 Statutory requirement. (B) By the close of business the day (a) As required by 10 U.S.C. 2413, the before the date of the proposed award; Defense Logistics Agency enters into (C) Using report control symbol DD– cooperative agreements— LA– (AR) 1279; (1) With— (D) Including, as a minimum, the fol- (i) State and local governments; lowing— (ii) Non-profit organizations; (1) Contract data. Contract number, (iii) Indian tribal organizations; and modification number, or delivery order (iv) Indian-owned economic enter- number, face value of this action, total prises cumulative face value of the contract, (2) For the provision of technical as- description of what is being bought, sistance to business entities. contract type, whether any of the buy (b) Contractors receiving defense was for foreign military sales (FMS) contracts valued at more than $500,000 and identification of the FMS cus- must provide cooperative agreement tomer; holders, at their request, the informa- (2) Competition information. Number of tion specified in the clause at 252.205– solicitations mailed and number of of- 7000, Provision of Information to Coop- fers received; erative Agreement Holders. (3) Contractor data. Name, address, and place of performance (if significant 205.470–2 Contract clause. work is performed at a different loca- Use the clause at 252.205–7000, Provi- tion); sion of Information to Cooperative (4) Funding data. Type of appropria- Agreement Holders, in solicitations tion and fiscal year of the funds, and and contracts expected to exceed whether the contract is multiyear (see $500,000. FAR Subpart 17.1); and (5) Miscellaneous data. Identification Subpart 205.5—Paid of the contracting office, the con- Advertisements tracting office point of contact, known congressional interest, and the infor- 205.502 Authority. mation release date. For paid advertisements to recruit (iii) Departments and agencies, in ac- civilian personnel, see section 332–1–9 cordance with department/agency pro- of the Federal Personnel Manual. cedures and concurrent with the public (a) Newspapers. (i) Heads of con- announcement, shall provide informa- tracting activities are delegated au- tion similar to that required by para- thority to approve the publication of graph (a)(ii) of this section to members paid advertisements in newspapers. of Congress in whose state or district They may redelegate this authority in the contractor is located and the work accordance with agency procedures. is to be performed. (ii) Before advertising in newspapers, [56 FR 36302, July 31, 1991, as amended at 56 the contracting officer must obtain FR 67212, Dec. 30, 1991]
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written approval from the agency offi- (b) The determination and findings cial designated in accordance with (D&F) and the documentation sup- paragraph (a)(i) of this section. porting the D&F must identify the source to be excluded from the con- [56 FR 36302, July 31, 1991, as amended at 65 FR 2055, Jan. 13, 2000] tract action. (i) Include the following information, as applicable, and any other informa- PART 206—COMPETITION tion that may be pertinent, in the sup- REQUIREMENTS porting documentation: (A) The acquisition history of the Sec. supplies or services, including sources, 206.001 Applicability. prices, quantities, and dates of award; (B) The circumstances which make it Subpart 206.2—Full and Open Competition necessary to exclude the particular After Exclusion of Sources source from the contract action, in- 206.202 Establishing or maintaining alter- cluding— native sources. (1) The reasons for the lack of or po- 206.203 Set-asides for small business con- tential loss of alternative sources; e.g., cerns. the technical complexity and criti- cality of the supplies or services; and Subpart 206.3—Other Than Full and Open (2) The current annual requirement Competition and projected needs for the supplies or 206.302 Circumstances permitting other services; than full and open competition. (C) Whether the existing source must 206.302–1 Only one responsible source and no be totally excluded from the contract other supplies or services will satisfy action or whether a partial exclusion is agency requirements. sufficient; 206.302–2 Unusual and compelling urgency. (D) The potential effect of exclusion 206.302–3 Industrial mobilization; or engi- neering, development, or research capa- on the excluded source in terms of loss bility. of capability to furnish the supplies or 206.302–3–70 Solicitation provision. services in the future; 206.302–4 International agreement. (E) When FAR 6.202(a)(1) is the au- 206.302–5 Authorized or required by statute. thority, the basis for— 206.302–7 Public interest. (1) The determination of future com- 206.303 Justifications. petition; and 206.303–1 Requirements. (2) The determination of reduced 206.303–2 Content. overall costs. Include, as a minimum, a 206.304 Approval of the justification. discussion of start-up costs, facility AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- costs, duplicative administration costs, ter 1. economic order quantities, and life SOURCE: 56 FR 36303, July 31, 1991, unless cycle cost considerations; and otherwise noted. (F) When FAR 6.202(a)(2) is the au- thority— 206.001 Applicability. (1) The current annual and mobiliza- (b) Contracts awarded using the pro- tion requirements for the supplies or cedures in 237.104(b)(ii) are expressly services, citing the source of, or the authorized by 10 U.S.C. 1091. basis for, the data; (2) A comparison of current produc- [60 FR 61592, Nov. 30, 1995] tion capacity with that necessary to meet mobilization requirements; Subpart 206.2—Full and Open (3) An analysis of the risks of relying Competition After Exclusion of on the present source; and Sources (4) A projection of the time required for a new source to acquire the nec- 206.202 Establishing or maintaining essary facilities and achieve the pro- alternative sources. duction capacity necessary to meet (a) Agencies may use this authority mobilization requirements. to totally or partially exclude a par- (ii) A sample format for Determina- ticular source from a contract action. tion and Findings citing the authority
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of FAR 6.202(a) is in Table 6–1, Deter- Subpart 206.3—Other Than Full minations and Findings. and Open Competition TABLE 6–1—DETERMINATIONS AND FINDINGS 206.302 Circumstances permitting other than full and open competi- Determinations and Findings tion. Authority to Exclude a Source In accordance with 10 U.S.C. 2304(b)(1), it is my 206.302–1 Only one responsible source determination that the following contract action and no other supplies or services may be awarded using full and open competition will satisfy agency requirements. after exclusion of llll1: (a) Authority. (2)(i) Section 8059 of Pub. L. 101–511 and similar sections in (Describe requirement.) Findings The subsequent defense appropriations acts exclusion of llll1 prohibit departments and agencies Alternate 1: will increase or maintain from entering into contracts for stud- competition for this requirement and is ies, analyses, or consulting services expected to result in a reduction of (see FAR subpart 37.2) on the basis of $lll in overall costs for the present an unsolicited proposal without pro- and future acquisition of these supplies viding for full and open competition, or services. (Describe how estimate was unless— derived.) (1) The head of the contracting activ- Alternate 2: is in the interest of na- ity, or a designee no lower than chief of tional defense because it will result in the contracting office, determines having a supplier available for fur- that— nishing these supplies or services in (i) Following thorough technical evaluation, only one source is fully case of a national emergency or indus- qualified to perform the proposed work; trial mobilization. (Explain cir- (ii) The unsolicited proposal offers cumstances requiring exclusion of significant scientific or technological source.) promise, represents the product of Alternate 3: is in the interest of na- original thinking, and was submitted tional defense because it will result in in confidence; or establishment or maintenance of an es- (iii) The contract benefits the na- sential engineering, research or devel- tional defense by taking advantage of a opment capability to be provided by an unique and significant industrial ac- educational or other nonprofit institu- complishment or by ensuring financial tion or a federally funded research and support to a new product or idea; development center. (Explain cir- (2) A civilian official of the DoD, cumstances requiring exclusion of whose appointment has been confirmed source.) by the Senate, determines the award to be in the interest of national defense; 206.203 Set-asides for small business or concerns. (3) The contract is related to im- (b) Also no separate justification or provement of equipment that is in de- determination and findings is required velopment or production. (b) Application. This authority may for contract actions processed as his- be used for acquisitions of test articles torically black college and university and associated support services from a and minority institution set-asides (see designated foreign source under the 226.7003). DoD Foreign Comparative Testing Pro- [63 FR 41973, Aug. 6, 1998] gram. (4) Do not use this authority unless the equipment or parts have been adopted as standard items of supply in
1 Identify source being excluded.
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accordance with DoDI 5000.2, Defense 206.302–5 Authorized or required by Acquisition Management Policies and statute. Procedures. (b) Application. Agencies may use this [56 FR 36303, July 31, 1991, as amended at 57 authority to— FR 14992, Apr. 23, 1992; 58 FR 28463, May 13, (i) Acquire supplies and services from 1993] military exchange stores outside the United States for use by the armed 206.302–2 Unusual and compelling ur- forces outside the United States in ac- gency. cordance with 10 U.S.C. 2424(a) and sub- (b) Application. The circumstances ject to the limitations of 10 U.S.C. under which use of this authority may 2424(b). The limitations of 10 U.S.C. be appropriate include, but are not lim- 2424(b) (1) and (2) do not apply to the ited to, the following: purchase of soft drinks that are manu- (i) Supplies, services, or construction factured in the United States. For the needed at once because of fire, flood, purposes of 10 U.S.C. 2424, soft drinks explosion, or other disaster; manufactured in the United States are (ii) Essential equipment or repair brand name carbonated sodas, manu- needed at once to— factured in the United States, as evi- (A) Comply with orders for a ship; denced by product markings. (B) Perform the operational mission (ii) Acquire police, fire protection, of an aircraft; or airfield operation, or other community (C) Preclude impairment of launch services from local governments at capabilities or mission performance of military installations to be closed missiles or missile support equipment. under the circumstances in 237.7401 (iii) Construction needed at once to (Section 2907 of Fiscal Year 1994 De- preserve a structure or its contents fense Authorization Act (Pub. L. 103– from damage; 160)). (c) (i) 10 U.S.C. 2361 pre- (iv) Purchase requests citing an issue Limitations. cludes use of this exception for awards priority designator under DoDD 4410.6, to colleges or universities for the per- Uniform Material Movement and Issue formance of research and development, Priority System, of 4 or higher, or cit- or for the construction of any research ing ‘‘Electronic Warfare QRC Pri- or other facility, unless— ority.’’ (A) The statute authorizing or re- 206.302–3 Industrial mobilization; or quiring award specifically— engineering, development, or re- (1) States that the statute modifies search capability. or supersedes the provisions of 10 U.S.C. 2361, 206.302–3–70 Solicitation provision. (2) Identifies the particular college or Use the provision at 252.206–7000, Do- university involved, and mestic Source Restriction, in all solici- (3) States that award is being made tations that are restricted to domestic in contravention of 10 U.S.C. 2361(a); sources under the authority of FAR and 6.302–3. (B) The Secretary of Defense provides Congress written notice of intent to 206.302–4 International agreement. award. The contract cannot be awarded until 180 days have elapsed since the (c) Limitations. Pursuant to 10 U.S.C. date Congress received the notice of in- 2304(f)(2)(E), the justifications and ap- tent to award. Contracting activities provals described in FAR 6.303 and 6.304 must submit a draft notice of intent are not required if the head of the con- with supporting documentation tracting activity prepares a document through channels to the Director of De- that describes the terms of an agree- fense Procurement, Office of the Under ment or treaty or the written direc- Secretary of Defense (Acquisition, tions, such as a Letter of Offer and Ac- Technology, and Logistics). ceptance, that have the effect of re- (ii) The limitation in paragraph (c)(i) quiring the use of other than competi- of this subsection applies only if the tive procedures for the acquisition. statute authorizing or requiring award [63 FR 67803, Dec. 9, 1998] was enacted after September 30, 1989.
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(iii) Subsequent statutes may provide comparable to or higher than the grade different or additional constraints on of major general or rear admiral. the award of contracts to specified col- [61 FR 10285, Mar. 13, 1995, as amended at 61 leges and universities. Contracting of- FR 50451, Sept. 26, 1996; 65 FR 39704, June 27, ficers should consult legal counsel on a 2000] case-by-case basis. [56 FR 36303, July 31, 1991, as amended at 57 PART 207—ACQUISITION FR 14992, Apr. 23, 1992; 58 FR 28463, May 13, PLANNING 1993; 59 FR 36089, July 15, 1994; 60 FR 29497, June 5, 1995; 60 FR 40107, Aug. 7, 1995; 65 FR Subpart 207.1—Acquisition Plans 39704, June 27, 2000] Sec. 206.302–7 Public interest. 207.102 Policy. 207.103 Agency-head responsibilities. (c) Limitations. For the defense agen- 207.104 General procedures. cies, the written determination to use 207.105 Contents of written acquisition this authority must be made by the plans. Secretary of Defense. 207.106 Additional requirements for major systems. 206.303 Justifications. Subpart 207.4—Equipment Lease or 206.303–1 Requirements. Purchase (b) Technical and requirements per- 207.401 Acquisition considerations. sonnel must obtain any review and ap- 207.470 Statutory requirements. proval required by department or agen- 207.471 Funding requirements. cy procedures before submission of a AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- recommendation for other than full ter 1. and open competition to the con- SOURCE: 56 FR 36305, July 31, 1991, unless tracting officer. otherwise noted. (c) When conditions warrant, a class justification may provide for award of Subpart 207.1—Acquisition Plans multiple contracts extending across more than one program phase. 207.102 Policy. [56 FR 36303, July 31, 1991, as amended at 60 When a class justification for other FR 61592, Nov. 30, 1995] than full and open competition has been approved, planning for competi- 206.303–2 Content. tion shall be accomplished consistent (a) Include sufficient information in with the terms of that approval. the justification to permit its approval [60 FR 61592, Nov. 30, 1995] as a stand-alone document, even though agency procedures may require 207.103 Agency-head responsibilities. supplementary documentation. (d)(i) Prepare written acquisition 206.304 Approval of the justification. plans for— (A) Acquisitions for development, as (a)(4) The Under Secretary of Defense defined in FAR 35.001, when the total (Acquisition, Technology, and Logis- cost of all contracts for the acquisition tics) may delegate this authority to— program is estimated at $5 million or (A) An Assistant Secretary of De- more; fense; or (B) Acquisitions for production or (B) For a defense agency, an officer services when the total cost of all con- or employee serving in, assigned, or de- tracts for the acquisition program is tailed to that agency who— estimated at $30 million or more for all (1) If a member of the armed forces, years or $15 million or more for any fis- is serving in a rank above brigadier cal year; and general or rear admiral (lower half); or (C) Any other acquisition considered (2) If a civilian, is serving in a posi- appropriate by the department or agen- tion with a grade under the General cy. Schedule (or any other schedule for ci- (ii) Written plans are not required in vilian officers or employees) that is acquisitions for a final buy out or one-
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time buy. The terms ‘‘final buy out’’ trial base capabilities in accordance and ‘‘one-time buy’’ refer to a single with 10 U.S.C. 2304(c)(3) and Section 806 contract that covers all known present of Public law 105–261; and and future requirements. This excep- (B) Will notify the department or tion does not apply to a multiyear con- agency of concurrence or non-concur- tract or a contract with options or rence. In the case of a non-concurrence, phases. the SCMA, with assistance from the (e) Prepare written acquisition plans Army Office of the Executive Director for acquisition programs meeting the for Conventional Ammunition, will at- thresholds of paragraphs (d)(i) (A) and tempt to resolve the matter with the (B) of this section on a program basis. department or agency. If no agreement Other acquisition plans may be written is reached, the Assistant Secretary of on either a program or an individual the Army (Acquisition, Logistics and contract basis. Technology) will make the final deci- (g) The program manager, or other sion on the appropriate acquisition ap- official responsible for the program, proach. has overall responsibility for acquisi- [56 FR 36305, July 31, 1991, as amended at 61 tion planning. FR 50451, Sept. 26, 1996; 66 FR 47107, Sept. 11, (i)(i) Apply design-to-cost prin- 2001] ciples— (A) In all major defense acquisition 207.104 General procedures. programs (DoDD 5000.1, Defense Acqui- (b) The planner should forward the sition), unless exempted by the Sec- requirements information to the con- retary of Defense; and tract administration organization (B) To the acquisition of systems, when assistance in identification of po- subsystems, and components below the tential sources of supply is necessary, thresholds for major defense acquisi- when an existing contract is being tion programs, to the extent prescribed modified or resolicited, or when con- by DoDD 5000.1. tract administration resource require- (ii) Consider life-cycle-cost in all ac- ments will be affected. quisitions of systems and equipment. (h) For procurement of conventional [61 FR 50451, Sept. 26, 1996] ammunition, as defined in DoDD 5160.65, Single Manager for Conven- 207.105 Contents of written acquisi- tional Ammunition (SCMA)— tion plans. (i) The department or agency— For acquisitions covered by (A) Must submit the acquisition plan 207.103(c)(i) (A) and (B), correlate the to the SCMA at the following address: plan to the DoD Future Years Defense Deputy for Ammunition, Office of the Program, applicable budget submis- Assistant Secretary of the Army (Ac- sions, and the decision coordinating quisition, Logistics and Technology), paper/program memorandum, as appro- ATTN: SAAL–ZCA, 5001 Eisenhower priate. It is incumbent upon the plan- Avenue, Alexandria, VA 22333–0001. ner to coordinate the plan with all Telephone: Commercial (703) 617–8001; those who have a responsibility for the DSN 767–8001; development, management, or adminis- (B) Also must submit an acquisition tration of the acquisition. The acquisi- plan to the SCMA for a new procure- tion plan should be provided to the ment covered by a previously approved contract administration organization acquisition plan, if the SCMA did not to facilitate resource allocation and review the previously approved acquisi- planning for the evaluation, identifica- tion plan; and tion, and management of contractor (C) Must not proceed with the pro- performance risk. curement until the SCMA provides (a) Acquisition background and objec- written concurrence with the acquisi- tives—(1) Statement of need. Include— tion plan. (A) Applicability of a decision coordi- (ii) The SCMA— nating paper (DCP), acquisition deci- (A) Will review the acquisition plan sion memorandum, Defense Acquisi- to determine if it is consistent with re- tion Board (DAB), and/or internal serv- taining national technology and indus- ice reviews. Describe the options in the
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DCP/acquisition decision memorandum Automated Information System and delineate which option the acquisi- (MAIS) Acquisition Programs, for pro- tion plan supports. cedures on standardization and on the (B) The date approval for operational DoD Parts Control Program. Also see use has been or will be obtained. If DoD 4120.24–M, Defense Standardiza- waivers are requested, describe the tion Program (DSP) Policies and Pro- need for the waivers. cedures. (C) A milestone chart depicting the (S–70) Describe the extent of Com- acquisition objectives. puter-Aided Acquisition and Logistics (D) Milestones for updating the ac- Support (CALS) implementation (see quisition plan. Indicate when the plan MIL–HDBK 59, Department of Defense will be updated. Program managers Computer-Aided Logistics Support should schedule updates to coincide (CALS) Program Guide, and MIL–STD– with DAB reviews and the transition 1840A, Automated Interchange of Tech- from one phase to another (e.g., engi- nical Information. neering and manufacturing develop- (16) Environmental and energy con- ment to production and deployment). servation objectives. Discuss actions (8) Acquisition streamlining. DoDD taken to ensure either elimination of 5000.1, Defense Acquisition, and DoD or authorization to use class I ozone- 5000.2–R, Mandatory Procedures for depleting chemicals and substances Major Defense Acquisition Programs (see 211.271). (MDAPs) and Major Automated Infor- (19) Other considerations. (A) National mation System (MAIS) Acquisition Technology and Industrial Base. For Programs, contain policy direction on major defense acquisition programs, acquisition streamlining. See MIL– address the following (Pub. L. 102–484, HDBK 248, Acquisition Streamlining, section 4220)— for guidance on streamlining perform- (1) An analysis of the capabilities of ance requirements, the technical pack- the national technology and industrial age, and the contract strategy. base to develop, produce, maintain, and (b) Plan of action—(5) Budgeting and support such program, including con- funding. Include specific references to sideration of the following factors re- budget line items and program ele- lated to foreign dependency (Pub. L. ments, where applicable, estimated 102–484, section 4219(h))— production unit cost, and the total cost (i) The availability of essential raw for remaining production. materials, special alloys, composite (6) Product descriptions. For develop- materials, components, tooling, and ment acquisitions, describe the market production test equipment for the sus- research undertaken to identify com- tained production of systems fully ca- mercial items, commercial items with pable of meeting the performance ob- modifications, or nondevelopmental jectives established for those systems; items (see FAR part 10) that could sat- the uninterrupted maintenance and re- isfy the acquisition objectives. pair of such systems; and the sustained (13) Logistics considerations. (i) De- operation of such systems. scribe the extent of integrated logistics (ii) The identification of items speci- support planning to date, including ref- fied in paragraph (b)(18)(A)(1)(i) of this erences to approved plans. section that are available only from (ii) Discuss the mission profile, reli- sources outside the national tech- ability, and maintainability (R&M) nology and industrial base. program plan, R&M predictions, redun- (iii) The availability of alternatives dancy, qualified parts lists, parts and for obtaining such items from within material qualification, R&M require- the national technology and industrial ments imposed on vendors, failure base if such items become unavailable analysis, corrective action and feed- from sources outside the national tech- back, and R&M design reviews and nology industrial base; and an analysis trade-off studies. of any military vulnerability that (iv) See DoDD 5000.1, Defense Acqui- could result from the lack of reason- sition, and DoD 5000.2–R, Mandatory able alternatives. Procedures for Major Defense Acquisi- (iv) The effects on the national tech- tion Programs (MDAPs) and Major nology and industrial base that result
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from foreign acquisition of firms in the mined not to be applicable, summarize United States. the details of the analysis forming the (2) Consideration of requirements for basis of this decision. efficient manufacture during the de- (3) If the program involves peacetime sign and production of the systems to and wartime hardware configurations be procured under the program. which are supported by logistics sup- (3) The use of advanced manufac- port plans, identify their impact on the turing technology, processes, and sys- IP plan. tems during the research and develop- (C) Ensure compliance with DoDD ment phase and the production phase 4210.15, Hazardous Material Pollution of the program. Prevention. (4) To the maximum extent prac- (D) Contract administration. Discuss ticable, the use of contract solicita- the level of Government administra- tions that encourage competing tion anticipated or currently per- offerors to acquire, for use in the per- formed and any change proposed by the formance of the contract, modern tech- contract administration office. nology, production equipment, and pro- [56 FR 36305, July 31, 1991, as amended at 58 duction systems (including hardware FR 28463, May 13, 1993; 58 FR 32061, June 8, and software) that increase the produc- 1993; 60 FR 29497, June 5, 1995; 60 FR 61593, tivity of the offerors and reduce the Nov. 30, 1995; 61 FR 50451, Sept. 26, 1996; 64 FR life-cycle costs. 51075, Sept. 21, 1999; 65 FR 14398, Mar. 16, 2000; (5) Methods to encourage investment 65 FR 63804, Oct. 25, 2000] by U.S. domestic sources in advanced manufacturing technology production 207.106 Additional requirements for equipment and processes through— major systems. (i) Recognition of the contractor’s in- (b)(1)(A) The contracting officer is vestment in advanced manufacturing prohibited by 10 U.S.C. 2305(d)(4)(A) technology production equipment, from requiring offers for development processes, and organization of work or production of major systems that systems that build on workers’ skill would enable the Government to use and experience, and work force skill technical data to competitively repro- development in the development of the cure identical items or components of contract objective; and the system if the item or component (ii) Increased emphasis in source se- were developed exclusively at private lection on the efficiency of production. expense, unless the contracting officer (6) Expanded use of commercial man- determines that— ufacturing processes rather than proc- (1) The original supplier of the item esses specified by DoD. or component will be unable to satisfy (7) Elimination of barriers to, and fa- program schedule or delivery require- cilitation of, the integrated manufac- ments; ture of commercial items and items (2) Proposals by the original supplier being produced under DoD contracts. of the item or component to meet mo- (8) Expanded use of commercial bilization requirements are insufficient items, commercial items with modi- to meet the agency’s mobilization fications, or to the extent commercial needs; or items are not available, nondevelop- (3) The Government is otherwise en- mental items (see FAR part 10). titled to unlimited rights in technical (B) Industrial preparedness (IP). data. (1) Provide the program’s IP strategy (B) If the contracting officer makes a that assesses the capability of the U.S. determination, under paragraphs industrial base to achieve identified (b)(1)(A) (1) and (2) of this section, for a surge and mobilization goals. If no IP competitive solicitation, 10 U.S.C. strategy has been developed, provide 2305(d)(4)(B) requires that the evalua- supporting rationale for this position. tion of items developed at private ex- (2) If in the IP strategy, the develop- pense be based on an analysis of the ment of a detailed IP plan was deter- total value, in terms of innovative de- mined to be applicable, include the sign, life-cycle costs, and other perti- plan by text or by reference. If the de- nent factors, of incorporating such velopment of the IP plan was deter- items in the system.
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Subpart 207.4—Equipment Lease PART 208—REQUIRED SOURCES OF or Purchase SUPPLIES AND SERVICES
207.401 Acquisition considerations. Sec. 208.001 Priorities for use of Government If the equipment will be leased for supply sources. more than 60 days, the requiring activ- 208.002 Use of other Government supply ity must prepare and provide the con- sources. tracting officer with the justification supporting the decision to lease or pur- Subpart 208.4—Ordering from Federal chase. Supply Schedules 208.404 Using schedules. 207.470 Statutory requirements. 208.404–1 Mandatory use. (a) Limitation on contracts with terms 208.404–2 Optional use. 208.405 Ordering office responsibilities. of 18 months or more. As required by 10 208.405–2 Order placement. U.S.C. 2401a, the contracting officer shall not enter into any contract for Subpart 208.6—Acquisition from Federal any vessel, aircraft, or vehicle, through Prison Industries, Inc. a lease, charter, or similar agreement 208.606 Exceptions. with a term of 18 months or more, or extend or renew any such contract for Subpart 208.7—Acquisition from the Blind a term of 18 months or more, unless the and Other Severely Handicapped head of the contracting activity has— 208.705 Procedures. (1) Considered all costs of such a con- tract (including estimated termination Subpart 208.70—Coordinated Acquisition liability); and (2) Determined in writing that the 208.7000 Scope of subpart. 208.7001 Definitions. contract is in the best interest of the 208.7002 Assignment authority. Government. 208.7002–1 Acquiring department respon- (b) Leasing of commercial vehicles and sibilities. associated equipment. Except as pro- 208.7002–2 Requiring department respon- vided in paragraph (a) of this section, sibilities. 208.7003 Applicability. the contracting officer may use leasing 208.7003–1 Assignments under integrated in the acquisition of commercial vehi- materiel management (IMM). cles and associated equipment when- 208.7003–2 Assignments under coordinated ever the contracting officer determines acquisition. that leasing of such vehicles is prac- 208.7004 Procedures. 208.7004–1 Purchase authorization from re- ticable and efficient (10 US.C. 2401a). quiring department. [61 FR 16879, Apr. 18, 1996, as amended at 61 208.7004–2 Acceptance by acquiring depart- ment. FR 50451, Sept. 26, 1996] 208.7004–3 Use of advance MIPRs. 208.7004–4 Cutoff dates for submission of 207.471 Funding requirements. Category II MIPRs. (a) Fund leases in accordance with 208.7004–5 Notification of inability to obli- DoD Financial Management Regula- gate on Category II MIPRs. 208.7004–6 Cancellation of requirements. tion (FMR) 7000.14–R, Volume 2A, 208.7004–7 Termination for default. Chapter 1. 208.7004–8 Transportation funding. (b) DoD leases are either capital 208.7004–9 Status reporting. leases or operating leases. The dif- 208.7004–10 Administrative costs. ference between the two types of leases 208.7005 MIPRs. 208.7006 Coordinated acquisition assign- is described in FMR 7000.14–R, Volume ments. 4, Chapter 7, Section 070308. (c) Capital leases are essentially in- Subpart 208.71—Acquisition for National stallment purchases of property. Use Aeronautics and Space Administration procurement funds for capital leases. (NASA) [64 FR 31732, June 14, 1999]+ 208.7100 Authorization. 208.7101 Policy.
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208.7102 Procedures. (B) Eligible private helium distribu- 208.7103 Purchase request and acceptance. tors. A list of eligible private helium 208.7104 Changes in estimated total prices. distributors is maintained by the Bu- 208.7105 Payments. reau of Mines, Helium Field Oper- Subpart 208.72—Industrial Preparedness ations, 1100 South Fillmore Street, Production Planning Amarillo, TX 79101. (ii) In cylinders or trailers, from— 208.7201 Definitions. (A) The Department of Interior (Bu- 208.7202 General. 208.7203 Authority. reau of Mines); or 208.7204 Procedures. (B) Through GSA Federal Supply Schedule contracts. Subpart 208.73—Use of Government- Owned Precious Metals [56 FR 36306, July 31, 1991, as amended at 62 FR 34121, June 24, 1997] 208.7301 Definitions. 208.7302 Policy. 208.7303 Procedures. Subpart 208.4—Ordering From 208.7304 Refined precious metals. Federal Supply Schedules 208.7305 Contract clause. 208.404 Using schedules. AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- ter 1. (a) When a schedule lists both foreign SOURCE: 56 FR 36306, July 31, 1991, unless and domestic items that will meet the otherwise noted. needs of the requiring activity, the or- dering office must apply the procedures 208.001 Priorities for use of Govern- of part 225 and FAR part 25, Foreign ment supply sources. Acquisition. When purchase of an item (a)(1)(v) See subpart 208.70, Coordi- of foreign origin is specifically re- nated Acquisition. quired, the requiring activity must fur- (2)(iii) Information on General Serv- nish the ordering office sufficient in- ices Administration (GSA) schedules formation to permit the determina- for maintenance, repair, and rehabili- tions required by part 225 and FAR part tation of personal property is in the 25 to be made. GSA supply catalog. The types of per- sonal property for which GSA, Federal 208.404–1 Mandatory use. Supply Service has schedule contracts for maintenance, repair, and/or reha- The DoD will not be a mandatory bilitation are— user of any schedule unless individual (1) Furniture (office, household, quar- DoD activities elect to provide annual ters, institutional, and hospital type); requirements estimates to GSA and be- (2) Typewriters (manual, electric, and come mandatory users. Examples of electronic); areas where this approach may be ap- (3) Repair and maintenance of Gov- plied are: ernment owned vehicles; and (1) Group 68—gases and chemicals; (4) Tire retreading and repair (except (2) Group 26—pneumatic tires and aircraft). inner tubes; (3) Maintenance, repair, and/or reha- 208.002 Use of other Government sup- bilitation of personal property; and ply sources. (4) ‘‘Just-in-time’’ arrangements for (f) Detailed information on strategic delivery of material directly from ven- and critical materials in excess of na- dors to users. tional stockpile requirements (e.g., metals, ores, chemicals) is available 208.404–2 Optional use. from the Defense National Stockpile Center, 8725 John J. Kingman Road, Make maximum use of the schedules. Suite 4616, Fort Belvoir, VA 22060–6223. Other procedures may be used if fur- (g) Acquire helium (Pub. L. 86–777)— ther competition is judged to be in the (i) In bulk from— best interest of the Government in (A) The Department of Interior (Bu- terms of quality, responsiveness, or reau of Mines); or cost.
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208.405 Ordering office responsibil- (4) If permitted under the schedule ities. contract, use of the Governmentwide commercial purchase card— 208.405–2 Order placement. (i) Is mandatory for placement of or- (1) When ordering from schedules, or- ders valued at or below the micro-pur- dering offices— chase threshold; and (i) May use DD Form 1155, Order for (ii) Is optional for placement of or- Supplies or Services, to place orders ders valued above the micro-purchase for— threshold. (A) Commercial items at or below the [64 FR 2596, Jan. 15, 1999, as amended at 65 simplified acquisition threshold; and FR 46625, July 31, 2000] (B) Other than commercial items at any dollar value (see 213.307); Subpart 208.6—Acquisition from (ii) Shall use SF 1449, Solicitation/ Federal Prison Industries, Inc. Contract/Order for Commercial Items, to place orders for commercial items 208.606 Exceptions. exceeding the simplified acquisition threshold (see FAR 12.204); and (e) DoD activities do not need an FPI (iii) May use SF 1449 to place orders clearance for orders of listed items to- for other than commercial items at taling $250 or less than require delivery any dollar value. within 10 days. (2) Schedule orders may be placed [65 FR 14400, Mar. 16, 2000] orally if— (i) The contractor agrees to furnish a Subpart 208.7—Acquisition From delivery ticket for each shipment the Blind and Other Severely under the order (in the number of cop- ies required by the ordering office). Handicapped The ticket must include the— 208.705 Procedures. (A) Contract number; (B) Order number under the contract; Ordering offices may use DD Form 1155, Order for Supplies or Services, to (C) Date of order; place orders with central nonprofit (D) Name and title of person placing agencies or workshops. the order; (E) Itemized listing of supplies or services furnished; and Subpart 208.70—Coordinated (F) Date of delivery or shipment; and Acquisition (ii) Invoicing procedures are agreed upon. Optional methods of submitting 208.7000 Scope of subpart. invoices for payment are permitted, This subpart prescribes policy and such as— procedures for acquisition of items for (A) An individual invoice with a which contracting responsibility is as- receipted copy of the delivery ticket; signed to one or more of the depart- (B) A summarized monthly invoice ments/agencies or the General Services covering all oral orders made during Administration. Contracting responsi- the month, with receipted copies of the bility is assigned through— delivery tickets (this option is pre- (a) The Coordinated Acquisition Pro- ferred if there are many oral orders); or gram (commodity assignments are list- (C) A contracting officer statement ed in appendix B); or that the Government has received the (b) The Integrated Materiel Manage- supplies. ment Program (assignments are in DoD (3) For purchases where cash pay- 4140.26–M, Integrated Materiel Manage- ment is an advantage, the use of im- ment for Consumable Items). prest funds in accordance with 213.305 is authorized when— 208.7001 Definitions. (i) The order does not exceed the For purposes of this subpart— threshold at FAR 13.305–3(a); and Acquiring department means the de- (ii) The contractor agrees to the pro- partment, agency, or General Services cedure. Administration which has contracting
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responsibility under the Coordinated (1) To the departments and agencies; Acquisition Program. and Integrated materiel management means (2) To GSA, through agreement with assignment of acquisition management GSA. responsibility to one department, agen- [56 FR 36306, July 31, 1991, as amended at 64 cy, or the General Services Adminis- FR 51075, Sept. 21, 1999] tration for all of DoD’s requirements for the assigned item. Acquisition man- 208.7002–1 Acquiring department re- agement normally includes computing sponsibilities. requirements, funding, budgeting, stor- The acquiring department generally ing, issuing, cataloging, standardizing, is responsible under coordinated acqui- and contracting functions. sition for— Requiring department means the de- (a) Operational aspects of acquisition partment or agency which has the re- planning (Phasing the submission of re- quirement for an item. quirements to contracting, consoli- dating or dividing requirements, ana- 208.7002 Assignment authority. lyzing the market, and determining (a) Under the DoD Coordinated Ac- patterns for the phased placement of quisition Program, contracting respon- orders to avoid unnecessary production sibility for certain commodities is as- fluctuations and meet the needs of re- signed to a single department, agency, quiring departments at the lowest or the General Services Administration price); (GSA). Commodity assignments are (b) Purchasing; made— (c) Performing or assigning contract (1) To the departments and agencies, administration, including follow up by the Deputy Under Secretary of De- and expediting of inspection and trans- fense (Logistics); portation; and (d) Obtaining licenses under patents (2) To GSA, through agreement with and settling patent infringement GSA, by the Deputy Under Secretary of claims arising out of the acquisition. Defense (Logistics); (Acquiring departments must obtain (3) Outside the continental United approval from the department whose States, by the Unified Commanders; funds are to be charged for obtaining and licenses or settling claims.) (4) For acquisitions to be made in the United States for commodities not as- 208.7002–2 Requiring department re- signed under paragraphs (a) (1), (2), or sponsibilities. (3) of this section, by agreement of The requiring department is respon- agency heads (10 U.S.C. 2311). sible for— (i) Agreement may be on either a (a) Ensuring compliance with the one-time or a continuing basis. The order of priority in FAR 8.001 for use of submission of a military interdepart- Government supply sources before sub- mental purchase request (MIPR) by a mitting a requirement to the acquiring requiring activity and its acceptance department for contracting action. by the contracting activity of another (b) Providing the acquiring depart- department, even though based on an ment— oral communication, constitutes a one- (1) The complete and certified docu- time agreement. mentation required by FAR 6.303–2(b). (ii) Consider repetitive delegated ac- A requiring department official, equiv- quisition responsibilities for coordi- alent to the appropriate level in FAR nated acquisition assignment. If not 6.304, must approve the documentation considered suitable for coordinated ac- before submission of the military quisition assignment, formalize con- interdepartmental purchase request tinuing agreements and distribute (MIPR) to the acquiring department; them to all activities concerned. (2) Any additional supporting data (b) Under the Integrated Materiel which the acquiring department con- Management Program, assignments are tracting officer requests (e.g., the re- made by the Deputy Under Secretary sults of any market survey or why of Defense (Logistics)— none was conducted, and actions the
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requiring department will take to over- quiring activity must send one copy of come barriers to competition in the fu- the contract and a statement of the ture); emergency to the IMM manager; (3) The executed determination and (2) Items for which the IMM manager findings required by FAR 6.302–7(c)(1); assigns a supply system code for local (4) When a requiring department re- purchase or otherwise grants authority quests an acquiring department to con- to purchase locally; or tract for supplies or services using full (3) When purchase by the requiring and open competition after exclusion activity is in the best interest of the of sources, all data required by FAR Government in terms of the combina- 6.202(b)(2); tion of quality, timeliness, and cost (5) When the requiring department that best meets the requirement. This specifies a foreign end product, any de- exception does not apply to items— terminations required by part 225 or (i) Critical to the safe operation of a FAR part 25; weapon system; (6) A complete definition of the re- (ii) With special security characteris- quirements, including a list (or copies) tics; or of specifications, drawings, and other (iii) Which are dangerous (e.g., explo- data required for the acquisition. The sives, munitions). requiring department need not furnish (b) When an item assigned for IMM is Federal, military, departmental, or to be acquired by the requiring activity other specifications or drawings or under paragraph (a)(3) of this sub- data which are available to the acquir- section, the contracting officer must— ing department; (1) Document the contract file with a (7) Justification required by FAR statement of the specific advantage of 17.205(a) for any option quantities re- local purchase for an acquisition ex- quested; ceeding the micro-purchase threshold (8) A statement as to whether used or in FAR part 2; and reconditioned material, former Govern- (2) Ensure that a waiver is obtained ment surplus property, or residual in- from the IMM manager before initi- ventory will be acceptable, and if so— ating an acquisition exceeding the sim- (i) A list of any supplies that need plified acquisition threshold in FAR not be new; and part 2, if the IMM assignment is to the (ii) The basis for determining the ac- General Services Administration ceptability of such supplies (see FAR (GSA), the Defense Logistics Agency 11.302(b)); (DLA), or the Army Materiel Command (9) A statement as to whether the ac- (AMC). Submit requests for waiver to— quiring department may exceed the total MIPR estimate, and if so, by what amount; and (i) For GSA: (10) Unless otherwise agreed between Commissioner (F), Federal Supply the departments, an original and six Service, Washington, DC 20406 copies of each MIPR and its attach- (ii) For DLA: ments (except specifications, drawings, Defense Supply Center, Columbus, and other data). ATTN: DSCC–BDL, P.O. Box 3990, Co- lumbus, OH 43216–5000 [56 FR 36306, July 31, 1991, as amended at 65 FR 52951, Aug. 31, 2000] Defense Energy Support Center, ATTN: DESC–FI, 8725 John J. Kingman 208.7003 Applicability. Road, Fort Belvoir, VA 22060–6222 Defense Supply Center, Richmond, 208.7003–1 Assignments under inte- ATTN: DSCR–RZO, 8000 Jefferson grated materiel management (IMM). Davis Highway, Richmond, VA 23297– (a) All items assigned for IMM must 5000 be acquired from the IMM manager ex- Defense Supply Center, Philadelphia, cept— ATTN: DSCP–ILSI (for General and (1) Items purchased under cir- Industrial), DSCP–OCS (for Medical, cumstances of unusual and compelling Clothing, and Textiles), 700 Robbins urgency as defined in FAR 6.302–2. Avenue, Bldg. 4, Philadelphia, PA After such a purchase is made, the re- 19111–5096
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In addition, forward a copy of each (1) This exception applies to all items request to: designed for and peculiar to nuclear Defense Logistics Support Command, ordnance regardless of agency control, ATTN: DLSC–LS, 8725 John J. King- or to any item which requires test or man Road, Fort Belvoir, VA 22060– inspection conducted or controlled by 6221. DoE or DoD. (iii) For AMC: (2) This exception does not cover Commander, U.S. Army Materiel items used for both nuclear ordnance Command, ATTN: AMCLG–S, 5001 and other purposes if the items are not Eisenhower Avenue, Alexandria, subject to the special testing proce- VA 22333–0001 dures. (h) Items to be acquired under FAR [60 FR 61593, Nov. 30, 1995, as amended at 64 6.302–6 (national security requires limi- FR 51075, Sept. 21, 1999; 64 FR 61031, Nov. 9, tation of sources); 1999] (i) Items to be acquired under FAR 6.302–1 (supplies available only from 208.7003–2 Assignments under coordi- nated acquisition. the original source for follow-on con- tract); Requiring departments must submit (j) Items directly related to a major to the acquiring department all con- system and which are design controlled tracting requirements for items as- by and acquired from either the system signed for coordinated acquisition, ex- manufacturer or a manufacturer of a cept— major subsystem; (a) Items obtained through the (k) Items subject to rapid design sources in FAR 8.001(a)(1) (i) through changes, or to continuous redesign or (vii); modification during the production (b) Items obtained under 208.7003–1(a); and/or operational use phases, which (c) Requirements not in excess of the require continual contact between in- simplified acquisition threshold in dustry and the requiring department to FAR part 2, when contracting by the ensure that the item meets the require- requiring department is in the best in- ments: terest of the Government; (1) This exception permits the requir- (d) In an emergency. When an emer- ing department to contract for items of gency purchase is made, the requiring highly unstable design. For use of this department must send one copy of the exception, it must be clearly imprac- contract and a statement of the emer- tical, both technically and contrac- gency to the contracting activity of tually, to refer the acquisition to the the acquiring department; acquiring department. Anticipation (e) Requirements for which the ac- that contracting by negotiation will be quiring department’s contracting ac- appropriate, or that a number of design tivity delegates contracting authority changes may occur during contract to the requiring department; performance is not in itself sufficient (f) Items in a research and develop- reason for using this exception. ment stage (as described in FAR part (2) This exception also applies to 35). Under this exception, the military items requiring compatibility testing, departments may contract for research provided such testing requires con- and development requirements, includ- tinual contact between industry and ing quantities for testing purposes and the requiring department; items undergoing in-service evaluation (l) Containers acquired only with (not yet in actual production, but be- items for which they are designed; yond prototype). Generally, this excep- (m) One-time buy of a noncataloged tion applies only when research and de- item. velopment funds are used. (1) This exception permits the requir- (g) Items peculiar to nuclear ord- ing departments to contract for a non- nance material where design character- recurring requirement for a noncata- istics or test-inspection requirements loged item. This exception could cover are controlled by the Department of a part or component for a prototype Energy (DoE) or by DoD to ensure reli- which may be stock numbered at a ability of nuclear weapons. later date.
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(2) This exception does not permit ac- 208.7004–2 Acceptance by acquiring quisitions of recurring requirements department. for an item, based solely on the fact (a) Acquiring departments formally that the item is not stock numbered, accept a MIPR by DD Form 448–2, Ac- nor may it be used to acquire items ceptance of MIPR, as soon as prac- which have only slightly different ticable, but no later than 30 days after characteristics than previously cata- receipt of the MIPR. If the 30 day time loged items. limit cannot be met, the acquiring de- partment must inform the requiring [56 FR 36306, July 31, 1991, as amended at 60 department of the reason for the delay, FR 61593, Nov. 30, 1995; 64 FR 51075, Sept. 21, and the anticipated date the MIPR will 1999] be accepted. The acquiring department 208.7004 Procedures. must accept MIPRs in writing before expiration of the funds. 208.7004–1 Purchase authorization (b) The acquiring department in ac- from requiring department. cepting a MIPR will determine whether to use Category I (reimbursable funds (a) Requiring departments send their citation) or Category II (direct funds requirements to acquiring departments citation) methods of funding. on either a DD Form 448, Military (1) Category I method of funding is Interdepartmental Purchase Request used under the following circumstances (MIPR), or a DD Form 416, Requisition and results in citing the funds of the for Coal, Coke or Briquettes. A MIPR acquiring department in the contract— or a DD Form 416 is the acquiring de- (i) Delivery is from existing inven- partment’s authority to acquire the tories of the acquiring department; supplies or services on behalf of the re- (ii) Delivery is by diversion from ex- quiring department. isting contracts of the acquiring de- (b) The acquiring department is au- partment; thorized to create obligations against (iii) Production or assembly is the funds cited in a MIPR without fur- through Government work orders in Government-owned plants; ther referral to the requiring depart- (iv) Production quantities are allo- ment. The acquiring department has no cated among users from one or more responsibility to determine the valid- contracts, and the identification of spe- ity of a stated requirement in an ap- cific quantities of the end item to indi- proved MIPR, but it should bring ap- vidual contracts is not feasible at the parent errors in the requirement to the time of MIPR acceptance; attention of the requiring department. (v) Acquisition of the end items in- (c) Changes that affect the contents volves separate acquisition of compo- of the MIPR must be processed as a nents to be assembled by the acquiring MIPR amendment regardless of the department; status of the MIPR. The requiring de- (vi) Payments will be made without partment may initially transmit reference to deliveries of end items changes electronically or by some (e.g., cost-reimbursement type con- other expedited means, but must con- tracts and fixed price contracts with firm changes by a MIPR amendment. progress payment clauses); or (d) The requiring department must (vii) Category II method of funding is not feasible and economical. submit requirements for additional (2) Category II method of funding is line items of supplies or services not used in circumstances other than those provided for in the original MIPR as a in paragraph (b)(1) of this subsection. new MIPR. The requiring department Category II funding results in citation may use a MIPR amendment for in- of the requiring department’s funds creased quantities only if— and MIPR number in the resultant con- (1) The original MIPR requirements tract. have not been released for solicitation; (c) When the acquiring departments and accepts a MIPR for Category I fund- (2) The acquiring department agrees. ing—
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(1) The DD Form 448–2, Acceptance of segments for action by other con- MIPR, is the authority for the requir- tracting activities. ing department to record the obliga- tion of funds; 208.7004–3 Use of advance MIPRs. (2) The acquiring department will an- (a) An advance MIPR is an unfunded notate the DD Form 448–2 if contin- MIPR provided to the acquiring depart- gencies, price revisions, or variations ment in advance of the funded MIPR so in quantities are anticipated. The ac- that initial steps in planning the con- quiring department will periodically tract action can begin at an earlier advise the requiring department, prior date. to submission of billings, of any (b) In order to use an advance MIPR, changes in the acceptance figure so the acquiring department and the re- that the requiring department may quiring department must agree that its issue an amendment to the MIPR, and use will be beneficial. The departments the recorded obligation may be ad- may execute a blanket agreement to justed to reflect the current price; use advance MIPRs. (3) If the acquiring department does not qualify the acceptance of a MIPR (c) The requiring department shall for anticipated contingencies, the price not release an advance MIPR to the ac- on the acceptance will be final and will quiring department without obtaining be billed at time of delivery; proper internal approval of the require- (4) Upon receipt of the final billing ment. (SF 1080, Voucher for Transferring (d) When advance MIPRs are used, Funds), the requiring department may mark ‘‘ADVANCE MIPR’’ prominently adjust the fiscal records accordingly on the DD Form 448. without authorization from or notice (e) For urgent requirements, the ad- to the acquiring department. vance MIPR may be transmitted elec- (d) When the MIPR is accepted for tronically. Category II funding, a conformed copy (f) On the basis of an advance MIPR, of the contract (see 204.802(1)(ii)) is the the acquiring department may take the authority to record the obligation. initial steps toward awarding a con- When all awards have been placed to tract, such as obtaining internal co- satisfy the total MIPR requirement, ordination and preparing an acquisi- any unused funds remaining on the tion plan. Acquiring departments may MIPR become excess to the acquiring determine the extent of these initial department. The acquiring department actions but shall not award contracts will immediately notify the requiring on the basis of advance MIPRs. department of the excess funds by sub- mitting an Acceptance of MIPR (DD 208.7004–4 Cutoff dates for submission Form 448–2). This amendment is au- of Category II MIPRs. thorization for the requiring depart- (a) Unless otherwise agreed between ment to withdraw the funds. The ac- the departments, May 31 is the cutoff quiring department is prohibited from date for the receipt of MIPRs citing ex- further use of such excess funds. piring appropriations which must be (e) When the acquiring department obligated by September 30 of that fis- requires additional funds to complete cal year. If circumstances arise which the contracting action for the requir- require the submission of MIPRs citing ing department, the request for addi- expiring appropriations after the cutoff tional funds must identify the exact date, the requiring department will items involved, and the reason why ad- communicate with the acquiring de- ditional funds are required. The requir- partment before submission to find out ing department shall act quickly to— whether the acquiring department can (1) Provide the funds by an amend- execute a contract or otherwise obli- ment of the MIPR; or gate the funds by the end of the fiscal (2) Reduce the requirements. year. Acquiring departments will make (f) The accepting activity of the ac- every effort to obligate funds for all quiring department shall remain re- such MIPRs accepted after the cutoff sponsible for the MIPR even though date. However, acceptance of a late that activity may split the MIPR into MIPR does not constitute assurance by
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the acquiring department that all such receipt of such notification, the requir- funds will be obligated. ing department shall initiate a MIPR (b) Nothing in these instructions is amendment to revoke the estimated intended to restrict the processing of amount shown on the original MIPR MIPRs when the acquiring department for the cancelled items. is capable of executing contracts or (2) If the items to be cancelled have otherwise obligating funds before the already been placed under contract— end of the fiscal year. (i) As soon as practicable, but in no (c) The May 31 cutoff date does not event more than 45 days after receipt apply to MIPRs citing continuing ap- of the cancellation notice from the re- propriations. quiring department, the contracting of- ficer shall issue a termination data let- 208.7004–5 Notification of inability to ter to the requiring department (origi- obligate on Category II MIPRs. nal and four copies) containing, as a On August 1, the acquiring depart- minimum, the information in Table 8– ment will advise the requiring depart- 1, Termination Data Letter. ment of any Category II MIPRs on (ii) The termination contracting offi- hand citing expiring appropriations cer (TCO) will review the proceedings they will be unable to obligate prior to at least every 60 days to reassess the the fund expiration date. If an unfore- Government’s probable obligation. If seen situation develops after August 1 any additional funds are excess to the which will prevent execution of a con- probable settlement requirements, or if tract, the acquiring department will it appears that previous release of ex- notify the requiring department as cess funds will result in a shortage of quickly as possible and return the the amount which will be required for MIPR. The letter of transmittal re- settlement, the TCO will promptly no- turning the MIPR will authorize pur- tify the contracting office which will chase by the requiring department and amend the termination data letter. The state the reason that the acquisition requiring department will process a could not be accomplished. MIPR amendment to reflect the rein- statement of funds within 30 days after 208.7004–6 Cancellation of require- receiving the amended termination ments. data letter. (a) Category I MIPRs. The requiring (iii) Upon receipt of a copy of the ter- department will notify the acquiring mination settlement agreement, the department by electronic or other im- requiring department will prepare a mediate means when cancelling all or MIPR amendment, if required, to re- part of the supplies or services re- move any remaining excess funds. quested in the MIPR. Within 30 days, the acquiring department will notify TABLE 8–1, TERMINATION DATA LETTER the requiring department of the quan- tity of items available for termination SUBJECT: Termination Data Re: and the amount of funds in excess of Contract No. llllll the estimated settlement costs. Upon Termination No. llllll receipt of this information, the requir- Contract llllll ing department will issue a MIPR (a) As termination action is now in progress on the above contract, the following information is amendment to reduce the quantities submitted: and funds accordingly. (1) Brief Description of items terminated. (b) Category II MIPRs. The requiring (2) You are notified that the sum of $llll is department will notify the acquiring available for release under the subject contract. department electronically or by other This sum represents the difference between immediate means when cancelling all $llll, the value of items terminated under or any part of the supplies or services the contract, and $llll estimated to be re- requested in the MIPR. quired for settlement of the terminated contract. The estimated amount available for release is al- (1) If the acquiring department has located by the appropriations cited on the con- not entered into a contract for the sup- tract as follows: plies or services to be cancelled, the ac- MIPR NO. llll ACCOUNTING CLASSI- quiring department will immediately FICATION llll AMOUNT llll notify the requiring department. Upon Total available for release at this time $llll
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TABLE 8–1, TERMINATION DATA LETTER— will furnish the requiring department a Continued copy of the solicitation when the MIPR is satisfied through Category II fund- (b) Request you forward an amendment to MIPR ing. llll on DD Form 448–2 to reflect the re- (c) Any reimbursement billings, ship- duced quantity and amount of funds available for release. ping document, contractual docu- (c) Periodic reviews (not less than 60 days) will ments, project orders, or related docu- be made as termination proceedings progress to mentation furnished to the requiring redetermine the Government’s probable obliga- department will identify the requiring tion. department’s MIPR number, quantities llllllllllllllllllll of items, and funding information. Contracting Officer 208.7004–10 Administrative costs. 208.7004–7 Termination for default. The acquiring department bears the (a) When the acquiring department administrative costs of acquiring sup- terminates a contract for default, they plies for the requiring department. will ask the requiring department if However, when an acquisition responsi- the supplies or services to be termi- bility is transferred to another depart- nated are still required so that repur- ment, funds appropriated or to be ap- chase action can be started. propriated for administrative costs will (b) The requiring department will not transfer to the successor acquiring de- deobligate funds on a contract termi- partment. The new acquiring depart- nated for default until receipt of a set- ment must assume budget cognizance tlement modification or other written as soon as possible. evidence from the acquiring depart- ment authorizing release of funds. 208.7005 MIPRs. (c) On the repurchase action, the ac- Instructions on preparation and use quiring department will not exceed the of DD Form 448, Military Interdepart- unliquidated funds on the defaulted mental Purchase Request, and DD contract without receiving additional Form 448–2, Acceptance of MIPR, are in funds from the requiring department. 253.208.
208.7004–8 Transportation funding. 208.7006 Coordinated acquisition as- The requiring department will advise signments. the acquiring department or the trans- See appendix B for coordinated ac- portation officer in the contract ad- quisition assignments. ministration office of the fund account to be charged for transportation costs. The requiring department may cite the Subpart 208.71—Acquisition for fund account on each MIPR or provide National Aeronautics and the funding cite to the transportation Space Administration (NASA) officer at the beginning of each fiscal year for use on Government bills of 208.7100 Authorization. lading. When issuing a Government bill NASA is authorized by Public Law of lading, show the requiring depart- 85–568 to use the acquisition services, ment as the department to be billed personnel, equipment, and facilities of and cite the appropriate fund account. DoD departments and agencies with their consent, with or without reim- 208.7004–9 Status reporting. bursement, and on a similar basis to (a) The acquiring department will cooperate with the departments/agen- maintain a system of MIPR follow up cies in the use of acquisition services, to inform the requiring department of equipment, and facilities. the current status of its requests. In addition, the contract administration 208.7101 Policy. office will maintain a system of follow Departments and agencies will— up in order to advise the acquiring de- (a) Cooperate fully with NASA in partment on contract performance. making acquisition services, equip- (b) If requested by the requiring de- ment, personnel, and facilities avail- partment, the acquiring department able on the basis of mutual agreement.
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(b) Not claim reimbursement for ad- dollar amount, rather than a percent- ministrative costs incident to acquisi- age, and include justification for any tions for NASA, unless agreed other- upward adjustment requested. Upon ap- wise prior to the time services are per- proval of a request, NASA will forward formed. an amendment of its purchase request to the contracting activity. 208.7102 Procedures. (a) When contracting or performing 208.7105 Payments. field service functions for NASA, the Departments and agencies will sub- departments and agencies will use mit SF 1080, Voucher for Transferring their own methods, except when other- Funds, billings to the NASA office des- wise required by the terms of the ignated in Block 9 of the NASA-De- agreement. fense Purchase Request, except where (b) Departments and agencies nor- agreements provide that reimburse- mally will use their own funds when ment is not required. Departments and contracting for or performing services agencies will support billings in the for NASA and will not cite NASA funds same manner as billings between de- on any defense obligation or payment partments and agencies. document.
208.7103 Purchase request and accept- Subpart 208.72—Industrial ance. Preparedness Production Planning (a) NASA will use NASA Form 523, NASA-Defense Purchase Request, to 208.7201 Definitions. request acquisition of supplies or serv- As used in this subpart— ices. Industrial base means that part of the (b) Except as provided in paragraph total privately-owned and Government- (d) of this section, departments and owned industrial production and main- agencies will respond within 30 days to tenance capacity of the United States a NASA purchase request by for- and Canada, which will be available warding DD Form 448–2, Acceptance of during national emergencies to manu- MIPR. Forward each DD Form 448–2 in facture and repair items required by quadruplicate and indicate action sta- the departments. tus as well as the name and address of Industrial preparedness production the DoD acquisition activity for future planning means planning designed to use by the NASA initiator. maintain an adequate industrial base (c) To the extent feasible, all docu- to support DoD requirements for se- ments related to the NASA action will lected essential military items in a na- reference the NASA-Defense Purchase tional emergency. Request number and the item number when appropriate. National emergency means a condition (d) Departments and agencies are not declared by the President or the Con- required to accept NASA-Defense Pur- gress which authorizes certain emer- chase Requests for common-use stand- gency action in the national interest, ard stock items which the supplying including partial or total mobilization department has on hand or on order for of national resources. prompt delivery at published prices. Planned item means any item selected for industrial preparedness planning 208.7104 Changes in estimated total under the criteria of DoDI 4005.3, Indus- prices. trial Preparedness Planning. When a department or agency deter- Planned producer means an industrial mines that the estimated total price firm which has agreed by either non- (Block 6F, NASA Form 523) for NASA binding memorandum of understanding items is not sufficient to cover the re- or binding contract/contract clause to quired reimbursement, or is in excess provide production capacity data, to of the amount required, the depart- maintain existing capacity for a nego- ment/agency will forward a request for tiated period of time, and to accept amendment to the NASA originating contracts for planned items upon the office. Indicate in the request a specific request of the Government.
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208.7202 General. 208.7204 Procedures. (a) Under the Industrial Preparedness (a) Except as otherwise provided in Production Planning (IPPP) program, FAR or DFARS, solicit planned pro- DoD components and industry work to- ducers for all acquisitions of their gether to ensure essential military planned items, when the acquisition items are available during an emer- exceeds the simplified acquisition gency. threshold. (b) Departments and agencies select (b) The contracting officer may con- weapon systems and items for planning tract for industrial planning efforts for in accordance with DoDI 4005.3, Indus- selected essential military items. trial Preparedness Planning. Planning These efforts may include, but are not is conducted only with U.S. or Cana- limited to, the maintenance of Govern- dian sources. ment-owned industrial facilities (real and personal property) or production (c) The use of privately-owned facili- data packages. These planning efforts ties is preferred to minimize the need may be acquired through an individual for Government investment. Depart- service contract or as a line item on a ments and agencies will include Gov- contract for a planned item. ernment-owned production facilities in the industrial base only when— [56 FR 36306, July 31, 1991, as amended at 64 (1) Private industry is unable to pro- FR 2596, Jan. 15, 1999] vide the facilities necessary to support DoD requirements; or Subpart 208.73—Use of Govern- (2) The facilities are necessary— ment-Owned Precious Metals (i) For reasons of national security; or 208.7301 Definitions. (ii) To ensure a quick response capa- As used in this subpart— bility to meet fluctuating demands. Defense Supply Center, Philadelphia (DSCP) means the Defense Logistics 208.7203 Authority. Agency field activity located at 700 Authority under current contracting Robbins Avenue, Philadelphia, PA procedures to accomplish industrial 19111–5096, which is the assigned com- planning actions includes— modity integrated material manager for refined precious metals and is re- (a) Leasing of Government-owned sponsible for the storage and issue of property to planned emergency pro- such material. ducers under the authority of the Mili- Dual pricing evaluation procedure tary Leasing Act of 1947, 10 U.S.C. 2667; means a procedure where offerors sub- (b) Acquisitions in the interest of na- mit two prices for precious metals tional defense under FAR 6.202(a)(2), or bearing items—one based on Govern- in case of a national emergency or to ment-furnished precious metals and achieve industrial mobilization under one based on contractor-furnished pre- FAR 6.302–3; cious metals. The contracting officer (c) Acquisition of items restricted evaluates the prices to determine under 225.7010 and 225.71; which is in the Government’s best in- (d) Use of multiyear contracting terest. (FAR subpart 17.1); Precious Metals Indicator Code (PMIC) (e) Providing Government production means a single-digit, alpha-numeric and research property to contractors; code assigned to national stock num- and bered items in the Defense Integrated (f) Use of direct payment for idle fa- Data System Total Item Record used cilities or idle capacities reserved for to indicate the presence or absence of defense mobilization production (FAR precious metals in the item. PMICs and 31.205–17(d)). the content value of corresponding items are listed in DoD 4100.39–M, Fed- [56 FR 36306, July 31, 1991, as amended at 57 eral Logistics Information System FR 42629, Sept. 15, 1992; 62 FR 34121, June 24, (FLIS) Procedures Manual, Volume 10, 1997] Chapter 4, Table 160.
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Refined precious metal means recov- 208.7304 Refined precious metals. ered silver, gold, platinum, palladium, The following refined precious metals iridium, rhodium, or ruthenium, in bul- are currently managed by DSCP: lion, granulation or sponge form, which has been purified to at least .999 per- Precious metal National stock number (NSN) centage of fineness. Gold ...... 9660–00–042–7733 [56 FR 36306, July 31, 1991, as amended at 65 Silver ...... 9660–00–106–9432 FR 14398, Mar. 16, 2000; 65 FR 52951, Aug. 31, Platinum Granules ...... 9660–00–042–7768 2000; 65 FR 58607 Sept. 29, 2000] Platinum Sponge ...... 9660–00–151–4050 Palladium Granules ...... 9660–00–042–7765 Palladium Sponge ...... 9660–01–039–0320 208.7302 Policy. Rhodium ...... 9660–01–010–2625 Iridium ...... 9660–00–011–1937 DoD policy is for maximum partici- Ruthenium ...... 9660–01–039–0313 pation in the Precious Metals Recovery Program (PMRP). DoD components [65 FR 52952, Aug. 31, 2000] shall furnish recovered precious metals contained in the DSCP inventory to 208.7305 Contract clause. production contractors rather than use contractor-furnished precious metals (a) Use the clause at 252.208–7000, In- whenever the contracting officer deter- tent to Furnish Precious Metals as mines it to be in the Government’s best Government-Furnished Material, in all interest. solicitations and contracts except— (1) When the contracting officer has [56 FR 36306, July 31, 1991, as amended at 65 determined that the required precious FR 52951, Aug. 31, 2000] metals are not available from DSCP; (2) When the contracting officer 208.7303 Procedures. knows that the items being acquired do (a) Item managers and contracting not require precious metals in their officers will use the PMIC and/or other manufacture; or relevant data furnished with a pur- (3) For acquisitions at or below the chase request to determine the applica- simplified acquisition threshold. bility of this subpart. (b) To make the determination in (b) When an offeror advises of a pre- paragraph (a)(1) of this section, the cious metals requirement, the con- contracting officer shall consult with tracting officer shall use the proce- the end item inventory manager and dures in chapter 11 of DoD 4160.21–M, comply with the procedures in Chapter Defense Materiel Disposition Manual, 11, DoD 4160.21–M, Defense Materiel to determine availability of required Disposition Manual. precious metal assets and current gov- [56 FR 36306, July 31, 1991, as amended at 64 ernment-furnished materiel (GFM) FR 2596, Jan. 15, 1999; 65 FR 14398, Mar. 16, unit prices. If the precious metals are 2000; 65 FR 52952, Aug. 31, 2000] available, the contracting officer shall evaluate offers and award the contract PART 209—CONTRACTOR on the basis of the offer which is in the QUALIFICATIONS best interest of the Government. (c) When the clause prescribed by Subpart 209.1—Responsible Prospective 208.7305 is included in a solicitation, Contractors the contracting officer will ensure that section B, Schedule of Supplies or Sec. Services and Prices, is structured to— 209.101 Definitions. 209.103 Policy. (1) Permit insertion of alternate 209.103–70 Contract clause. prices for each deliverable contract 209.104 Standards. line item number that uses precious 209.104–1 General standards. metals; and 209.104–4 Subcontractor responsibility. (2) Use dual pricing evaluation proce- 209.104–70 Solicitation provisions. dures. 209.105–2 Determinations and documenta- tion. [56 FR 36306, July 31, 1991, as amended at 65 209.106 Preaward surveys. FR 52952, Aug. 31, 2000; 65 FR 58607, Sept. 29, 209.106–1 Conditions for preaward surveys. 2000] 209.106–2 Requests for preaward surveys.
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Subpart 209.2—Qualifications (A) Necessary for reasons of national Requirements security; (B) The decision is based on full in- 209.202 Policy. formation, including comment from the potential contractor or subcon- Subpart 209.3—First Article Testing and tractor on the security issues involved; Approval and 209.303 Use. (C) The department or agency acqui- 209.305 Risk. sition executive reviews the decision 209.306 Solicitation requirements. and the Under Secretary of Defense 209.308 Contract clauses. (Acquisition, Technology, and Logis- tics) approves the decision. Subpart 209.4—Debarment, Suspension, (ii) Make any decision to deny con- and Ineligibility sideration for award under paragraph 209.402 Policy. (a)(i) of this section as early as possible 209.403 Definitions. in the acquisition process. Notify the 209.405 Effect of listing. firm in writing of any decision not to 209.405–1 Continuation of current contracts. consider the firm for award of a con- 209.405–2 Restrictions on subcontracting. tract or subcontract. 209.406 Debarment. (c) The additional cost of contract 209.406–1 General. administration and audit due to a con- 209.406–2 Causes for debarment. tractor’s performance risk may be con- 209.406–3 Procedures. sidered in evaluating the contractor’s 209.407 Suspension. price. 209.407–3 Procedures. 209.409 Solicitation provision and contract [56 FR 36313, July 31, 1991, as amended at 60 clause. FR 29497, June 5, 1995; 61 FR 50452, Sept. 26, 209.470 Reserve Officer Training Corps and 1996; 65 FR 39704, June 27, 2000] military recruiting on campus. 209.470–1 Definition. 209.103–70 Contract clause. 209.470–2 Policy. Use the clause at 252.209–7000, Acqui- 209.470–3 Procedures. sition from Subcontractors Subject to 209.470–4 Contract clause. On-Site Inspection Under the Inter- 209.471 Congressional Medal of Honor. mediate-Range Nuclear Forces (INF) AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- Treaty, in all solicitations and con- ter 1. tracts exceeding the simplified acquisi- SOURCE: 56 FR 36313, July 31, 1991, unless tion threshold, except solicitations and otherwise noted. contracts for commercial items. [60 FR 61593, Nov. 30, 1995, as amended at 61 Subpart 209.1—Responsible FR 50452, Sept. 26, 1996] Prospective Contractors 209.104 Standards. 209.101 Definitions. 209.104–1 General standards. ‘‘Entity controlled by a foreign gov- ernment,’’ ‘‘foreign government,’’ and (e) For cost-reimbursement or incen- ‘‘proscribed information,’’ are defined tive type contracts, or contracts which in the provision at 252.209–7002, Disclo- provide for progress payments based on sure of Ownership or Control by a For- costs or on a percentage or stage of eign Government. completion, the prospective contrac- tor’s accounting system and related in- [59 FR 51132, Oct. 7, 1994] ternal controls must provide reason- able assurance that— 209.103 Policy. (i) Applicable laws and regulations (a)(i) Do not deny award to contrac- are complied with; tors subject to on-site inspection under (ii) The accounting system and cost the Intermediate-Range Nuclear Forces data are reliable; (INF) Treaty, or similar treaty, due to (iii) Risk of misallocations and the actual or potential presence of So- mischarges are minimized; and viet inspectors at the contractor’s fa- (iv) Contract allocations and charges cility unless— are consistent with invoice procedures.
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(g)(i) Ownership or control by the gov- national interest determination, pre- ernment of a terrorist country. (A) Under pared by the requiring activity in co- 10 U.S.C. 2327(b), a contracting officer ordination with the contracting officer, shall not award a contract of $100,000 or shall include: more to a firm or to a subsidiary of a (1) Identification of the proposed firm when a foreign government— awardee, with a synopsis of its foreign (1) Either directly or indirectly, has a ownership (include solicitation and significant interest— other reference numbers to identify the (i) In the firm; or action); (ii) In the subsidiary or the firm that (2) General description of the acquisi- owns the subsidiary; and tion and performance requirements; (2) Has been determined by the Sec- (3) Identification of the national se- retary of State under 50 U.S.C. App. curity interests involved and the ways 2405(j)(1)(A) to be a government of a award of the contract helps advance country that has repeatedly provided those interests; support for acts of international ter- (4) The availability of another entity rorism. with the capacity, capability and tech- (B) The Secretary of Defense may nical expertise to satisfy defense acqui- waive the prohibition in paragraph sition, technology base, or industrial (g)(i)(A) of this subsection in accord- base requirements; and ance with 10 U.S.C. 2327(c). This waiver (5) A description of any alternate authority may not be delegated. means available to satisfy the require- (ii) Ownership or control by a foreign ment, e.g., use of substitute products government when access to proscribed in- or technology or alternate approaches formation is required to perform the con- to accomplish the program objectives. tract. (A) Under 10 U.S.C. 2536(a), no (D) In accordance with 10 U.S.C. DoD contract under a national security 2536(b)(1)(B), the Secretary of Defense program may be awarded to an entity may, in the case of a contract awarded controlled by a foreign government if for environmental restoration, remedi- that entity requires access to pro- ation, or waste management at a DoD scribed information to perform the facility, waive the prohibition in para- contract. graph (g)(ii)(A) of this subsection (B) Whenever the contracting officer upon— has a question about application of the (1) Determining that— provision at 252.209–7002, the con- (i) The waiver will advance the envi- tracting officer may seek advice from ronmental restoration, remediation, or the Director, Defense Security Pro- waste management objectives of DoD grams, Office of the Assistant Sec- and will not harm the national secu- retary of Defense for Command, Con- rity interests of the United States; and trol, Communications and Intelligence. (ii) The entity to which the contract (C) In accordance with 10 U.S.C. is awarded is controlled by a foreign 2536(b)(1)(A), the Secretary of Defense government with which the Secretary may waive the prohibition in para- is authorized to exchange Restricted graph (g)(ii)(A) of this subsection upon Data under section 144c. of the Atomic determining that the waiver is essen- Energy Act of 1954 (42 U.S.C. 2164(c)); tial to the national security interest of and the United States. The Secretary has (2) Notifying Congress of the decision delegated authority to grant this waiv- to grant the waiver. The contract may er to the Assistant Secretary of De- be awarded only after the end of the 45- fense Command, Control, Communica- day period beginning on the date the tions and Intelligence. Waiver requests, notification is received by the appro- prepared by the requiring activity in priate Congressional committees. coordination with the contracting offi- (iii) A contracting officer shall not cer, shall be processed through the Di- enter into or renew a contract with a rector of Defense Procurement, Office contractor that is subject to the re- of the Under Secretary of Defense (Ac- porting requirements of 38 U.S.C. quisition, Technology, and Logistics), 4212(d) pertaining to employment of and shall include a proposed national veterans, but has not submitted the interest determination. The proposed most recent report required by 38
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U.S.C. 4212(d) for 1997 or a subsequent 209.105–2 Determinations and docu- year (see 222.1304(b)). mentation. [58 FR 28464, May 13, 1993, as amended at 59 (a) When the contracting officer con- FR 51131, 51132, Oct. 7, 1994; 60 FR 29497, June siders such action appropriate, the con- 5, 1995; 62 FR 34121, June 24, 1997; 63 FR 11851, tracting officer must submit a copy of Mar. 11, 1998; 63 FR 14837, Mar. 27, 1998; 65 FR the determination to the appropriate 39704, June 27, 2000] debarring and suspending official (see 209.403). 209.104–4 Subcontractor responsi- bility. [64 FR 62985, Nov. 18, 1999] Generally, the Canadian Commercial 209.106 Preaward surveys. Corporation’s (CCC) proposal of a firm as its subcontractor is sufficient basis 209.106–1 Conditions for preaward for an affirmative determination of re- surveys. sponsibility. However, when the CCC (a) If a preaward survey is requested, determination of responsibility is not include the rationale in block 23 of the consistent with other information SF 1403, Preaward Survey of Prospec- available to the contracting officer, tive Contractor (General). the contracting officer shall request [60 FR 61593, Nov. 30, 1995] from CCC and any other sources what- ever additional information is nec- 209.106–2 Requests for preaward sur- essary to make the responsibility de- veys. termination. (1) The surveying activity is the cog- nizant contract administration office 209.104–70 Solicitation provisions. as listed in the Federal Directory of (a) Use the provision at 252.209–7001, Contract Administration Services Disclosure of Ownership or Control by Components. When information is re- the Government of a Terrorist Coun- quired as part of the survey on the ade- quacy of the contractor’s accounting try, in all solicitations expected to re- system or its suitability for adminis- sult in contracts of $100,000 or more. tration of the proposed type of con- Any disclosure that the government of tract, the surveying activity will ob- a terrorist country has a significant in- tain the information from the auditor. terest in an offeror or a subsidiary of (2) Limited information may be re- an offeror shall be forwarded through quested by telephone. the head of the agency to the Director (3) The contracting officer may re- of Defense Procurement, ATTN: quest a formal survey by telephone but OUSD(AT&L) DP/FC, 3060 Defense Pen- must confirm immediately with SF tagon, Washington, DC 20101–3060. 1403, Preaward Survey of Prospective (b) Use the provision at 252.209–7002, Contractor (General). For a formal sur- Disclosure of Ownership or Control by vey, send original and three copies of a Foreign Government, in all solicita- SF 1403, including necessary drawings tions, including those subject to the and specifications. procedures in FAR part 13, when access (a) List additional factors in item H, to proscribed information is necessary section III of the SF 1403 and explain to perform a DoD contract under a na- them in block 23. For example— tional security program. (i) Information needed to determine a (c) Use the provision at 252.209–7003, prospective contractor’s eligibility Compliance with Veterans’ Employ- under the Walsh-Healey Public Con- tracts Act. (Note that the Walsh- ment Reporting Requirements, in so- Healey Public Contracts Act, block 12 licitations with a value estimated to of section I, only indicates what the exceed the simplified acquisition contractor has represented its classi- threshold. fication to be under Walsh-Healey.) [58 FR 28464, May 13, 1993, as amended at 59 (ii) Evaluation of a contractor as a FR 51131, Oct. 7, 1994; 62 FR 34122, June 24, planned producer when the offered item 1997; 63 FR 11851, Mar. 11, 1998; 63 FR 14837, is or may appear on the Industrial Pre- Mar. 27, 1998; 65 FR 39704, June 27, 2000] paredness Planning List (IPPL). When
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the preaward survey results in a rec- Subpart 209.3—First Article Testing ommendation for award, ask the office and Approval responsible for industrial preparedness planning to consider designating the 209.303 Use. prospective contractor as a planned producer. If the item is already on the (d) The contracting officer may re- IPPL or the prospective contractor is quire that first articles be manufac- already a planned producer, note the tured using the same facilities, produc- information in block 23. tion processes, methods, and materials to be used for production units under (iii) Evaluation of the prospective the contract. contractor’s performance against small business subcontracting plans. 209.305 Risk. (c) On base level preaward surveys, technical personnel from the requiring The contracting officer may give this installation should participate when authorization to a contractor only there is concern about the ability of a after approval by a level higher than prospective contractor to perform a the contracting officer. base level service or construction con- 209.306 Solicitation requirements. tract. (d) Allow more time for— (a)(1) To be sure that the contractor (i) Complex items; and the Government clearly under- stand and interpret contract terms and (ii) New or inexperienced DoD con- conditions in the same manner, avoid tractors; and describing first article requirements (iii) Surveys with time-consuming re- exclusively in general terms such as quirements, e.g., secondary survey, ac- ‘‘visual,’’ ‘‘dimensional,’’ ‘‘workman- counting system review, financial ca- ship,’’ or ‘‘specification compliance.’’ pability analysis, or purchasing office participation. 209.308 Contract clauses. (e) Only request those factors essen- tial to the determination of responsi- Alternate I of the clauses at FAR bility. See 253.209–1(a) for an expla- 52.209–3, First Article Approval—Con- nation of the factors in section III, tractor Testing, or 52.209–4, First Arti- blocks 19 and 20 of the SF 1403. cle Approval—Government Testing, as appropriate, may be used when— [56 FR 36313, July 31, 1991, as amended at 58 (1) The form, fit, or function of the FR 28464, May 13, 1993; 65 FR 54969, Sept. 12, product would be adversely affected by 2000] contractor changes in the production facilities, processes, methods, or mate- Subpart 209.2—Qualifications rials subsequent to first article ap- Requirements proval; and (2) The Government has relied upon 209.202 Policy. first article testing in the absence of (a)(1) The inclusion of qualification complete design specifications to sup- requirements in specifications for prod- plement a performance specification; ucts that are to be included on a Quali- or fied Products List, or manufactured by (3) It is essential to have an approved business firms included on a Qualified first article to serve as a manufac- Manufacturers List, requires approval turing standard. by the departmental standardization office in accordance with DoD 4120.24– Subpart 209.4—Debarment, M, Defense Standardization Program Suspension, and Ineligibility (DSP) Policies and Procedures. The in- clusion of other qualification require- 209.402 Policy. ments in an acquisition or group of ac- (d) The uniform suspension and de- quisitions requires approval by the barment procedures to be followed by chief of the contracting office. all debarring and suspending officials [60 FR 61593, Nov. 30, 1995, as amended at 65 are set out in appendix H to this chap- FR 63804, Oct. 25, 2000] ter.
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(e) The department or agency shall (3) The Defense Logistics Agency provide a copy of the Debarment and Special Assistant for Contracting In- Suspension Procedures at DFARS ap- tegrity is the exclusive representative pendix H to this chapter to contractors of the Secretary of Defense to suspend at the time of their suspension or when and debar contractors from the pur- they are proposed for debarment, and chase of Federal personal property upon request to other interested par- under the Federal Property Manage- ties. ment Regulations (41 CFR 101–45.6) and the Defense Materiel Disposition Man- [59 FR 27668, May 27, 1994] ual (DoD 4160.21–M). 209.403 Definitions. [56 FR 36313, July 31, 1991, as amended at 56 Debarring and suspending official. (1) FR 67212, Dec. 30, 1991; 59 FR 27669, May 27, 1994; 60 FR 61593, Nov. 30, 1995; 61 FR 50452, For DoD, the designees are— Sept. 26, 1996; 63 FR 11528, Mar. 9, 1998; 64 FR Army—Commander, U.S. Army Legal Serv- 51075, Sept. 21, 1999; 64 FR 62985, Nov. 18, 1999] ices Agency Navy—The General Counsel of the Depart- 209.405 Effect of listing. ment of the Navy (a) Under 10 U.S.C. 2393(b), when a de- Air Force—Deputy General Counsel (Con- partment or agency determines that a tractor Responsibility) compelling reason exists for it to con- Defense Advanced Research Projects Agen- duct business with a contractor that is cy—The Director Defense Information Systems Agency—The debarred or suspended from procure- General Counsel ment programs, it must provide writ- Defense Logistics Agency—The Special As- ten notice of the determination to the sistant for Contracting Integrity General Services Administration, Of- National Imagery and Mapping Agency—The fice of Acquisition Policy. Examples of General Counsel compelling Reasons are— Defense Threat Reduction Agency—The Di- (i) Only a debarred or suspended con- rector tractor can provide the supplies or National Security Agency—The Director services; Ballistic Missile Defense Organization—The (ii) Urgency requires contracting General Counsel with a debarred or suspended con- Overseas installations—as designated by the agency head tractor; (iii) The contractor and a department (2) Overseas debarring and sus- or agency have an agreement covering pending officials— the same events that resulted in the (i) Are authorized to debar or suspend debarment or suspension and the agree- contractors located within the offi- ment includes the department or agen- cial’s geographic area of responsibility cy decision not to debar or suspend the under any delegation of authority they contractor; or receive from their agency head. (iv) The national defense requires (ii) Debar or suspend in accordance continued business dealings with the with the procedures in FAR subpart 9.4 debarred or suspended contractor. or under modified procedures approved (b)(i) The Procurement Cause and by the agency head based on consider- Treatment Code ‘‘H’’ annotation in the ation of the laws or customs of the for- GSA List of Parties Excluded from eign countries concerned. Federal Procurement and Nonprocure- (iii) In addition to the bases for de- ment Programs identifies contractors barment in FAR 9.406–2, may consider that are declared ineligible for award the following additional bases— of a contract or subcontract because of (A) The foreign country concerned a violation of the Clean Air Act (42 determines that a contractor has en- U.S.C. 7606) or the Clean Water Act (33 gaged in bid-rigging, price-fixing, or U.S.C. 1368). other anti-competitive behavior; or (ii) Under the authority of 40 CFR (B) The foreign country concerned 32.215(b), the agency head may grant an declares the contractor to be formally exception permitting award to a Code debarred, suspended, or otherwise ineli- ‘‘H’’ ineligible contractor if it is in the gible to contract with that foreign gov- paramount interest of the United ernment or its instrumentalities. States.
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(A) The agency head may delegate a felony, the debarring official must this exception authority to a level no determine that the contractor has ad- lower than a general or flag officer or dressed adequately the circumstances a member of the Senior Executive that gave rise to the misconduct, and Service. that appropriate standards of ethics (B) The official granting the excep- and integrity are in place and are tion must provide written notice to the working. Environmental Protection Agency de- [57 FR 14992, Apr. 23, 1992] barring official. [65 FR 52955, Aug. 31, 2000] 209.406–2 Causes for debarment. (a) Any person shall be considered for 209.405–1 Continuation of current con- debarment if criminally convicted of tracts. intentionally affixing a label bearing a (b) Unless the agency head makes a ‘‘Made in America’’ inscription to any written determination that a compel- product sold in or shipped to the ling reason exists to do so, ordering ac- United States that was not made in tivities shall not— America (10 U.S.C. 2410f). (i) Place orders exceeding the guar- (i) The debarring official will make a anteed minimum under indefinite determination concerning debarment quantity contracts: or not later than 90 days after deter- (ii) When the agency is an optional mining that a person has been so con- user, place orders against Federal Sup- victed. ply Schedule contracts. (ii) In cases where the debarring offi- (c) This includes exercise of options. cial decides not to debar, the debarring [60 FR 29497, June 5, 1995, as amended at 60 official will report that decision to the FR 61593, Nov. 30, 1995] Director of Defense Procurement who will notify Congress within 30 days 209.405–2 Restrictions on subcon- after the decision is made. tracting. [58 FR 28464, May 13, 1993] (a) The contracting officer shall not consent to any subcontract with a 209.406–3 Procedures. firm, or a subsidiary of a firm, that is (a) Investigation and referral. identified by the Secretary of Defense (i) Refer all matters appropriate for as being owned or controlled by the consideration by an agency debarring government of a terrorist country un- and suspending official as soon as prac- less the agency head states in writing ticable to the appropriate debarring the compelling reasons for the sub- and suspending official identified in contract. 209.403. Any person may refer a matter [63 FR 14837, Mar. 27, 1998] to the debarring and suspending offi- cial. 209.406 Debarment. (ii) Use the following format when re- ferring a matter to the agency debar- 209.406–1 General. ring and suspending official for consid- (a)(i) When the debarring official de- eration. To the extent practicable, pro- cides that debarment is not necessary, vide all specified information. the official may require the contractor (A) Name, address, and telephone to enter into a written agreement number of the point of contact for the which includes— activity making the report. (A) A requirement for the contractor (B) Name, contractor and Govern- to establish, if not already established, ment entity (CAGE) code, and address and to maintain the standards of con- of the contractor. duct and internal control systems pre- (C) Name and addresses of the mem- scribed by subpart 203.70; and bers of the board, principal officers, (B) Other requirements the debarring partners, owners, and managers. official considers appropriate. (D) Name and addresses of all known (ii) Before the debarring official de- affiliates, subsidiaries, or parent firms, cides not to suspend or debar in the and the nature of the business relation- case of an indictment or conviction for ship.
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(E) For each contract affected by the (6) Any other appropriate exhibits or conduct being reported— documentation. (1) The contract number; (iii) Send three copies of each report, (2) All office identifying numbers or including enclosures, to the appro- symbols; priate debarring and suspending offi- (3) Description of supplies or services; cial. (4) The amount; (iv) If a referral lacks sufficient evi- (5) The percentage of completion; dence of a cause for debarment, the de- (6) The amount paid the contractor; barring and suspending official may (7) Whether the contract is assigned initiate a review or investigation, as under the Assignment of Claims Act appropriate, by reporting the referral and, if so, to whom; and to the appropriate Government entity, (8) The amount due the contractor. e.g., contracting activity, inspector (F) For any other contracts out- general, or criminal investigative standing with the contractor or any of agency. its affiliates— (b) Decisionmaking process. (1) The contract number; (2) The amount; (i) The agency debarring and sus- (3) The amounts paid the contractor; pending official may initiate the debar- (4) Whether the contract is assigned ment process by issuing a notice of pro- under the Assignment of Claims Act posed debarment in accordance with and, if so, to whom; and FAR 9.406–3(c) when the debarring and (5) The amount due the contractor. suspending official finds that the ad- (G) A complete summary of all perti- ministrative record contains sufficient nent evidence and the status of any evidence of one or more of the causes legal proceedings involving the con- for debarment stated in FAR 9.406–2 or tractor. 209.406–2. (H) An estimate of any damages sus- (A) The absence of a referral in ac- tained by the Government as a result cordance with paragraph (a)(i) of this of the contractor’s action (explain how subsection, or the absence of any infor- the estimate was calculated). mation specified in the report format (I) If a contracting office initiates in paragraph (a)(ii) of this subsection, the report, the comments and rec- will not preclude the debarring and ommendations of the contracting offi- suspending official from making such a cer and of each higher-level con- finding. tracting review authority regarding— (B) The signature of the debarring (1) Whether to suspend or debar the and suspending official on the notice of contractor; proposed debarment is sufficient evi- (2) Whether to apply limitations to dence that the debarring and sus- the suspension or debarment; pending official has made such a find- (3) The period of any recommended ing. debarment; and (ii) The agency debarring and sus- (4) Whether to continue any current pending official must use the decision- contracts with the contractor (or ex- making process stated in FAR 9.406– plain why a recommendation regarding 3(b), DFARS Appendix H, and any current contracts is not included). agency-specific procedures that were (J) When appropriate, as an enclosure provided to the contractor in advance to the report— of the decision. (1) A copy or pertinent extracts of (d) Debarring official’s decision. The each pertinent contract; absence of a referral in accordance (2) Witness statements or affidavits; with paragraph (a)(i) of this subsection, (3) Copies of investigative reports or the absence of any information spec- when authorized by the investigative ified in the report format in paragraph agency; (a)(ii) of this subsection, will not pre- (4) Certified copies of indictments, judgments, and sentencing actions; clude the debarring and suspending of- (5) A copy of any available deter- ficial from making a decision. minations of nonresponsibility in ac- [64 FR 62985, Nov. 18, 1999; 65 FR 4864, Feb. 1, cordance with FAR 9.105–2(a)(1); and 2000]
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209.407 Suspension. (d) Suspending official’s decision. The absence of a referral in accordance 209.407–3 Procedures. with paragraph (a)(i) of this subsection, (a) Investigation and referral. or the absence of any information spec- (i) Refer all matters appropriate for ified in the report format at 209.406– consideration by an agency debarring 3(a)(ii), will not preclude the debarring and suspending official as soon as prac- and suspending official from making a ticable to the appropriate debarring decision. and suspending official identified in [64 FR 62985, Nov. 18, 1999; 65 FR 4864, Feb. 1, 209.403. Any person may refer a matter 2000] to the debarring and suspending offi- cial. 209.409 Solicitation provision and con- (ii) Use the format at 209.406–3(a)(ii) tract clause. when referring a matter to the agency Use the clause at 252.209–7004, Sub- debarring and suspending official for contracting with Firms That Are consideration. To the extent prac- Owned or Controlled by the Govern- ticable, provide all information speci- ment of a Terrorist Country, in solici- fied in the format. tations and contracts with a value of (iii) If a referral lacks sufficient evi- $100,000 or more. dence of a cause for suspension, the de- barring and suspending official may [63 FR 14837, Mar. 27, 1998] initiate a review or investigation, as appropriate, by reporting the referral 209.470 Reserve Officer Training to the appropriate Government entity, Corps and military recruiting on e.g., contracting activity, inspector campus. general, or criminal investigative 209.470–1 Definition. agency. (b) Decisionmaking process. Institution of higher education, as used (i) The agency debarring and sus- in this section, means an institution pending official may initiate the sus- that meets the requirements of 20 pension process by issuing a notice of U.S.C. 1001 and includes all subele- suspension in accordance with FAR ments of such an institution. 9.407–3(c) when the debarring and sus- [65 FR 2056, Jan. 13, 2000] pending official finds that the adminis- trative record contains sufficient evi- 209.470–2 Policy. dence of one or more of the causes for suspension stated in FAR 9.407–2. (a) Except as provided in paragraph (b) of this subsection, 10 U.S.C. 983 pro- (A) The absence of a referral in ac- hibits DoD from providing funds by cordance with paragraph (a)(i) of this contract or grant to an institution of subsection, or the absence of any infor- mation specified in the report format higher education if the Secretary of at 209.406–3(a)(ii), will not preclude the Defense determines that the institu- debarring and suspending official from tion has a policy or practice that pro- making such a finding. hibits or in effect prevents— (B) The signature of the debarring (1) The Secretary of a military de- and suspending official on the notice of partment from maintaining, estab- suspension is sufficient evidence that lishing, or operating a unit of the Sen- the debarring and suspending official ior Reserve Officer Training Corps has made such a finding. (ROTC) at that institution; (ii) In deciding whether to terminate (2) A student at that institution from a suspension following a submission of enrolling in a unit of the senior ROTC matters in opposition, the agency de- at another institution of higher edu- barring and suspending official must cation; use the decisionmaking process stated (3) The Secretary of a military de- in FAR 9.407–3(b), DFARS Appendix H, partment or the Secretary of Transpor- and any agency-specific procedures tation from gaining entry to campuses, that were provided to the contractor in or access to students on campuses, for advance of the decision. purposes of military recruiting; or
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(4) Military recruiters from accessing from Federal Procurement and Non- certain information pertaining to stu- procurement Programs published by dents enrolled at that institution. the General Services Administration. (b) The prohibition in paragraph (a) of this subsection does not apply to an [64 FR 31733, June 14, 1999] institution of higher education if the Secretary of Defense determines that— PART 211—DESCRIBING AGENCY (1) The institution has ceased the NEEDS policy or practice described in para- graph (a) of this subsection; or Sec. (2) The institution has a long-stand- 211.002 Policy. ing policy of pacifism based on histor- 211.002–70 Contract clause. ical religious affiliation. [65 FR 2056, Jan. 13, 2000] Subpart 211.1—Selecting and Developing Requirements Documents 209.470–3 Procedures. 211.107 Solicitation provision. If the Secretary of Defense deter- mines that an institution of higher Subpart 211.2—Using and Maintaining education is ineligible to receive DoD Requirements Documents funds because of a policy or practice described in 209.470–2(a)— 211.201 Identification and availability of (a) The Secretary of Defense will list specifications. the institution on the List of Parties 211.204 Solicitation provisions and contract Excluded from Federal Procurement clauses. and Nonprocurement Programs pub- 211.270 [Reserved] lished by General Services Administra- 211.271 Elimination of use of class I ozone- tion (also see FAR 9.404 and 32 CFR depleting substances. part 216); and 211.272 Alternate preservation, packaging, (b) DoD components— and packing. (1) Must not solicit offers from, 211.273 Substitutions for military or Fed- award contracts to, or consent to sub- eral specifications and standards. contracts with the institution; 211.273–1 Definition. (2) Must make no further payments 211.273–2 Policy. under existing contracts with the insti- 211.273–3 Procedures. tution; and 211.273–4 Contract clause. (3) Must terminate existing contracts Subpart 211.5—Liquidated Damages with the institution. [65 FR 2057, Jan. 13, 2000] 211.503 Contract clauses.
209.470–4 Contract clause. Subpart 211.6—Priorities and Allocations Use the clause at 252.209–7005, Reserve 211.602 General. Officer Training Corps and Military Recruiting on Campus, in all solicita- AUTHORITY: 41 U.S.C. 421 and 48 CFR Chap- ter 1. tions and contracts with institutions of higher education. SOURCE: 60 FR 61594, Nov. 30, 1995, unless otherwise noted. [65 FR 2057, Jan. 13, 2000] 211.002 Policy. 209.471 Congressional Medal of Honor. In accordance with Section 8118 of All systems acquisition programs in Pub. L. 105–262, do not award a contract the DoD are subject to the acquisition to, extend a contract with, or approve streamlining policies and procedures in the award of a subcontract to any enti- DoDI 5000.2, Defense Acquisition Man- ty that, within the preceding 15 years, agement Policies and Procedures. has been convicted under 18 U.S.C. 704 of the unlawful manufacture or sale of 211.002–70 Contract clause. the Congressional Medal of Honor. Any Use the clause at 252.211–7000, Acqui- entity so convicted will be listed as in- sition Streamlining, in all eligible on the List of Parties Excluded
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Subpart 211.1—Selecting and De- 5010.12–L, and Plans, Drawings, and veloping Requirements Docu- Other Pertinent Documents, and ments 252.211–7002, Availability for Examina- tion of Specifications, Standards, 211.107 Solicitation provision. Plans, Drawings, Data Item Descrip- (b) DoD uses the categorical method tions, and Other Pertinent Documents. of reporting. Do not use the provision at FAR 52.211–7, Alternatives to Gov- 211.270 [Reserved] ernment-Unique Standards, in DoD so- licitations. 211.271 Elimination of use of class I ozone-depleting substances. [65 FR 6553, Feb. 10, 2000] (a) Contracts. No DoD contract may include a specification or standard that Subpart 211.2—Using and Main- requires the use of a class I ozone-de- taining Requirements Docu- pleting substance or that can be met ments only through the use of such a sub- stance unless the inclusion of the spec- 211.201 Identification and availability of specifications. ification or standard is specifically au- thorized at a level no lower than a gen- (a) The DoD index of data item de- eral or flag officer or member of the scriptions is DoD 5010.12–L, Acquisition Senior Executive Service of the requir- Management Systems and Data Re- quirements Control List (AMSDL). ing activity in accordance with Section (b) Also, furnish data item descrip- 326, Public Law 102–484 (10 U.S.C. 2301 tions that are not listed in the (repealed) note). AMSDL, except when it is not feasible, (b) Modifications. (1) Contracts award- e.g., documents are bulky or only a ed before June 1, 1993, with a value in limited number of copies are available excess of $10 million, that are modified at the contracting activity. or extended (including option exercise) (d) The AMSDL, all unclassified spec- and, as a result of the modification or ifications and standards listed in the extension will expire more than one DODISS, and data item descriptions year after the effective date of the listed in the AMSDL also may be ob- modification or extension, must be tained from the Department of Defense evaluated in accordance with agency Single Stock Point (DoDSSP), Building procedures for the elimination of 4, Section D, 700 Robbins Avenue, ozone-depleting substances. Philadelphia, PA 19111–5094; telephone (i) The evaluation must be carried (215) 697–2179; http://assist.daps.mil. In- out within 60 days after the first modi- clude with the request— (i) The requester’s customer number; fication or extension. and (ii) No further modification or exten- (ii) Complete return mailing address, sion may be made to the contract until including any ‘‘mark for’’ instructions. the evaluation is complete. (2) If, as a result of this evaluation, it [60 FR 61594, Nov. 30, 1995, as amended at 64 FR 8727, Feb. 23, 1999; 64 FR 51075, Sept. 21, is determined that an economically 1999] feasible substitute substance or alter- native technology is available, the con- 211.204 Solicitation provisions and tracting officer shall modify the con- contract clauses. tract to require the use of the sub- (c) When contract performance re- stitute substance or alternative tech- quires use of specifications and stand- nology. ards which are not listed in the (3) If a substitute substance or alter- DODISS and data item descriptions native technology is not available, a which are not listed in the AMSDL, use written determination shall be made to provisions, as appropriate, substan- that effect at a level no lower than a tially the same as those at 252.211–7001, general or flag officer or member of the Availability of Specifications and Senior Executive Service of the requir- Standards Not Listed in DODISS, Data ing activity. Item Descriptions Not Listed in DoD
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211.272 Alternate preservation, pack- (1) Concurrence of the requiring ac- aging, and packing. tivity is obtained for any proposed sub- Use the provision at 252.211–7004, Al- stitutions prior to contract award; ternate Preservation, Packaging, and (2) Any necessary additional informa- Packing, in solicitations which include tion regarding the SPI process identi- military preservation, packaging, or fied in the proposal is obtained from packing specifications when it is fea- the cognizant administrative con- sible to evaluate and award using com- tracting officer; and mercial or industrial preservation, (3) In competitive procurements, pro- packaging, or packing. spective offerors are provided the op- portunity to obtain verification that 211.273 Substitutions for military or an SPI process is an acceptable re- Federal specifications and stand- placement for a military or Federal ards. specification or standard for the par- 211.273–1 Definition. ticular procurement prior to the date specified for receipt of offers. SPI process, as used in this section, is (c) Any determination that an SPI defined in the clause at 252.211–7005, process is not acceptable for a specific Substitutions for Military or Federal procurement shall be made prior to Specifications and Standards. contract award at the head of the con- [62 FR 44224, Aug. 20, 1997] tracting activity or program executive officer level. This authority may not be 211.273–2 Policy. delegated. (a) Under the Single Process Initia- tive (SPI), DoD accepts SPI processes [64 FR 14399, Mar. 25, 1999] in lieu of specific military or Federal 211.273–4 Contract clause. specifications or standards that specify a management or manufacturing proc- Use the clause at 252.211–7005, Substi- ess. tutions for Military or Federal Speci- (b) DoD acceptance of an SPI process fications and Standards, in solicita- follows the decision of a Management tions and contracts exceeding the Council, which includes representa- micro-purchase threshold, when pro- tives of the contractor, the Defense curing previously developed items. Contract Management Agency, the De- [62 FR 44224, Aug. 20, 1997] fense Contract Audit Agency, and the military departments. (c) In procurements of previously de- Subpart 211.5—Liquidated veloped items, SPI processes that pre- Damages viously were accepted by the Manage- ment Council shall be considered valid 211.503 Contract clauses. replacements for military or Federal (b) Use the clause at FAR 52.211–12, specifications or standards, absent a Liquidated Damages—Construction, in specific determination to the contrary all construction contracts exceeding (see 211.273–3(c)). $500,000, except cost-plus-fixed-fee con- [62 FR 44224, Aug. 20, 1997, as amended at 64 tracts or contracts where the con- FR 14399, Mar. 25, 1999; 65 FR 52952, Aug. 31, tractor cannot control the pace of the 2000] work. Use of the clause in contracts of $500,000 or less is optional. 211.273–3 Procedures. [60 FR 61594, Nov. 30, 1995. Redesignated at 66 (a) Solicitations for previously devel- FR 49861, Oct. 1, 2001] oped items shall encourage offerors to identify SPI processes for use in lieu of military or Federal specifications and Subpart 211.6—Priorities and standards cited in the solicitation. Use Allocations of the clause at 252.211–7005 satisfies this requirement. 211.602 General. (b) Contracting officers shall ensure DoD implementation of the Defense that— Priorities and Allocations System is in
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DoDD 4400.1, Defense Production Act Subpart 212.3—Solicitation Provi- Programs. sions and Contract Clauses [64 FR 51075, Sept. 21, 1999] for the Acquisition of Com- mercial Items PART 212—ACQUISITION OF 212.301 Solicitation provisions and COMMERCIAL ITEMS contract clauses for the acquisition of commercial items. Subpart 212.2—Special Requirements for the Acquisition of Commercial Items (b)(2) Paragraph (b) of the provision at FAR 52.212–3 does not apply when Sec. the solicitation includes the clause at 212.211 Technical data. 252.204–7004, Required Central Con- tractor Registration. Subpart 212.3—Solicitation Provisions and (f)(i) Use one of the following provi- Contract Clauses for the Acquisition of sions as prescribed in part 225: Commercial Items (A) 252.225–7000, Buy American Act— 212.301 Solicitation provisions and contract Balance of Payments Program Certifi- clauses for the acquisition of commercial cate. items. (B) 252.225–7006, Buy American Act— 212.302 Tailoring of provisions and clauses Trade Agreements—Balance of Pay- for the acquisition of commercial items. ments Program Certificate. 212.303 Contract format. (C) 252.225–7020, Trade Agreements Subpart 212.5—Applicability of Certain Certificate. Laws to the Acquisition of Commercial (D) 252.225–7035, Buy American Act— Items North American Free Trade Agreement Implementation Act—Balance of Pay- 212.503 Applicability of certain laws to Ex- ments Program Certificate. ecutive agency contracts for the acquisi- (ii) Use the provision at 252.212–7000, tion of commercial items. 212.504 Applicability of certain laws to sub- Offeror Representations and Certifi- contracts for the acquisition of commer- cations—Commercial Items, in all so- cial items. licitations for commercial items ex- ceeding the simplified acquisition Subpart 212.6—Streamlined Procedures for threshold. If an exception to 10 U.S.C. Evaluation and Solicitation for Com- 2410i applies to a solicitation exceeding mercial Items the simplified acquisition threshold (see 225.770–3), indicate on an addendum 212.602 Streamlined evaluation of offers. that ‘‘The certification in paragraph AUTHORITY: 41 U.S.C. 421 and 48 CFR Chap- (b) of the provision at 252.212–7000 does ter 1. not apply to this solicitation.’’ SOURCE: 60 FR 61595, Nov. 30, 1995, unless (iii) Use the clause at 252.212–7001, otherwise noted. Contract Terms and Conditions Re- quired to Implement Statutes or Exec- Subpart 212.2—Special Require- utive Orders Applicable to Defense Ac- ments for the Acquisition of quisitions of Commercial Items, in all Commercial Items solicitations and contracts for com- mercial items, completing paragraph 212.211 Technical data. (a), as appropriate. (iv) Use the clause at 252.204–7004, Re- The DoD policy for acquiring tech- quired Central Contractor Registra- nical data for commercial items is at tion, as prescribed in 204.7304. 227.7102. (v) Use the provision at 252.225–7017, Prohibition on Award to Companies Owned by the People’s Republic of China, as prescribed in 225.771.
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(vi) Use the clause at 252.232–7009, (viii) 10 U.S.C. 2408(a), Prohibition on Mandatory Payment by Government- Persons Convicted of Defense Related wide Commercial Purchase Card, as Felonies. prescribed in 232.1110. (ix) 10 U.S.C. 2410b, Contractor Inven- tory Accounting System Standards [60 FR 61595, Nov. 30, 1995, as amended at 61 FR 50452, Sept. 26, 1996; 62 FR 34122, June 24, (see 252.242–7004). 1997; 63 FR 11528, Mar. 9, 1998; 63 FR 15317, (x) 107 Stat 1720 (Section 843(a), Pub- Mar. 31, 1998; 64 FR 8728, Feb. 23, 1999; 64 FR lic Law 103–160), Reporting Require- 43101, Aug. 9, 1999; 65 FR 46625, July 31, 2000; ment Regarding Dealings with Ter- 66 FR 49861, Oct. 1, 2001] rorist Countries. (xi) Domestic Content Restrictions in 212.302 Tailoring of provisions and the National Defense Appropriations clauses for the acquisition of com- mercial items. Acts for Fiscal Years 1996 and Subse- quent Years, unless the restriction spe- (c) Tailoring inconsistent with cus- cifically applies to commercial items. tomary commercial practice. For the restriction that specifically ap- The head of the contracting activity plies to commercial ball or roller bear- is the approval authority within the ings as end items, see 225.7019–2(b) (Sec- DoD for waivers under FAR 12.302(c). tion 8064 of Public Law 106–259). (xii) Section 8117, Pub. L. 105–56, Re- 212.303 Contract format. striction on Use of Funds Appropriated Structure awards valued above the for Fiscal Year 1998 (see 222.1304(b)). micro-purchase threshold (e.g., con- (c) The applicability of the following tract line items, delivery schedule, and laws has been modified in regard to invoice instructions) in a manner that contracts for the acquisition of com- will minimize the generation of in- mercial items: voices valued at or below the micro- (i) 10 U.S.C. 2402, Prohibition on Lim- purchase threshold. iting Subcontractor Direct Sales to the [65 FR 46625, July 31, 2000] United States (see FAR 3.503 and 52.203– 6). Subpart 212.5—Applicability of (ii) 10 U.S.C. 2306a, Truth in Negotia- Certain Laws to the Acquisi- tions Act (see FAR 15.403–4). tion of Commercial Items [60 FR 61595, Nov. 30, 1995, as amended at 63 FR 11851, Mar. 11, 1998; 63 FR 55040, Oct. 14, 212.503 Applicability of certain laws to 1998; 65 FR 77828, Dec. 13, 2000] Executive agency contracts for the acquisition of commercial items. 212.504 Applicability of certain laws to subcontracts for the acquisition of (a) The following laws are not appli- commercial items. cable to contracts for the acquisition of commercial items: (a) The following laws are not appli- (i) Section 806, Public Law 102–190 (10 cable to subcontracts at any tier for U.S.C. 2301 (repealed) note), Payment the acquisition of commercial items or Protections for Subcontractors and commercial components: Suppliers. (i) [Reserved] (ii) 10 U.S.C. 2306(b), Prohibition on (ii) Section 806, Public Law 102–190 (10 Contingent Fees. U.S.C. 2301 (repealed) note), Payment (iii) 10 U.S.C. 2324, Allowable Costs Protections for Subcontractors and Under Defense Contracts. Suppliers. (iv) 10 U.S.C. 2384(b), Requirement to (iii) 10 U.S.C. 2306(b) Prohibition on Identify Suppliers. Contingent Fees. (v) 10 U.S.C. 2397(a)(1), Reports by (iv) 10 U.S.C. 2313(c), Examination of Employees or Former Employees of De- Records of a Contractor. fense Contractors. (v) 10 U.S.C. 2320, Rights in Technical (vi) 10 U.S.C. 2397b(f), Limits on Em- Data. ployment for Former DoD Officials. (vi) 10 U.S.C. 2321, Validation of Pro- (vii) 10 U.S.C. 2397c, Defense Con- prietary Data Restrictions. tractor Requirements Concerning (vii) 10 U.S.C. 2324, Allowable Costs Former DoD Officials. Under Defense Contracts.
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(viii) 10 U.S.C. 2327, Reporting Re- ings as end items, see 225.7019–2(b) (Sec- quirement Regarding Dealings with tion 8064 of Public Law 106–259). Terrorist Countries. (b) Certain requirements of the fol- (ix) 10 U.S.C. 2384(b), Requirement to lowing laws have been eliminated for Identify Suppliers. subcontracts at any tier for the acqui- (x) 10 U.S.C. 2391 note, Notification of sition of commercial items or commer- Substantial Impact on Employment. cial components: (xi) 10 U.S.C. 2393, Prohibition (i) 10 U.S.C. 2393(d), Subcontractor Against Doing Business with Certain Reports Under Prohibition Against Offerors or Contractors. Doing Business with Certain Offerors (xii) 10 U.S.C. 2397(a)(1), Reports by (see FAR 52.209–6). Employees or Former Employees of De- (ii) 10 U.S.C. 2402, Prohibition on fense Contractors. Limiting Subcontractor Direct Sales to (xiii) 10 U.S.C. 2397b(f), Limits on the United States (see FAR 3.503 and Employment for Former DoD Officials. 52.203–6). (xiv) 10 U.S.C. 2397c, Defense Con- [60 FR 61595, Nov. 30, 1995, as amended at 61 tractor Requirements Concerning FR 58488, Nov. 15, 1996; 62 FR 5780, Feb. 7, Former DoD Officials. 1997; 65 FR 14401, Mar. 16, 2000; 65 FR 39704, (xv) 10 U.S.C. 2408(a) Prohibition on June 27, 2000; 65 FR 77828, Dec. 13, 2000] Persons Convicted of Defense Related Felonies. Subpart 212.6—Streamlined Pro- (xvi) 10 U.S.C. 2410b, Contractor In- cedures for Evaluation and ventory Accounting System Standards. (xvii) 10 U.S.C. 2501 note, Notification Solicitation for Commercial of Proposed Program Termination. Items (xviii) 10 U.S.C. 2534, Miscellaneous 212.602 Streamlined evaluation of of- Limitations on the Procurement of fers. Goods Other Than United States Goods. (b)(i) For the acquisition of transpor- (xix)–(xxi) [Reserved] tation and transportation-related serv- (xxii) 10 U.S.C. 2631, Transportation ices, also consider evaluating offers in of Supplies by Sea (except as provided accordance with the criteria at in the clause at 252.247–7023, Transpor- 247.206(1). tation of Supplies by Sea). (ii) For the acquisition of transpor- (xxiii) 19 U.S.C. 2512, Trade Agree- tation in supply contracts that will in- ments Act. clude a significant requirement for (xxiv) 41 U.S.C. 10, Buy American transportation of items outside the Act. continental United States, also evalu- ate offers in accordance with the cri- (xxv) Domestic Content Restrictions terion at 247.301–71. in the National Defense Appropriations (iii) For the direct purchase of ocean Acts for Fiscal Years 1996 and Subse- transportation services, also evaluate quent Years, unless the restriction spe- offers in accordance with the criterion cifically applies to commercial items. at 247.572–2(c)(2). For the restriction that specifically ap- plies to commercial ball or roller bear- [65 FR 50143, Aug. 17, 2000]
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PART 213—SIMPLIFIED tion 8117 of the National Defense Ap- ACQUISITION PROCEDURES propriations Act for Fiscal Year 1998 (Pub. L. 105–56) is inapplicable to con- Sec. tracts at or below the simplified acqui- 213.005 Federal Acquisition Streamlining sition threshold (see 222.1304(b)). Act of 1994 list of inapplicable laws. Subpart 213.1—Procedures Subpart 213.1—Procedures 213.101 General. 213.101 General. 213.106–3 Award and documentation. Structure awards valued above the micro-purchase threshold (e.g., con- Subpart 213.2—Actions at or Below the tract line items, delivery schedule, and Micro-Purchase Threshold invoice instructions) in a manner that 213.270 Use of the Governmentwide commer- will minimize the generation of in- cial purchase card. voices valued at or below the micro- purchase threshold. Subpart 213.3—Simplified Acquisition Methods [65 FR 46625, July 31, 2000] 213.301 Governmentwide commercial pur- § 213.106–3 Award and documentation. chase card. 213.302 Purchase orders. (e) The procedures at FAR 13.106–3(e) 213.302–3 Obtaining contractor acceptance do not apply when the contract in- and modifying purchase orders. cludes the clause at 252.204–7004, Re- 213.302–5 Clauses. quired Central Contractor Registra- 213.303 Blanket purchase agreements tion. (BPAs). 213.303–5 Purchases under BPAs. [64 FR 43101, Aug. 9, 1999] 213.305 Imprest funds and third party drafts. 213.305–1 General. 213.305–3 Conditions for use. Subpart 213.2—Actions at or 213.306 SF 44, Purchase Order-Invoice- Below the Micro–Purchase Voucher. Threshold 213.307 Forms. 213.270 Use of the Governmentwide Subpart 213.4—Fast Payment Procedure commercial purchase card. 213.402 Conditions for use. Use the Governmentwide commercial purchase card as the method of pur- Subpart 213.70—Simplified Acquisition chase and/or method of payment for Procedures Under the 8(a) Program purchases valued at or below the micro-purchase threshold. This policy 213.7001 Policy. 213.7002 Procedures. applies to all types of contract actions 213.7003 Purchase orders. authorized by the FAR unless— 213.7003–1 Obtaining contractor acceptance (a) The Deputy Secretary of Defense and modifying purchase orders. has approved an exception for an elec- 213.7003–2 Contract clauses. tronic commerce/electronic data inter- AUTHORITY: 48 U.S.C. 421 and 48 CFR Chap- change system or operational require- ter 1. ment that results in a more cost-effec- SOURCE: 64 FR 2596, Jan. 15, 1999, unless tive payment process; otherwise noted. (b)(1) A general or flag officer or a member of the Senior Executive Serv- 213.005 Federal Acquisition Stream- ice (SES) makes a written determina- lining Act of 1994 list of inappli- tion that— cable laws. (i) The source or sources available for (a) The restriction on use of funds ap- the supply or service do not accept the propriated for fiscal year 1998 in Sec- purchase card; and
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(ii) The contracting office is seeking (v) The purchaser is a beneficiary a source that accepts the purchase seeking medical care; or card. (vi) The senior local commander or (2) To prevent mission delays, if an director of a hospital or laboratory de- activity does not have a resident gen- termines that use of the purchase card eral or flag officer of SES member, del- is not appropriate or cost-effective. egation of this authority to the level of The Medical Prime Vendor Program the senior local commander or director and the DoD Medical Electronic Cata- is permitted; or log Program are two examples where (c) The purchase or payment meets use of the purchase card may not be one or more of the following criteria: cost-effective. (1) The place of performance is en- tirely outside of any State, territory, [65 FR 46626, July 31, 2000] or possession of the United States, the District of Columbia, and the Common- Subpart 213.3—Simplified wealth of Puerto Rico. Acquisition Methods (2) The purchase is a Standard Form 44 purchase for aviation fuel or oil. 213.301 Governmentwide commercial (3) The purchase is an overseas trans- purchase card. action by a contracting officer in sup- (1) ‘‘United States,’’ as used in this port of a contingency operation as de- section, means the 50 States and the fined in 10 U.S.C. 101(a)(13) or a human- District of Columbia, the Common- itarian or peacekeeping operation as wealth of Puerto Rico, the Virgin Is- defined in 10 U.S.C. 2302(8). lands, the Commonwealth of the North- (4) The purchase is a transaction in ern Mariana Islands, Guam, American support of intelligence or other special- Samoa, Wake Island, Johnston Island, ized activities addressed by Part 2.7 of Canton Island, the outer Continental Executive Order 12333. Shelf lands, and any other place sub- (5) The purchase is for training exer- ject to the jurisdiction of the United cises in preparation for overseas con- States (but not including leased bases). tingency, humanitarian, or peace- (2) An individual appointed in accord- keeping operations. ance with 201.603–3(b) also may use the (6) The payment is made with an ac- Governmentwide commercial purchase commodation check. card to make a purchase that exceeds (7) The payment is for a transpor- the micro-purchase threshold but does tation bill. not exceed $25,000, if— (8) The purchase is under a Federal (i) The purchase— Supply Schedule contract that does not (A) Is made outside the United States permit use of the Governmentwide for use outside the United States; and commercial purchase card. (B) Is for a commercial item; but (9) The purchase is for medical serv- (C) Is not for work to be performed ices and— by employees recruited within the (i) It involves a controlled substance United States; or narcotic; (ii) It requires the submission of a (D) Is not for supplies or services Health Care Summary Record to docu- originating from, or transported from ment the nature of the care purchased; or through, sources identified in FAR (iii) The ultimate price of the med- Subpart 25.7; ical care is subject to an independent (E) Is not for ball or roller bearings determination that changes the price as end items; and paid based on application of a manda- (F) Does not require access to classi- tory CHAMPUS Maximum Allowable fied or Privacy Act information; and Charge determination that reduces the (ii) The individual making the pur- Government liability below billed chase— charges; (A) Is authorized and trained in ac- (iv) The Government already has en- cordance with agency procedures; tered into a contract to pay for the (B) Complies with the requirements services without the use of a purchase of FAR 8.001 in making the purchase; card; and
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(C) Seeks maximum practicable com- (i) 252.225–7001, Buy American Act petition for the purchase in accordance and Balance of Payments Program, as with FAR 13.104(b). prescribed at 225.1101(2); or (ii) 252.225–7036, Buy American Act- [64 FR 56705, Oct. 21, 1999; 64 FR 63380, Nov. 19, 1999] North American Free Trade Agreement Implementation Act-Balance of Pay- 213.302 Purchase orders. ments Program, as prescribed at 225.1101(13). 213.302–3 Obtaining contractor accept- [64 FR 24528, May 7, 1999, as amended at 65 ance and modifying purchase or- FR 19850, Apr. 13, 2000; 65 FR 39704, June 27, ders. 2000] (1) Require written acceptance of purchase orders for classified acquisi- 213.303 Blanket purchase agreements tions. (BPAs). (2) Generally, use unilateral modi- 213.303–5 Purchases under BPAs. fications (see FAR 43.103) for— (i) No-cost amended shipping instruc- (b) Individual purchases for subsist- tions if— ence may be made at any dollar value; (A) The amended shipping instruc- however, the contracting officer must tions modify a unilateral purchase satisfy the competition requirements order; and of FAR Part 6 for any action not using simplified acquisition procedures. (B) The contractor agrees orally or in writing; and 213.305 Imprest funds and third party (ii) Any change made before work be- drafts. gins if— (A) The change is within the scope of 213.305–1 General. the original order; (1) As a matter of policy, DoD does (B) The contractor agrees; not support the use of cash payments (C) The modification references the from imprest funds. This policy is contractor’s oral or written agreement; based, in part, on the mandatory elec- and tronic funds transfer requirements of (D) Block 13D of Standard Form 30, the Debt Collection Improvement Act Amendment of Solicitation/Modifica- of 1996 (Pub. L. 104–134). tion of Contract, is annotated to re- (2) On a very limited basis, installa- flect the authority for issuance of the tion commanders and commanders of modification. other activities with contracting au- (3) A supplemental agreement con- thority may be granted authority to verts a unilateral purchase order to a establish imprest funds and third party bilateral agreement. If not previously draft (accommodation check) accounts. included in the purchase order, incor- (3) Third party draft accounts, when porate the clause at 252.243–7001, Pric- established in accordance with DoD ing of Contract Modifications, in the 7000.14–R, DoD Financial Management Standard Form 30, and obtain the con- Regulation, Volume 5, Disbursing Pol- tractor’s acceptance by signature on icy and Procedures— the Standard Form 30. (i) Provide an alternative to cash and U.S. Treasury checks when the use of § 213.302–5 Clauses. Government purchase or travel cards is (a) Use the clause at 252.243–7001, not feasible; Pricing of Contract Modifications, in (ii) Eliminate the need for cash on all bilateral purchase orders. hand for imprest fund transactions; (d) When using the clause at FAR and 52.213–4, delete the reference to the (iii) Give issuing activities the flexi- clause at FAR 52.225–1, buy American bility to issue low-volume and low-dol- Act-Balance of Payments Program- lar value payment on site. Supplies. Instead, if the Buy American Act applies to the acquisition, use the 213.305–3 Conditions for use. clause at— (d)(i) Use of imprest funds—
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(A) Must comply with the conditions (i) A delivery order; stated in— (ii) The basis for payment of an in- (1) DoD 7000.14–R, DoD Financial voice against blanket purchase agree- Management Regulation, Volume 5, ments or basic ordering agreements Disbursing Policy and Procedures; and when a firm-fixed-price has been estab- (2) The Treasury Financial Manual, lished; or Part 4, Chapter 3000, Section 3020; and (iii) A purchase order for acquisitions (B) Except as provided in paragraph using simplified acquisition proce- (d)(ii) of this subsection, requires ap- dures. proval by the Director for Financial (B) The DD Form 1155 is also author- Commerce, Office of the Deputy Chief ized for use for— Financial Officer, Office of the Under (1) Orders placed in accordance with Secretary of Defense (Comptroller). FAR Subparts 8.4, 8.6, 8.7, and 16.5; and (ii) Imprest funds are authorized for (2) Classified acquisition when the use without further approval for— purchase is made within the United (A) Overseas transactions at or below States, its possessions, and Puerto the micro-purchase threshold in sup- Rico. Attach the DD Form 254, Con- port of a contingency operation as de- tract Security Classification Specifica- fined in 10 U.S.C. 101(a)(13) or a human- tion, to the purchase order. itarian or peacekeeping operation as (ii) Do not use Optional Form 347, defined in 10 U.S.C. 2302(7); and Order for Supplies or Services, or Op- (B) Classified transactions. tional Form 348, Order for Supplies or Services Schedule—Continuation. 213.306 SF 44, Purchase Order-In- (iii) Use Standard Form 30, Amend- voice-Voucher. ment of Solicitation/Modification of (a)(1) The micro-purchase limitation Contract, to— applies to all purchases, except that (A) Modify a purchase order; or purchases not exceeding the simplified (B) Cancel a unilateral purchase acquisition threshold may be made order. for— (A) Aviation fuel and oil; Subpart 213.4—Fast Payment (B) Overseas transactions by con- Procedure tracting officers in support of a contin- gency operation as defined in 10 U.S.C. 213.402 Conditions for use. 101(a)(13) or a humanitarian or peace- (a) Individual orders may exceed the keeping operation as defined in 10 simplified acquisition threshold for— U.S.C. 2302(7); and (i) Brand-name commissary resale (C) Transactions in support of intel- subsistence; and ligence and other specialized activities (ii) Medical supplies for direct ship- addressed by Part 2.7 of Executive ment overseas. Order 12333.
213.307 Forms. Subpart 213.70—Simplified Acqui- (a) If SF 1449 is not used, use DD sition Procedures Under the Form 1155 in accordance with para- 8(a) Program graph (b)(i) of this section. (b)(i) Use DD Form 1155, Order for 213.7001 Policy. Supplies or Services, for purchases For sole source acquisitions under made using simplified acquisition pro- the 8(a) Program, contracting officers cedures. may use the procedures established in (A) The DD Form 1155 serves as a— the Memorandum of Understanding (1) Purchase order or blanket pur- cited in 219.800. chase agreement; (2) Delivery order or task order; 213.7002 Procedures. (3) Receiving and inspection report; For acquisitions that are otherwise (4) Property voucher; appropriate to be conducted using pro- (5) Document for acceptance by the cedures set forth in this part, and also supplier; and eligible for the 8(a) Program, con- (6) Public voucher, when used as— tracting officers may use—
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(a)(1) For sole source purchase orders Subpart 214.2—Solicitation of Bids not exceeding the simplified acquisi- tion threshold, the procedures in 214.201–1 Uniform contract format. 219.804–2(2); or Structure awards valued above the (2) For other types of acquisitions, micro-purchase threshold (e.g., con- the procedures in Subpart 219.8, exclud- tract line items, delivery schedule, and ing the procedures in 219.804–2(2); or invoice instructions) in a manner that (b) The procedures for award to the will minimize the generation of in- Small Business Administration in FAR voices valued at or below the micro- Subpart 19.8. purchase threshold. [65 FR 46626, July 31, 2000] 213.7003 Purchase orders. 214.202 General rules for solicitation 213.7003–1 Obtaining contractor ac- of bids. ceptance and modifying purchase orders. 214.202–5 Descriptive literature. The contracting officer need not ob- (d) Requirements of invitation for bids. tain a contractor’s written acceptance When brand name or equal purchase de- of a purchase order or modification of a scriptions are used, use of the provision purchase order for an acquisition under at FAR 52.211–6, Brand Name or Equal, the 8(a) Program pursuant to 219.804– satisfies this requirement. 2(2). [56 FR 36326, July 31, 1991, as amended at 63 FR 11528, Mar. 9, 1998; 64 FR 55633, Oct. 14, 213.7003–2 Contract clauses. 1999] Use the clauses prescribed in 219.811– 3 (1) and (3) for purchase orders under Subpart 214.4—Opening of Bids the 8(a) Program pursuant to the and Award of Contract Memorandum of Understanding cited 214.404 Rejection of bids. in 219.800. 214.404–1 Cancellation of invitations PART 214—SEALED BIDDING after opening. The contracting officer shall make Subpart 214.2—Solicitation of Bids the written determinations required by FAR 14.404–1 (c) and (e). Sec. 214.201–1 Uniform contract format. 214.407 Mistakes in bids. 214.202 General rules for solicitation of bids. 214.202–5 Descriptive literature. 214.407–3 Other mistakes disclosed be- fore award. Subpart 214.4—Opening of Bids and (e) Authority for making a deter- Award of Contract mination under FAR 14.407–3(a), (b) and (d) is delegated for the defense agen- 214.404 Rejection of bids. cies, without power of redelegation, as 214.404–1 Cancellation of invitations after follows: opening. (i) Defense Advanced Research 214.407 Mistakes in bids. 214.407–3 Other mistakes disclosed before Projects Agency: General Counsel, award. DARPA. (ii) Defense Information Systems Subpart 214.5—Two-Step Sealed Bidding Agency: General Counsel, DISA. (iii) Defense Intelligence Agency: 214.503 Procedures. Principal Assistant for Acquisition. 214.503–1 Step one. (iv) Defense Logistics Agency: AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- (A) General Counsel, DLA; and ter 1. (B) Associate General Counsel, DLA. (v) National Imagery and Mapping SOURCE: 56 FR 36326, July 31, 1991, unless Agency: General Counsel, NIMA. otherwise noted. (vi) Defense Threat Reduction Agen- cy: General Counsel, DTRA.
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(vii) National Security Agency: Di- 215.404–71–3 Contract type risk and working rector of Procurement, NSA. capital adjustment. (viii) Ballistic Missile Defense Orga- 215.404–71–4 Facilities capital employed. nization: General Counsel, BMDO. 215.404–72 Modified weighted guidelines (h) Send a signed copy of the docu- method for nonprofit organizations other ment authorizing correction of the bid than FFRDCs. to the appropriate finance center with 215.404–73 Alternate structure approaches. its copy of the contract. 215.404–74 Fee requirements for cost-plus- award-fee contracts. [57 FR 42629, Sept. 15, 1992, as amended at 59 215.404–75 Fee requirements for FFRDCs. FR 27669, May 27, 1994; 61 FR 50452, Sept. 26, 215.404–76 Reporting profit and fee statis- 1996. Redesignated and amended at 62 FR tics. 34122, June 24, 1997; 64 FR 51076, Sept. 21, 1999] 215.406–1 Prenegotiation objectives. 215.406–3 Documenting the negotiation. Subpart 214.5—Two-Step Sealed 215.407–2 Make-or-buy programs. Bidding 215.407–3 Forward pricing rate agreements. 215.407–4 Should-cost review. 214.503 Procedures. 215.407–5 Estimating systems. 215.407–5–70 Disclosure, maintenance, and 214.503–1 Step one. review requirements. (a) Requests for technical proposals 215.408 Slicitation provisions and contract may be in the form of a letter. clauses. 215.470 Estimated data prices. [56 FR 36326, July 31, 1991, as amended at 57 FR 53599, Nov. 12, 1992] AUTHORITY: 41 U.S.C. 421 and 48 CFR Chap- ter 1.
PART 215—CONTRACTING BY SOURCE: 63 FR 55040, Oct. 14, 1998, unless NEGOTIATION otherwise noted.
Sec. 215.000 Scope of part. 215.000 Scope of part. See 225.872 for additional guidance on procedures for purchasing form quali- Subpart 215.2—Solicitation and Receipt of Proposals and Information fying countries. 215.204–1 Uniform contract format. Subpart 215.2—Solicitation and 215.204–2 Part I—The Schedule. Receipt of Proposals and In- Subpart 215.3—Source Selection formation
215.303 Responsibilities. 215.204–1 Uniform contract format. 215.304 Evaluation factors and significant subfactors. Structure awards valued above the 215.305 Proposal evaluation. micro-purchase threshold (e.g., con- tract line items, delivery schedule, and Subpart 215.4—Contract Pricing invoice instructions) in a manner that 215.403 Obtaining cost or pricing data. will minimize the generation of in- 215.403–1 Prohibition on obtaining cost or voices valued at or below the micro- pricing data. purchase threshold. 215.403–5 Instructions for submission of cost or pricing data or information other than [65 FR 46626, July 31, 2000] cost or pricing data. 215.404 Proposal analysis. 215.204–2 Part I—The Schedule. 215.404–1 Proposal analysis techniques. 215.404–2 Information to support proposal (g) When a contract contains both analysis. fixed-priced and cost-reimbursement 215.404–3 Subcontract pricing consider- line items or subline items, the con- ations. tracting officer shall provide, in Sec- 215.404–4 Profit. tion B, Supplies or Services and Prices/ 215.404–70 DD Form 1547, Record of Weighted Costs, an identification of contract Guidelines Method Application. 215.404–71 Weighted guidelines method. type specified for each contract line 215.404–71–1 General. item or subline item to facilitate ap- 215.404–71–2 Performance risk. propriate payment.
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Subpart 215.3—Source Selection (2) The extent of commitment to use such firms (for example, enforceable 215.303 Responsibilities. commitments are to be weighted more (b)(2) For high-dollar value and other heavily than non-enforceable ones); acquisitions, as prescribed by agency (3) The complexity and variety of the procedures, the source selection au- work small firms are to perform; thority (SSA) shall approve a source (4) The realism of the proposal; selection plan (SSP) before the solici- (5) Past performance of the offerors tation is issued. The SSP— in complying with requirements of the (A) Shall be prepared and maintained clauses at FAR 52.219–8, Utilization of by a person designated by the SSA or Small, Small Disadvantaged and as prescribed by agency procedures; Women-Owned Small Business Con- (B) Shall be coordinated with the cerns, and 52.219–9, Small, Small Dis- contracting officer and senior advisory advantaged and Women-Owned Small group, if any, within the source selec- Business Subcontracting Plan; and tion organization; and (6) The extent of participation of (C) Shall include, as a minimum— such firms in terms of the value of the (1) The organization, membership, total acquisition. and responsibilities of the source selec- (B) Proposals addressing the extent tion team; of small business and historically (2) A statement of the proposed eval- black college or university and minor- uation factors and any significant sub- ity institution performance may be factors and their relative importance; separate from subcontracting plans (3) A description of the evaluation submitted pursuant to the clause at process, including specific procedures FAR 52.219–9 and should be structured and techniques to be used in evaluating to allow for consideration of offers proposals; and from small businesses. (4) A schedule of significant events in (C) When an evaluation includes the the source selection process, including factor in paragraph (c)(i)(A)(1) of this documentation of the source selection section, the small businesses, histori- decision and announcement of the cally black colleges or universities and source selection decision. minority institutions, and women- owned small businesses considered in 215.304 Evaluation factors and signifi- the evaluation shall be listed in any cant subfactors. subcontracting plan submitted pursu- (c)(i) In acquisitions that require use ant to FAR 52.219–9 to facilitate com- of the clause at FAR 52.219–9, Small, pliance with 252.219–7003(g). Small Disadvantaged and Women- (ii) The costs or savings related to Owned Small Business Subcontracting contract administration and audit may Plan, other than those based on the be considered when the offeror’s past lowest price technically acceptable performance or performance risk indi- source selection process (see FAR cates the likelihood of significant costs 15.101–2), the extent of participation of or savings. small businesses and historically black colleges or universities and minority [63 FR 64428, Nov. 20, 1998, as amended at 64 institutions in performance of the con- FR 51076, Sept. 21, 1999] tract shall be addressed in source selec- tion. The contracting officer shall § 215.305 Proposal evaluation. evaluate the extent to which offerors (a)(2) Past performance evaluation. identify and commit to small business When a past performance evaluation is and historically black college or uni- required by FAR 15.304, and the solici- versity and minority institution per- tation includes the clause at FAR formance of the contract, whether as a 52.219–8, Utilization of Small, Small joint venture, teaming arrangement, or Disadvantaged and Women-Owned subcontractor. Small Business Concerns, the evalua- (A) Evaluation factors may include— tion factors shall include the past per- (1) The extent to which such firms formance of offerors in complying with are specifically identified in proposals; requirements of that clause. When a
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past performance evaluation is re- (1) Submission of information other quired by FAR 15.304, and the solicita- than cost or pricing data to the extent tion includes the clause at FAR 52.219– necessary to determine reasonableness 9, Small, Small Disadvantaged and and cost realism; and Women-Owned Small Business Subcon- (2) Cost or pricing data from sub- tracting Plan, the evaluation factors contractors that are not nonprofit or- shall include the past performance of ganizations when the subcontractor’s offerors in complying with require- proposal exceeds the cost or pricing ments of that clause. data threshold at FAR 15.403–4(a)(1). (b) Any determination to reject a proposal based on a violation or pos- 215.403–5 Instructions for submission of cost or pricing data or informa- sible violation of Section 27 of the tion other than cost or pricing data. OFPP Act shall be made as specified in FAR 3.104. (b) When the solicitation requires contractor compliance with the Con- [63 FR 55040, Oct. 14, 1998, as amended at 65 tractors Cost Data Reporting (CCDR) FR 39722, June 27, 2000] System (Army—AMCP 715–8, Navy— NAV PUB P–5241, and Air Force— Subpart 215.4—Contract Pricing AFMCP 800–15), require the contractor to submit DD Form 1921 or 1921–1 with 215.403 Obtaining cost or pricing data. its pricing proposal.
§ 215.403–1 Prohibition on obtaining 215.404 Proposal analysis. cost or pricing data. 215.404–1 Proposal analysis tech- (c) Standards for exceptions from cost niques. or pricing data requirements—(1) Ade- quate price competition. For acquisitions (a) General. For spare parts or sup- under dual or multiple source pro- port equipment, perform an analysis grams: of— (A) The determination of adequate (i) Those line items where the pro- price competition must be made on a posed price exceeds by 25 percent or more the lowest price the Government case-by-case basis. Even when adequate has paid within the most recent 12- price competition exists, in certain month period based on reasonably cases it may be appropriate to obtain available information; additional information to assist in (ii) Those line items where a com- price analysis. parison of the item description and the (B) Adequate price competition nor- proposal price indicates a potential for mally exists when— overpricing; (i) Prices are solicited across a full (iii) Significant high-dollar-value range of step quantities, normally in- items. If there are no obvious high-dol- cluding a 0–100 percent split, from at lar-value items, include an analysis of least two offerors that are individually a random sample of items; and capable of producing the full quantity; (iv) A random sample of the remain- and ing low-dollar value items. Sample size (ii) The reasonableness of all prices may be determined by subjective judg- awarded is clearly established on the ment, e.g., experience with the offeror basis of price analysis (see FAR 15.404– and the reliability of its estimating 1(b)). and accounting systems. (4) Waivers. (A) DoD has waived the (d) Cost realism analysis. The con- requirement for submission of cost or tracting officer should determine what pricing data for the Canadian Commer- information other than cost or pricing cial Corporation and its subcontrac- data is necessary for the cost realism tors. analysis during acquisition planning (B) DoD has waived cost or pricing and development of the solicitation. data requirements for nonprofit organi- Unless such information is available zations (including education institu- from sources other than the offerors tions) on cost-reimbursement-no-fee (see FAR 15.402(a)(2)), the contracting contracts. The contracting officer shall officer will need to request data from require— the offerors. The contracting officer—
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(i) Shall request only necessary data; § 215.404–3 Subcontract pricing con- and siderations. (ii) May not request submission of (a)(i) When obtaining field pricing as- cost or pricing data. sistance on a prime contractor’s pro- posal, the contracting officer should re- 215.404–2 Information to support pro- quest audit or field pricing assistance posal analysis. to analyze and evaluate the proposal of (a) Field pricing assistance. (i) The a subcontractor at any tier (notwith- contracting officer should consider re- standing availability of data or anal- questing field pricing assistance for— yses performed by the prime con- (A) Fixed-price proposals exceeding tractor) if the contracting officer be- the cost or pricing data threshold; lieves that such assistance is necessary (B) Cost-type proposals exceeding the to ensure the reasonableness of the cost or pricing data threshold from total proposed price. Such assistance offerors with significant estimating may be appropriate when, for exam- system deficiencies (see 215.407–5– ple— 70(a)(4) and (c)(2)(i)); or (A) There is a business relationship between the contractor and the subcon- (C) Cost-type proposals exceeding $10 tractor not conducive to independence million from offerors without signifi- and objectivity; cant estimating system deficiencies. (B) The contractor is a sole source (ii) The contracting officer should supplier and the subcontract costs rep- not request field pricing support for resent a substantial part of the con- proposed contracts or modifications in tract cost; an amount less than that specified in (C) The contractor has been denied paragraph (a)(i) of this subsection. An access to the subcontractor’s records; exception may be made when a reason- (D) The contracting officer deter- able pricing result cannot be estab- mines that, because of factors such as lished because of— the size of the proposed subcontract (A) A lack of knowledge of the par- price, audit or field pricing assistance ticular offeror; or for a subcontract at any tier is critical (B) Sensitive conditions (e.g., a to a fully detailed analysis of the prime change in, or unusual problems with, contractor’s proposal; an offeror’s internal systems). (E) The contractor or higher-tier sub- (c) Audit assistance for prime contracts contractor has been cited for having or subcontracts. (i) If, in the opinion of significant estimating system defi- the contracting officer or auditor, the ciencies in the area of subcontract review of a prime contractor’s proposal pricing, especially the failure to per- requires further review of subcontrac- form adequate cost analyses of pro- tors’ cost estimates at the subcontrac- posed subcontract costs or to perform tors’ plants (after due consideration of subcontract analyses prior to negotia- reviews performed by the prime con- tion of the prime contract with the tractor), the contracting officer should Government; or inform the administrative contracting (F) A lower-tier subcontractor has officer (ACO) having cognizance of the been cited as having significant esti- prime contractor before the review is mating system deficiencies. initiated. (ii) It may be appropriate for the con- tracting officer or the ACO to provide (ii) Notify the appropriate contract assistance to a contractor or subcon- administration activities when exten- tractor at any tier, when the con- sive, special, or expedited field pricing tractor or higher-tier subcontractor assistance will be needed to review and has been denied access to a subcontrac- evaluate subcontractors’ proposals tor’s records in carrying out the re- under a major weapon system acquisi- sponsibilities at FAR 15.404–3 to con- tion. If audit reports are received on duct price or cost analysis to deter- contracting actions that are subse- mine the reasonableness of proposed quently cancelled, notify the cognizant subcontract prices. Under these cir- auditor in writing. cumstances, the contracting officer or
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the ACO should consider whether pro- (vi) The contracting officer shall viding audit or field pricing assistance make every effort to ensure that fees will serve a valid Government interest. negotiated by contractors for cost- (iii) When DoD performs the sub- plus-fixed-fee subcontracts do not ex- contract analysis, DoD shall furnish to ceed the fee limitations in FAR 15.404– the prime contractor or higher-tier 4(c)(4). subcontractor, with the consent of the subcontractor reviewed, a summary of 215.404–4 Profit. the analysis performed in determining (b) Policy. (1) Departments and agen- any unacceptable costs included in the cies must use a structured approach for subcontract proposal. If the subcon- developing a prenegotiation profit or tractor withholds consent, DoD shall fee objective on any negotiated con- furnish a range of unacceptable costs tract action when cost or pricing data for each element in such a way as to is obtained, except for cost-plus-award- prevent disclosure of subcontractor fee contracts (see 215.404–74) or con- proprietary data. tracts with Federally Funded Research (iv) Price redeterminable or fixed- and Development Centers (FFRDCs) price incentive contracts may include (see 215.404–75). There are three struc- subcontracts placed on the same basis. tured approaches— When the contracting officer wants to (A) The weighted guidelines method; reprice the prime contract even though (B) The modified weighted guidelines the contractor has not yet established method; and final prices for the subcontracts, the (C) An alternate structured approach. contracting officer may negotiate a (c) Contracting officer responsibilities. firm contract price— (1) Also, do not perform a profit anal- (A) If cost or pricing data on the sub- ysis when assessing cost realism in contracts show the amounts to be rea- competitive acquisitions. sonable and realistic; or (2) When using a structured ap- (B) If cost or pricing data on the sub- proach, the contracting officer— contracts are too indefinite to deter- (A) Shall use the weighted guidelines mine whether the amounts are reason- method (see 215.404–71), except as pro- able and realistic, but— vided in paragraphs (c)(2)(B) and (1) Circumstances require prompt ne- (c)(2)(C) of this subsection. gotiation; and (B) Shall use the modified weighted (2) A statement substantially as fol- guidelines method (see 215.404–72) on lows is included in the repricing modi- contract actions with nonprofit organi- fication of the prime contract: zations other than FFRDCs. As soon as the Contractor establishes firm (C) May use an alternate structured prices for each subcontract listed below, the approach (see 215.404–73) when— Contractor shall submit (in the format and (1) The contract action is— with the level of detail specified by the Con- (i) At or below the cost or pricing tracting Officer) to the Contracting Officer the subcontractor’s cost incurred in per- data threshold (see FAR 15.403–4(a)(1)); forming the subcontract and the final sub- (ii) For architect-engineer or con- contract price. The Contractor and Con- struction work; tracting Officer shall negotiate an equitable (iii) Primarily for delivery of mate- adjustment in the total amount paid or to be rial from subcontractors; or paid under this contract to reflect the final (iv) A termination settlement; or subcontract price. (2) The weighted guidelines method (v) If the selection of the subcon- does not produce a reasonable overall tractor is based on a trade-off among profit objective and the head of the cost or price and other non-cost factors contracting activity approves use of rather than lowest price, the analysis the alternate approach in writing. supporting subcontractor selection (D) Shall use the weighted guidelines should include a discussion of the fac- method to establish a basic profit rate tors considered in the selection (also under a formula-type pricing agree- see FAR 15.101 and 15.304 and 215.304). If ment, and may then use the basic rate the contractor’s analysis is not ade- on all actions under the agreement, quate, return it for correction of defi- provided that conditions affecting prof- ciencies. it do not change.
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(E) Shall document the profit anal- 215.404–73 for guidance on using the ysis in the contract file. structured approaches). Administrative (5) Although specific agreement on instructions for completing the form the applied weights or values for indi- are in 253.215.–70. vidual profit factors shall not be at- (2) Ensure that the DD Form 1547 is tempted, the contracting officer may accurately completed. The contracting encourage the contractor to— officer is responsible for the correction (A) Present the details of its pro- any errors detected by the manage- posed profit amounts in the weighted ment system auditing process. guidelines format or similar structured approached; and § 215.404–71 Weighted guidelines meth- (B) Use the weighted guidelines od. method in developing profit objectives for negotiated subcontracts. § 215.404–71–1 General. (6) The contracting officer must also (a) The weighted guidelines method verify that relevant variables have not focuses on three profit factors— materially changed (e.g., performance (1) Performance risk; risk, interest rates, progress payment (2) Contract type risk; and rates, distribution of facilities capital). (3) Facilities capital employed. (d) Profit-analysis factors.—(1) Com- (b) The contracting officer assigns mon factors. The common factors are values to each profit factor; the value embodied in the DoD structured ap- multiplied by the base results in the proaches and need not be further con- profit objective for that factor. Each sidered by the contracting officer. profit factor has a normal value and a designated range of values. The normal [63 FR 55040, Oct. 14, 1998, as amended at 63 FR 63799, Nov. 17, 1998; 65 FR 77829, Dec. 13, value is representative of average con- 2000; 66 FR 49863, Oct. 1, 2001] ditions on the prospective contract when compared to all goods and serv- § 215.404–70 DD Form 1547, Record of ices acquired by DoD. The designated Weighted Guidelines Method Appli- range provides values based on above cation. normal or below normal conditions. In (a) The DD Form 1547— the negotiation documentation, the (1) Provides a vehicle for performing contracting officer need not explain as- the analysis necessary to develop of signment of the normal value, but profit objectives; should address conditions that justify (2) Provides a format for summa- assignment of other than the normal rizing profit amounts subsequently ne- value. gotiated as part of the contract price; and 215.404–71–2 Performance risk. (3) Serves as the principal source doc- (a) Description. This profit factor ad- uments for reporting profit statistics dresses the contractor’s degree of risk to DoD’s management information sys- in fulfilling the contract requirements. tem. The factor consists of two parts: (b) The military departments are re- (1) Technical—the technical uncer- sponsible for establishing policies and tainties of performance. procedures for feeding the DoD-wide (2) Management/cost control—the de- management information system on gree of management effort necessary— profit and fee statistics (see 215.404–75). (i) To ensure that contract require- (c) The contracting officer shall— ments are met; and (1) Use and prepare a DD Form 1547 (ii) To reduce and control costs. whenever a structured approach to (b) Determination. The following ex- profit analysis is required by 215.404– tract from the DD Form 1547 is anno- 4(b) (see 215.404–71, 215.404–72, and tated to describe the process.
Assigned Assigned Base Profit Item Contractor risk factors weighting value (item 18) objective
21...... Technical ...... (1) (2) N/A N/A 22...... Management/Cost Control ...... (1) (2) N/A N/A 23...... Reserved.
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Assigned Assigned Base Profit Item Contractor risk factors weighting value (item 18) objective
24...... Performance Risk (Composite) ...... N/A (3) (4) (5)
(1) Assign a weight (percentage) to may use the technology incentive each element according to its input to range for acquisitions that include de- the total performance risk. The total velopment, production, or application of the two weights equals 100 percent. of innovative new technologies. The (2) Select a value for each element technology incentive range does not from the list in paragraph (c) of this apply to efforts restricted to studies, subsection using the evaluatio criteria analyses, or demonstrations that have in paragraphs (d) and (e) of this sub- a technical report as their primary de- section. liverable. (3) Compute the composite as shown (d) Evaluation criteria for technical. in the following example: (1) Review the contract requirements [In percentage] and focus on the critical performance elements in the statement of work or As- Weight- specifications. Factors to consider in- Assigned signed ed weighting value value clude— (i) Technology being applied or devel- Technical ...... 60 5.0 3.0 oped by the contractor; Management/Cost Control 40 4.0 1.6 Composite Value ...... 100 ...... 4.6 (ii) Technical complexity; (iii) Program maturity; (4) Insert the amount from Block 18 (iv) Performance specifications and of the DD Form 1547. Block 18 is total tolerances; contract costs, excluding general and (v) Delivery schedule; and administrative expenses, contractor (vi) Extent of a warranty or guar- independent research and development antee. and bid and proposal expenses, and fa- (2) Above normal conditions. cilities capital cost of money. (i) The contracting officer may as- (5) Multiply (3) by (4). sign a higher than normal value in (c) Values: Normal and designated those cases where there is a substantial ranges. technical risk. Indicators are— (A) Items are being manufactured [In percentage] using specifications with stringent tol- Des- erance limits; Normal ignat- (B) The efforts require highly skilled value ed range personnel or require the use of state-of- the-art machinery; Standard ...... 4 2 to 6 Alternate ...... 6 4 to 8 (C) The services and analytical ef- Technology Incentive ...... 8 6 to forts are extremely important to the 10 Government and must be performed to exacting standards; (1) Standard. The standard designated (D) The contractor’s independent de- range should apply to most contracts. velopment and investment has reduced (2) Alternate. Contracting officers the Government’s risk or cost; may use the alternate designated range (E) The contractor has accepted an for research and development and serv- accelerated delivery schedule to meet ice contractors when these contractors DoD requirements; or require relatively low capital invest- (F) The contractor has assumed addi- ment in buildings and equipment when tional risk through warranty provi- compared to the defense industry over- sions. all. If the alternate designated range is (ii) Extremely complex, vital efforts used, do not give any profit for facili- to overcome difficult technical obsta- ties capital employed (see 215.404–71– cles that require personnel with excep- 4(c)(3)). tional abilities, experience, and profes- (3) Technology incentive. For the tech- sional credentials may justify a value nical factor only, contracting officers significantly above normal.
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(iii) The following may justify a max- to the acquisition as a whole. When the imum value— innovation represents a minor benefit, (A) Development or initial produc- the contracting officer should consider tion of a new item, particularly if per- using values less than the norm. For formance or quality specifications are innovative efforts that will have a tight; or major positive impact on the product (B) A high degree of development or or program, the contracting officer production concurrency. may use values above the norm. (3) Below normal conditions. (e) Evaluation criteria for management/ (i) The contracting officer may as- cost control. (1) The contracting officer sign a lower than normal value in should evaluate— those cases where the technical risk is (i) The contractor’s management and low. Indicators are— internal control systems using con- (A) Acquisition is for off-the-shelf tracting office information and reviews items; made by field contract administration (B) Requirements are relatively sim- offices or other DoD field offices; ple; (ii) The management involvement ex- (C) Technology is not complex; pected on the prospective contract ac- (D) Efforts do not require highly tion; skilled personnel; (iii) The degree of cost mix as an in- (E) Efforts are routine; dication of the types of resources ap- (F) Programs are mature; or plied and value added by the con- (G) Acquisition is a follow-on effort tractor; or a repetitive type acquisition. (iv) The contractor’s support of Fed- (ii) The contracting officer may as- eral socioeconomic programs; sign a value significantly below normal (v) The expected reliability of the for— contractor’s cost estimates (including (A) Routine services; the contractor’s cost estimating sys- (B) Production of simple items; tem); (C) Rote entry or routine integration (vi) The contractor’s cost reduction of Government-furnished information; initiatives (e.g., competition advocacy or programs, technical insertion pro- (D) Simple operations with Govern- grams, obsolete parts control pro- ment-furnished property. grams, dual sourcing, spare parts pric- (4) Technology incentive range. ing reform, value engineering); (i) The contracting officer may as- sign values within the technology in- (vii) The adequacy of the contractor’s centive range when contract perform- management approach to controlling ance includes the introduction of new, cost and schedule; and significant technological innovation. (viii) Any other factors that affect Use the technology incentive range the contractor’s ability to meet the only for the most innovative contract cost targets (e.g., foreign currency ex- efforts. Innovation may be in the form change rates and inflation rates). of— (2) Above normal conditions. (i) The (A) Development or application of contracting officer may assign a higher new technology that fundamentally than normal value when the manage- changes the characteristics of an exist- ment effort is intense. Indicators of ing product or system and that results this are— in increased technical performance, (A) The contractor’s value added is improved reliability, or reduced costs; both considerable and reasonably dif- or ficult; (B) New products or systems that (B) The effort involves a high degree contain significant technological ad- of integration or coordination; vances over the products or systems (C) The contractor has a substantial they are replacing. record of active participation in Fed- (ii) When selecting a value within the eral socioeconomic programs; technology incentive range, the con- (D) The contractor provides fully tracting officer should consider the rel- documented and reliable cost esti- ative value of the proposed innovation mates;
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(E) The contractor has an aggressive (H) The contractor has made minimal cost reduction program that has de- effort to initiate cost reduction pro- monstrable benefits; grams; (F) The contractor uses a high degree (I) The contractor’s cost proposal is of subcontract competition (e.g., ag- inadequate; or gressive dual sourcing); (J) The contractor has a record of (G) The contractor has a proven cost overruns or another indication of record of cost tracking and control; or unreliable cost estimates and lack of (H) The contractor aggressively seeks cost control. process improvements to reduce costs. (ii) The following may justify a value (ii) The contracting officer may jus- significantly below normal— tify a maximum value when the ef- (A) Reviews performed by the field fort— contract administration offices dis- close unsatisfactory management and (A) Requires large scale integration internal control systems (e.g., quality of the most complex nature; assurance, property, control, safety, se- (B) Involves major international ac- curity); or tivities with significant management (B) The effort requires an unusually coordination (e.g., offsets with foreign low degree of management involve- vendors); or ment. (C) Has critically important mile- stones. [65 FR 77829, Dec. 13, 2000] (3) Below normal conditions. (i) The § 215.404–71–3 Contract type risk and contracting officer may assign a lower working capital adjustment. than normal value when the manage- ment effort is minimal. Indicators of (a) Description. The contract type this are— risk factor focuses on the degree of cost risk accepted by the contractor (A) The program is mature and many under varying contract types. The end item deliveries have been made; working capital adjustment is an ad- (B) the contractor adds minimal justment added to the profit objective value to an item; for contract type risk. It only applies (C) The efforts are routine and re- to fixed-price contracts that provide quire minimal supervision; for progress payments. Though it uses (D) The contractor provides poor a formula approach, it is not intended quality, untimely proposals; to be an exact calculation of the cost of (E) The contractor fails to provide an working capital. Its purpose is to give adequate analysis of subcontractor general recognition to the contractor’s costs; cost of working capital under varying (F) The contractor does not cooper- contract circumstances, financing poli- ate in the evaluation and negotiation cies, and the economic environment. of the proposal; (b) Determination. The following ex- (G) The contractor’s cost estimating tract from the DD 1547 is annotated to system is marginal; explain the process.
Item Contractor risk factors Assigned value Base (item 18) Profit objective
25...... CONTRACT type risk ...... (1) (2) (3) Cost financed Length factor Interest rate 26...... WORKING capital (4) ...... (5) (6) (7) (8)
(1) Select a value from the list of independent research and development contract types in paragraph (c) of this and bid and proposal expenses, and fa- subsection using the evaluation cri- cilities capital cost of money. teria in paragraph (d) of this sub- (3) Multiply (1) by (2). section. (4) Only complete this block when (2) Insert the amount from Block 18, the prospective contract is a fixed- i.e., the total allowable costs excluding price contract containing provisions general and administrative expenses, for progress payments.
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(5) Insert the amount computed per (8) Multiply (5) by (6) by (7). This is paragraph (e) of this subsection. the working capital adjustment. It (6) Insert the appropriate figure from shall not exceed 4 percent of the con- paragraph (f) of this subsection. tract costs in Block 20. (7) Use the interest rate established (c) Values: Normal and designated by the Secretary of the Treasury (see ranges. 230.7101–1(a)). Do not use any other in- terest rate.
Normal Designated Contract type Notes value range (percent) (percent)
Firm-fixed-price, no financing ...... (1) 5.0 4 to 6. Firm-fixed-price, with performance-based payments ...... (6) 4.0 2.5 to 5.5 Firm-fixed-price, with progress payments ...... (2) 3.0 2 to 4. Fixed-price incentive, no financing ...... (1) 3.0 2 to 4. Fixed-price incentive, with performance-based payments ...... (6) 2.0 0.5 to 3.5. Fixed-price with redetermination provision ...... (3) ...... Fixed-price incentive, with progress payments ...... (2) 1.0 0 to 2. Cost-plus-incentive-free ...... (4) 1.0 0 to 2. Cost-plus-fixed-fee ...... (4) 0.5 0 to 1. Time-and-materials (including overhaul contracts priced on time-and-materials basis) ...... (5) 0.5 0 to 1. Labor-hour ...... (5) 0.5 0 to 1. Firm-fixed-price, level-of-effort ...... (5) 0.5 0 to 1.
(1) ‘‘No financing’’ means either that (ii) Adequacy of cost data for projec- the contract does not provide progress tions; payments or performance-based pay- (iii) Economic environment; ments, or that the contract provides (iv) Nature and extent of subcon- them only on a limited basis, such as tracted activity; financing of first articles. Do not com- (v) Protection provided to the con- pute a working capital adjustment. tractor under contract provisions (e.g., (2) When the contract contains provi- economic price adjustment clauses); sions for progress payments, compute a (vi) The ceilings and share lines con- working capital adjustment (Block 26). tained in incentive provisions; (3) For the purposes of assigning prof- (vii) Risks associated with contracts it values, treat a fixed-price contract for foreign military sales (FMS) that with redetermination provisions as if it are not funded by U.S. appropriations; were a fixed-price incentive contract and with below normal conditions. (viii) When the contract contains (4) Cost-plus contracts shall not re- provisions for performance-based pay- ceive the working capital adjustment. ments— (5) These types of contracts are con- (A) The frequency of payments; sidered cost-plus-fixed-fee contracts for (B) The total amount of payments the purposes of assigning profit values. compared to the maximum allowable They shall not receive the working amount specified at FAR 32.1004(b)(2); capital adjustment in Block 26. How- and ever, they may receive higher than (C) The risk of the payment schedule normal values within the designated to the contractor. range to the extent that portions of (2) Mandatory. The contracting offi- cost are fixed. cer shall assess the extent to which (6) When the contract contains provi- costs have been incurred prior to the sions for performance-based payments, definitization of the contract action do not compute a working capital ad- (also see 217.7404–6(a)). The assessment justment. shall include any reduced contractor (d) Evaluation criteria. risk on both the contract before (1) General. The contracting officer definitization and the remaining por- should consider elements that affect tion of the contract. When costs have contract type risk such as— been incurred prior to definitization, (i) Length of contract; generally regard the contract type risk
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to be in the low end of the designated cost of money), reduced as appropriate range. If a substantial portion of the when— costs have been incurred prior to (i) The contractor has little cash in- definitization, the contracting officer vestment (e.g., subcontractor progress may assign a value as low as 0 percent, payments liquidated late in period of regardless of contract type. performance); (3) Above normal conditions. The con- (ii) Some costs are covered by special tracting officer may assign a higher financing provisions, such as advance than normal value when there is sub- payments; or stantial contract type risk. Indicators (iii) The contract is multiyear and of this are— there are special funding arrange- (i) Efforts where there is minimal ments. cost history; (3) The portion that the contractor (ii) Long-term contracts without pro- finances is generally the portion not visions protecting the contractor, par- covered by progress payments, i.e., 100 ticularly when there is considerable percent minus the customary progress economic uncertainty; payment rate (see FAR 32.501). For ex- ample, if a contractor receives progress (iii) Incentive provisions (e.g., cost payments at 75 percent, the portion and performance incentives) that place that the contractor finances is 25 per- a high degree of risk on the contractor; cent. On contracts that provide (iv) FMS sales (other than those progress payments to small businesses, under DoD cooperative logistics sup- use the customary progress payment port arrangements or those made from rate for large businesses. U.S. Government inventories or stocks) (f) Contract length factor. (1) This is where the contractor can demonstrate the period of time that the contractor that there are substantial risks above has a working capital investment in those normally present in DoD con- the contract. It— tracts for similar items; or (i) Is based on the time necessary for (v) An aggressive performance-based the contractor to complete the sub- payment schedule that increases risk. stantive portion of the work; (4) Below normal conditions. The con- (ii) Is not necessarily the period of tracting officer may assign a lower time between contract award and final than normal value when the contract delivery (or final payment), as periods type risk is low. Indicators of this of minimal effort should be excluded; are— (iii) Should not include periods of (i) Very mature product line with ex- performance contained in option provi- tensive cost history; sions; and (ii) Relative short-term contracts; (iv) Should not, for multiyear con- (iii) Contractual provisions that sub- tracts, include periods of performance stantially reduce the contractor’s risk; beyond that required to complete the (iv) Incentive provisions that place a initial program year’s requirements. low degree of risk on the contractor; (2) The contracting officer— (v) Performance-based payments to- (i) Should use the following table to taling the maximum allowable select the contract length factor; amount(s) specified at FAR (ii) Should develop a weighted aver- 32.1004(b)(2); or age contract length when the contract (vi) A performance-based payment has multiple deliveries; and schedule that is routine with minimal (iii) May use sampling techniques risk. provided they produce a representative (e) Costs financed. result. (1) Costs financed equal total costs TABLE multiplied by the portion (percent) of costs financed by the contractor. Period to perform substantive portion (in Contract length (2) Total costs equal Block 20 (i.e., all months) factor allowable costs, including general and 21 or less ...... 40 administrative and independent re- 22 to 27 ...... 65 28 to 33 ...... 90 search and development/bid and pro- 34 to 39 ...... 1.15 posal, but excluding facilities capital 40 to 45 ...... 1.40
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TABLE—Continued months and the contract length factor is 1.15. Period to perform substantive portion (in Contract length months) factor [63 FR 55040, Oct. 14, 1998, as amended at 64 FR 61032, Nov. 9, 1999] 46 to 51 ...... 1.65 52 to 57 ...... 1.90 215.404–71–4 Facilities capital em- 58 to 63 ...... 2.15 ployed. 64 to 69 ...... 2.40 70 to 75 ...... 2.65 (a) Description. This factor focuses on 76 or more ...... 2.90 encouraging and rewarding aggressive capital investment in facilities that (3) Example: A prospective contract benefit DoD. It recognizes both the fa- has a performance period of 40 months cilities capital that the contractor will with end items being delivered in the employ in contract performance and 34th, 36th, 38th, and 40th months of the the contractor’s commitment to im- contract. The average period is 37 proving productivity. (b) Determination. The following ex- tract from the DD Form 1547 has been annotated to explain the process.
Item Contractor facilities capital employed Assigned value Amount employed Profit objective
27...... LAND ...... N/A (2) N/A 28...... BUILDINGS ...... (1) (2) (3) 29...... EQUIPMENT ...... (1) (2) (3)
(1) Select a value from the list in (ii) If the value of intracompany paragraph (c) of this subsection using transfers has been included in Block 18 the evaluation criteria in paragraph (d) at cost (i.e., excluding general and ad- of this subsection. ministrative (G&A) expenses and prof- (2) Use the allocated facilities capital it), add to the contractor’s allocated attributable to land, buildings, and facilities capital, the allocated facili- equipment, as derived in DD Form 1861, ties capital attributable to the build- Contract Facilities Capital Cost of ings and equipment of those corporate Money (see 230,7001). divisions supplying the intracompany (i) In addition to the net book value transfers. Do not make this addition if of facilities capital employed, consider facilities capital that is part of a for- the value of intracompany transfers mal investment plan if the contractor has been included in Block 18 at price submits reasonable evidence that— (i.e., including G&A expenses and prof- (A) Achievable benefits to DoD will it). result from the investment; and (3) Multiply (1) by (2). (B) The benefits of the investment (c) Values: Normal and designated are included in the forward pricing ranges. structure.
Designated Notes Asset type Normal value range (percent) (percent)
(1) ...... Land ...... 0 N/A (1) ...... Buildings ...... 15 10 to 20 (1) ...... Equipment ...... 35 20 to 50 (2) ...... Land ...... 0 N/A (2) ...... Buildings ...... 5 0 to 10 (2) ...... Equipment ...... 20 15 to 25 (3) ...... Land ...... 0 N/A (3) ...... Buildings ...... 0 0 (3) ...... Equipment ...... 0 0
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(1) These are the normal values and cost of yield other tangible benefits ranges. They apply to all situations ex- such as improved product quality or cept those noted in (2) and (3). accelerated deliveries; (2) These alternate values and ranges (B) Investments in new equipment for apply to situations where a highly research and development applications; facilitized manufacturing firm will be or performing a research and development (C) Contractor demonstration that or services contract. They balance the the investments are over and above the method used to allocate facilities cap- normal capital investments necessary ital cost of money, which may produce to support anticipated requirements of disproportionate allocation of assets to DoD programs. these types of efforts. (ii) The contracting officer may as- (3) When using a value from the al- sign a value significantly above normal ternate designated range for the per- when there are direct and measurable formance risk factor (see 215.404–71– benefits in efficiency and significantly 2(c)(2)), do not allow profit on facilities reduced acquisition cost on the effort capital employed. (d) Evaluation criteria. (1) In evalu- being priced. Maximum values apply ating facilities capital employed, the only to those cases where the benefits contracting officer— of the facilities capital investment are (i) Should relate the usefulness of the substantially above normal. facilities capital to the goods or serv- (3) Below normal conditions. (i) The ices being acquired under the prospec- contracting officer may assign a lower tive contract; than normal value if the facilities cap- (ii) Should analyze the productivity ital investment has little benefit to improvements and other anticipated DoD. Indicators are— industrial base enhancing benefits re- (A) Allocations of capital apply pre- sulting from the facilities capital in- dominantly to commercial item lines; vestment, including— (B) Investments are for such things (A) The economic value of the facili- as furniture and fixtures, home or ties capital, such as physical age, group level administrative offices, cor- undepreciated value, idleness, and ex- porate aircraft and hangars, gym- pected contribution to future defense nasiums; or needs; and (C) Facilities are old or extensively (B) The contractor’s level of invest- idle. ment in defense related facilities as (ii) The contracting officer may as- compared with the portion of the con- sign a value significantly below normal tractor’s total business that is derived when a significant portion of defense from DoD; manufacturing is done in an environ- (iii) Should consider any contractual ment characterized by outdated, ineffi- provisions that reduce the contractor’s cient, and labor-intensive capital risk of investment recovery, such as equipment. termination protection clauses and capital investment indemnification; 215.404–72 Modified weighted guide- and lines method for nonprofit organi- (iv) Shall ensure that increases in fa- zations other than FFRDCs. cilities capital investments are not (a) As used in this subpart, merely asset revaluations attributable Definition. to mergers, stock transfers, take-overs, a nonprofit organization is a business sales of corporate entities, or similar entity— actions. (1) That operates exclusively for (2) Above normal conditions. (i) The charitable, scientific, or educational contracting officer may assign a higher purposes; than normal value if the facilities cap- (2) Whose earnings do not benefit any ital investment has direct, identifiable, private shareholder or individual; and exceptional benefits. Indicators (3) Whose activities do not involve in- are— fluencing legislation or political cam- (A) New investments in state-of-the- paigning for any candidate for public art technology that reduce acquisition office; and
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(4) That is exempted from Federal in- Blocks 21 through 30 of the DD Form come taxation under section 501 of the 1547. Internal Revenue Code. (2) Offset for facilities capital cost of (b) For nonprofit organizations that money. are entities that have been identified (i) The contracting officer shall re- by the Secretary of Defense or a Sec- duce the overall prenegotiation profit retary of a Department as receiving objective by the lesser of 1 percent of sustaining support on a cost-plus-fixed- total cost or the amount of facilities fee basis from a particular DoD depart- capital cost of money. The profit ment or agency, compute a fee objec- amount in the negotiation summary of tive for covered actions using the the DD Form 1547 must be net of the weighted guidelines method in 215.404– offset. 71, with the following modifications: (ii) This adjustment is needed for the (1) Modifications to performance risk following reason: The values of the (Blocks 21–24 of the DD Form 1547). (i) If profit factors used in the weighted the contracting officer assigns a value guidelines method were adjusted to from the standard designated range recognize the shift in facilities capital (see 215.404–71–2(c)), reduce the fee ob- cost of money from an element of prof- jective by an amount equal to 1 percent it to an element of contract cost (see of the costs in Block 18 of the DD Form FAR 31.205–10) and reductions were 1547. Show the net (reduced) amount on made directly to the profit factors for the DD Form 1547. performance risk. In order to ensure (ii) If the contracting officer assigns that this policy is applied to all DoD a value from the alternate designated contracts that allow facilities capital range, reduce the fee objective by an cost of money, similar adjustments amount equal to 2 percent of the costs shall be made to contracts that use al- in Block 18 of the DD Form 1547. Show ternate structured approaches. the net (reduced) amount on the DD Form 1547. 215.404–74 Fee requirements for cost- (iii) Do not assign a value from the plus-award-fee contracts. technology incentive designated range. In developing a fee objective for cost- (2) Modifications to contract type risk plus-award-fee contracts, the con- (Block 25 of the DD Form 1547). Use a tracting officer shall— designated range of ¥1 percent to 0 (a) Follow the guidance in FAR percent instead of the values in 215.404– 16.405–2 and 216.405–2; 71–3. There is no normal value. (b) Not use the weighted guidelines (c) For all other nonprofit organiza- method or alternate structured ap- tions except FFRDCs, compute a fee proach; objective for covered actions using the (c) Apply the offset policy in 215.404– weighted guidelines method in 215.404– 73(b)(2) for facilities capital cost of 71, modified as described in paragraph money, i.e., reduce the base fee by the (b)(1) of this subsection. lesser of 1 percent of total costs or the [63 FR 63799, Nov. 17, 1998, as amended at 65 amount of facilities capital cost of FR 77831, Dec. 13, 2000] money; and (d) Not complete a DD Form 1547. 215.404–73 Alternate structured ap- proaches. 215.404–75 Fee requirements for (a) The contracting officer may use FFRDCs. an alternate structured approach under For nonprofit organizations that are 215.404–4(c). FFRDCs, the contracting officer— (b) The contracting officer may de- (a) Should consider whether any fee sign the structure of the alternate, but is appropriate. Considerations shall in- it shall include— clude the FFRDC’s— (1) Consideration of the three basic (1) Proportion of retained earnings components of profit—performance (as established under generally accept- risk, contract type risk (including ed accounting methods) that relates to working capital), and facilities capital DoD contracted effort; employed. However, the contracting of- (2) Facilities capital acquisition ficer is not required to complete plans;
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(3) Working capital funding as as- 215.404–76 Reporting profit and fee sessed on operating cycle cash needs; statistics. and (a) Contracting officers in con- (4) Provision for funding unreim- tracting offices that participate in the bursed costs deemed ordinary and nec- management information system for essary to the FFRDC. profit and fee statistics must send com- (b) Shall, when a fee is considered ap- pleted DD Forms 1547 on actions that propriate, establish the fee objective in exceed the cost or pricing data thresh- accordance with FFRDC fee policies in old, where the contracting officer used the DoD FFRDC Management Plan. the weighted guidelines method, an al- (c) Shall not use the weighted guide- ternate structured approach, or the lines method or an alternate struc- modified weighted guidelines method, tured approach. to their designated office within 30 days after contract award. [63 FR 63800, Nov. 17, 1998] (b) Participating contracting offices and their designated offices are—
Contracting office Designated officer
ARMY
All ...... U.S. Army, Contracting Support Agency, ATTN: SARD—RS, 5109 Leesburg Pike, Suite 916, Falls Church, VA 22041– 3201 NAVY
*Naval Air Systems Command...... Commander, Fleet and Industrial Supply Center, Norfolk Washington Detachment, Code 402, Washington Navy Yard, Washington, DC 20374–5000 *Naval Sea Systems Command *Space and Naval Warfare Systems Command *Naval Facilities Engineering Command *Naval Supply Systems Command *Office of Naval Research *Headquarters, United States Marine Corps *Strategic Systems Programs Office *Military Sealift Command *Automatic Data Processing Selection Office *Navy Regional Data Automation Center *Naval Research Laboratory *Navy Commercial Communications Center *Naval Aviation Depot Operations Center
AIR FORCE
Air Force Materiel Command (all field offices) ...... Air Force Materiel Command, 645 CCSG/SCOS, ATTN: J010 Clerk, 2721 Sacramento Street, Wright-Patterson Air Force Base, OH 45433–5006 *Includes all subordinate field offices
(c) When the contracting officer dele- Washington Headquarters Services, Direc- gates negotiation of a contract action torate for Information Operations and Re- that exceeds the cost or pricing data ports, (WHS/DIOR), 1215 Jefferson Davis threshold to another agency (e.g., to an Highway, Suite 1204, Arlington, VA 22202–4302 ACO), that agency must ensure that a (f) In preparing and sending the quar- copy of the DD Form 1547 is provided to terly report, designated offices— the delegating office for reporting pur- (1) Perform the necessary audits to poses within 30 days after negotiation ensure information accuracy; of the contract action. (2) Do not enter classified informa- (d) Contracting offices outside the tion; United States, its possessions, and (3) Transmit the report via computer Puerto Rico are exempt from report- magnetic tape using the procedures, ing. format, and editing process issued by (e) Designated offices send a quar- the Director of Defense Procurement; terly (non-cumulative) report of DD and Form 1547 data to—
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(4) Send the reports not later than case basis by the head of the con- the 30th day after the close of the quar- tracting activity. terly reporting periods. (ii) Advise the ACO of each case (g) These reporting requirements waived. have been assigned Report Control (iii) Contact the ACO for questions Symbol DD–AT&L(Q) 1751. on FPRAs or recommended rates.
[63 FR 55040, Oct. 14, 1998. Redesignated at 63 215.407–4 Should-cost review. FR 63800, Nov. 17, 1998, as amended at 65 FR 52952, Aug. 31, 2000; 65 FR 58607, Sept. 29, 2000; (b) Program should-cost review. (2) DoD 66 FR 49863, Oct. 1, 2001] contracting activities should consider performing a program should-cost re- 215.406–1 Prenegotiation objectives. view before award of a definitive con- (a) Also consider— tract for a major system as defined by (i) Data resulting from application of DoDI 5000.2R. See DoDI 5000.2R regard- work measurement systems in devel- ing industry participation. oping prenegotiation objectives; and (c) Overhead should-cost review. (1) (ii) Field pricing assistance personnel Contact the Defense Contract Manage- participation in planned ment Agency (DCMA) (http:/// prenegotiation and negotiation activi- www.dcmc.hq.dla.mil/) for questions on ties. overhead should-cost analysis. (b) Prenegotiation objectives, includ- (2)(A) DCMA or the military depart- ing objectives related to disposition of ment responsible for performing con- findings and recommendations con- tact administration functions (e.g., tained in preaward and postward con- Navy SUPSHIP) should consider, based tract audit and other advisory reports, on risk assessment, performing an shall be documented an reviewed in ac- overhead should-cost review of a con- cordance with Departmental proce- tractor business unit (as defined in dures. FAR 31.001) when all of the following conditions exist: 215.406–3 Documenting the negotia- (1) Projected annual sales to DoD ex- tion. ceed $1 billion; (a)(7) Include the principal factors re- (2) Projected DoD versus total busi- lated to the disposition of findings and ness exceeds 30 percent; recommendation contained in (3) Level of sole source DoD contracts preaward and postaward contract audit is high; and other advisory reports. (4) Significant volume of proposal ac- (10) The documentation— tivity is anticipated; (A) Must address significant devi- (5) Production or development of a ations from the prenegotiation profit major weapon system or program is an- objective; ticipated; and (B) Should include the DD Form 1547, (6) Contractor cost control/reduction Record of Weighted Guidelines Applica- initiatives appear inadequate. tion (see 215.404–70), if used, with sup- (B) The head of the contracting ac- porting rationale; and tivity may request an overhead should- (C) Must address the rationale for not cost review for a business unit that using the weighted guidelines method does not meet the criteria in paragraph when its use would otherwise be re- (c)(2)(A) of this subsection. quired by 215.404–70. (C) Overhead should-cost reviews are labor intensive. These reviews gen- 215.407–2 Make-or-buy programs. erally involve participation by the con- (e) Program requirements—(1) Items and tracting, contract administration, and work included. The minimum dollar contract audit elements. The extent of amount is $1 million. availability of military department, contract administration, and contract 215.407–3 Forward pricing rate agree- audit resources to support DCMA–led ments. teams should be considered when deter- (b)(i) Use forward pricing rate agree- mining whether a review will be con- ment (FPRA) rates when such rates are ducted. Overhead should-cost reviews available, unless waived on a case-by- generally shall not be conducted at a
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contractor business segment more fre- ACO, determines it to be in the best in- quently than every 3 years. terest of the Government (e.g., signifi- [63 FR 55040, Oct. 14, 1998, as amended at 65 cant estimating problems are believed FR 52952, Aug. 31, 2000; 65 FR 58607, Sept. 29, to exist or the contractor’s sales are 2000] predominantly Government). (c) Responsibilities. (1) The con- 215.407–5 Estimating systems. tracting officer shall— (i) Through use of the clause at 215.407–5–70 Disclosure, maintenance, and review requirements. 252.215–7002, Cost Estimating System Requirements, apply the disclosure, (a) Definitions. maintenance, and review requirements (1) Acceptable estimating system means to large business contractors meeting an estimating system that— the criteria in paragraph (b)(2)(i) of (i) Is established, maintained, reli- this subsection; able, and consistently applied; and (ii) Consider whether to apply the (ii) Produces verifiable, supportable, disclosure, maintenance, and review re- and documented cost estimates. quirements to large business contrac- (2) Contractor means a business unit tors under paragraph (b)(2)(ii) of this as defined in FAR 31.001. (3) Estimating system is as defined in subsection; and the clause at 252.215–7002, Cost Esti- (iii) Not apply the disclosure, main- mating System Requirements. tenance, and review requirements to (4) Significant estimating system defi- other than large business contractors. ciency means a shortcoming in the esti- (2) The cognizant ACO, for contrac- mating system that is likely to con- tors subject to paragraph (b)(2) of this sistently result in proposal estimates subsection, shall— for total cost or a major cost ele- (i) Determine the acceptability of the ment(s) that do not provide an accept- disclosure and system; and able basis for negotiation of fair and (ii) Pursue correction of any defi- reasonable prices. ciencies. (b) Applicability. (1) DoD policy is (3) The cognizant auditor, on behalf that all contractors have estimating of the ACO, serves as team leader in systems that— conducting estimating system reviews. (i) Are acceptable; (4) A contractor subject to esti- (ii) Consistently produce well-sup- mating system disclosure, mainte- ported proposals that are acceptable as nance, and review requirements shall— a basis for negotiation of fair and rea- (i) Maintain an acceptable system; sonable prices; (ii) Describe its system to the ACO: (iii) Are consistent with and inte- (iii) Provide timely notice of changes grated with the contractor’s related in the system; and management systems; and (iv) Are subject to applicable finan- (iv) Correct system deficiencies iden- cial control systems. tified by the ACO. (2) A large business contractor is sub- (d) Characteristics of an acceptable esti- ject to estimating system disclosure, mating system—(1) General. An accept- maintenance, and review requirements able system should provide for the use if— of appropriate source data, utilize (i) In its preceding fiscal year, the sound estimating techniques and good contractor received DoD prime con- judgment, maintain a consistent ap- tracts or subcontracts totaling $50 mil- proach, and adhere to established poli- lion or more for which cost or pricing cies and procedures. data were required; or (2) Evaluation. In evaluating the ac- (ii) In its preceding fiscal year, the ceptability of a contractor’s estimating contractor received DoD prime con- system, the ACO should consider tracts or subcontracts totaling $10 mil- whether the contractor’s estimating lion or more (but less than $50 million) system, for example— for which cost or pricing data were re- (i) Establishes clear responsibility quired and the contracting officer, with for preparation, review, and approval of concurrence or at the request of the cost estimates;
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(ii) Provides a written description of (iii) Consistent absence of analytical the organization and duties of the per- support for significant proposed cost sonnel responsible for preparing, re- amounts; viewing, and approving cost estimates; (iv) Excessive reliance on individual (iii) Assures that relevant personnel personal judgments where historical have sufficient training, experience, experience or commonly utilized stand- and guidance to perform estimating ards are available; tasks in accordance with the contrac- (v) Recurring significant defective tor’s established procedures; pricing findings within the same cost (iv) Identifies the sources of data and element(s); the estimating methods and rationale used in developing cost estimates; (vi) Failure to integrate relevant (v) Provides for appropriate super- parts of other management systems vision throughout the estimating proc- (e.g., production control or cost ac- ess; counting) with the estimating system (vi) Provides for consistent applica- so that the ability to generate reliable tion of estimating techniques; cost estimates is impaired; and (vii) Provides for detection and time- (vii) Failure to provide established ly correction of errors; policies, procedures, and practices to (viii) Protects against cost duplica- persons responsible for preparing and tion and omissions; supporting estimates. (ix) Provides for the use of historical (e) Review procedures. Cognizant audit experience, including historical vendor and contract administration activities pricing information, where appro- shall— priate; (1) Establish and manage regular pro- (x) Requires use of appropriate ana- grams for reviewing selected contrac- lytical methods; tors’ estimating systems. (xi) Integrates information available (2) Conduct reviews as a team effort. from other management systems, (i) The contract auditor will be the where appropriate; team leader. (xii) Requires management review in- cluding verification that the com- (ii) The team leader will— pany’s estimating policies, procedures, (A) Coordinate with the ACO to en- and practices comply with this regula- sure that team membership includes tion; qualified contract administration tech- (xiii) Provides for internal review of nical specialists. and accountability for the accept- (B) Advise the ACO and the con- ability of the estimating system, in- tractor of significant findings during cluding the comparison of projected re- the conduct of the review and during sults to actual results and an analysis the exit conference. of any differences; (C) Prepare a team report. (xiv) Provides procedures to update (1) The ACO or a representative cost estimates in a timely manner should— throughout the negotiation process; (i) Coordinate the contract adminis- and tration activity’s review; (xv) Addresses responsibility for re- (ii) Consolidate findings and rec- view and analysis of the reasonableness ommendations; and of subcontract prices. (iii) When appropriate, prepare a com- (3) Indicators of potentially significant prehensive written report for submis- estimating deficiencies. The following ex- amples indicate conditions that may sion to the auditor. produce or lead to significant esti- (2) The contract auditor will attach mating deficiencies— the ACO’s report to the team report. (i) Failure to ensure that historical (3) Tailor reviews to take full advan- experience is available to and utilized tage of the day-to-day work done by by cost estimators, where appropriate; both organizations. (ii) Continuing failure to analyze ma- (4) Conduct a review, every 3 years, of terial costs or failure to perform sub- contractors subject to the disclosure contractor cost reviews as required; requirements. The ACO and the auditor
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may lengthen or shorten the 3-year pe- ceptable corrective action plan nor cor- riod based on their joint risk assess- rected significant deficiencies within 45 ment of the contractor’s past experi- days, the ACO shall disapprove all or ence and current vulnerability. selected portions of the contractor’s es- (f) Disposition of survey team findings— timating system. The notice of dis- (1) Reporting of survey team findings. approval must— The auditor will document the findings (i) Identify the cost elements cov- and recommendations of the survey ered; team in a report to the ACO. If there (ii) List the deficiencies that prompt- are significant estimating deficiencies, ed the disapproval; and the auditor will recommend dis- (iii) Be sent to the cognizant auditor, approval of all or portions of the esti- and each contracting and contract ad- mating system. ministration officer having substantial (2) Initial notification to the contractor. business with the contractor. The ACO will provide a copy of the (6) Monitoring contractor’s corrective team report to the contractor and, un- action. The auditor and the ACO will less there are no deficiencies men- monitor the contractor’s progress in tioned in the report, will ask the con- correcting deficiencies. If the con- tractor to submit a written response in tractor fails to make adequate 30 days, or a reasonable extension. progress, the ACO shall take whatever (i) If the contractor agrees with the action is necessary to ensure that the report, the contractor has 60 days from contractor corrects the deficiencies. the date of initial notification to cor- rect any identified deficiencies or sub- Examples of actions the ACO can take mit a corrective action plan showing are: bringing the issue to the attention milestones and actions to eliminate of higher level management, reducing the deficiencies. or suspending progress payments (see (ii) If the contractor disagrees, the FAR 32.503–6), and recommending contractor should provide rationale in nonaward of potential contracts. its written response. (7) Withdrawal of estimating system dis- (3) Evaluation of contractor’s response. approval. The ACO will withdraw the The ACO, in consultation with the disapproval when the ACO determines auditor, will evaluate the contractor’s that the contractor has corrected the response to determine whether— significant system deficiencies. The (i) The estimating system contains ACO will notify the contractor, the deficiencies that need correction; auditor, and affected contracting and (ii) The deficiencies are significant contract administration activities of estimating deficiencies that would re- the withdrawal. sult in disapproval of all or a portion of (g) Impact of estimating system defi- the contractor’s estimating system; or ciencies on specific proposals. (1) Field (iii) The contractor’s proposed cor- pricing teams will discuss identified es- rective actions are adequate to elimi- timating system deficiencies and their nate the deficiency. impact in all reports on contractor pro- (4) Notification of ACO determination. posals until the deficiencies are re- The ACO will notify the contractor and solved. the auditor of the determination and, if (2) The contracting officer respon- appropriate, of the Government’s in- sible for negotiation of a proposal gen- tent to disapprove all or selected por- erated by an estimating system with tions of the system. The notice shall— an identified deficiency shall evaluate (i) List the cost elements covered; whether the deficiency impacts the ne- (ii) Identify any deficiencies requir- gotiations. If it does not, the con- ing correction; and tracting officer should proceed with ne- (iii) Require the contractor to cor- gotiations. If it does, the contracting rect the deficiencies within 45 days or officer should consider other alter- submit an action plan showing mile- natives, e.g.— stones and actions to eliminate the de- (i) Allowing the contractor addi- ficiencies. tional time to correct the estimating (5) Notice of disapproval. If the con- system deficiency and submit a cor- tractor has neither submitted an ac- rected proposal;
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(ii) Considering another type of con- 215.470 Estimated data prices. tract, e.g., FPIF instead of FFP; (a) DoD requires estimates of the (iii) Using additional cost analysis prices of data in order to evaluate the techniques to determine the reason- cost to the Government of data items ableness of the cost elements affected in terms of their management, product, by the system’s deficiency; or engineering value. (iv) Segregating the questionable (b) When data are required to be de- areas as a cost reimbursable line item; livered under a contract, the solicita- (v) Reducing the negotiation objec- tion will include DD Form 1423, Con- tive for profit or fee; or tract Data Requirements List. The (vi) Including a contract (reopener) form and the provision included in the clause that provides for adjustment of solicitation request the offeror to state the contract amount after award. what portion of the total price is esti- (3) The contracting officer who incor- mated to be attributable to the produc- porates a reopener clause into the con- tion or development of the listed data tract is responsible for negotiating for the Government (not to the sale of price adjustments required by the rights in the data). However, offerors’ clause. Any reopener clause neces- estimated prices may not reflect all sitated by an estimating deficiency such costs; and different offerors may should— reflect these costs in a different man- (i) Clearly identify the amounts and ner, for the following reasons— (1) Differences in business practices items that are in question at the time in competitive situations; of negotiation; (2) Differences in accounting systems (ii) Indicate a specific time or subse- among offerors; quent event by which the contractor (3) Use of factors or rates on some will submit a supplemental proposal, portions of the data; including cost or pricing data, identi- (4) Application of common effort to fying the cost impact adjustment ne- two or more data items; and cessitated by the deficient estimating (5) differences in data preparation system; methods among offerors. (iii) Provide for the contracting offi- (c) Data price estimates should not cer to unilaterally adjust the contract be used for contract pricing purposes price if the contractor fails to submit without further analysis. the supplemental proposal; and (d) The contracting officer shall en- (iv) Provide that failure of the Gov- sure that the contract does not include ernment and the contractor to agree to a requirement for data that the con- the price adjustment shall be a dispute tractor has delivered or is obligated to under the Disputes clause. deliver to the government under an- other contract or subcontract, and that 215.408 Solicitation provisions and the successful offeror identifies any contract clauses. such data required by the solicitation. (1) Use the clause at 252.215–7000, However, where duplicate data are de- Pricing Adjustments, in solicitations sired, the contract price shall include and contracts that contain the clause the costs of duplication, but not of at— preparation, of such data. (i) FAR 52.215–11, Price Reduction for Defective Cost or Pricing Data—Modi- PART 216—TYPES OF CONTRACTS fications; (ii) FAR 52.215–12, Subcontractor Subpart 216.1—Selecting Contract Types Cost or Pricing Data; or Sec. (iii) FAR 52.215–13, Subcontractor 216.104 Factors in selecting contract types. Cost or Pricing Data—Modifications. 216.104–70 Research and development. (2) Use the clause at 252.215–7002, Cost Estimating System requirements, in Subpart 216.2—Fixed-Price Contracts all solicitations and contracts to be 216.203 Fixed-price contracts with economic award on the basis of cost or pricing price adjustment. data. 216.203–4 Contract clauses.
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216.203–4 –70 Additional clauses. may fit several categories. The con- tract type must fit the work required, Subpart 216.3—Cost-Reimbursement not just the classification of the over- Contracts all program. 216.306 Cost-plus-fixed-fee contracts. (b) Research and exploratory develop- ment. (1) Price is not necessarily the Subpart 216.4—Incentive Contracts primary factor in determining the con- 216.402 Application of predetermined, for- tract type. mula-type incentives. (2) The nature of the work to be per- 216.402–2 Technical performance incentives. formed will usually result in a cost- 216.403 Fixed-price incentive contracts. plus award fee, cost-plus fixed fee term, 216.403–2 Fixed-price incentive (successive cost-no-fee, or cost-sharing contract. targets) contracts. (3) If the Government and the con- 216.404 Fixed-price contracts with award fees. tractor can identify and agree upon the 216.405 Cost-reimbursement incentive con- level of contractor effort required, the tracts. contracting officer may select a firm 216.405–1 Cost-plus-incentive-fee contracts. fixed-price level-of-effort contract, ex- 216.405–2 Cost-plus-award-fee contracts. cept see 235.006. 216.470 Other applications of award fees. (4) If the Government and the con- tractor agree that an incentive ar- Subpart 216.5—Indefinite-Delivery rangement is desirable and capable of Contracts being evaluated after completion of the 216.501 General. work, the contracting officer may use 216.505 Ordering. an incentive type contract. 216.506 Solicitation provisions and contract (c) Advanced development. (1) The na- clauses. ture of the work to be performed often Subpart 216.6—Time-and-Materials, Labor- results in a cost-plus fixed fee comple- Hour, and Letter Contracts tion type contract. (2) Contracting officers may select 216.603 Letter contracts. incentive contracts if— 216.603–3 Limitations. (i) Realistic and measurable targets 216.603–4 Contract clauses. are identified; and Subpart 216.7—Agreements (ii) Achievement of those targets is predictable with a reasonable degree of 216.703 Basic ordering agreements. accuracy. AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- (3) Contracting officers should not ter 1. use contracts with only cost incentives SOURCE: 56 FR 36340, July 31, 1991, unless where— otherwise noted. (i) There will be a large number of major technical changes; or Subpart 216.1—Selecting Contract (ii) Actions beyond the control of the Types contractor may influence the contrac- tor’s achievement of cost targets. 216.104 Factors in selecting contract (d) Engineering development and oper- types. ational systems development. (1) When se- (d) Design stability should also be lecting contract types, also consider— considered. (i) The degree to which the project is clearly defined, which in turn affects 216.104–70 Research and development. the contractor’s ability to provide ac- (a) General. There are several cat- curate cost estimates; egories of research and development (ii) The need for effort that will over- (R&D) contracts: research, exploratory lap that of earlier stages; development, advanced development, (iii) The need for firm technical di- engineering development, and oper- rection by the Government; and ational systems development (see (iv) The degree of configuration con- 235.001 for definitions). Each category trol the Government will exercise. has a primary technical or functional (2) For development efforts, particu- objective. Different parts of a project larly for major defense systems, the
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preferred contract type is cost reim- (ii) Normally, the clause should not bursement. provide either a ceiling or a floor for (3) Contracting officers should use adjustment unless adjustment is based fixed-price type contracts when risk on indices below the four digit level of has been reduced to the extent that re- the Bureau of Labor Statistics— alistic pricing can occur; e.g., when a (A) Producer Price Index; program has reached the final stages of (B) Employment Cost Index for wages development and technical risks are and salaries, benefits, and compensa- minimal, except see 235.006. tion costs for aerospace industries; or (C) Wage and Income Series by Subpart 216.2—Fixed-Price Standard Industrial Classification Contracts (Labor). (iii) Normally, the clause should 216.203 Fixed-price contracts with cover all potential economic fluctua- economic price adjustment. tions within the original contract pe- riod of performance. 216.203–4 Contract clauses. (iv) The clause must accurately iden- tify the index(es) upon which adjust- (a) Adjustment based on established ments will be based. prices-standard supplies. Generally, use (A) It must provide for a means to the clause at FAR 52.216–2, Economic adjust for appropriate economic fluc- Price Adjustment-Standard Supplies, tuation in the event publication of the only when— movement of the designated index is (i) The total contract price exceeds discontinued. This might include the the simplified acquisition threshold; substitution of another index if the and time remaining would justify doing so (ii) Delivery will not be completed and an appropriate index is reasonably within 6 months after the contract available, or some other method for re- date. pricing the remaining portion of work (b) Adjustment based on established to be performed. prices-semistandard supplies. Generally, (B) Normally, there should be no use the clause at FAR 52.216–3, Eco- need to make an adjustment if com- nomic Price Adjustment-Semistandard putation of the identified index is al- Supplies, only when— tered. However, it may be appropriate (i) The total contract price exceeds to provide for adjustment of the eco- the simplified acquisition threshold; nomic fluctuation computations in the and event there is such a substantial alter- (ii) Delivery will not be completed ation in the method of computing the within 6 months after the contract index that the original intent of the date. parties is negated. (c) Adjustments based on actual cost of (C) When an index to be used is sub- labor or material. ject to revision (e.g., the Bureau of (2) Limit use of the clause at FAR Labor Statistics Producer Price In- 52.216–4, Economic Price Adjustment- dexes), the economic price adjustment Labor and Material, to contracts in clause must specify that any economic which the price exceeds $50,000 and the price adjustment will be based on a re- period of performance exceeds 6 vised index and must identify which re- months, unless otherwise approved by vision to the index will be used. the chief of the contracting office. Use (v) Construct the index to encompass an appropriate modification of the a large sample of relevant items while clause in sealed bidding. still bearing a logical relationship to (4) Apply the full amount of the de- the type of contract costs being meas- crease in the labor rates and fringe ured. The basis of the index should not benefits or unit prices for materials. be so large and diverse that it is sig- (d) Adjustments based on cost indexes of nificantly affected by fluctuations not labor or material. Use the following relevant to contract performance, but guidelines— it must be broad enough to minimize (i) Do not make the clause unneces- the effect of any single company, in- sarily complex. cluding the anticipated contractor(s).
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(vi) Construction of an index is large- (C) For multiyear contracts, estab- ly dependent upon three general series lish predetermined expenditure profile published by the U.S. Department of tables for each of the annual incre- Labor, Bureau of Labor Statistics ments in the multiyear buy. Each of (BLS). These are the— the second and subsequent year tables (A) Industrial Commodities portion must be cumulative to reflect the total of the Producer Price Index; expenditures for all increments funded (B) Employment Cost Index for wages through the latest multiyear funding. and salaries, benefits, and compensa- (xi) The clause should state the per- tion costs for aerospace industries; and centage of the contract price subject to (C) Wage and Income Series by price adjustment. Standard Industrial Classification (A) Normally, do not apply adjust- (Labor). Since there is no BLS pub- ments to the profit portion of the con- lished series currently available that tract. relates directly to total prices of deliv- ered DoD aircraft, ships, missiles, elec- (B) Examine the labor and material tronics, etc., it will be necessary to portions of the contract to exclude any construct composite indices from areas that do not require adjustment. major portions of the three series iden- For example, it may be possible to ex- tified. clude— (vii) Normally, do not use more than (1) Subcontracting for short periods two indices, i.e., one for labor (direct of time during the early life of the con- and indirect) and one for material (di- tract which could be covered by firm- rect and indirect). fixed-priced subcontracting; (viii) The clause must establish and (2) Certain areas of overhead, e.g., de- properly identify a base period com- preciation charges, prepaid insurance parable to the contract periods for costs, rental costs, leases, certain which adjustments are to be made as a taxes, and utility charges; reference point for application of an (3) Labor costs for which a definitive index. union agreement exists; and (ix) The clause should not provide for (4) Those costs not likely to be af- an adjustment beyond the original con- fected by fluctuation in the economy. tract performance period, including op- (C) Allocate that part of the contract tions. The start date for the adjust- price subject to adjustment to specific ment may be the beginning of the con- periods of time (e.g., quarterly, semi- tract or a later time, as appropriate, annually, etc.) based on the most prob- based on the projected rate of expendi- able expenditure or commitment basis tures. (expenditure profile). (x) The expenditure profile for both (xii) The clause should provide for labor and material should be based on definite times or events that trigger a predetermined rate of expenditure price adjustments. Adjustments should (expressed as the percentage of mate- rial or labor usage as it relates to the be frequent enough to afford the con- total contract price) in lieu of actual tractor appropriate economic protec- cost incurred. tion without creating a burdensome ad- (A) If the clause is to be used in a ministrative effort. The adjustment pe- competitive acquisition, determine the riod should normally range from quar- labor and material allocations, with re- terly to annually. gard to both mix of labor and material (xiii) When the contract contains and rate of expenditure by percentage, cost incentives, any sums paid to the in a manner which will, as nearly as contractor on account of economic possible, approximate the average ex- price adjustment provisions must be penditure profile of all companies to be subtracted from the total of the con- solicited so that all companies may tractor’s allowable costs for the pur- compete on an equal basis. pose of establishing the total costs to (B) If the clause is to be used in a which the cost incentive provisions noncompetitive acquisition, the labor apply. If the incentive arrangement is and material allocations may be sub- cited in percentage ranges, rather than ject to negotiation and agreement. dollar ranges, above and below target
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costs, structure the economic price ad- to permit reliance upon the data as a justment clause to maintain the origi- reasonable baseline. nal contract incentive range in dollars. [56 FR 36340, July 31, 1991, as amended at 62 (xiv) The economic price adjustment FR 40472, July 29, 1997; 63 FR 11529, Mar. 9, clause should provide that once the 1998; 64 FR 2597, Jan. 15, 1999] labor and material allocations and the portion of the contract price subject to 216.203–4–70 Additional clauses. price adjustment have been estab- (a) Price adjustment for basic steel, alu- lished, they remain fixed through the minum, brass, bronze, or copper mill prod- life of the contract and shall not be ucts. modified except in the event of signifi- (1) The price adjustment clause at cant changes in the scope of the con- 252.216–7000, Economic Price Adjust- tract. The clause should state that ment—Basic Steel, Aluminum, Brass, Bronze, or Copper Mill Products, may pricing actions pursuant to the be used in fixed-price supply contracts Changes clause or other provisions of for basic steel, aluminum, brass, the contract will be priced as though bronze, or copper mill products, such as there were no provisions for economic sheets, plates, and bars, when an estab- price adjustment. However, subsequent lished catalog or market price exists modifications may include a change to for the particular product being ac- the delivery schedule or significantly quired. change the amount of, or mix of, labor (2) The 10 percent figure in paragraph or material for the contract. In such (d)(1) of the clause shall not be exceed- cases, it may be appropriate to pro- ed unless approval is obtained at a spectively apply economic price adjust- level above the contracting officer. ment coverage. This may be accom- (b) Price adjustment for nonstandard plished by— steel items. (1) The price adjustment (A) Using an economic price adjust- clause at 252.216–7001, Economic Price ment (EPA) clause that applies only to Adjustment—Nonstandard Steel Items, the effort covered by the modification; may be used in fixed-price supply con- tracts when— (B) Revising the baseline data or pe- (i) The contractor is a steel producer riod in the EPA clause for the basic and actually manufacture the standard contract to include the new work; or steel mill item referred to in the ‘‘base (C) Using an entirely new EPA clause steel index’’ definition of the clause; for the entire contract, including the and new work. (ii) The items being acquired are non- (xv) Consistent with the factors in standard steel items made wholly or in paragraphs (d)(i) through (xiv) of this part of standard steel mill items. subsection, it may also be appropriate (2) When this clause is included in in- to provide in the prime contract for vitations for bids, omit Note 6 of the similar economic price adjustment ar- clause and all references to Note 6. rangements between the prime con- (3) Solicitations shall instruct tractor and affected subcontractors to offerors to complete all blanks in ac- allocate risks properly and ensure that cordance with the applicable notes. those subcontractors are provided simi- (4) When the clause is to provide for adjustment on a basis other than ‘‘es- lar economic protection. tablished price’’ (see Note 6 of the (xvi) When economic price adjust- clause), that price must be verified. ment clauses are included in contracts (5) The ten percent figure in para- that do not require submission of cost graph (e)(4) of the clause shall not be or pricing data as provided for in FAR exceeded unless approval is obtained at 15.403–1, the contracting officer must a level above the contracting officer. obtain adequate information to estab- (c) Price adjustment for wage rates or lish the baseline from which adjust- material prices controlled by a foreign ments will be made. The contracting government. (1) The price adjustment officer may require verification of the clause at 252.216–7003, Economic Price data submitted to the extent necessary Adjustment—Wage Rates or Material
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Prices Controlled by a Foreign Govern- are for environmental work classified ment, may be used in fixed-price sup- as construction. ply and service contracts when— [62 FR 1058, Jan. 8, 1997; 62 FR 1817, Jan. 13, (i) The contract is to be performed 1997; 62 FR 49305, Sept. 19, 1997] wholly or in part in a foreign country; and Subpart 216.4—Incentive (ii) A foreign government controls Contracts wage rates or material prices and may, during contract performance, impose a 216.402 Application of predetermined, mandatory change in wages or prices of formula-type incentives. material. 216.402–2 Technical performance in- (2) Verify the base wage rates and centives. material prices prior to contract award and prior to making any adjustment in Contractor performance incentives should relate to specific performance the contract price. areas of milestones, such as delivery or [56 FR 36340, July 31, 1991, as amended at 62 test schedules, quality controls, main- FR 34122, June 24, 1997; 62 FR 40472, July 29, tenance requirements, and reliability 1997] standards. Subpart 216.3—Cost- 216.403 Fixed-price incentive con- Reimbursement Contracts tracts. (b) Application. 216.306 Cost-plus-fixed-fee contracts. (3) Individual line items may have separate incentive provisions; e.g., (c) Limitations. when dissimilar work calls for separate (i) Except as provided in paragraph formulas. (c)(ii) of this section, annual military construction appropriations acts pro- 216.403–2 Fixed-price incentive (suc- hibit the use of cost-plus-fixed-fee con- cessive targets) contracts. tracts that— (a) Description. (1)(iii) The formula (A) Are funded by a military con- does not apply for the life of the con- struction appropriations act; tract. It is used to fix the firm target (B) Are estimated to exceed $25,000; profit for the contract. To provide an and incentive consistent with the cir- (C) Will be performed within the cumstances, the formula should reflect United States, except Alaska. the relative risk involved in estab- (ii) The prohibition in paragraph lishing an incentive arrangement (c)(i) of this section does not apply— where cost and pricing information (A) To contracts for environmental were not sufficient to permit the nego- restoration at an installation that is tiation of firm targets at the outset. being closed or realigned where pay- 216.404 Fixed-price contracts with ments are made from a Base Realign- award fees. ment and Closure Account; or Award-fee provisions may be used in (B) To contracts specifically ap- fixed-price contracts as provided in proved in writing, setting forth the 216.470 reasons therefor, in accordance with the following: [63 FR 11529, Mar. 9, 1998] (1) The Secretaries of the military 216.405 Cost-reimbursement incentive departments are authorized to approve contracts. such contracts that are for environ- mental work only, provided the envi- 216.405–1 Cost-plus-incentive-fee con- ronmental work is not classified as tracts. construction, as defined by 10 U.S.C. (b) Application. 2801. (3) Give appropriate weight to basic (2) The Secretary of Defense or des- acquisition objectives in negotiating ignee must approve such contracts that the range of fee and the fee adjustment are not for environmental work only or formula. For example—
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(A) In an initial product development (ii) For either engineering develop- contract, it may be appropriate to pro- ment or operational system develop- vide for relatively small adjustments ment acquisitions which have speci- in fee tied to the cost incentive fea- fications suitable for simultaneous re- ture, but provide for significant adjust- search and development and produc- ments if the contractor meets or sur- tion, except a CPAF contract may be passes performance targets. used for individual engineering devel- (B) In subsequent development and opment or operational system develop- test contracts, it may be appropriate ment acquisitions ancillary to the de- to negotiate an incentive formula tied velopment of a major weapon system primarily to the contractor’s success in or equipment, where— controlling costs. (A) It is more advantageous; and [56 FR 36340, July 31, 1991. Redesignated at 63 (B) The purpose of the acquisition is FR 11529, Mar. 9, 1998] clearly to determine or solve specific problems associated with the major 216.405–2 Cost-plus-award-fee con- weapon system or equipment. tracts. (2)(A) Do not apply the weighted (a) Description. (i) Normally, award guidelines method to CPAF contracts fee is not earned when the fee-deter- for either the base (fixed) fee or the mining official has determined that award fee. contractor performance has been sub- (B) The base fee shall not exceed marginal or unsatisfactory. three percent of the estimated cost of (ii) The basis for all award fee deter- the contract exclusive of the fee. minations shall be documented in the contract file. [56 FR 36340, July 31, 1991. Redesignated at 63 (b) Application. (1) The cost-plus- FR 11529, Mar. 9, 1998] award-fee (CPAF) contract is also suit- able for level of effort contracts where 216.470 Other applications of award mission feasibility is established but fees. measurement of achievement must be The ‘‘award amount’’ portion of the by subjective evaluation rather than fee may be used in other types of con- objective measurement. See Table 16–1, tracts under the following conditions— Performance Evaluation Criteria, for (1) The Government wishes to moti- sample performance evaluation criteria vate and reward a contractor for man- and Table 16–2, Contractor Perform- agement performance in areas which ance Evaluation Report, for a sample cannot be measured objectively and evaluation report. where normal incentive provisions can- (2) The contracting activity may— not be used. For example, logistics sup- (A) Establish a board to— port, quality, timeliness, ingenuity, (1) Evaluate the contractor’s per- and cost effectiveness are areas under formance; and the control of management which may (2) Determine the amount of the be susceptible only to subjective meas- award or recommend an amount to the urement and evaluation. contracting officer. (B) Afford the contractor an oppor- (2) The ‘‘base fee’’ (fixed amount por- tunity to present information on its tion) is not used. own behalf. (3) The chief of the contracting office (c) Limitations. The CPAF contract approves the use of the ‘‘award shall not be used— amount.’’ (i) To avoid— (4) An award review board and proce- (A) Establishing CPFF contracts dures are established for conduct of the when the criteria for CPFF contracts evaluation. apply, or (5) The administrative costs of eval- (B) Developing objective targets so a uation do not exceed the expected ben- CPIF contract can be used. efits.
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TABLE 16–1—PERFORMANCE EVALUATION CRITERIA
Submarginal Marginal Good Very good Excellent
A—Time of De- (A–1) Adherence to Consistently Late on 10% Occasional Meets plan Delivers all livery. plan schedule. late on 20% plans w/o plan late w/o schedule. plans on of plans. prior agree- justification. schedule & ment. meets prod. change re- quirements on schedule. (A–2) Action on Does not ex- Exposes Anticipates Keeps Yard Anticipates in Anticipated pose changes but changes, ad- posted on good time, delays. changes or is dilatory in vise Shipyard delays, re- advises Ship- resolve them resolution on but misses solves inde- yard, re- as soon as plans. completion of pendently on solves inde- recognized. design plans plans. pendently 10%. and meets production schedule. (A–3) Plan Mainte- Does not com- System studies Major work Design Design nance. plete inter- completed plans coordi- changes changes, related sys- but constr. nated in time from studies studies re- tems studies plan changes to meet pro- and inter- solved and concurrently. delayed. duction related plans test data schedules. issued in issued ahead time to meet of production product require- schedules. ments. B—Quality of (B–1) Work Ap- 25% dwgs. not 20% not com- 10% not com- 0% dwgs. pre- 0% dwgs. pre- Work. pearance. compatible patible with patible with pared by sented incl. with Shipyard Shipyard Shipyard Des. agent Des. agent, repro. proc- repro. proc- repro. proc- not compat- vendors, esses and esses and esses and ible with subcontr. not use. use. use. Shipyard compatible repro. proc- with Shipyard esses and repro. proc- use. esses and use. (B–2) Thorough- Is brief on Has followed Has followed Work complete Work of highest ness and Accu- plans tending guidance, guidance, with notes caliber incor- racy of Work. to leave type and type and and thorough porating all questionable standard standard explanations pertinent situations for dwgs. dwgs. ques- for antici- data required Shipyard to tioning and pated ques- including re- resolve. resolving tionable lated activi- doubtful areas. ties. areas. (B–3) Engineering Tendency to Adequate Engineered to Displays excel- Exceptional Competence. follow past engrg. to use satisfy lent knowl- knowledge of practice with & adapt ex- specs., guid- edge of Naval no variation isting de- ance plans constr. shipwork & to meet signs to suit and material reqmts. con- adaptability reqmts. job job on hand provided. sidering sys- to work proc- in hand. for routine tems aspect, ess incor- work. cost, shop porating capabilities knowledge of and procure- future plan- ment prob- ning in De- lems. sign. (B–4) Liaison Ef- Indifferent to Satisfactory but Maintains nor- Maintains inde- Maintains ex- fectiveness. requirements dependent mal contact pendent con- pert contact, of associated on Shipyard with associ- tact with all keeping Yard activities, re- to force reso- ated activi- associated informed, ob- lated sys- lution of ties depend- activities, taining info tems, and problems ing on Ship- keeping them from equip., Shipyard ad- without con- yard for informed to supplies w/ vice. structive rec- problems re- produce o prompting ommenda- quiring mili- compatible by Shipyard. tions to tary resolu- design with subcontr. or tion. little assist- vendors. ance for Yard.
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TABLE 16–1—PERFORMANCE EVALUATION CRITERIA—Continued
Submarginal Marginal Good Very good Excellent
(B–5) Independ- Constant sur- Requires occa- Normal interest Complete & ac- Develops com- ence and Initia- veillance sional prod- and desire to curate job. plete and ac- tive. req’d to keep ding to stay provide work- Free of in- curate plans, job from slip- on schedule able plans compatibili- seeks out ping—assign & expects with average ties with little problem to low priority Shipyard res- assistance & or no direc- areas and re- to satisfy olution of direction by tion by Ship- solves with needs. most prob- Shipyard. yard. assoc. act. lems. ahead of schedule. C—Effective- (C–1) Utilization of Planning of Supervision System plan- Design param- Mods. to de- ness in Con- Personnel. work left to sets & re- ning by su- eters estab- sign plans trolling and/or designers on views goals pervisory, lished by limited to Reducing drafting for designers. personnel, system engi- less than 5% Costs. boards. studies neers & held as result lack checked by in design engrg. sys- engineers. plans. tem correla- tion. (C–2) Control Di- Expenditures Expenditures Direct charges Provides serv- No cost over- rect Charges not controlled reviewed oc- set & ac- ices as part runs on origi- (Except Labor). for services. casionally by counted for of normal de- nal estimates supervision. on each work sign function absorbs package. w/o extra service de- charges. mands by Shipyard. (C–3) Performance Does not meet Does not meet Exceeds origi- Exceeds origi- Never exceeds to Cost Estimate. cost estimate cost estimate nal est. on nal est. on estimates of for original for original change or- change or- original pack- work or work or ders 10% ders 5% time. age or changes changes time and change or- 30% time. 20% time. meets origi- ders. nal design costs.
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Subpart 216.5—Indefinite-Delivery FAR 52.216–24, Limitation of Govern- Contracts ment Liability. (3) Use the clause at 252.217–7027, Con- 216.501 General. tract Definitization, in accordance (a)(i) For items with a shelf-life of with its prescription at 217.7406(b), in- less than 6 months, consider the use of stead of the clause at FAR 52.216–25, indefinite-delivery type contracts with Contract Definitization. orders to be placed either— [61 FR 7743, Feb. 29, 1996] (A) Directly by the users; or (B) By central purchasing offices with deliveries direct to users. Subpart 216.7—Agreements (ii) Whenever an indefinite-delivery contract is issued, the issuing office 216.703 Basic ordering agreements. must furnish all ordering offices suffi- (c) Limitations. The period during cient information for the ordering of- which orders may be placed against a fice to complete its contract reporting basic ordering agreement may not ex- responsibilities under 204.670–2. This ceed three years. The contracting offi- data must be furnished to the ordering cer, with the approval of the chief of activity in sufficient time for the ac- the contracting office, may grant ex- tivity to prepare its report for the ac- tensions for up to two years. No single tion within 3 working days of the extension shall exceed one year. See order. subpart 217.74 for additional limita- [56 FR 36340, July 31, 1991, as amended at 57 tions on the use of undefinitized orders FR 42630, Sept. 15, 1992; 63 FR 11529, Mar. 9, under basic ordering agreements. 1998] (d) Orders. (i) The contracting officer issuing an order under a basic ordering 216.505 Ordering. agreement shall be responsible for en- Orders placed under indefinite-deliv- suring compliance with the provisions ery contracts may be issued on DD and limitations of this section. Form 1155, Order for Supplies or Serv- (ii) Individual orders under a basic ices. ordering agreement shall be individ- [63 FR 11529, Mar. 9, 1998] ually closed following completion of the orders (see FAR 4.804). 216.506 Solicitation provisions and (1)(iii) The office issuing the agree- contract clauses. ment shall furnish all authorized order- (d) If the contract is for the prepara- ing offices sufficient information for tion of personal property for shipment the ordering office to complete its con- or storage (see 247.271–4), substitute tract reporting responsibilities under paragraph (f) at 252.247–7015, Require- 204.670–2 or, in the case of civilian ments, for paragraph (f) of the clause agencies, the Federal Procurement at FAR 52.216–21, Requirements. Data System reporting requirement. [63 FR 11529, Mar. 9, 1998] Data furnished to civilian agencies must contain uncoded information Subpart 216.6—Time-And-Mate- about the data elements and the mean- rials, Labor-Hour, and Letter ings of the codes to permit these users Contracts to translate the data into the federal format. This data must be furnished to 216.603 Letter contracts. the ordering activity in sufficient time for the activity to prepare its report 216.603–3 Limitations. for the action within 3 working days of See subpart 217.74 for additional limi- the order. tations on the use of letter contracts. (2)(i) Any activity listed in the agree- ment may issue orders on DD Form 216.603–4 Contract clauses. 1155, Order for Supplies or Services, or (b)(2) See 217.7406(a) for additional Standard Form 26, Award/Contract. guidance regarding use of the clause at
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(3) Incentive provisions consistent 217.7103–3 Solicitations for job orders. with this part are permitted. 217.7103–4 Award of a job order. 217.7103–5 Emergency work. [56 FR 36340, July 31, 1991, as amended at 61 217.7103–6 Repair costs not readily ascer- FR 7743, Feb. 29, 1996; 61 FR 18195, Apr. 24, tainable. 1996] 217.7103–7 Modification of master agree- ments. PART 217—SPECIAL CONTRACTING 217.7104 Contract clauses. METHODS Subpart 217.72—Bakery and Dairy Products Subpart 217.1—Multiyear Contracting 217.7200 Scope. Sec. 217.7201 Contract requirements for dairy 217.103 Definitions. products. 217.170 General. 217.7202 Contract type. 217.171 Multiyear contracts for services. 217.7203 Contract clauses. 217.172 Multiyear contracts for supplies. 217.173 Multiyear contracts for weapon sys- Subpart 217.73—Identification of Sources tems. of Supply 217.174 Mulityear contracts that employ economic order quantity procurement. 217.7300 Scope. 217.7301 Policy. Subpart 217.2—Options 217.7302 Procedures. 217.7303 Solicitation provision. 217.202 Use of options. 217.207 Exercise of options. Subpart 217.74—Undefinitized Contract 217.208 Solicitation provisions and contract Actions clauses. 217.208–70 Additional clauses. 217.7400 Scope. 217.7401 Definitions. Subpart 217.4—Leader Company 217.7402 Exceptions. Contracting 217.7403 Policy. 217.7404 Limitations. 217.401 General. 217.7404–1 Authorization. 217.7404–2 Price ceiling. Subpart 217.5—Interagency Acquisitions 217.7404–3 Definitization schedule. Under the Economy Act 217.7404–4 Limitations on obligations. 217.7404–5 Exceptions. 217.500 Scope of subpart. 217.7404–6 Allowable profit. 217.503 Determinations and findings require- 217.7405 Definitizations. ments. 217.7406 Contract clauses. 217.504 Ordering procedures. Subpart 217.75—Acquisition of Subpart 217.6—Management and Replenishment Parts Operating Contracts 217.7500 Scope of subpart. 217.600 Scope of subpart. 217.7501 General. 217.7502 Spares acquisition integrated with Subpart 217.70—Exchange of Personal production (SAIP). Property 217.7503 Acquisition of parts when data is not available. 217.7000 Scope of subpart. 217.7504 Limitations on price increases. 217.7001 Definitions. 217.7002 Policy. Subpart 217.76—Contracts with 217.7003 Purchase request. Provisioning Requirements 217.7004 Solicitation and award. 217.7005 Solicitation provision. 217.7600 Scope of subpart. 217.7601 Definitions. Subpart 217.71—Master Agreement for 217.7602 Contracting requirements. Repair and Alteration of Vessels 217.7602–1 Contractual provisions. 217.7602–2 Issuance of provisioned items or- 217.7100 Scope of subpart. ders. 217.7101 Definitions. 217.7603 Contract administration require- 217.7102 General. ments. 217.7103 Procedures. 217.7603–1 Provisioning conferences. 217.7103–1 Content and format. 217.7603–2 Contract administration office 217.7103–2 Period of agreement. monitoring.
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217.7603–3 *COM019*Negotiating and exe- exception is approved through the cuting supplemental agreements. budget process in coordination with the cognizant comptroller. Subpart 217.77—Over and Above Work (e)(1) DoD must receive authorization 217.7700 Scope of subpart. from, or provide notification to, Con- 217.7701 Procedures. gress before entering into a multiyear 217.7702 Contract clause. contract for certain procurements, in- AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- cluding those expected to— ter 1. (i) Exceed $500 million for any par- ticular system or system component SOURCE: 56 FR 36345, July 31, 1991, unless otherwise noted. (see 217.173(b)(4)); (ii) Employ economic order quantity Subpart 217.1—Mulityear procurement in excess of $20 million in any one year (see 217.174(a)(1)); Contracting (iii) Employ an unfunded contingent liability in excess of $20 million (see SOURCE: 63 FR 11529, Mar. 9, 1998, unless 217.172(c)); or otherwise noted. (iv) Involve a contract for advance 217.103 Definitions. procurement leading to a multiyear contract that employs economic order Advance procurement, as used in this quantity procurement in excess of $20 subpart, means an exception to the full million in any one year (see funding policy that allows acquisition 217.174(a)(2)). of long lead time items (advance long (2) A DoD component must submit a lead acquisition) or economic order request for authority to enter into quantities (EOQ) of items (advance such multiyear contracts as part of the EOQ acquisition) in a fiscal year in ad- component’s budget submission for the vance of that in which the related end fiscal year in which the multiyear con- item is to be acquired. Advance pro- tract will be initiated. DoD will include curements may include materials, the request, for each candidate it sup- parts, components, and effort that ports, as part of the President’s Budget must be funded in advance to maintain for that year and in the Appendix to a planned production schedule. that budget as part of proposed legisla- tive language for the appropriations 217.170 General. bill for that year (Section 8008(b) of (a) Before awarding a multiyear con- Pub. L. 105–56). tract, the head of the agency must (3) If the advisability of using a compare the cost of that contract to multiyear contract becomes apparent the cost of an annual procurement ap- too late to satisfy the requirements in proach, using a present value analysis. paragraph (e)(2) of this section, the re- Do not award the multiyear contract quest for authority to enter into a unless the analysis shows that the multiyear contract must be— multiyear contract will result in the (i) Formally submitted by the Presi- lower cost (10 U.S.C. 2306(1)(5)). dent as a budget amendment; or (b) The head of the agency must pro- (ii) Made by the Secretary of De- vide written notice to the congres- fense, in writing, to the congressional sional defense committees at least 10 defense committees (Section 8008(b) of days before termination of any Pub. L. 105–56). multiyear contract (10 U.S.C. 2306(1)(4)). [64 FR 43096, Aug. 9, 1999] (c) The Secretary of Defense may in- struct the head of the agency proposing 217.171 Multiyear contracts for serv- a multiyear contract to include in that ices. contract negotiated priced options for (a) 10 U.S.C. 2306(g). varying the quantities of end items to (1) The head of the agency may enter be procured over the life of the con- into multiyear contracts for the fol- tract (10 U.S.C. 2306b(j)). lowing types of services (and items of (d) Every multiyear contract must supply relating to such services), even comply with FAR 17.104(c), unless an though funds are limited by statute to
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obligation only during the fiscal year (2) The head of the agency may use for which they were appropriated: this authority only if the term of the (i) Operation, maintenance, and sup- contract does not exceed 4 years. port of facilities and installations. [64 FR 43097, Aug. 9, 1999] (ii) Maintenance or modification of aircraft, ships, vehicles, and other 217.172 Multiyear contracts for sup- highly complex military equipment. plies. (iii) Specialized training requiring (a) This section applies to all high quality instructor skills (e.g., multiyear contracts for supplies, in- training for pilots and other aircrew cluding weapon systems. For policies members or foreign language training). that apply only to multiyear contracts (iv) Base services (e.g., ground main- for weapon systems, see 217.173. tenance, in-plane refueling, bus trans- (b) The head of the agency may enter portation, and refuse collection and into a multiyear contract for supplies disposal). if, in addition to the conditions listed (2) The head of the agency may use in FAR 17.105–1(b), the use of such a this authority only if the term of the contract will promote the national se- contract does not exceed 5 years. How- curity of the United States. ever, the head of the agency may ex- (c) The head of the agency must pro- tend the term of the contract by exer- vide written notice to the congres- cising an option that does not— sional defense committees at least 30 (i) Exceed 3 years; or days before the contracting officer (ii) Include charges for plant, equip- awards a multiyear contract including ment, or other nonrecurring costs al- an unfunded contingent liability in ex- ready amortized. cess of $20 million (10 U.S.C. (3) Before entering into a multiyear 2306b(l)(1)(A)). contract for services, the head of the (d) Agencies must establish reporting agency must make a written deter- procedures to meet the requirements of mination that— paragraph (c) of this section. The head of the agency must submit copies of (i) There will be a continuing need the notifications to the Director of De- for the services and incidental supplies fense Procurement, Office of the Under consistent with current plans for the Secretary of Defense (Acquisition, proposed contract period; Technology, and Logistics) (ii) Furnishing the services and inci- (OUSD(AT&L)DP), and to the Deputy dental supplies will require— Under Secretary of Defense (Comp- (A) A substantial initial investment troller) (Program/Budget) (OUSD(C)(P/ in plant or equipment; or B)). (B) The incurrence of substantial contingent liabilities for the assembly, [64 FR 43097, Aug. 9, 1999, as amended at 65 FR 39704, June 27, 2000] training, or transportation of a special- ized work force; and 217.173 Multiyear contracts for weap- (iii) Using a multiyear contract will on systems. be in the best interest of the United (a) As authorized by 10 U.S.C. 2306b(h) States by encouraging effective com- and subject to the conditions in para- petition and promoting economical graph (b) of this section, the head of business operations (e.g., economic lot the agency may enter into a multiyear purchases and more efficient produc- contract for— tion rates). (1) A weapon system and associated (b) 10 U.S.C. 2829. items, services, and logistics support (1) The head of the agency may enter for a weapon system; and into multiyear contracts for supplies (2) Advance procurement of compo- and services required for management, nents, parts, and materials necessary maintenance, and operation of military to manufacture a weapon system, in- family housing and may pay the costs cluding advance procurement to of such contracts for each year from achieve economic lot purchases or annual appropriations for that year. more efficient production rates (see
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217.174 regarding economic order quan- (ii) Explain any other benefits to the tity procurement). Government of using the multiyear (b) The head of the agency must en- contract; sure that the following conditions are (iii) Include details regarding the ne- satisfied before awarding a multiyear gotiated contract terms and condi- contract under the authority described tions; and in paragraph (a) of this section: (iv) Be submitted to OUSD (AT&L) (1) The multiyear exhibits required DP for transmission to Congress via by DoD 7000.14–R, Financial Manage- the Secretary of Defense and the Presi- ment Regulation, are included in the dent. agency’s budget estimate submission [64 FR 43097, Aug. 9, 1999, as amended at 65 and the President’s budget request. FR 39704, June 27, 2000] (2) The Secretary of Defense certifies to Congress that the current 5-year de- 217.174 Multiyear contracts that em- fense program fully funds the support ploy economic order quantity pro- costs associated with the multiyear curement. program (10 U.S.C. 2306b(i)(1)(A)). The (a) The head of the agency must pro- head of the agency must submit infor- vide written notice to the congres- mation supporting this certification to sional defense committees at least 30 USD(C) (P/B) for transmission to Con- days before awarding— gress through the Secretary of Defense. (1) A multiyear contract providing (3) The proposed multiyear contract for economic order quantity procure- provides for production at not less than ment in excess of $20 million in any one minimum economic rates, given the ex- year; or isting tooling and facilities (10 U.S.C. (2) A contract for advance procure- 2306b(i)(1)(B)). The head of the agency ment leading to a multiyear contract must submit to USD(C) (P/B) informa- that employs economic order quantity tion supporting the agency’s deter- procurement in excess of $20 million in mination that this requirement has any one year (10 U.S.C. 2306b(l)(1)(A)). been met. (b) Before initiating an advance pro- (4) If the value of a multiyear con- curement, the contracting officer must tract for a particular system or compo- verify that it is consistent with DoD nent exceeds $500 million, use of a policy (e.g., Part 3 of DoD 5000.2–R, multiyear contract is specifically au- Mandatory Procedures for Major De- thorized by— fense Acquisition Programs (MDAPs) (i) An appropriations act (10 U.S.C. and Major Automated Information Sys- 2306b(l)(3)); and tem (MAIS) Acquisition Programs, and (ii) A law other than an appropria- the full funding policy in Volume 2A, tions act (10 U.S.C. 2306b(i)(3)). Chapter 1, of DoD 7000.14–R, Financial Management Regulation). (5) All other requirements of law are met and there are no other statutory [64 FR 43097, Aug. 9, 1999] restrictions on using a multiyear con- tract for the specific system or compo- Subpart 217.2—Options nent (10 U.S.C. 2306b(i)(2)). One such re- striction may be the achievement of 217.202 Use of options. specified cost savings. If the agency (1) Options may be used for foreign finds, after negotiations with the con- military sales requirements. tractor(s), that the specified savings (2) Consider use of surge options to cannot be achieved, the head of the support the Industrial Preparedness agency must assess the savings that, Production Planning program (see sub- nevertheless, could be achieved by part 208.72). A surge option allows the using a multiyear contract. If the sav- Government, prior to final delivery, ings are substantial, the head of the to— agency may request relief from the (i) Accelerate the contractor’s pro- law’s specific savings requirement. The duction rate in accordance with a surge request must— production plan or a delivery schedule (i) Quantify the savings that can be provided by the contractor under the achieved; terms of the contract; and
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(ii) Purchase additional quantities of (2) Change 30 days in paragraphs supplies or services. (b)(2) and (d)(1) to longer periods, if ap- (3) See subpart 217.74 for limitations propriate. on the use of undefinitized options. (3) Change the 24-month period in paragraph (c)(3), if appropriate. [56 FR 36345, July 31, 1991, as amended at 61 FR 7743, Feb. 29, 1996] Subpart 217.4—Leader Company 217.207 Exercise of options. Contracting
(c) Except for contracts for the acqui- 217.401 General. sition of commercial items, if the con- tractor has any contract containing (1) When leader company contracting the clause at FAR 52.222–37, Employ- is to be considered, take special effort ment Reports on Disabled Veterans and to select a small disadvantaged busi- Veterans of the Vietnam Era, the con- ness (SDB) concern as the follower tracting officer may exercise an option company if— with a value exceeding the simplified (i) The follower company will be a acquisition threshold only after deter- subcontractor and the North American mining that the contractor has sub- Industry Classification System mitted the most recent report required (NAICS) Industry Subsector of the ac- by that clause (see 222.1304(b)). quisition is one in which use of an eval- uation factor or subfactor for partici- [63 FR 11851, Mar. 11, 1998] pation of SDB concerns is currently au- thorized (see FAR 19.201(b)); or 217.208 Solicitation provisions and (ii) The follower company will be a contract clauses. prime contractor and the NAICS Indus- Sealed bid solicitations shall not in- try Subsector of the acquisition is one clude provisions for evaluations of op- in which use of a price evaluation ad- tions unless the contracting officer de- justment is currently authorized (see termines that there is a reasonable FAR 19.201(b)). likelihood that the options will be ex- (2) If special effort is required by ercised (10 U.S.C. 2301(a)(7)). This limi- paragraph (1) of this section and an tation also applies to sealed bid solici- SDB is not selected as the follower tations for the contracts excluded by company, the contracting officer shall FAR 17.200. document the contract file to reflect— (i) The extent of actions taken to 217.208–70 Additional clauses. identify SDB concerns for participa- tion in the acquisition; and (a) Use the clause at 252.217–7000, Ex- (ii) The rationale for selection of a ercise of Option to Fulfill Foreign Mili- non-SDB as the follower company. tary Sales Commitments, when an op- tion may be used for foreign military [63 FR 64429, Nov. 20, 1998, as amended at 65 sale requirements. FR 50148, Aug. 17, 2000] (1) Use Alternate I when the foreign military sale country is not known at Subpart 217.5—Interagency Ac- the time of solicitation or award. quisitions Under the Economy (2) Do not use this clause in con- Act tracts for establishment or replenish- ment of DoD inventories or stocks, or SOURCE: 63 FR 11530, Mar. 9, 1998, unless acquisitions made under DoD coopera- otherwise noted. tive logistics support arrangements. (b) When a surge option is needed in 217.500 Scope of subpart. support of industrial preparedness pro- (b) Unless more specific statutory au- duction planning (see subpart 208.72), thority exists, the procedures in FAR use the clause at 252.217–7001, Surge Op- Subpart 17.5, this subpart, and DODI tion, in solicitations and contracts. 4000.19 apply to all purchases, except (1) Insert the percentage of increase micro-purchases, made for DoD by an- the option represents in paragraph (a) other agency. This includes orders of the clause. under a task or delivery order contract
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entered into by the other agency. (Pub. (b) Property means items that fall L. 105–261, Section 814.) within one of the generic categories listed in DoD 4140.1–R, DoD Materiel [64 FR 14400, Mar. 25, 1999] Management Regulation, Chapter 6.2, 217.503 Determinations and findings Exchange or Sale of Nonexcess Per- requirements. sonal Property. (c) If requested, the contracting offi- [56 FR 36345, July 31, 1991, as amended at 65 cer who normally would contract for FR 39705, June 27, 2000] the requesting activity should advise in the determination process. 217.7002 Policy. DoD policy is to exchange, rather 217.504 Ordering procedures. than replace, eligible nonexcess prop- (a) When the requesting agency is erty whenever exchange promotes eco- within DoD, a copy of the executed nomical and efficient program accom- D&F shall be furnished to the servicing plishment. Exchange policy, authority, agency as an attachment to the order. and applicability are governed by— When a DoD contracting office is act- (a) The Federal Property Manage- ing as the servicing agency, a copy of ment Regulations issued by the Admin- the executed D&F shall be obtained istrator of the General Services Admin- from the requesting agency and placed istration; and in the contract file for the Economy (b) DoD 4140.1–R, Chapter 6.2. Act order. [56 FR 36345, July 31, 1991, as amended at 65 Subpart 217.6—Management and FR 39705, June 27, 2000] Operating Contracts 217.7003 Purchase request. 217.600 Scope of subpart. Ensure that the requiring activity provides all of the following in support FAR subpart 17.6 does not apply to of the purchase request— DoD. (a) A certification that the property is eligible for exchange and complies Subpart 217.70—Exchange of with all conditions and limitations of Personal Property DoD 4140.1–R, Chapter 6.2. (b) A written determination of eco- 217.7000 Scope of subpart. nomic advantage indicating— This subpart prescribes policy and (1) The anticipated economic advan- procedures for exchange of nonexcess tage to the Government from use of the personal property concurrent with an exchange authority; acquisition. Section 201(c) of the Fed- (2) That exchange allowances shall be eral Property and Administrative Serv- applied toward, or in partial payment ices Act of 1949, 63 Stat. 384, as amend- of, the items to be acquired; and ed (40 U.S.C. 481(c)) permits exchange (3) That, if required, the exchange of personal property and application of property has been rendered safe or in- the exchange allowance to the acquisi- nocuous or has been demilitarized; tion of similar property. This subpart (c) All applicable approvals for the does not authorize the sale of non- exchange; and excess personal property. (d) A description of the property 217.7001 Definitions. available for exchange (e.g., nomen- clature, location, serial number, esti- As used in this subpart— mated travel value). (a) Exchange (trade-in) property means property which— [56 FR 36345, July 31, 1991, as amended at 65 (1) Is not excess but is eligible for re- FR 39705, June 27, 2000] placement (because of obsolescence, unserviceability, or other reason); and 217.7004 Solicitation and award. (2) Is applied as whole or partial pay- (a) Solicitations shall include a re- ment toward the acquisition of similar quest for offerors to state prices— items (i.e., items designed and con- (1) For the new items being acquired structed for the same purpose). without any exchange; and
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(2) For the new items with the ex- applicable clauses agreed upon in the change (trade-in allowance) for the ex- master agreement. change property listed. (2) Is not a contract. (b) The contracting officer is not ob- (b) Job order— ligated to award on an exchange basis. (1) Is a fixed price contract incor- If the lowest evaluated offer is an offer porating, by reference or attachment, a for the new items without any ex- master agreement for repair and alter- change, the contracting officer may ation of vessels; award on that basis and forgo the ex- (2) May include clauses pertaining to change. subjects not covered by the master (c) Exchanges may be made only with agreement; but applicable to the job the successful offeror. When the suc- order being awarded; and cessful offer includes an exchange, (3) Applies to a specific acquisition award one contract for both the acqui- and sets forth the scope of work, price, sition of the new property and the delivery date, and other appropriate trade-in of the exchange property. The terms that apply to the particular job only exception is when the items must order. be acquired against a mandatory Fed- eral supply schedule contract, in which 217.7102 General. case, award a separate contract for the (a) Activities shall enter into master exchange. agreements for repair and alteration of vessels with all prospective contractors 217.7005 Solicitation provision. located within the United States, its Use the provision at 252.217–7002, Of- possessions, or Puerto Rico, which— fering Property for Exchange, when of- (1) Request ship repair work; and fering nonexcess personal property for (2) Which possess the organization exchange. Allow a minimum of 14 cal- and facilities to perform the work sat- endar days for the inspection period in isfactorily. (Issuance of a master paragraph (b) of the clause if the ex- agreement does not indicate approval change property is in the continental of the contractor’s facility for any par- United States. Allow at least 21 cal- ticular acquisition and is not an af- endar days outside the United States. firmative determination of responsi- bility under FAR subpart 9.1 for any Subpart 217.71—Master Agree- particular acquisition.) ment for Repair and Alteration (b) Activities may use master agree- of Vessels ments in work with prospective con- tractors located outside the United 217.7100 Scope of subpart. States, its possessions, or Puerto Rico. (c) Activities may issue job orders This subpart contains acquisition under master agreements to effect re- policies and procedures for master pairs, alterations, and/or additions to agreements for repair and alteration of vessels belonging to foreign govern- vessels. ments. (1) Contractors shall treat vessels of 217.7101 Definitions. a foreign government as if they were (a) Master agreement for repair and al- vessels of the U.S. Government when- teration of vessels— ever requested to do so by the con- (1) Is a written instrument of under- tracting officer. standing, negotiated between a con- (2) Identify the vessel and the foreign tracting activity and a contractor government in the solicitation and job that— order. (A) Contains contract clauses, terms, and conditions applying to future con- 217.7103 Procedures. tracts for repairs, alterations, and/or additions to vessels; and 217.7103–1 Content and format. (B) Contemplates separate future (a) A Master agreement shall contain contracts that will incorporate by ref- all clauses required by 217.7104(a), stat- erence or attachment the required and ute and executive order.
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(b) The following format may be before the effective date of cancella- adapted to fit specific circumstances: tion of the master agreement.
MASTER AGREEMENT FOR REPAIR AND 217.7103–3 Solicitations for job orders. ALTERATION OF VESSELS (a) When a requirement arises within (1) This agreement is entered into this the United States, its possessions, or lll day of lllll 19ll, by the United States of America (the ‘‘Government’’:) rep- Puerto Rico for the type of work cov- resented by llllll, the Contracting Of- ered by the master agreement, solicit ficer, and, llllll a corporation orga- offers from prospective contractors nized and existing under the laws of the that— State of llllll (the ‘‘Contractor’’). (1) Previously executed a master (2) The clauses in this agreement, shall be agreement; or incorporated, by reference or attachment, in job orders issued under this agreement to ef- (2) Have not previously executed a fect repairs, alterations, and/or additions to master agreement, but possess the nec- vessels. essary qualifications to perform the (3) By giving 30 days written notice, either work and agree to execute a master party to this agreement has the right to can- agreement before award of a job order. cel it without affecting the rights and liabil- (b) Prepare the solicitation in the ities under any job order existing at the time uniform contract format and in accord- of cancellation. The Contractor shall per- ance with FAR Subpart 14.2 or 15.2, as form, under the terms of this agreement, all work covered by any job order awarded be- applicable. fore the effective date of the cancellation. (c) Include in the solicitation— (4) This agreement may be modified only (1) The nature of the work to be per- by mutual agreement of the parties. A modi- formed; fication of this agreement shall not affect (2) The date the vessel will be avail- any job order in existence at the time of able to the contractor; modification, unless the parties agree other- wise. (3) The date the work is to be com- (5) The rights and obligations of the par- pleted; and ties to this agreement are set forth in this (4) Whether bulk ammunition is agreement and the clauses of any job orders aboard the vessel. issued under this agreement. In the event (d) Unless the solicitation states oth- there is an inconsistency between this agree- erwise, offers are to be based on per- ment and any job order, the provisions of this agreement shall govern. formance at the contractor’s site. (6) This agreement shall remain in effect (e) Solicitations processed under ne- until canceled by either party. gotiated acquisition procedures shall THE UNITED STATES OF AMERICA require offerors to include a breakdown by llllllllllllllllllllll of the price with reasonable supporting (Contracting Officer) detail in whatever format and detail llllllllllllllllllllllll the contracting officer may request. (Contractor) (f) Where practicable, afford poten- by llllllllllllllllllllll (Authorized Individual) tial offerors an opportunity to inspect llllllllllllllllllllllll the item needing repair or alteration. (Title) [56 FR 36345, July 31, 1991, as amended at 63 FR 55052, Oct. 14, 1998; 63 FR 56290, Oct. 21, 217.7103–2 Period of agreement. 1998] (a) Master agreements remain in ef- fect until canceled by either the con- 217.7103–4 Award of a job order. tractor or the contracting officer. Award job orders in accordance with (b) Master agreements can be can- FAR Subpart 14.4 or 15.5. celed by either the contractor or the contracting officer by giving 30 days [64 FR 55052, Oct. 14, 1998] written notice to the other. (c) Cancellation of a master agree- 217.7103–5 Emergency work. ment does not affect the rights and li- (a) The contracting officer, without abilities under any job order existing soliciting offers, may issue a written at the time of cancellation. The con- job order to a contractor that has pre- tractor must continue to perform all viously executed a master agreement work covered by any job order issued when—
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(i) Delay in the performance of nec- (3) 252.217–7005, Inspection and Man- essary repair work would endanger a ner of Doing Work. vessel, its cargo or stores; or (4) 252.217–7006, Title. (ii) Military necessity requires imme- (5) 252.217–7007, Payments. diate work on a vessel. (6) 252.217–7008, Bonds. (b) Process this type of undefinitized (7) 252.217–7009, Default. contract action in accordance with (8) 252.217–7010, Performance. subpart 217.74. (9) 252.217–7011, Access to Vessel. (c) Negotiate a price as soon as prac- (10) 252.217–7012, Liability and Insur- ticable after the issuance of an ance. undefinitized order and definitize the (11) 252.217–7013, Guarantees. job order upon completing negotia- (12) 252.217–7014, Discharge of Liens. tions. (13) 252.217–7015, Safety and Health. 217.7103–6 Repair costs not readily as- (14) 252.217–7016, Plant Protection, as certainable. applicable. (b)(1) Incorporate in solicitations for, If the nature of any repairs is such and in, job orders, the clauses in the that their extent and probable cost master agreement, and any other cannot be ascertained readily, the so- clauses on subjects not covered by the licitation should— master agreement, but applicable to (a) Solicit offers for determining the the job order to be awarded. nature and extent of the repairs; (2) Use the clause at 252.217–7016, (b) Provide that upon determination Plant Protection, in job orders where by the contracting officer of what work performance is to occur at the contrac- is necessary, the contractor, if re- tor’s facility. quested by the contracting officer, shall negotiate prices for performance of the repairs; and Subpart 217.72—Bakery and Dairy (c) Provide that prices for the re- Products pairs, if ordered, will be set forth in a modification of the job order. 217.7200 Scope. This subpart provides special policies 217.7103–7 Modification of master and requirements for acquisition of agreements. perishable bakery and dairy products. (a) Review each master agreement at least annually before the anniversary 217.7201 Contract requirements for of its effective date and revise it as dairy products. necessary to conform to the require- (a) Include the following chemical ments of the FAR and DFARS. Statu- and microbiological requirements in tory or other mandatory changes may solicitations and resulting contracts require review and revision earlier for milk, milk products, and cultured than one year. products (as defined in the Veterinary/ (b) A master agreement shall be Medical Wholesomeness Assurance changed only by modifying the master Program for Fresh and Cultured Dairy agreement itself. It shall not be Products and Frozen Desserts (AR–40– changed through a job order. 70/NAVSUPINST 4355.6/AFR 161–46/MCO (c) A modification to a master agree- 10110.44)): ment shall not affect job orders issued (1) Chemical requirements. Products before the effective date of the modi- shall meet the chemical requirements fication. for each specification cited in the con- tract on the date of award. 217.7104 Contract clauses. (2) Microbiological requirements. Prod- (a) Use the following clauses in so- ucts shall meet microbiological re- licitations for, and in, master agree- quirements stated in Public Health ments for repair and alteration of ves- Service Publication 229, Grade A Pas- sels: teurized Milk Ordnance, in effect on (1) 252.217–7003, Changes. the date of award. In the event of con- (2) 252.217–7004, Job Orders and Com- flict between these requirements and pensation. individual product specifications, the
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requirements of Public Health Service contractor is required to provide reus- Publication 229 take precedence. able containers and equipment. (b) When the contractor is required (b) Use the following additional to furnish its own cabinets for dis- clauses in solicitations and contracts pensing milk from bulk containers— for perishable dairy products— (1) Include the following information (1) 252.217–7020, Examination and in the solicitation— Testing. Use Alternate I when the con- (i) The number (or estimated num- tract is an indefinite quantity con- ber) of dispenser cabinets required; tract. (ii) Whether metal stands for the (2) 252.217–7021, Deficiency Adjust- cabinets are required; ment. (iii) The number of cabinets required (3) 252.217–7025, Containers and Equip- with a capacity of two containers each; ment. and (iv) The number required with a ca- Subpart 217.73—Identification of pacity of three containers each. Sources of Supply (2) Include the contractor’s list of cabinet equipment in the schedule of 217.7300 Scope. the contract. This subpart implements 10 U.S.C. (c) The contracting officer shall no- 2384. It contains policy and procedures tify the Government quality assurance for requiring contractors to identify representative of code changes ap- the actual manufacturer of supplies proved under the clause at 252.217–7022, furnished to DoD. Code Dating. 217.7301 Policy. 217.7202 Contract type. Contractors shall identify their Normally use requirements contracts sources of supply in contracts for sup- for bakery and dairy products. Other plies. Contractor identification of indefinite delivery contracts and other sources of supply enables solicitation, contract types may be used as appro- in subsequent acquisitions, of actual priate. manufacturers or other suppliers of items. This enhances competition and 217.7203 Contract clauses. potentially avoids payment of addi- tional costs for no significant added (a) Use the following additional value. clauses in solicitations and contracts for perishable bakery and dairy prod- 217.7302 Procedures. ucts— (a) Whenever practicable, include a (1) 252.217–7017, Time of Delivery. Use requirement for contractor identifica- Alternate I when the contract is other tion of sources of supply in all con- than a requirements contract. Insert tracts for the delivery of supplies. The the number of hours in paragraph (c) of identification shall include— Alternate I. (1) The item’s actual manufacturer or (2) 252.217–7018, Change in Plant Loca- producer, or all the contractor’s tion. sources for the item; (3) 252.217–7019, Sanitary Conditions. (2) The item’s national stock number Use Alternate I when the contract is (if there is one); other than a requirements contract. (3) The item identification number (4) 252.217–7022, Code Dating. Use this used by— clause only when the schedule or a (i) The actual manufacturer or pro- specification requires labels showing ducer of the item; or the date of pasteurization, manufac- (ii) Each of the contractor’s sources ture, production, or processing. for the item; and (5) 252.217–7023, Marking. Do not use (4) The source of any technical data this clause when MIL–STD–129, Mark- delivered under the contract. ing for Shipment and Storage, is re- (b) The requirement in paragraph (a) quired. of this section does not apply to con- (6) 252.217–7024, Responsibility for tracts that are— Containers and Equipment. Use when (1) For commercial items; or
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(2) Valued at or below the simplified and above work requests as described acquisition threshold. in subpart 217.77. (b) Definitization means the agree- [56 FR 36345, July 31, 1991, as amended at 64 FR 2597, Jan. 15, 1999] ment on, or determination of, contract terms, specifications, and price, which 217.7303 Solicitation provision. converts the undefinitized contract ac- (a) Use the provision at 252.217–7026, tion to a definitive contract. Identification of Sources of Supply, or (c) Qualifying proposal means a pro- one substantially the same, in all so- posal containing sufficient information licitations for supplies when the acqui- for the DoD to do complete and mean- sition is being conducted under other ingful analyses and audits of the— than full and open competition, except (1) Information in the proposal; and when— (2) Any other information that the (1) Using FAR 6.302–5; contracting officer has determined DoD (2) The contracting officer already needs to review in connection with the has the information required by the contract. provision (e.g., the information was ob- (d) Undefinitized contract action means tained under other acquisitions); any contract action for which the con- (3) The contract is for subsistence, tract terms, specifications, or price are clothing or textiles, fuels, or supplies not agreed upon before performance is purchased and used outside the United begun under the action. Examples are States; letter contracts, orders under basic or- (4) The contracting officer deter- dering agreements, and provisioned mines that it would not be practicable item orders, for which the price has not to require offerors/contractors to pro- been agreed upon before performance vide the information, e.g., nonrepet- has begun. itive local purchases; or (5) The contracting officer deter- 217.7402 Exceptions. mines that the exception at 217.7302(b) The following undefinitized contract applies to all items under the solicita- actions (UCAs) are not subject to this tion. subpart, but the contracting officer (b) If appropriate, use the provision should apply the policy to them (and to at 252.217–7026, Identification of changes under the Changes clause) to Sources of Supply, or one substantially the maximum extent practicable— the same, in service contracts requir- (a) UCAs for foreign military sales; ing the delivery of supplies. (b) Purchases at or below the sim- plified acquisition threshold; Subpart 217.74—Undefinitized (c) Special access programs; Contract Actions (d) Congressionally mandated long- lead procurement contracts. 217.7400 Scope. [56 FR 36345, July 31, 1991, as amended at 61 This subpart prescribes policies and FR 7743, Feb. 29, 1996] procedures implementing 10 U.S.C. 2326. 217.7403 Policy. DoD policy is that undefinitized con- 217.7401 Definitions. tract actions shall— As used in this subpart— (a) Be used only when— (a) Contract action means an action (1) The negotiation of a definitive which results in a contract. contract action is not possible in suffi- (1) It includes contract modifications cient time to meet the Government’s for additional supplies or services. requirements; and (2) It does not include change orders, (2) The Government’s interest de- administrative changes, funding modi- mands that the contractor be given a fications, or any other contract modi- binding commitment so that contract fications that are within the scope and performance can begin immediately. under the terms of the contract, e.g., (b) Be as complete and definite as engineering change proposals, value practicable under the particular cir- engineering change proposals, and over cumstances.
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217.7404 Limitations. 217.7404–4 Limitations on obligations. The Government shall not obligate 217.7404–1 Authorization. more than 50 percent of the not-to-ex- The contracting officer shall obtain ceed price before definitization. How- approval from the head of the con- ever, if a contractor submits a quali- tracting activity before— fying proposal before 50 percent of the (a) Entering into a UCA. The request not-to-exceed price has been obligated for approval must fully explain the by the Government, then the limita- need to begin performance before tion on obligations before definitization, including the adverse definitization may be increased to no impact on agency requirements result- more than 75 percent (see 232.102–70 for ing from delays in beginning perform- coverage on provisional delivery pay- ance. ments). (b) Including requirements for non- [60 FR 29498, June 5, 1995] urgent spare parts and support equip- ment in a UCA. The request should 217.7404–5 Exceptions. show that inclusion of the non-urgent (a) The limitations in 217.7404–2, items is consistent with good business 217.7404–3, and 217.7404–4 do not apply to practices and in the best interest of the UCAs for the purchase of initial spares. United States. (b) The head of an agency may waive (c) Modifying the scope of a UCA the limitations in 217.7404–2, 217.7404–3, when performance has already begun. and 217.7404–4 for UCAs if the head of The request should show that the the agency determines that the waiver modification is consistent with good is necessary to support— business practices and in the best in- (1) A contingency operation as de- terests of the United States. fined in 10 U.S.C. 101(a)(13); or (2) A humanitarian or peacekeeping 217.7404–2 Price ceiling. operation as defined in 10 U.S.C. 2302(7). UCAs shall include a not-to-exceed [60 FR 29498, June 5, 1995, as amended at 63 price. FR 67804, Dec. 9, 1998]
217.7404–3 Definitization schedule. 217.7404–6 Allowable profit. (a) UCAs shall contain definitization When the final price of a UCA is ne- schedules that provide for gotiated after a substantial portion of definitization by the earlier of— the required performance has been (1) The date that is 180 days after completed, the head of the agency shall issuance of the action (this date may ensure the profit allowed reflects— be extended but may not exceed the (a) Any reduced cost risk to the con- date that is 180 days after the con- tractor for costs incurred during con- tractor submits a qualifying proposal); tract performance before negotiation or of the final price; and (2) The date on which the amount of (b) The contractor’s reduced cost risk funds obligated under the contract ac- for costs incurred during performance tion is equal to more than 50 percent of of the remainder of the contract. the not-to-exceed price. 217.7405 Definitizations. (b) Submission of a qualifying pro- posal in accordance with the For each definitization modification, definitization schedule is a material the contracting officer shall include all element of the contract. If the con- data required by 243.171. tractor does not submit a timely quali- [60 FR 34470, July 3, 1995] fying proposal, the contracting officer may suspend or reduce progress pay- 217.7406 Contract clauses. ments under FAR 32.503–6, or take (a) Use the clause at FAR 52.216–24, other appropriate action. Limitation of Government Liability, in [56 FR 36345, July 31, 1991, as amended at 60 all UCAs, solicitations associated with FR 29498, June 5, 1995; 63 FR 67803, Dec. 9, UCAs, basic ordering agreements, in- 1998] definite delivery contracts, and any
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other type of contract providing for the 217.7502 Spares acquisition integrated use of UCAs. with production (SAIP). (b) Use the clause at 252.217–7027, Con- (a) Spares acquisition integrated tract Definitization, in all UCAs, so- with production (SAIP) is a technique licitations associated with UCAs, basic used to acquire replenishment parts ordering agreements, indefinite deliv- concurrently with parts being produced ery contracts, and any other type of for the end item. contract providing for the use of UCAs. (b) Include appropriately tailored Insert the applicable information in provisions in the contract when SAIP paragraphs (a), (b), and (d) of the is used. clause. If, at the time of entering into [56 FR 36345, July 31, 1991, as amended at 65 the UCA, the contracting officer knows FR 39705, June 27, 2000] that the definitive contract action will meet the criteria of FAR 15.403–1, 217.7503 Acquisition of parts when 15.403–2, or 15.403–3 for not requiring data is not available. submission of cost or pricing data, the When acquiring a part for which the words ‘‘and cost or pricing data’’ may Government does not have necessary be deleted from paragraph (a) of the data with rights to use in a specifica- clause. tion or drawing for competitive acqui- [61 FR 7743, Feb. 29, 1996, as amended at 63 sition, use one of the following proce- FR 55052, Oct. 14, 1998] dures in order of preference— (a) When items of identical design are not required, the acquisition may Subpart 217.75—Acquisition of still be conducted through full and Replenishment Parts open competition by using a perform- ance specification or other similar 217.7500 Scope of subpart. technical requirement or purchase de- This subpart provides guidance on scription that does not contain data additional requirements related to ac- with restricted rights. Two methods quisition of replenishment parts (as de- are— fined in appendix E). (1) Two-step sealed bidding; and (2) Brand name or equal purchase de- 217.7501 General. scriptions. Departments and agencies— (b) When other than full and open competition is authorized under FAR (a) May acquire replenishment parts part 6, acquire the part from the firm concurrently with production of the which developed or designed the item end item. or process, or its licensees, provided (b) Shall provide for full and open productive capacity and quality are competition when fully adequate draw- adequate and the price is fair and rea- ings and any other needed data are sonable. available with the right to use for ac- (c) When additional sources are need- quisition purposes (see part 227). How- ed and the procedures in paragraph (a) ever— of this section are not practicable, con- (1) When data is not available for a sider the following alternatives— competitive acquisition, use one of the (1) Encourage the developer to li- procedures in 217.7503. cense others to manufacture the parts; (2) Replenishment parts must be ac- (2) Acquire the necessary rights in quired so as to ensure the safe, depend- data; able, and effective operation of the (3) Use a leader company acquisition equipment. Where this assurance is not technique (FAR subpart 17.4) when possible with new sources, competition complex technical equipment is in- may be limited to the original manu- volved and establishing satisfactory facturer of the equipment or other additional sources will require tech- sources that have previously manufac- nical assistance as well as data; or tured or furnished the parts as long as (4) Incorporate a priced option in the the action is justified. contract which allows the Government (c) Shall follow the limitations on to require the contractor to establish a price increases in 217.7504. second source.
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(d) As a last alternative, the con- ishment part issued within the most tracting activity may develop a design recent 12 months. specification for competitive acquisi- [56 FR 36345, July 31, 1991, as amended at 64 tion through reverse engineering. Con- FR 2598, Jan. 15, 1999] tracting activities shall not do reverse engineering unless— Subpart 217.76—Contracts with (1) Significant cost savings can be Provisioning Requirements demonstrated; and (2) The action is authorized by the 217.7600 Scope of subpart. head of the contracting activity. This subpart contains contract re- 217.7504 Limitations on price in- quirements and procedures for items to creases. be provisioned. For technical require- ments of provisioning, see DoDD This section provides implementing 4140.40, Provisioning of End Items of guidance for section 1215 of Public Law Material. For breakout requirements, 98–94 (10 U.S.C. 2452 note). see appendix E. (a) The contracting officer shall not award, on a sole source basis, a con- 217.7601 Definitions. tract for any centrally managed re- As used in this subpart, plenishment part when the price of the (a) Provisioning means the process of part has increased by 25 percent or determining and acquiring the range more over the most recent 12-month and quantity of spare and repair parts, period. and support and test equipment re- (1) Before computing the percentage quired to operate and maintain an end difference between the current price item for an initial period of service. and the prior price, adjust for quantity, (b) Provisioned item means any item escalation, and other factors necessary selected under provisioning procedures. to achieve comparability. (c) Provisioned items order (PIO) (2) Departments and agencies may means an undefinitized order issued specify an alternate percentage or per- under a contract which includes the centages for contracts at or below the Government’s requirements for simplified acquisition threshold. provisioned items. (Provisioned items (b) The contracting officer may with firm prices are acquired by sup- award a contract for a part, the price plemental agreement or by separate of which exceeds the limitation in contract.) paragraph (a) of this section, if the (d) Provisioning activity means the or- contracting officer certifies in writing ganization responsible for selecting to the head of the contracting activity and determining requirements for before award that— provisioned items. (1) The contracting officer has evalu- (e) Provisioning requirements statement means the contractual document list- ated the price of the part and con- ing the specific provisioning require- cluded that the price increase is fair ments for that contract. The statement and reasonable; or normally includes: (2) The national security interests of (1) Instructions, such as the provi- the United States require purchase of sioning method to be used; the part despite the price increase. (2) The extent of provisioning tech- (c) The fact that a particular price nical documentation and data needed has not exceeded the limitation in (including administrative requirements paragraph (a) of this section does not for submission and distribution); relieve the contracting officer of the (3) The type and location of provi- responsibility for obtaining a fair and sioning conferences; reasonable price. (4) Sample article requirements; (d) Contracting officers may include (5) The delivery schedule; a provision in sole source solicitations (6) Packaging and marking require- requiring that the offeror supply with ments for provisioned items; and its proposal, price and quantity data on (7) Requirements for provisioning any government orders for the replen- screening.
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(f) Provisioning technical documenta- items of each activity as separate con- tion means the data needed for the tract line items; identification, selection, determination (g) Provide a definitization schedule of initial requirements, and cataloging (normally 120 days after receipt of the of support items to be acquired contractor’s proposal), and a time- through the provisioning process. It in- frame for the contractor to furnish cludes such things as provisioning lists price proposals for provisioned items and logistics support analysis sum- orders (normally 60 days after order maries. Descriptive data such as draw- issuance); ings and photographs are referred to as (h) Specify exhibit identifiers appli- supplementary provisioning technical doc- cable to the contract line/subline umentation. items; and (i) Include procedures for processing 217.7602 Contracting requirements. changes (including cancellations) in quantities of items ordered. 217.7602–1 Contractual provisions. Contracts containing provisioning re- 217.7602–2 Issuance of provisioned quirements shall— items orders. (a) List the provisioning functions to (a) Use the Standard Form 30, be performed and who will perform Amendment of Solicitation/Modifica- them; tion of Contract, to— (b) Include a provisioning require- (1) Issue provisioned items orders; ments statement or specify a time (2) Decrease or cancel quantities of limit for its incorporation into the con- items ordered; and tract by modification (revisions to the (3) Cover the contractor’s interim re- provisioning requirements statement lease of long lead items when the con- shall also be incorporated by contract tracting officer approves the release (if modification); the release is not approved, the con- (c) Include on the DD Form 1423, Con- tracting officer shall notify the con- tract Data Requirements List, a sched- tractor to cancel the items). ule for delivery of provisioning tech- (b) Include in Block 14 of the Stand- nical documentation, or provide for the ard Form 30— schedule to be incorporated later by (1) The term PROVISIONED ITEMS contract modification; ORDER in capital letters and under- (d) Require flowdown of the appro- lined; and priate provisioning technical docu- (2) The appropriate exhibit identi- mentation requirement when the sub- fier(s) for all attached exhibits. contractor prepares the documenta- (c) Obligate funds to cover the esti- tion; mated price of the items being ordered. (e) Specify any applicable procedures Show individual estimated prices for for interim release by the contractor of each exhibit line item on the account- long lead time items, and include or- ing and payment office copies. dering and funding instructions for (d) Distribution is the same as for the such items. As a minimum, the in- basic contract (see FAR 4.2). However, structions shall require the contractor if the exhibits are voluminous, the con- to advise the contracting officer or pro- tracting officer may restrict distribu- visioning activity at least 30 days be- tion of the exhibits to the contract ad- fore release of the items, their esti- ministration office. mated costs, and the effective date of (e) See subpart 217.74 for additional release; guidance and limitations on the use of (f) Specify the activity designated to undefinitized contract actions. issue provisioned items orders, i.e., contracting officer, provisioning activ- 217.7603 Contract administration re- ity, or administrative contracting offi- quirements. cer. When it is expected that more than one activity will place provisioned 217.7603–1 Provisioning conferences. items orders against the contract, When requested by the contracting state the requirements for provisioned officer or provisioning activity, the
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contract administration office shall as- Subpart 217.77—Over and Above sist the contracting officer or provi- Work sioning activity in scheduling and de- termining the types of provisioning 217.7700 Scope of subpart. conferences required, e.g., guidance This subpart prescribes policies and meetings, long lead time items con- procedures for acquisition of over and ferences, source coding meetings. above work. 217.7603–2 Contract administration of- fice monitoring. 217.7701 Procedures. The contract administration office (a) Contracts for the performance of (CAO) shall monitor contracts con- maintenance, overhaul, modification, taining provisioning requirements. As and repair of various items (e.g., air- a minimum the CAO shall— craft, engines, ground support equip- (a) Ensure that the contractor under- ment, ships) generally contain over and stands the provisioning requirements; above work requirements. When they (b) Review contractor progress in the do, the contracting officer shall estab- preparation of provisioning technical lish a separate contract line item for documentation and, if requested by the the over and above work. contracting officer or provisioning ac- (b) Over and above requirements task tivity, inspect it for format and con- the contractor to identify needed re- tent; pairs and recommend corrective action (c) Ensure the prime contractor during contract performance. The con- flows-down provisioning requirements tractor submits a work request to iden- to any subcontractor charged with tify the over and above work and, as preparation of documentation; appropriate, the Government author- (d) Advise the contracting office or izes the contractor to proceed. provisioning activity of delays in deliv- (c) The clause at 252.217–7028, Over ery of provisioning technical docu- and Above Work, requires the con- mentation or other related problems tractor and the contracting officer re- (see FAR subpart 42.11); sponsible for administering the con- (e) Ensure contractor compliance tract to negotiate specific procedures with contract requirements concerning for Government administration and the assignment of national stock num- contractor performance of over and bers; and above work requests. (f) Ensure that the contractor com- (d) The contracting officer may issue plies with contractual criteria for re- a blanket work request authorization lease of long lead time items. describing the manner in which indi- vidual over and above work requests 217.7603–3 Negotiating and executing will be administered and setting forth supplemental agreements. a dollar limitation for all over and (a) The administrative contracting above work under the contract. The officer (ACO) shall definitize blanket work request authorization provisioned items orders within the may be in the form of a letter or con- prescribed schedule. tract modification (Standard Form 30). (b) If the provisioned items order (e) Over and above work requests are does not contain a delivery date, or the within the scope of the contract. contractor cannot meet the date, the Therefore, procedures in subpart 217.74, ACO shall coordinate the negotiated Undefinitized Contractual Actions, do schedule with the contracting officer not apply. or provisioning activity before execu- (f) To the maximum extent practical, tion of the supplemental agreement. over and above work shall be nego- (c) The ACO shall maintain records of tiated prior to performance of the provisioned items orders showing— work. (1) The adequacy of obligated funds; (2) Due dates for price proposals; and 217.7702 Contract clause. (3) Actions taken to obtain addi- Use the clause at 252.217–7028, Over tional funds or to deobligate excess and Above Work, in solicitations and funds. contracts containing requirements for
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over and above work, except as pro- vided for in subpart 217.71.
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PART 219—SMALL BUSINESS Subpart 219.8—Contracting With the Small PROGRAMS Business Administration (The 8(a) Program) 219.800 General. Sec. 219.803 Selecting acquisitions for the 8(a) 219.000 Scope of part. Program. 219.001 Definitions. 219.804 Evaluation, offering, and accept- ance. Subpart 219.2—Policies 219.804–1 Agency evaluation. 219.804–2 Agency offering. 219.201 General policy. 219.804–3 SBA acceptance. 219.202 Specific policies. 219.805 Competitive 8(a). 219.202–1 Encouraging small business par- 219.805–2 Procedures. ticipation in acquisitions. 219.806 Pricing the 8(a) contract. 219.202–5 Data collection and reporting re- 219.808 Contract negotiations. quirements. 219.808–1 Sole source. 219.811 Preparing the contracts. Subpart 219.4—Cooperation With the Small 219.811–1 Sole source. Business Administration 219.811–2 Competitive. 219.811–3 Contract clauses. 219.401 General. 219.812 Contract administration.
Subpart 219.5—Set-Asides for Small Subpart 219.10—Small Business Business Competitiveness Demonstration Program 219.502 Setting aside acquisitions. 219.1005 Applicability. 219.502–1 Requirements for setting aside ac- 219.1007 Procedures. quisitions. 219.502–2 Total set-asides. Subpart 219.11—Price Evaluation Adjust- 219.502–3 Partial set-asides. ments for Small Disadvantaged Busi- 219.505 Rejecting Small Business Adminis- ness Concerns tration recommendations. 219.1102 Applicability. Subpart 219.6—Certificates of Competency Subpart 219.12—Small Disadvantaged Business Participation Program 219.602 Procedures. 219.602–1 Referral. 219.1203 Incentive subcontracting with 219.602–3 Resolving differences between the small disadvantaged business concerns. agency and the Small Business Adminis- 219.1204 Solicitation provisions and con- tration. tract clauses.
Subpart 219.7—Subcontracting with Small Subpart 219.70 [Reserved] Business, Small Disadvantaged Busi- Subpart 219.71—Pilot Mentor-Protege ness and Women-Owned Small Busi- Program ness Concerns 219.7100 Scope. 219.702 Statutory requirements. 219.7101 Policy. 219.703 Eligibility requirements for partici- 219.7102 General. pating in the program. 219.7103 Procedures. 219.704 Subcontracting plan requirements. 219.7103–1 General. 219.705 Responsibilities of the contracting 219.7103–2 Contracting officer responsibil- officer under the subcontracting assist- ities. ance program. 219.7104 Developmental assistance costs eli- 219.705–2 Determining the need for a subcon- gible for reimbursement or credit. tracting plan. 219.7105 Reporting. 219.705–4 Reviewing the subcontracting 219.7106 Performance reviews. plan. AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- 219.706 Responsibilities of the cognizant ad- ter 1. ministrative contracting officer. 219.708 Solicitation provisions and contract SOURCE: 56 FR 36353, July 31, 1991, unless clauses. otherwise noted.
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219.000 Scope of part. Subpart 219.2—Policies This part also implements 10 U.S.C. 219.201 General policy. 2323, which sets a goal for DoD for each of fiscal years 1987 through 2003 to— (a) The DoD will use the Section 8(a) (1) Award five percent of contract program, small disadvantaged business evaluation preferences, advance pay- and subcontract dollars to small dis- ments, outreach, and technical assist- advantaged business (SDB) concerns, ance to meet its five percent goal for historically black colleges and univer- contract and subcontract awards to sities (HBCUs), and minority institu- small disadvantaged businesses. tions (MIs) (See part 226 for policy/pro- (d) For the defense agencies, the di- cedures on HBCU/MIs); and rector of the Office of Small and Dis- (2) Maximize the number of such en- advantaged Business Utilization must tities in DoD contracting and subcon- be appointed by, be responsible to, and tracting. report directly to the director or dep- uty director of the defense agency. [56 FR 36353, July 31, 1991, as amended at 59 (8) The responsibility for assigning FR 27670, May 27, 1994; 64 FR 62987, Nov. 18, 1999] small business technical advisors is delegated to the head of the con- 219.001 Definitions. tracting activity. (10) Contracting activity small busi- Small disadvantaged business concern ness specialists perform this function is defined: by— (1) At FAR 52.219–23(a) (i.e., a firm is (A) Reviewing and making rec- considered a small disadvantaged busi- ommendations for all acquisitions over ness (SDB) concern by receiving cer- $10,000; tification by the Small Business Ad- (B) Making the review before issue of ministration and meeting the other the solicitation or contract modifica- listed criteria), except as specified in tion and documenting it on DD Form paragraph (2) of this definition. 2579, Small Business Coordination (2) At FAR 52.219–23(a) or 52.219– Record; and 1(b)(2) for the following purposes (i.e., a (C) Referring recommendations that firm is considered an SDB concern by have been rejected by the contracting either receiving certification by the officer to the Small Business Adminis- Small Business Administration and tration (SBA) procurement center rep- resentative. However, if an SBA rep- meeting the other listed criteria or resentative is not assigned or avail- self-representing its status for general able, the specialist refers the matter to statistical purposes): the specialist’s appointing authority. (i) A higher customary progress pay- (e) Contracting and contract admin- ment rate for SDB concerns (see istration activities appoint small busi- 232.501–1(a)(i) and 252.232–7004(c)). ness specialists as directed by DoDD (ii) A lower threshold for inclusion of 4205.1, DoD Small Business and Small customary progress payments in con- Disadvantaged Business Utilization tracts with SDB concerns (see 232.502– Programs. Specialists— 1). (i) Report directly and are respon- (iii) The prompt payment policy for sible only to their appointing author- SDB concerns in 232. 903 and 232.905(2). ity; (iv) Reporting contract actions with (ii) Make sure that the contracting SDB concerns (‘‘Type of Business’’ on activity takes the necessary actions to the DD Form 350, Individual Con- implement small business, historically tracting Action Report (see 253.204– black college and university/minority 70(d)(5)(i)(A)) or ‘‘Small Disadvantaged institution, and labor surplus area pro- Business (SDB) Actions’’ on the DD grams; Form 1057, Monthly Contracting Sum- (iii) Advise and assist contracting, mary of Actions $25,000 or Less (see program manager, and requirements personnel on all matters which affect 253.204–71(g)(2)). small businesses, historically black [63 FR 64429, Nov. 20, 1999] colleges and universities or minority
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institutions, and labor surplus area tem Industry Subsector to bear an concerns; undue burden or other inappropriate ef- (iv) Aid, counsel, and assist small fect. A copy of each determination business, small disadvantaged business, shall be forwarded to the Office of historically black colleges and univer- Small and Disadvantaged Business Uti- sities, and minority institutions by lization, Office of the Under Secretary providing— of Defense (Acquisition, Technology, (A) Advice concerning acquisition and Logistics), simultaneously with procedures; submittal to the Office of Federal Pro- (B) Information regarding proposed curement Policy. acquisitions; and [56 FR 36353, July 31, 1991, as amended at 63 (C) Instructions on preparation of FR 41973, Aug. 6, 1998; 64 FR 2598, Jan. 15, proposals in the interpretation of 1999; 65 FR 39705, June 27, 2000; 65 FR 50149, standard clauses, representations, and Aug. 17, 2000; 65 FR 63807, Oct. 25, 2000] certifications; (v) Maintain an outreach program 219.202 Specific policies. (including participation in Govern- ment-industry conferences and re- 219.202–1 Encouraging small business gional interagency small business participation in acquisitions. councils) designed to locate and de- The DoD will maximize the use of velop information on the technical small business concerns as planned pro- competence of small business, small ducers in the Industrial Readiness disadvantaged business concerns, his- Planning Program. torically black colleges and univer- sities, and minority institutions; 219.202–5 Data collection and report- (vi) Ensure that financial assistance, ing requirements. available under existing regulations, is Determine the premium percentage offered and also assist small business to be entered in Item D4C of the Indi- concerns in obtaining payments under vidual Contracting Action Report (DD their contracts, late payment, interest Form 350), (see 253.204–70), as follows: penalties, or information on contrac- (1) For small disadvantaged business tual payment provisions; or historically black college and uni- (vii) Provide assistance to con- versity/minority institution set-asides, tracting officers in determining the divide the difference between the fair need for and acceptability of subcon- market price and the award price by tracting plans and assist administra- the fair market price. tive contracting officers (see (2) For price evaluation adjustment 219.706(a)(ii)) in evaluating, moni- awards (see FAR Subpart 19.11), divide toring, reviewing, and documenting the difference between the low respon- contract performance to determine sive offer and the award price by the compliance with subcontracting plans; low responsive offer. and (3) For partial small business set- (viii) Recommend to the appointing asides with preferential consideration authority the activity’s small and dis- for small disadvantaged business con- advantaged business program goals, in- cerns, divide the difference between the cluding goal assignments to subordi- award price on the non-set-aside por- nate contracting offices; monitor the tion and the award price on the set- activity’s performance against these aside portion by the award price on the goals; and recommend action to correct non-set-aside portion. reporting errors/deficiencies. (b) Within 60 days after the end of (f) The Directors, Office of Small and each fiscal year, departments and agen- Disadvantaged Business Utilization, of cies shall submit the report to the Sec- the military departments and defense retary of Defense, who will report to agencies are responsible for deter- the SBA on behalf of all DoD depart- mining whether use of the price evalua- ments and agencies. Reports must in- tion adjustment to achieve a small dis- clude— advantaged business goal has caused (i) Justification for failure to meet non-SDB firms in a particular North goals established by the Office of the American Industry Classification Sys- Secretary of Defense; and
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(ii) Planned actions for increasing ment for small disadvantaged business participation by such firms in future concerns is currently authorized (see contract awards. FAR 19.201(b)), apply the adjustment to [56 FR 36353, July 31, 1991, as amended at 63 the non-set-aside portion. FR 41973, Aug. 6, 1998; 65 FR 63804, Oct. 25, [65 FR 50149, Aug. 17, 2000] 2000] 219.505 Rejecting Small Business Ad- Subpart 219.4—Cooperation With ministration recommendations. the Small Business Administration (b) The designee shall be at a level no 219.401 General. lower than chief of the contracting of- fice. (b) The contracting activity small business specialist is the primary ac- tivity focal point for interface with the Subpart 219.6—Certificates of SBA. Competency
Subpart 219.5—Set-Asides for 219.602 Procedures. Small Business 219.602–1 Referral. 219.502 Setting aside acquisitions. When making a nonresponsibility de- termination on a small business con- 219.502–1 Requirements for setting cern, the contracting officer shall no- aside acquisitions. tify the contracting activity’s small Do not set aside acquisitions for— business specialist. (1) Supplies which were developed and financed, in whole or in part, by [58 FR 28465, May 13, 1993, as amended at 60 Canadian sources under the U.S.-Cana- FR 40107, Aug. 7, 1995] dian Defense Development Sharing Program; or 219.602–3 Resolving differences be- (2) Architect-engineer services for tween the agency and the Small Business Administration. military construction or family hous- ing projects of $85,000 or more (10 (c)(i) If the contracting officer be- U.S.C. 2855), including indefinite deliv- lieves the agency should appeal, the ery and indefinite quantity contracts if contracting officer shall immediately the value of all anticipated orders is inform the departmental director of expected to total $85,000 or more. the Office of Small and Disadvantaged [58 FR 28465, May 13, 1993] Business Utilization, and send the di- rector, through departmental chan- 219.502–2 Total set-asides. nels— (a) Unless the contracting officer de- (A) A request for appeal, summa- termines that the criteria for set-aside rizing the issues. The request must be cannot be met, set aside for small busi- sent to arrive within five working days ness concerns acquisitions for— after receipt of the SBA Headquarters’ (i) Construction, including mainte- written position. nance and repairs, under $2 million; (B) An appeal file, documenting the (ii) Dredging under $1 million; and contracting activity’s position. The file (iii) Architect-engineer services for must be sent to arrive within five military construction or family hous- working days after transmission of the ing projects of under $85,000. request. [58 FR 28465, May 13, 1993] (ii) The departmental director will determine whether the agency will ap- 219.502–3 Partial set-asides. peal and will notify the SBA of the (c)(1) If the North American Industry agency’s intent. Classification System Industry Sub- sector of the acquisition is one in [56 FR 36353, July 31, 1991, as amended at 62 FR 34122, June 24, 1997] which use of a price evaluation adjust-
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Subpart 219.7—Subcontracting of the test program (Section 402, Pub. with Small Business, Small Dis- L. 101–574). advantaged Business and [56 FR 36353, July 31, 1991, as amended at 60 Women-Owned Small Busi- FR 35668, July 10, 1995; 61 FR 39900, July 31, 1996; 63 FR 14640, Mar. 26, 1998; 64 FR 62987, ness Concerns Nov. 18, 1999]
219.702 Statutory requirements. 219.703 Eligibility requirements for (a) Section 834 of Public Law 101–189, participating in the program. as amended, requires DoD to establish (a) Qualified nonprofit agencies for a test program to determine whether the blind and other severely disabled, comprehensive subcontracting plans on that have been approved by the Com- a corporate, division, or plant-wide mittee for Purchase from People Who basis will reduce administrative bur- Are Blind or Severely Disabled under dens while enhancing subcontracting the Javits-Wagner-O’Day Act (41 U.S.C. opportunities for small and small dis- 46–48), are eligible to participate in the advantaged business concerns. program as a result of 10 U.S.C. 2410d (i) The test program— and Section 9077 of Pub. L. 102–396 and similar sections in subsequent Defense (A) Will be conducted— appropriations acts. Under this author- (1) From October 1, 1990, through ity, subcontracts awarded to such enti- September 30, 2005; ties may be counted toward the prime (2) In accordance with the DoD test contractor’s small business subcon- plan, ‘‘Test Program for Negotiation of tracting goal. Comprehensive Small Business Subcon- (2)(A) To be eligible as an SDB sub- tracting Plans’’; and contractor, a concern must meet the (3) By the military departments and definition in 219.001. defense agencies through specifically (B) To be eligible as a historically designated contracting activities; and black college or university or minority (B) Permits contractors selected for institution subcontractor, such entity participation in the test program by must meet the definition in the clause the designated contracting activities at 252.219–7003, Small, Small Disadvan- to— taged and Women–Owned Small Busi- (1) Negotiate plant, division, or com- ness Subcontracting Plan (DoD Con- pany-wide comprehensive subcon- tracts). tracting plans instead of individual (b) A contractor may also rely on the written representation as to status of— contract subcontracting plans; and (i) A historically black college or (2) Use the comprehensive plans when university or minority institution; or performing any DoD contract or sub- (ii) A qualified nonprofit agency for contract that requires a subcon- the blind or other severely disabled ap- tracting plan. proved by the Committee for Purchase (ii) During the test period, com- from People Who Are Blind or Severely prehensive subcontracting plans will— Disabled. (A) Be negotiated on an annual basis by the designated contracting activi- [57 FR 42630, Sept. 15, 1992, as amended at 58 FR 28465, May 13, 1993; 60 FR 13075, Mar. 10, ties; 1995; 60 FR 41157, Aug. 11, 1995; 60 FR 61596, (B) Be incorporated by the contrac- Nov. 30, 1995; 61 FR 50535, Sept. 26, 1996; 63 FR tors’ cognizant contract administra- 11530, Mar. 9, 1998; 63 FR 41974, Aug. 6, 1998; 64 tion activity into all of the contrac- FR 51076, Sept. 21, 1999; 64 FR 62986, Nov. 18, tors’ active DoD contracts that require 1999] a plan; 219.704 Subcontracting plan require- (C) Be accepted for use by contrac- ments. tors participating in the test, whether (a)(1) The goal for use of small dis- performing at the prime or subcontract advantaged business concerns shall in- level; and clude subcontracts with historically (D) Not be subject to application of black colleges and universities and mi- liquidated damages during the period nority institutions (see subpart 226.70),
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in addition to subcontracts with small (ii) The small business specialist sup- disadvantaged business concerns. Sub- ports the administrative contracting contracts with historically black col- officer in evaluating a contractor’s per- leges and universities and minority in- formance and compliance with its sub- stitutions do not have to be included in contracting plan. the small disadvantaged business goal in commercial items subcontracting 219.708 Solicitation provisions and plans. contract clauses. (4) In those subcontracting plans (b)(1)(A) Use the clause at 252.219– which specifically identify small, small 7003, Small, Small Disadvantaged and disadvantaged, and women-owned Women-Owned Small Business Subcon- small businesses, prime contractors tracting Plan (DoD Contracts), in so- shall notify the administrative con- licitations and contracts that contain tracting officer of any substitutions of the clause at FAR 52.219–9, Small, firms that are not small, small dis- Small Disadvantaged and Women- advantaged, or women-owned small Owned Small Business Subcontracting businesses for the firms listed in the Plan. subcontracting plan. Notifications (B) In contracts with contractors shall be in writing and shall occur which have comprehensive subcon- within a reasonable period of time tracting plans approved under the test after award of the subcontract. Con- program described in 219.702(a), use the tractor-specified formats shall be ac- clause at 252.219–7004, Small, Small Dis- ceptable. advantaged and Women-Owned Small [60 FR 61596, Nov. 30, 1995, as amended at 61 Business Subcontracting Plan (Test FR 18687, Apr. 29, 1996] Program), instead of the clauses at 252.219–7003, Small, Small Disadvan- 219.705 Responsibilities of the con- taged and Women-Owned Small Busi- tracting officer under the subcon- ness Subcontracting Plan (DoD Con- tracting assistance program. tracts), and FAR 52.219–9, Small, Small 219.705–2 Determining the need for a Disadvantaged and Women-Owned subcontracting plan. Small Business Subcontracting Plan. (d) See 215.304 for unique DoD re- (2) In contracts with contractors that quirements. have comprehensive subcontracting plans approved under the test program [59 FR 27670, May 27, 1994, as amended at 64 described in 219.702(a), do not use the FR 51076, Sept. 21, 1999] clause at FAR 52.219–16, Liquidated Damages—Subcontracting Plan. 219.705–4 Reviewing the subcon- tracting plan. (c)(1) Do not use the clause at FAR 52.219–10, Incentive Subcontracting (d) Challenge any subcontracting Program, in contracts with contractors plan that does not contain positive that have comprehensive subcon- goals and consider the extent to which tracting plans approved under the test an offeror plans to use competition re- program described in 219.702(a). stricted to historically black colleges and universities or minority institu- [56 FR 36353, July 31, 1991, as amended at 56 tions. A small disadvantaged business FR 67213, Dec. 30, 1991; 61 FR 39901, July 31, goal of less than five percent must be 1996; 63 FR 64429, Nov. 20, 1998; 65 FR 52952, Aug. 31, 2000] approved two levels above the con- tracting officer. Subpart 219.8—Contracting With [56 FR 36353, July 31, 1991, as amended at 63 FR 41974, Aug. 6, 1998] the Small Business Administra- tion (The 8(a) Program) 219.706 Responsibilities of the cog- nizant administrative contracting 219.800 General. officer. (a) By Memorandum of Under- (a)(i) The contract administration of- standing (MOU) dated May 6, 1998, be- fice also is responsible for reviewing, tween the Small Business Administra- evaluating, and approving master sub- tion (SBA) and the Department of De- contracting plans. fense (DoD), the SBA delegated to the
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Under Secretary of Defense (Acquisi- 219.804–2 Agency offering. tion, Technology, and Logistics) its au- (1) For requirements processed under thority under paragraph 8(a)(1)(A) of the MOU cited in 219.80 (but see para- the Small Business Act (5 U.S.C. 637(a)) graph (2) of this subsection for proce- to enter into 8(a) prime contracts, and dures related to purchase orders that its authority under paragraph 8(a)(1)(B) do not exceed the simplified acquisi- of the Small Business Act to award the tion threshold), the notification to the performance of those contracts to eli- SBA shall clearly indicate that the re- gible 8(a) Program participants. Con- quirement is being processed under the sistent with the provisions of this sub- MOU. All notifications should be sub- part, this authority is hereby redele- mitted in writing, using facsimile or gated to DoD contracting officers with- electronic mail, when possible, and in the United States, its territories and shall specify that— possessions, Puerto Rico, the Trust (i) Under the MOU, an SBA accept- Territory of the Pacific Islands, and ance or rejection of the offering is re- the District of Columbia, to the extent quired within 5 working days of receipt that it is consistent with any dollar or of the offering; and other restrictions established in indi- (ii)(A) For sole source requirements, vidual warrants. This authority is an SBA acceptance shall include a size being delegated and redelegated on a verification and a determination of the pilot test basis and shall expire on De- 8(a) firm’s eligibility, and, upon accept- cember 31, 2001. Notwithstanding this ance, the contracting officer will so- MOU, contracting officers may elect to licit a proposal, conduct negotiations, award the contract pursuant to the and make award directly to the 8(a) provisions of FAR subpart 19.8. firm; or (b) Awards under the MOU may be (B) For competitive requirements, awarded directly to the 8(a) participant upon acceptance, the contracting offi- on either a sole source or competitive cer will solicit offers, conduct source basis. selection, and, upon receipt of an eligi- (c) Contracts awarded under the MOU bility verification, award a contract di- may be awarded directly to the 8(a) rectly to the selected 8(a) firm. participant. An SBA signature on the (2) Under the MOU cited in 219.800, no contract is not required. separate agency offering or SBA ac- ceptance is needed for requirements [63 FR 33587, June 19, 1998, as amended at 65 that are issued under purchase orders FR 39705, June 27, 2000; 66 FR 49863, Oct. 1, that do not exceed the simplified ac- 2001] quisition threshold. After an 8(a) con- tractor has been identified, the con- 219.803 Selecting acquisitions for the tracting officer shall establish the 8(a) Program. prices, terms, and conditions with the (b) Contracting activities should re- 8(a) contractor and shall prepare a pur- spond to SBA requests for contract chase order consistent with the proce- support within 30 calendar days after dures in part 213 and FAR part 13, in- receipt. cluding the applicable clauses required (c) Before considering a small busi- by this subpart. No later than the day ness set-aside, review the acquisition that the purchase order is provided to for offering under the 8(a) Program. the 8(a) contractor, the contracting of- ficer shall provide to the cognizant [56 FR 36353, July 31, 1991, as amended at 63 FR 41974, Aug. 6, 1998] SBA Business Opportunity Specialist, using facsimile or electronic mail— 219.804 Evaluation, offering, and ac- (i) A copy of the purchase order; and ceptance. (ii) A notice stating that the pur- chase order is being processed under 219.804–1 Agency evaluation. the MOU. The notice also shall indicate that the 8(a) contractor will be deemed (f) The 8(a) firms should be offered eligible for award and will automati- the opportunity to give a technical cally begin work under the purchase presentation. order unless, within 2 working days [63 FR 41974, Aug. 6, 1998] after SBA’s receipt of the purchase
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order, the 8(a) contractor and the con- contracting officer is responsible for tracting officer are notified that the initiating negotiations; 8(a) contractor is ineligible for award. (2) The 8(a) contractor is responsible [63 FR 33587, June 19, 1998] for negotiating within the time estab- lished by the contracting officer; 219.804–3 SBA acceptance. (3) If the 8(a) contractor does not ne- For requirements processed under gotiate within the established time and the MOU cited in 219.800, SBA’s accept- the agency cannot allow additional ance is required within 5 working days time, the contracting officer may, (but see 219.804–2(2) for purchase orders after notifying the SBA, proceed with that do not exceed the simplified ac- the acquisition from other sources; quisition threshold). (4) If requested by the 8(a) con- tractor, the SBA may participate in [63 FR 33587, June 19, 1998] negotiations; and 219.805 Competitive 8(a). (5) SBA approval of the contract is not required. 219.805–2 Procedures. [63 FR 33588, June 19, 1998] (c) For requirements processed under the MOU cited in 219.800— 219.811 Preparing the contracts. (i) For sealed bid and negotiated ac- quisitions, the SBA will determine the 219.811–1 Sole source. eligibility of the firms and will advise (a) Awards under the MOU cited in the contracting officer within 2 work- 219.800 may be made directly to the 8(a) ing days after its receipt of a request contractor and, except as provided in for an eligibility determination; and paragraph (b) of this subsection and in (ii) For negotiated acquisitions, the 219.811–3, award documents shall be contracting officer may submit a re- prepared in accordance with procedures quest for an eligibility determination established for non-8(a) contracts, on as many as three of the most highly using any otherwise authorized award rated offerors. forms. The ‘‘Issued by’’ block shall [63 FR 33588, June 19, 1998] identify the awarding DoD contracting office. The contractor’s name and ad- 219.806 Pricing the 8(a) contract. dress shall be that of the 8(a) partici- For requirements processed under pant. the MOU cited in 219.800— (b) Use the following alternative pro- (1) The contracting officer shall ob- cedures for direct awards made under tain cost or pricing data from the 8(a) the MOU cited in 219.800: contractor, if required by FAR subpart (i) Cite 10 U.S.C. 2304(c)(5) as the au- 15.4; and thority for use of other than full and (2) SBA concurrence in the nego- open competition; tiated price is not required. However, (ii) Include the clause at 252.219–7009, except for purchase orders not exceed- which allows for direct award to the ing the simplified acquisition thresh- 8(a) contractor, and identify the cog- old, the contracting officer shall notify nizant SBA district office for the 8(a) the SBA prior to withdrawing a re- contractor; quirement from the 8(a) Program due (iii) No SBA contract number is re- to failure to agree on price or other quired; and terms and conditions. (iv) Do not require an SBA signature on the award document. [63 FR 33588, June 19, 1998] [63 FR 33588, June 19, 1998] 219.808 Contract negotiations. 219.811–2 Competitive. 219.808–1 Sole source. Awards made under the MOU cited in For requirements processed under 219.800 shall be prepared in accordance the MOU cited in 219.800— with 219.811–1. (1) The agency may negotiate di- rectly with the 8(a) contractor. The [63 FR 33588, June 19, 1998]
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219.811–3 Contract clauses. the emerging small business reserve (1) Use the clause at 252.219–7009, Sec- amount and less than $85,000. tion 8(a) Direct Award, instead of the (D) Be considered for small business clauses at FAR 52.219–11, Special 8(a) set-aside if the estimated value is less Contract Conditions, FAR 52.219–12, than $85,000, regardless of whether Special 8(a) Subcontract Conditions, small business set-asides for other ar- and FAR 52.219–17, Section 8(a) Award, chitect-engineer services are prohib- in solicitations and contracts processed ited under the Small Business Com- in accordance with the MOU cited in petitiveness Demonstration Program, 219.800. when an ESB set-aside is not appro- (2) Use the clause at FAR 52.219–18, priate. Notification of Competition Limited to (ii) All requirements of the Small Eligible 8(a) Concerns, with 252.219– Business Competitiveness Demonstra- 7010, Alternate A, in solicitations and tion Program apply to architect-engi- contracts processed in accordance with neer services in support of other than the MOU cited in 219.800. military construction projects or mili- (3) Use the clause at 252.219–7011, No- tary housing objects, which otherwise tification to Delay Performance, in so- meet criteria in FAR subpart 19.10. licitations and purchase orders issued (b) The targeted industry categories in accordance with 219.804–2(2). for DoD are:
[63 FR 33588, June 19, 1998] North American Industry Classi- fication System (NAICS) Descrip- NAICS 219.812 Contract administration. tion Code (d) Awards under the MOU cited in (1) Pharmaceutical Preparation 219.800 are subject to Section 407 of Manufacturing ...... 325412 Pub. L. 100–656. These contracts include (2) Ammunition (except Small the clause at 252.219–7009, Section 8(a) Arms) Manufacturing ...... 332993 Direct Award, which requires the 8(a) (3) Other Ordnance and Accessories contractor to notify the SBA and the Manufacturing ...... 332995 contracting officer when ownership of (4) Turbine and Turbine Generator the firm is being transferred. Set Unit Manufacturing ...... 333611 (5)(i) Aircraft Engine and Engine [63 FR 33588, June 19, 1998] Parts Manufacturing ...... 336412 (ii) Research and Development Subpart 219.10—Small Business in the Physical, Engineering, and Life Sciences (Aircraft Competitiveness Demonstra- Engines and Engine Parts tion Program only) ...... 54171 (6)(i) Guided Missile and Space Ve- 219.1005 Applicability. hicle Manufacturing ...... 336414 (a)(i) Architect-engineering services (ii) Research and Development in support of military construction in the Physical, Engineering, projects or military family housing and Life Sciences (Guided projects are exempt from the Small Missiles and Space Vehicles only) ...... 54171 Business Competitiveness Demonstra- (7)(i) Other Guided Missile and tion Program, except for the emerging Space Vehicle Parts and Auxil- small business (ESB) set-aside require- iary Equipment Manufacturing .. 336419 ments. Accordingly, these shall— (ii) Research and Development (A) Be reviewed for possible award in the Physical, Engineering, under the 8(a) Program regardless of and Life Sciences (Guided dollar value. Missile and Space Vehicle (B) Not be set aside for small busi- Parts and Auxiliary Equip- ness if the estimated value is $85,000 or ment only) ...... 54171 more (including indefinite delivery-in- (8) Military Armored Vehicle, Tank and Tank Component Manufac- definite quantity contracts if the value turing ...... 336992 of all anticipated orders exceeds (9) Search and Navigation System $85,000). and Instrument Manufacturing ... 334511 (C) Be considered for ESB set-aside if (10)(i) Cellular and Other Wireless the estimated value is both less than Telecommunications ...... 513322
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centives in the North American Indus- North American Industry Classi- NAICS fication System (NAICS) Descrip- Code try Classification System Industry tion Subsectors for which use of an evalua- tion factor or subfactor for participa- (ii) Satellite Telecommuni- cations ...... 51334 tion of SDB concerns is currently au- (iii) Other Telecommunications 51339 thorized (see FAR 19.201(b)). Incentives for exceeding SDB subcontracting tar- gets shall be paid only if an SDB sub- [56 FR 36353, July 31, 1991, as amended at 59 FR 27670, May 27, 1994; 62 FR 34122, June 24, contracting target was exceeded as a 1997; 63 FR 41974, Aug. 6, 1998; 65 FR 50149, result of actual subcontract awards to Aug. 17, 2000; 66 FR 49861, Oct. 1, 2001] SDBs, and not a result of develop- mental assistance credit under the 219.1007 Procedures. Pilot Mentor-Prote´ge´ Program (see (b)(1) The Director, Small and Dis- Subpart 219.71). advantaged Business Utilization, Office [63 FR 64429, Nov. 20, 1998, as amended at 65 of the Under Secretary of Defense (Ac- FR 50149, Aug. 17, 2000] quisition, Technology, and Logistics) (OUSD(AT&L)), will determine whether 219.1204 Solicitation provisions and reinstatement of small business set- contract clauses. asides is necessary to meet the agency (c) The contracting officer shall, goal and will recommend reinstate- when contracting by negotiation, in- ment to the Director of Defense Pro- sert in solicitations and contracts con- curement (OUSD(AT&L)). Military de- taining the clause at FAR 52.219–25, partments and defense agencies shall Small Disadvantaged Business Partici- not reinstate small business set-asides pation Program-Disadvantaged Status unless directed by the Director of De- and Reporting, a clause substantially fense Procurement. the same as the clause at FAR 52.219– (d) Reporting requirements are at 26, Small Disadvantaged Business Par- 204.670–2. ticipation Program-Incentive Subcon- [65 FR 39705, June 27, 2000] tracting, when authorized (see FAR 19.1203). The contracting officer may include an award fee provision in lieu Subpart 219.11—Price Evaluation of the incentive; in such cases, how- Adjustment for Small Dis- ever, the contracting officer shall not advantaged Business Con- use the clause at FAR 52.219–26. Do not cerns use award fee provisions in contracts with contractors that have comprehen- 219.1102 Applicability. sive subcontracting plans approved (b) The price evaluation adjustment under the test program described in also shall not be used in acquisitions 219.702(a). that are for commissary or exchange resale. Subpart 219.70 [Reserved] [63 FR 41974, Aug. 6, 1998] Supart 219.71—Pilot Mentor– Subpart 219.12—Small Disadvan- Protege Program taged Business Participation Program SOURCE: 65 FR 6555, Feb. 10, 2000, unless otherwise noted.
SOURCE: 63 FR 64429, Nov. 20, 1998, unless otherwise noted. 219.7100 Scope. This subpart implements the Pilot 219.1203 Incentive subcontracting Mentor-Protege Program established with small disadvantaged business under Section 831 of the National De- concerns. fense Authorization Act for Fiscal Year The contracting officer shall encour- 1991 (Public Law 101–510; 10 U.S.C. 2302 age increased subcontracting opportu- note). The purpose of the Program is to nities for SDB concerns in negotiated provide incentives for DoD contractors acquisitions by providing monetary in- to assist protege firms in enhancing
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their capabilities and to increase par- Subpart 19.7, for developmental assist- ticipation of such firms in Government ance costs that are not reimbursed. and commercial contracts. [65 FR 6555, Feb. 10, 2000; 65 FR 30191, May 10, [66 FR 47108, Sept. 11, 2001] 2000, as amended at 66 FR 47108, Sept. 11, 2001] 219.7101 Policy. 219.7103 Procedures. DoD policy and procedures for imple- mentation of the Program are con- 219.7103–1 General. tained in Appendix I, Policy and Proce- The procedures for application, ac- dures for the DoD Pilot Mentor-Pro- ceptance, and participation in the Pro- tege Program. gram are in Appendix I, Policy and Procedures for the DoD Pilot Mentor- 219.7102 General. Protege Program. The Director, The Program includes— SADBU, OUSD (AT&L), approves con- (a) Mentor firms that are prime con- tractors as mentor firms, approves tractors with at least one active sub- mentor-protege agreements, and for- contracting plan negotiated under FAR wards approved mentor-protege agree- Subpart 19.7. ments to the contracting officer when (b) Protege firms that are— program funding is available through a (1)(i) small disadvantaged business DoD program manager. concerns as defined at 219.001(1); 219.7103–2 Contracting officer respon- (ii) Business entities owned and con- sibilities. trolled by an Indian tribe; Contracting officers must— (iii) business entities owned and con- (a) Negotiate an advance agreement trolled by a Native Hawaiian Organiza- on the treatment of developmental as- tion; sistance costs for either credit or reim- (iv) Qualified organizations employ- bursement if the mentor firm proposes ing the severely disabled; or such an agreement, or delegate author- (v) Women-owned small business con- ity to negotiate to the administrative cerns; contracting officer (see FAR 31.109). (2) Eligible for receipt of Federal con- (b) Modify (without consideration) tracts; and applicable contract(s) to incorporate (3) Selected by the mentor firm. the clause at 252.232–7005, Reimburse- (c) Mentor-protege agreements that ment of Subcontractor Advance Pay- establish a developmental assistance ments—DoD Pilot Mentor-Protege Pro- program for a protege firm. gram, when a mentor firm provides ad- (d) Incentives that DoD may provide vance payments to a protege firm to mentor firms, including: under the Program and the mentor (1) Reimbursement for developmental firm requests reimbursement of ad- assistance costs through— vance payments. (i) A separately priced contract line (c) Modify (without consideration) applicable contract(s) to incorporate item on a DoD contract; or other than customary progress pay- (ii) A separate contract, upon written ments for protege firms in accordance determination by the Director, Small with FAR 32.504(c) if a mentor firm and Disadvantaged Business Utiliza- provides such payments to a protege tion, Office of the Under Secretary of firm and the mentor firm requests re- Defense (Acquisition, Technology, and imbursement. Logistics) (SADBU, OUSD (AT&L)), (d) Modify applicable contract(s) to that unusual circumstances justify re- establish a contract line item for reim- imbursement using a separate con- bursement of developmental assistance tract; or costs if— (2) Credit toward applicable subcon- (1) A DoD program manager has tracting goals, established under a sub- made funds available for that purpose; contracting plan negotiated under FAR and
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(2) The contractor has an approved mentor firm may not be reimbursed or mentor-protege agreement. credited for developmental assistance (e) Negotiate and award a separate costs incurred more than 30 days after contract for reimbursement of develop- the imposition of the suspension or de- mental assistance costs only if— barment. (1) A DoD program manager has (d) Developmental assistance costs made funds available for that purpose; incurred by a mentor firm before Octo- (2) The contractor has an approved ber 1, 2005, that are eligible for cred- mentor-protege agreement; and iting under the Program, may be cred- (3) The Director, SADBU, OUSD ited toward subcontracting plan goals (AT&L), has made a determination in as set forth in appendix I. accordance with 219.7102(d)(1)(ii). (f) Not authorize reimbursement for [65 FR 6555, Feb. 10, 2000; 65 FR 30191, May 10, costs of assistance furnished to a pro- 2000] tege firm in excess of $1,000,000 in a fis- 219.7105 Reporting. cal year unless a written determina- tion from the Director, SADBU, OUSD Mentor and protege firms must re- (AT&L), is obtained. port on the progress made under men- (g) Advise contractors of reporting tor-protege agreements as indicated in requirements in Appendix I. appendix I, section I–111. (h) Provide a copy of the approved Mentor-Protege agreement to the De- 219.7106 Performance reviews. fense Contract Management Agency The Defense Contract Management administrative contracting officer re- Agency will conduct annual perform- sponsible for conducting the annual ance reviews of all mentor-protege performance review (see appendix I, agreements as indicated in appendix I, section I–112). section I–112. The determinations made [65 FR 6555, Feb. 10, 2000; 65 FR 30191, May 10, in these reviews should be a major fac- 2000, as amended at 65 FR 50150, Aug. 17, 2000; tor in determinations of amounts of re- 66 FR 47109, Sept. 11, 2001] imbursement, if any, that the mentor firm is eligible to receive in the re- 219.7104 Developmental assistance maining years of the Program partici- costs eligible for reimbursement or pation term under the agreement. credit. (a) Developmental assistance pro- [65 FR 50150, Aug. 17, 2000] vided under an approved mentor-pro- tege agreement is distinct from, and PART 222—APPLICATION OF must not duplicate, any effort that is LABOR LAWS TO GOVERNMENT the normal and expected product of the ACQUISITIONS award and administration of the men- tor firm’s subcontracts. The mentor Sec. firm must accumulate and charge costs 222.001 Definition. associated with the latter in accord- ance with its approved accounting Subpart 222.1—Basic Labor Policies practices. Mentor firm costs that are eligible for reimbursement are set 222.101 Labor relations. forth in appendix I. 222.101–1 General. (b) Before incurring any costs under 222.101–3 Reporting labor disputes. the Program, mentor firms must estab- 222.101–3–70 Impact of labor disputes on de- lish the accounting treatment of devel- fense programs. opmental assistance costs eligible for 222.101–4 Removal of items from contrac- tors’ facilities affected by work stop- reimbursement or credit. Advance pages. agreements are encouraged. To be eli- 222.101–70 Acquisition of stevedoring serv- gible for reimbursement under the Pro- ices during labor disputes. gram, the mentor firm must incur the 222.102 Federal and State labor require- costs before October 1, 2005. ments. (c) If the mentor firm is suspended or 222.102–1 Policy. debarred while performing under an ap- 222.103 Overtime. proved mentor-protege agreement, the 222.103–4 Approvals.
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Subpart 222.3—Contract Work Hours and 222.1306 Complaint procedures. Safety Standards Act 222.1308 Contract clauses. 222.302 Liquidated damages and overtime Subpart 222.14—Employment of the pay. Handicapped Subpart 222.4—Labor Standards for 222.1403 Waivers. Contracts Involving Construction 222.1406 Complaint procedures. 222.402 Applicability. Subpart 222.70—Restrictions on the Em- 222.402–70 Installation support contracts. ployment of Personnel for Work on 222.403 Statutory and regulatory require- Construction and Service Contracts in ments. 222.403–4 Department of Labor regulations. Noncontiguous States 222.404 Davis-Bacon Act wage determina- 222.7000 Scope of subpart. tions. 222.7001 Definition. 222.404–2 General requirements. 222.7002 General. 222.404–3 Procedures for requesting wage de- 222.7003 Waivers. terminations. 222.7004 Contract clause. 222.404–11 Wage determination appeals. 222.406 Administration and enforcement. 222.406–1 Policy. Subpart 222.71—Right of First Refusal of 222.406–6 Payrolls and statements. Employment 222.406–8 Investigations. 222.7100 Scope of subpart. 222.406–9 Withholding from or suspension of 222.7101 Policy. contract payments. 222.406–10 Disposition of disputes con- 222.7102 Contract clause. cerning construction contract labor standards enforcement. Subpart 222.72—Compliance with Labor 222.406–13 Semiannual enforcement reports. Laws of Foreign Governments 222.407 Contract clauses. 222.7200 Scope of subpart. Subpart 222.6—Walsh-Healey Public 222.7201 Contract clauses. Contracts Act Subpart 222.73—Limitations Applicable to 222.604 Exemptions. Contracts Performed on Guam 222.604–2 Regulatory exemptions. 222.7300 Scope of subpart. Subpart 222.8—Equal Employment 222.7301 Prohibition on use of nonimmigrant aliens. Opportunity 222.7302 Exception. 222.804 Affirmative action programs. 222.7303 Contract clause. 222.804–2 Construction. AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- 222.805 Procedures. ter 1. 222.806 Inquiries. 222.807 Exemptions. SOURCE: 56 FR 36358, July 31, 1991, unless otherwise noted. Subpart 222.10—Service Contract Act of 1965, as Amended 222.001 Definition. Labor advisor, as used in this part, 222.1003 Applicability. 222.1003–1 General. means the departmental or agency 222.1003–7 Questions concerning applica- headquarters labor advisor. bility of the Act. 222.1008 Procedures for preparing and sub- Subpart 222.1—Basic Labor mitting Notice (SF 98/98a). 222.1008–2 Preparation of SF 98a. Policies 222.1008–7 Required time of submission of notice. 222.101 Labor relations. 222.1014 Delay of acquisition dates over 60 days. 222.101–1 General. (a) Contracting offices shall— Subpart 222.13—Special Disabled and (i) Obtain departmental approval be- Vietnam Era Veterans fore contacting a national office of a 222.1303 Waivers. labor organization, a Government 222.1304 Department of Labor notices and agency headquarters, or any other or- reports. ganization on a labor relations matter;
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(ii) Notify departmental head- (1) Location of dispute and name of quarters as required in departmental contractor or subcontractor involved; procedures when contacted by the na- (2) A description of the impact, in- tional office of any labor organization cluding how the specific items or serv- or Government agency headquarters; ices affect the specific programs or re- (iii) Obtain the approval of the agen- quirements; cy head on major policy decisions re- (3) Identity of alternate sources garding labor relations matters such as available to furnish the supply or serv- recommendations for plant seizure or ice within the time required; and injunctive action relating to potential (4) A description of any action taken or actual work stoppages; and to reduce the impact. (iv) Submit questions involving FAR (c) The head of the contracting activ- part 22 or other contractor labor rela- ity shall submit impact reports to the tions matters to the labor advisor. agency head when— (1) Specifically requested; or 222.101–3 Reporting labor disputes. (2) The department or agency con- The contract administration office siders the impact to be of sufficient ur- shall— gency to warrant the attention of the (1) Notify the labor advisor, the con- agency head. tracting officer, and the head of the (d) The labor advisor will expand the contracting activity when interference report submitted under paragraph (c) is likely; and of this subsection by addressing the (2) Disseminate information on labor following, as appropriate— disputes in accordance with depart- (1) Description of military program, mental procedures. project, or service. Identify item, [64 FR 28109, May 25, 1999] project, or service which will be or is being affected by the work stoppage. 222.101–3–70 Impact of labor disputes Describe its normal use and current on defense programs. functions in combat, combat support, (a) Each department and agency shall or deterrent operations. For compo- determine the degree of impact of po- nents or raw materials, identify the tential or actual labor disputes on its end item(s) for which they are used. own programs and requirements. In (2) Requirements and assets. Identify making these determinations, con- requirements and assets in appropriate sider, for example— detail in terms commonly used by the (1) Whether the dispute involves a DoD component. product, project (including construc- (i) For production programs, include tion), or service which must be ob- requirements for each using military tained in order to meet schedules for service. Where applicable, state in de- urgently needed military programs or tail production schedule, inventory ob- requirements; and jectives, assets against these objec- (2) Whether alternative sources of tives, and critical shortages. For spares supply for the product, project, or serv- and highly expendable items, such as ice are reasonably available to fulfill ground and air ammunition, show the requirement or program in time to usage (consumption) rates and assets maintain essential military schedules. in absolute terms and in terms of daily, (b) Each contracting activity in- weekly, or monthly supplies. For com- volved shall obtain and develop data ponents, include requirements for reflecting the impact of a labor dispute spares. on its requirements and programs. (ii) For projects, describe the poten- Upon determining the impact, the head tial adverse effects of a delay in meet- of the contracting activity shall sub- ing schedules, and its impact on the mit a report of findings and rec- national security. ommendations to the labor advisor. (iii) For services, describe how a loss This reporting requirement is assigned or interruption affects the ability to Report Control Symbol DD– support Defense operations in terms of AT&L(AR)1153. The report must be in traffic requirements, assets, testing narrative form and must include— programs, etc.
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(3) Possible measures to minimize strike (C) A description of the items to be impact. Describe— moved (nature of the item, amount, ap- (i) Capabilities, if any, to substitute proximate weight and cubic feet, item items or to use alternate sources and number, etc.); indicate the number of other facilities (D) Mode of transportation by which available and the relative capabilities the items are to be moved, if different of such facilities in meeting total re- than in the contract, and whether by quirements; Government or commercial bill of lad- (ii) How much time would be required ing; and to replace the loss of the facilities or (E) Destination of the material, if service affected by a work stoppage; different from that specified in the and contract. (iii) The feasibility of transferring (iii) With the assistance of the labor assets from theater to theater to re- advisor or the commander of the con- lieve deficits in some areas of urgency. tract administration office, attempt to (4) Conclusion. (i) Describe the impact have both the management and the on operations of a 15–30, 30–60, and a 60– labor representatives involved agree to 90 day work stoppage. shipment of the material by normal (ii) Project the degree of criticality means. of a program, project, or service result- (iv) If agreement for removal of the ing from a work stoppage on a calendar needed items cannot be reached fol- basis, indicating the increased impact, lowing the procedures in paragraphs (a) if any, as the stoppage lengthens. Criti- (i) through (iii) of this subsection, the cality is measured by the number of commander of the contract administra- days required for the work stoppage to tion office, after obtaining approval have an effect on operational capa- from the labor advisor, may seek the bility. This time must be stated in concurrence of the parties to the dis- terms of days. pute to permit movement of the mate- [56 FR 36358, July 31, 1991, as amended at 64 rial by military vehicles with military FR 28109, May 25, 1999; 65 FR 52952, Aug. 31, personnel. On receipt of such concur- 2000] rences, the commander may proceed to make necessary arrangements to move 222.101–4 Removal of items from con- the material. tractors’ facilities affected by work (v) If agreement for removal of the stoppages. needed items cannot be reached fol- (a) When a contractor is unable to de- lowing any of the procedures in para- liver urgent and critical items because graphs (a) (i) through (iv) of this sub- of a work stoppage at its facility, the section, refer the matter to the labor contracting officer, before removing advisor with the information required any items from the facility, shall— by 222.101–3–70(b). If the labor advisor is (i) Before initiating any action, con- unsuccessful in obtaining concurrence tact the labor advisor to obtain the of the parties for the movement of the opinion of the national office of the material and further action to obtain Federal Mediation and Conciliation the material is deemed necessary, refer Service or other mediation agency re- the matter to the agency head. Upon garding the effect movement of the review and verification that the items items would have on labor negotia- are urgently or critically needed and tions. Normally removals will not be cannot be moved with the consent of made if they will adversely affect labor the parties, the agency head, on a non- negotiations. delegable basis, may order removal of (ii) Upon the recommendation of the the items from the facility. labor advisor, provide a written request for removal of the material to the cog- 222.101–70 Acquisition of stevedoring nizant contract administration office. services during labor disputes. Include the following information in (a) Use the following procedures only the request— in the order listed when a labor dispute (A) Contract number; delays performance of a contract for (B) A statement as to the urgency stevedoring services which are ur- and criticality of the item needed; gently needed.
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(1) Attempt to have management and formance or cost of contracts of an- labor voluntarily agree to exempt mili- other office. In the absence of evidence tary supplies from the labor dispute by to the contrary, a contracting officer continuing the movement of such ma- may rely on a contractor’s statement terial. that approval of overtime premium pay (2) Divert vessels to alternate ports for one contract will not affect per- able to provide necessary stevedoring formance or payments under any other services. contract. (3) Consider contracting with reliable alternative sources of supply within Subpart 222.3—Contract Work the stevedoring industry. Hours and Safety Standards Act (4) Utilize civil service stevedores to perform the work performed by con- 222.302 Liquidated damages and over- tract stevedores. time pay. (5) Utilize military personnel to han- Upon receipt of notification of Con- dle the cargo which was being handled tract Work Hours and Safety Stand- by contract stevedores prior to the ards Act violations, the contracting of- labor dispute. ficer shall— (b) Notify the labor advisor when a (1) Immediately withhold such funds deviation from the procedures in para- as are available; graph (a) of this subsection is required. (2) Give the contractor written noti- 222.102 Federal and State labor re- fication of the withholding and a state- quirements. ment of the basis for the liquidated damages assessment. The written noti- 222.102–1 Policy. fication shall also inform the con- (1) The Department of Labor is re- tractor of its 60 days right to appeal sponsible for the administration and the assessment, through the con- enforcement of the Occupational Safe- tracting officer, to the agency official ty and Health Act (OSHA). Contracting responsible for acting on such appeals; officers shall— and (i) Direct all inquiries from contrac- (3) If funds available for withholding tors or contractor employees regarding are insufficient to cover liquidated the applicability or interpretation of damages, ask the contractor to pay the OSHA regulations to the Depart- voluntarily such funds as are necessary ment of Labor; and to cover the total liquidated damage (ii) Upon request, provide the address assessment. of the appropriate field office of the Oc- (d)(i) The assessment shall become cupational Safety and Health Adminis- the final administrative determination tration of the Department of Labor. of contractor liability for liquidated (2) Do not initiate any application for damages when— the suspension or relaxation of labor (A) The contractor fails to appeal to requirements without prior coordina- the contracting agency within 60 days tion with the labor advisor. from the date of the withholding of funds; 222.103 Overtime. (B) The department agency, following the contractor’s appeals, issues a final 222.103–4 Approvals. order which affirms the assessment of (a) The department/agency approving liquidated damages or waives damages official shall— of $500 or less; or (i) Obtain the concurrence of other (C) The Secretary of Labor takes appropriate approving officials; and final action on a recommendation of (ii) Seek agreement as to the con- the agency head to waive or adjust liq- tracts under which overtime premiums uidated damages in excess of $500. will be approved when— (ii) Upon final administrative deter- (A) Two or more contracting offices mination of the contractor’s liability have current contracts at the same for liquidated damages, the con- contractor facility; and tracting officer shall transmit withheld (B) The approval of overtime by one or collected funds determined to be contracting office will affect the per- owed the Government as liquidated
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damages to the servicing finance and maintenance or DBA painting/repairs, accounting officer for crediting to the apply the following rules— appropriate Government Treasury ac- (1) Individual service calls or orders count. The contracting officer shall re- which will require a total of 32 or more turn any excess withheld funds to the work-hours to perform shall be consid- contractor. ered to be repair work subject to the DBA. Subpart 222.4—Labor Standards (2) Individual service calls or orders for Contracts Involving Con- which will require less than 32 work- hours to perform shall be considered to struction be maintenance subject to the SCA. 222.402 Applicability. (3) Painting work of 200 square feet or more to be performed under an indi- 222.402–70 Installation support con- vidual service call or order shall be tracts. considered to be subject to the DBA re- (a) Apply both the Service Contract gardless of the total work-hours re- Act (SCA) and the Davis-Bacon Act quired. (DBA) to installation support contracts (e) The determination of labor stand- if— ards application shall be made at the (1) The contract is principally for time the solicitation is prepared in services but also requires a substantial those cases where requirements can be and segregable amount of construction, identified. Otherwise, the determina- alteration, renovation, painting, or re- tion shall be made at the time the serv- pair work; and ice call or order is placed against the (2) The aggregate dollar value of such contract. The service call or order shall construction work exceeds or is ex- identify the labor standards law and pected to exceed $2,000. contract wage determination which (b) SCA coverage under the contract. will apply to the work required. Contract installation support require- (f) Contracting officers may not ments, such as plant operation and in- avoid application of the DBA by split- stallation services (i.e., custodial, snow ting individual tasks between orders or contracts. removal, etc.) are subject to the SCA. Apply SCA clauses and minimum wage 222.403 Statutory and regulatory re- and fringe benefit requirements to all quirements. contract service calls or orders for such maintenance and support work. 222.403–4 Department of Labor regula- (c) DBA coverage under the contract. tions. Contract construction, alteration, ren- Direct all questions regarding De- ovation, painting, and repair require- partment of Labor regulations to the ments (i.e., roof shingling, building labor advisor. structural repair, paving repairs, etc.) are subject to the DBA. Apply DBA 222.404 Davis-Bacon Act wage deter- clauses and minimum wage require- minations. ments to all contract service calls or Not later than April 1 of each year, orders for construction, alteration, each department and agency shall fur- renovation, painting, or repairs to nish the Administrator, Wage and Hour buildings or other works. Division, with a general outline of its (d) Repairs versus maintenance. proposed construction program for the Some contract work may be character- coming fiscal year. The Department of ized as either DBA painting/repairs or Labor uses this information to deter- SCA maintenance. For example, re- mine where general wage determina- placing broken windows, spot painting, tion surveys will be conducted. or minor patching of a wall could be (1) Indicate by individual project of covered by either the DBA or the SCA. $500,000 or more— In those instances where a contract (i) The anticipated type of construc- service call or order requires construc- tion; tion trade skills (i.e., carpenter, (ii) The estimated dollar value; and plumber, painter, etc.), but it is un- (iii) The location in which the work clear whether the work required is SCA is to be performed (city, town, village,
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county, or other civil subdivision of (A) Indicate that the labor standards the state). requirements contained in the contract (2) The report format is contained in are based on the following statutes and Department of Labor All Agency Memo regulations— 144, December 27, 1985. (1) Davis-Bacon Act; (3) The report control number is 1671– (2) Contract Work Hours and Safety DOL–AN. Standards Act; (3) Copeland (Anti-Kickback) Act; 222.404–2 General requirements. (4) Parts 3 and 5 of the Secretary of (c)(5) Information concerning the Labor’s Regulations (parts 3 and 5, sub- proper application of wage rate sched- title A, title 29, CFR); and ules to the type or types of construc- (5) Executive Order 11246 (Equal Em- tion involved shall be obtained from ployment Opportunity); the appropriate district commander, (B) Call attention to the labor stand- Corps of Engineers, for the Army; from ards requirements in the contract the cognizant Naval Facilities Engi- which relate to— neering Command division for the (1) Employment of foremen, laborers, Navy; from the appropriate Regional mechanics, and others; Industrial Relations Office for the Air (2) Wages and fringe benefits pay- Force; and from the appropriate De- ments, payrolls, and statements; fense Contract Management District, (3) Differentiation between sub- ATTN: Industrial Labor Relations Of- contractors and suppliers; fice, for the Defense Logistics Agency. (4) Additional classifications; (5) Benefits to be realized by contrac- 222.404–3 Procedures for requesting tors and subcontractors in keeping wage determinations. complete work records; (b) Requests for project wage determina- (6) Penalties and sanctions for viola- tions. Submit requests for project wage tions of the labor standards provisions; determinations directly to the Depart- and ment of Labor. (7) The applicable provisions of FAR 22.403; and 222.404–11 Wage determination ap- (C) Ensure that the contractor sends peals. a copy of the preconstruction letter to Send a copy of a petition for review each subcontractor. filed by the contracting agency to the (2) Before construction begins, the labor advisor. contracting officer shall confer with the prime contractor and any subcon- 222.406 Administration and enforce- tractor designated by the prime to em- ment. phasize their labor standards obliga- tions under the contract when— 222.406–1 Policy. (A) The prime contractor has not per- (a) General. The program shall also formed previous Government con- include— tracts; (i) Training appropriate contract ad- (B) The prime contractor experienced ministration, labor relations, inspec- difficulty in complying with labor tion, and other labor standards en- standards requirements on previous forcement personnel in their respon- contracts; or sibilities; and (C) It is necessary to determine (ii) Periodic review of field enforce- whether the contractor and its sub- ment activities to ensure compliance contractors intend to pay any required with applicable regulations and in- fringe benefits in the manner specified structions. in the wage determination or to elect a (b) Preconstruction letters and con- different method of payment. If the ferences. (1) Promptly after award of latter, inform the contractor of the re- the contract, the contracting officer quirements of FAR 22.406–2. shall provide a preconstruction letter to the prime contractor. This letter 222.406–6 Payrolls and statements. should accomplish the following, as ap- (a) Submission. Contractors who do propriate— not use Department of Labor Form WH
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347 or its equivalent must submit a DD number of employees or former em- Form 879, Statement of Compliance, ployees, who represent all classifica- with each payroll report. tions, to develop information regarding the method and amount of payments, 222.406–8 Investigations. deductions, hours worked, and the type (a) The following guidance and proce- of work performed. dures apply to investigations con- (2) Interview employees at the job ducted by the contracting activity. (i) site if the interviews can be conducted Beginning of the investigation. The in- privately and in such a manner so as to vestigator shall— cause the least inconvenience to the (A) Inform the contractor of the in- employer and employees. vestigation in advance; (3) Former employees may be inter- (B) Verify the exact legal name of viewed elsewhere. the contractor, its address, and the (4) Do not disclose to any employee names and titles of its principal offi- any information, finding, recommenda- cers; tion, or conclusion relating to the in- (C) Outline the general scope of the vestigation except to the extent nec- investigation and that it includes ex- essary to obtain required information. amining pertinent records and inter- (5) Do not disclose any employee’s viewing employees; and statement to anyone, except a Govern- (D) Inform the contractor that the ment representative working on the names of the employees to be inter- case, without the employee’s written viewed will not be divulged to the con- permission. tractor; (6) Obtain information by mail when (E) When requested, provide a letter personal interviews are impractical. from the contracting officer verifying (7) Use SF 1445, Labor Standards the investigator’s authority. Interview, for employee interviews. (ii) Conduct of the investigation—(A) (8) Request employees to sign their Review of the contract. statements and to initial any changes. (1) Verify that all required labor (9) Provide an evaluation of each em- standards and clauses and the wage de- ployee’s credibility. termination are included in the con- (D) Interview of foremen. Interview tract. foremen to obtain information con- (2) Review the following items in the cerning the contractor’s compliance contract file, if applicable— with the labor standards provisions (i) List of subcontractors; with respect to employees under the (ii) Payroll statements for the con- foreman’s supervision and the correct- tractor and subcontractors; ness of the foreman’s classification as a (iii) Approvals of additional classi- supervisory employee. All procedures fications; established for the conduct of em- (iv) Data regarding apprentices and ployee interviews, and the recording trainees as required by FAR 22.406–4; and use of information obtained, apply (v) Daily inspector’s report or other to foremen interviews. inspection reports; (E) Interview of the contractor. (1) (vi) Employee interview statements; Interview the contractor whenever the and investigation indicates the possibility (vii) SF 1413, Statement and Ac- of a violation. knowledgement. (2) Inform the contractor that— (B) Interview of the complainant. Inter- (i) The interview does not mean that view the complainant except when this a violation has been found or that a re- is impractical. The interview shall quirement for corrective action exists; cover all aspects of the complaint to and ensure that all pertinent information (ii) The purpose of the interview is to is obtained. Whenever an investigation obtain only such data as the contractor does not include an interview of the may desire to present in connection complainant, explain such omission in with the investigation. the investigator’s report. (3) Do not disclose the identity of any (C) Interview of employees and former individual who filed a complaint or was employees. (1) Interview a sufficient interviewed.
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(F) Review of contractor and subcon- (iii) Place comments or explanations tractor records. (1) Review contractor concerning the transcriptions on sepa- and subcontractor records such as rate memoranda or in the narrative re- basic time cards, books, cancelled pay- port. roll checks, fringe benefits, and pay- (iv) Determine whether the wage de- ment records. Compare them with sub- termination, any modifications of the mitted payrolls. When discrepancies determination, and any additional are found, include pertinent excerpts or classifications are posted as required. copies of the records in the investiga- (iii) Submission of the report of inves- tion report with a statement of the dis- tigation. The investigator shall submit crepancy and any explanation the in- a report of the investigation in accord- vestigator obtains. When wages include ance with agency procedures. Each re- contributions or anticipated costs for port shall include at least the— fringe payments requiring approval of (A) Basis for the investigation, in- the Secretary of Labor, examine the cluding the name of the complainant; contractor records to ensure such ap- (B) Names and addresses of prime proval has been obtained and that any contractors and subcontractors in- requirements specified in the approval volved, and names and titles of their have been met. (See FAR 22.406–2(a)(3)). principal officers; (2) Review contractor’s and sub- (C) Contract number, date, dollar contractor’s weekly payrolls and pay- value of prime contract, and date and roll statements for completeness and number of wage determination in- accuracy regarding the following— cluded in the contract; (i) Identification of employees, pay- (D) Description of the contract and roll amount, the contract, contractor, subcontract work involved; subcontractor, and payroll period; (E) Summary of the findings with re- (ii) Inclusion of only job classifica- spect to each of the items listed in tions and wage rates specified in the 222.406–8(a)(ii); contract specifications, or otherwise (F) Concluding statement con- established for the contract or sub- cerning— contract; (1) The types of violations, including (iii) Computation of daily and weekly the amount of kickbacks under the hours; Copeland Act, underpayments of basic (iv) Computation of time-and-one hourly rates and fringe benefits under half for work in excess of 40 hours per the Davis-Bacon Act, or underpay- week in accordance with FAR 22.406– ments and liquidated damages under 2(c); the Contract Work Hours and Safety (v) Gross weekly wages; Standards Act; (vi) Deductions; ( ) Whether violations are considered (vii) Computation of net weekly 2 wages paid to each employee; to be willful or due to the negligence of the contractor or its agent; (viii) Ratio of helpers, apprentices, and trainees to laborers and mechan- (3) The amount of funds withheld ics; from the contractor; and (ix) Apprenticeship and trainee reg- (4) Other violations found. istration and ratios; and (G) Exhibits indexed and appro- (x) Computation of fringe benefits priately tabbed, including copies of the payments. following, when applicable— (3) Transcribe the contractor’s (1) Complaint letter; records whenever they contain infor- (2) Contract wage determination; mation at variance with payrolls or (3) Preconstruction letter and memo- other submitted documents. randum of preconstruction conference; (i) Make the transcriptions in suffi- (4) Payrolls and statements indi- cient detail to permit them to be used cating violations; to check computations of restitution (5) Transcripts of pertinent records of and to determine amounts to be with- the contractor, and approvals of fringe held from the contractor. benefit payments; (ii) Follow the form used by the con- (6) Employee interview statements; tractor. (7) Foreman interview statements;
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(8) Statements of others interviewed, (1) Investigator’s report; including Government personnel; (2) Copy of the contractor’s written (9) Detailed computations showing rebuttal or a summary of the contrac- kickbacks, underpayments, and liq- tor’s oral rebuttal of the contracting uidated damages; officer’s findings; (10) Summary of all payments due to (3) Copies of correspondence between each employee or to a fund plan or pro- the contractor and contracting officer, gram, and liquidated damages; and including a statement of specific viola- (11) Receipts and cancelled checks. tions found, corrective action re- (c) Notification to the contractor. quested, and the contractor’s letter of (4)(A) Notify the contractor by cer- acceptance or rejection; tified mail of any finding that it is lia- (4) Evidence of the contractor’s pay- ble for liquidated damages under the ment of restitution or liquidated dam- Contract Work Hours and Safety ages. (Copies of receipts, canceled Standards Act (CWHSSA). The notifi- checks, or supplemental payrolls); and cation shall inform the contractor (5) Letter from the contractor re- that— questing relief from the liquidated (1) It has 60 days after receipt of the damage provisions of the CWHSSA. notice to appeal the assessment of liq- uidated damages; and 222.406–9 Withholding from or suspen- (2) The appeal must demonstrate ei- sion of contract payments. ther that the alleged violations did not (a) Withholding from contract pay- occur at all, occurred inadvertently ments. The contracting officer shall notwithstanding the exercise of due contact the labor advisor for assistance care, or the assessment was computed when payments due a contractor are improperly. not available to satisfy that contrac- (B) If an appeal is received, the con- tor’s liability for Davis-Bacon or tracting officer shall process the ap- CWHSSA wage underpayments or liq- peal in accordance with department or uidated damages. agency regulations. (c) Disposition of contract payments (d) Contracting officer’s report. (1) In withheld or suspended. accordance with agency procedures, (3) Limitation on forwarding or return- the contracting officer shall forward a ing funds. When disposition of withheld detailed enforcement report or sum- funds remains the final action nec- mary report in duplicate. These reports essary to close out a contract, the De- shall include at least the following— partment of Labor has given blanket (A) SF 1446, Labor Standards Inves- approval to forward withheld funds to tigation Summary Sheet; the Comptroller General pending com- (B) Contracting officer’s findings; pletion of an investigation or other ad- (C) Statement as to the disposition of ministrative proceedings. any contractor rebuttal to the find- (4) Liquidated damages. ings; (A) The agency head may adjust liq- (D) Statement as to whether the con- uidated damages of $500 or less when tractor has accepted the findings and the amount assessed is incorrect or has paid any restitution or liquidated waive the assessment when the viola- damages; tions— (E) Statement as to the disposition of (1) Were nonwillful or inadvertent; funds available; and (F) Recommendations as to disposi- (2) Occurred notwithstanding the ex- tion or further handling of the case ercise of due care by the contractor, its (when appropriate, include rec- subcontractor, or their agents. ommendations as to the reduction, (B) The agency head may recommend waiver, or assessment of liquidated to the Administrator, Wage and Hour damages, whether the contractor Division, that the liquidated damages should be debarred, and whether the over $500 be adjusted because the file should be referred for possible amount assessed is incorrect. The criminal prosecution); and agency head may also recommend the (G) When applicable the following ex- assessment be waived when the viola- hibits— tions—
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(1) Were nonwillful or inadvertent; 222.407 Contract clauses. and In contracts with a State or political (2) Occurred notwithstanding the ex- subdivision, use the contract clauses ercise of due care by the contractor, prescribed in FAR 22.407, but preface the subcontractor, or their agents. these clauses with the following— 222.406–10 Disposition of disputes con- The Contractor agrees to comply with the cerning construction contract labor requirements of the Contract Work Hours standards enforcement. and Safety Standards Act and to insert the (d) Forward the contracting officer’s following clauses in all subcontracts under findings and the contractor’s state- this contract with private persons or firms. ment through the labor advisor. Subpart 222.6—Walsh-Healey 222.406–13 Semiannual enforcement reports. Public Contracts Act Forward these reports through the 222.604 Exemptions. head of the contracting activity to the labor advisor within 15 days following 222.604–2 Regulatory exemptions. the end of the reporting period. These (b) Submit all applications for such reports shall not include information exemptions through contracting chan- from investigations conducted by the nels to the labor advisor. Department of Labor. These reports shall contain the following informa- [56 FR 36358, July 31, 1991, as amended at 65 FR 14398, Mar. 16, 2000] tion, as applicable, for construction work subject to the Davis-Bacon Act and the CWHSSA— Subpart 222.8—Equal Employment (1) Period covered; Opportunity (2) Number of prime contracts award- ed; 222.804 Affirmative action programs. (3) Total dollar amount of prime con- 222.804–2 Construction. tracts awarded; (4) Number of contractors/sub- (b) Contracting officers forward re- contractors against whom complaints quests for instructions directly to the were received; servicing Office of Federal Contract (5) Number of investigations con- Compliance Programs (OFCCP) re- ducted; gional office (see FAR 22.609). (6) Number of contractors/sub- 222.805 Procedures. contractors found in violation; (7) Amount of wage restitution found (a)(2) See FAR 22.609 for a list of due under— OFCCP regional offices. (i) Davis-Bacon Act (ii) CWHSSA; 222.806 Inquiries. (8) Number of employees due wage (b) Refer inquiries through the labor restitution under— advisor. (i) Davis-Bacon Act (ii) CWHSSA; 222.807 Exemptions. (9) Amount of liquidated damages as- (c) Submit the request for exemption sessed under the CWHSSA— with a justification through con- (i) Total amount tracting channels to the labor advisor (ii) Number of contracts involved; who will forward them to the agency (10) Number of employees and head. If the request is submitted under amount paid/withheld under— FAR 22.807(a)(1), the agency head shall (i) Davis-Bacon Act act on the request. If the exemption is (ii) CWHSSA granted, the agency head shall notify (iii) Copeland Act; and the Director, OFCCP of such action (11) Preconstruction activities— within 30 days. If the request is sub- (i) Number of compliance checks per- mitted under FAR 22.807(a)(2) or (b)(5), formed the agency head will forward it to the (ii) Preconstruction letters sent. Director, OFCCP for action.
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Subpart 222.10—Service Contract 222.1014 Delay of acquisition dates Act of 1965, as Amended over 60 days. Send update requests in writing di- 222.1003 Applicability. rectly to the Wage and Hour Division and provide a copy to the labor advisor. 222.1003–1 General. The update request shall— For contracts having a substantial (1) State that one or more dates on amount of construction, alteration, the original notice have been delayed renovation, painting, or repair work, more than 60 days; see 222.402–70. (2) List the new dates; and (3) Include a copy of the original no- 222.1003–7 Questions concerning ap- tice and SF 98a as enclosures. plicability of the Act. Contracting officers may contact the Subpart 222.13—Special Disabled labor advisor by telephone for informal and Vietnam Era Veterans advice. Submit requests for formal de- 222.1303 Waivers. terminations as to the Act’s applica- bility to the labor advisor in writing (c) The contracting officer shall sub- mit a waiver request through con- through appropriate channels. tracting channels to the labor advisor. 222.1008 Procedures for preparing and If the request is justified, the labor ad- submitting Notice (SF 98/98a). visor will endorse the request and for- ward it for action to— 222.1008–2 Preparation of SF 98a. (i) The agency head for waivers under FAR 22.1303(a); or (b)(1) The contracting officer shall (ii) The Secretary of Defense, with- secure the assistance of cognizant cus- out the power of redelegation, for waiv- tomer/technical personnel to ensure ers under FAR 22.1303(b). maximum use of the Service Contract Act Directory of Occupations (Direc- 222.1304 Department of Labor notices tory) and incorporation of all service and reports. employee classes (Directory and non- (b) As provided in Section 8117 of the directory) expected to be utilized. National Defense Appropriations Act (2)(A) When the statement of work for Fiscal Year 1998 (Pub. L. 105–56), no job title, for which there is a Directory funds made available in that Act may equivalent, differs from the Directory be obligated or expended to enter into job title, make a written cross-ref- or renew a contract with a contractor erence either directly on the SF 98a file that is subject to the reporting require- copy or on an attached sheet to the SF ments of 38 U.S.C. 4212(d) (i.e., the 98a file copy. VETS–100 report required by FAR (B) Include and note as such any clas- 52.222–37, Employment Reports on Dis- abled Veterans and Veterans of the sifications and minimum hourly wage Vietnam Era) but has not submitted rates conformed under any predecessor the most recent report required by 38 contract. Where a previously con- U.S.C. 4212(d) for 1997 or a subsequent formed classification is not included in year. the Directory, attach the job descrip- tion to the SF 98a. [63 FR 11851, Mar. 11, 1998]
222.1008–7 Required time of submis- 222.1306 Complaint procedures. sion of notice. The contracting officer shall— (d) Submit requests for immediate (1) Forward each complaint received as indicated in FAR 22.1306; and wage determination responses for (2) Notify the complainant of the re- emergency acquisitions through the ferral. The contractor in question shall labor advisor. If the request is justi- not be advised in any manner or for fied, the labor advisor will contact De- any reason of the complainant’s name, partment of Labor headquarters offi- the nature of the complaint, or the fact cials. that the complaint was received.
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222.1308 Contract clauses. (1) To construction and service con- (a)(1) Use of the clause at FAR 52.222– tracts to be performed in whole or in 35, Affirmative Action for Special Dis- part within a noncontiguous State; and abled and Vietnam Era Veterans, with (2) When the unemployment rate in its paragraph (c), Listing Openings, the noncontiguous State is in excess of also satisfies the requirement of 10 the national average rate of unemploy- U.S.C. 2410d. ment as determined by the Secretary of Labor. [58 FR 28466, May 13, 1993] 222.7001 Definition. Subpart 222.14—Employment of the Handicapped ‘‘Noncontiguous State,’’ as used in this subpart, means Alaska, Hawaii, 222.1403 Waivers. Puerto Rico, the Northern Mariana Is- lands, American Samoa, Guam, the (c) The contracting officer shall sub- mit a waiver request through con- U.S. Virgin Islands, Baker Island, tracting channels to the labor advisor. Howland Island, Jarvis Island, John- If the request is justified, the labor ad- ston Atoll, Kingman Reef, Midway Is- visor will endorse the request and for- lands, Navassa Island, Palmyra Atoll, ward it for action to— and Wake Island. (i) The agency head for waivers under [65 FR 50151, Aug. 17, 2000] FAR 22.1403(a). For the defense agen- cies, waivers must be approved by the 222.7002 General. Under Secretary of Defense for Acquisi- tion. A contractor awarded a contract sub- (ii) The Secretary of Defense, with- ject to this subpart must employ, for out the power of redelegation, for waiv- the purpose of performing that portion ers under FAR 22.1403(b). of the contract work within the non- contiguous State, individuals who are 222.1406 Complaint procedures. residents of that noncontiguous State The contracting officer shall— and who, in the case of any craft or (1) Forward each complaint received trade, possess or would be able to ac- as indicated in FAR 22.1406 (see FAR quire promptly the necessary skills to 22.609 for a listing of Department of perform this contract. Labor regional/area offices); and (2) Notify the complainant of such re- 222.7003 Waivers. ferral. The contractor in question shall The head of the agency may waive not be advised in any manner or for the requirements of 222.7002 on a case- any reason of the complainant’s name, by-case basis in the interest of national the nature of the complaint, or the fact security. that the complaint was received. [65 FR 50151, Aug. 17, 2000] Subpart 222.70—Restrictions on the Employment of Personnel 222.7004 Contract clause. for Work on Construction and Use the clause at 252.222–7000, Re- Service Contracts in Non- strictions on Employment of Per- contiguous States sonnel, in all solicitations and con- tracts subject to this subpart. Insert the name of the appropriate noncontig- SOURCE: 65 FR 14403, Mar. 16, 2000, unless otherwise noted. uous State in paragraph (a) of the clause. 222.7000 Scope of subpart. (a) This subpart implements Section Subpart 222.71—Right of First 8071 of the Fiscal Year 2000 Defense Ap- Refusal of Employment propriations Act, Public Law 106–79, and similar sections in subsequent De- SOURCE: 57 FR 52593, Nov. 4, 1992, unless fense Appropriations Acts. otherwise noted. (b) This subpart applies only—
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222.7100 Scope of subpart. ter, janitorial, or ordinary facility and equipment maintenance services to be This subpart prescribes policies and performed in Italy. procedures for use in acquisitions aris- ing from closure of military installa- (c) Use the clause at 252.222–7004, tions. Compliance with Spanish Social Secu- rity Laws and Regulations, in solicita- 222.7101 Policy. tions and contracts for services or con- struction to be performed in Spain. (a) DoD policy is to minimize the ad- verse impact on civil service employees [62 FR 34122, June 24, 1997] affected by the closure of military in- stallations. One means of imple- Subpart 222.73—Limitations Appli- menting this policy is to give employ- cable to Contracts Performed ees adversely affected by closure of a on Guam military installation the right of first refusal for jobs created by award of contracts arising from the closure ef- SOURCE: 64 FR 52672, Sept. 30, 1999, unless fort that the employee is qualified to otherwise noted. fill. 222.7300 Scope of subpart. (b) Closure efforts include the acqui- sitions for preparing the installation (a) This subpart implements— for closure (such as environmental res- (1) 10 U.S.C. 2864; and toration and utilities modification) (2) Section 390 of the National De- and maintaining the property after clo- fense Authorization Act for Fiscal Year sure (such as security and fire preven- 1998 (Public Law 105–85). tion services). (b) This subpart applies to— (1) Contracts for military construc- 222.7102 Contract clause. tion projects on Guam; and Use the clause at 252.222–7001, Right (2) Contracts for base operations sup- of First Refusal of Employment—Clo- port on Guam that— sure of Military Installations, in all so- (i) Are awarded as a result of a com- licitations and contracts arising from petition conducted under OMB Circular the closure of the military installation A–76; and where the contract will be performed. (ii) Are entered into or modified on or after November 18, 1997.
Subpart 222.72—Compliance with 222.7301 Prohibition on use of non- Labor Laws of Foreign Gov- immigrant aliens. ernments (a) Any alien who is issued a visa or 222.7200 Scope of subpart. otherwise provided nonimmigrant sta- tus under Section 101(a)(15)(H)(ii) of This subpart prescribes contract the Immigration and Nationality Act clauses, with respect to labor laws of (8 U.S.C. 1101(a)(15)(H)(ii)) is prohibited foreign governments, for use when con- from performing work under a contract tracting for services or construction for— within a foreign country. (1) A military construction project [62 FR 34122, June 24, 1997] on Guam; or (2) Base operations support on Guam. 222.7201 Contract clauses. (b) Lawfully admitted citizens of the (a) Use the clause at 252.222–7002, freely associated states of the Republic Compliance with Local Labor Laws of the Marshall Islands, the Federated (Overseas), in solicitations and con- States of Micronesia, or the Republic tracts for services or construction to of Palau are not subject to the prohibi- be performed outside the United tion in paragraph (a) of this section. States, its possessions, and Puerto Rico. 222.7302 Exception. (b) Use the clause at 252.222–7003, Per- The prohibition in 222.7301(a)(1) does mit from Italian Inspectorate of Labor, not apply to a military construction in solicitations and contracts for por- project if—
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(a) There is no acceptable offer in re- Subpart 223.72—Safeguarding Sensitive sponse to a solicitation for the project; Conventional Arms, Ammunition, and (b) The Secretary concerned makes a Explosives determination that the prohibition is a 223.7200 Definition. significant deterrent to obtaining of- 223.7201 Policy. fers on the project; and 223.7202 Preaward responsibilities. (c) Another solicitation is issued for 223.7203 Contract clause. the project. AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- ter 1. 222.7303 Contract clause. SOURCE: 56 FR 36365, July 31, 1991, unless Use the clause at 252.222–7005, Prohi- otherwise noted. bition on Use of Nonimmigrant Aliens- Guam, in solicitations and contracts Subpart 223.3—Hazardous Mate- subject to this subpart, except those rial Identification and Material issued in accordance with 222.7302. Safety Data PART 223—ENVIRONMENT, CON- 223.300 Scope of subpart. SERVATION, OCCUPATIONAL DoD procedures for use in acquisi- SAFETY, AND DRUG-FREE WORK- tions involving ammunition and explo- PLACE sives are in 223.370.
Subpart 223.3—Hazardous Material 223.302 General. Identification and Material Safety Data (b) Successful offerors are also re- quired to submit hazard warning labels 223.300 Scope of subpart. under the clause at 252.223–7001, Hazard 223.302 General. Warning Labels. 223.303 Contract clause. (e) The contracting officer shall also 223.370 Safety precautions for ammunition and explosives. provide hazard warning labels received 223.370–1 Scope. from apparent successful offerors to 223.370–2 Definition. the cognizant safety officer or other 223.370–3 Policy. designated official in order to facili- 223.370–4 Procedures. tate— 223.370–5 Contract clauses. (i) Inclusion of relevant data in the department/agency’s material safety Subpart 223.4—Use of Recovered Materials data sheet information system or label information system; and 223.405 Procedures. (ii) Other control, safety, or informa- tion purposes. Subpart 223.5—Drug-Free Workplace [56 FR 67215, Dec. 30, 1991] 223.570 Drug-free work force. 223.570–1 Definitions. 223.303 Contract clause. 223.570–2 Policy. Use the clause at 252.223–7001, Hazard 223.570–3 General. Warning Labels, in solicitations and 223.570–4 Contract clause. contracts which require submission of Subpart 223.8—Ozone-Depleting hazardous material data sheets (see Substances FAR 23.302(c)). [56 FR 67215, Dec. 30, 1991] 223.803 Policy. 223.370 Safety precautions for ammu- Subpart 223.70 [Reserved] nition and explosives. Subpart 223.71—Storage and Disposal of 223.370–1 Scope. Toxic and Hazardous Materials (a) This section applies to all acquisi- 223.7100 Policy. tions involving the use of ammunition 223.7101 Procedures. and explosives, including acquisitions 223.7102 Exceptions. for— 223.7103 Contract clause. (1) Development;
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(2) Testing; into contracts under which ammuni- (3) Research; tion and explosives are handled. The (4) Manufacturing; manual contains mandatory safety re- (5) Handling or loading; quirements for contractors. When work (6) Assembling; is to be performed on a Government- (7) Packaging; owned installation, the contracting of- (8) Storage; ficer may use the ammunition and ex- (9) Transportation; plosives regulation of the DoD compo- (10) Renovation; nent or installation as a substitute for, (11) Demilitarization; or supplement to, DoD Manual 4145.26– (12) Modification; M, as long as the contract cites these (13) Repair; regulations. (14) Disposal; (15) Inspection; or 223.370–4 Procedures. (16) Any other use, including acquisi- (a) Preaward phase—(1) Waiver of the tions requiring the use or the incorpo- mandatory requirements. (i) Before ei- ration of materials listed in paragraph ther omitting the clause at 252.223–7002, (b) of this subsection for initiation, Safety Precautions for Ammunition propulsion, or detonation as an inte- and Explosives, from solicitations and gral or component part of an explosive, contracts or waiving the mandatory re- an ammunition, or explosive end item quirements of the manual, obtain ap- or weapon system. proval of— (b) This section does not apply to ac- (A) The safety personnel responsible quisitions solely for— for ammunition and explosives safety; (1) Inert components containing no and explosives, propellants, or pyrotech- (B) The head of the contracting ac- nics; tivity. (2) Flammable liquids; (ii) If the contracting officer decides (3) Acids; to waive the mandatory requirements (4) Oxidizers; before award, the contracting officer (5) Powdered metals; or shall set forth in the solicitation, or in (6) Other materials having fire or ex- an amendment of the solicitation, the plosive characteristics. specific requirements to be waived. (iii) If the head of the contracting ac- 223.370–2 Definition. tivity declines to approve a request for Ammunition and explosives, as used in waiver, but the prospective contractor this section, is defined in the clause at agrees to take corrective action to 252.223–7002, Safety Precautions for bring the operation into compliance, Ammunition and Explosives. make the corrective action a part of the resulting contract. 223.370–3 Policy. (2) Transportation considerations—If (a) DoD policy is to ensure that its shipment of ammunition and explo- contractors take reasonable pre- sives is involved in the contract, ad- cautions in handling ammunition and dress in the schedule of the contract explosives so as to minimize the poten- the applicable Department of Transpor- tial for mishaps that could— tation or Military Traffic Management (1) Interrupt DoD operations; Command requirements and any other (2) Delay project or product comple- requirements for transportation, pack- tion dates; aging, marking, and labeling. (3) Adversely impact DoD mission (3) Disposition of excess—Include in- readiness, production base, or produc- structions within the contract con- tion capabilities; cerning final disposition of excess Gov- (4) Damage or destroy DoD property; ernment furnished material containing or ammunition and explosives, including (5) Cause injury to DoD personnel. defective or rejected supplies. (b) This policy is implemented by (4) Preaward survey—Before awarding DoD Manual 4145.26–M, DoD Contrac- any contract, including purchase or- tors’ Safety Manual for Ammunition ders, involving ammunition and explo- and Explosives, which is incorporated sives, obtain a preaward ammunition
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and explosives safety survey. If the (ii) If the preaward safety survey prospective contractor proposes sub- identified areas in which a subcon- contracting any ammunitions or explo- tractor was not complying with the sive work, include a review of the sub- manual, and the subcontractor was contractor’s facility in the preaward supposed to correct the deficiencies be- survey. fore start-up, the contracting officer (b) Postaward phase—(1) Contract ad- shall require a preoperations survey to ministration office responsibility. (i) The verify that the corrections were made. contract administration office is re- (iii) When postaward safety reviews sponsible for verifying that the safety by the Government uncover any safety requirements of the clause at 252.223– deficiencies in the subcontractor’s op- 7002, Safety Precautions for Ammuni- eration, the review team shall inform tion and Explosives, are being imple- mented in a manner that will reduce, the ACO cognizant of the subcon- to the maximum extent practicable, or tractor, who shall immediately notify eliminate the probability of a mishap the ACO cognizant of the prime con- occurring. tractor. The ACO cognizant of the (ii) The clause at 252.223–7002, Safety prime shall inform the prime con- Precautions for Ammunition and Ex- tractor of deficiencies requiring correc- plosives, requires the contractor to tion. The notifications shall be made submit to the administrative con- by the most expeditious means appro- tracting officer (ACO) any postaward priate to the circumstance. If a critical requests for a waiver of the contract safety deficiency poses an imminent safety standards, a site plan modifica- danger, the ACO cognizant of the prime tion, or a construction review. The shall make the notifications by the ACO shall review any request and most expeditious means available. make recommendations to the con- tracting officer. The contracting offi- [56 FR 36365, July 31, 1991, as amended at 59 FR 27671, May 27, 1994; 64 FR 51076, Sept. 21, cer shall make a decision after consid- 1999] ering recommendations of the ACO and safety personnel responsible for ammu- 223.370–5 Contract clauses. nition and explosive safety. (A) If the request arrives at the con- Use the clauses at 252.223–7002, Safety tracting office without evidence that Precautions for Ammunition and Ex- the ACO has seen it, immediately send plosives, and 252.223–7003, Change in it to the ACO for review and rec- Place of Performance—Ammunition ommendations. and Explosives, in all solicitations and (B) When the contracting officer has contracts for acquisition to which this made a determination approving or dis- section applies. approving the contractor’s request, send the determination to the ACO for Subpart 223.4—Use of Recovered transmission to the contractor. Materials (2) Subcontracts—(i) The clause at 252.223–7002, Safety Precautions for 223.405 Procedures. Ammunition and Explosives, requires the contractor to notify the con- (d) Departments and agencies must tracting officer when placing a sub- centrally collect information sub- contract for ammunition and explo- mitted in accordance with the clause sives. The contracting officer should at FAR 52.223–9 for reporting to the Of- coordinate with the safety personnel fice of the Deputy Under Secretary of and request supporting contract ad- Defense (Environmental Security). ministration in accordance with FAR [66 FR 49864, Oct. 1, 2001] 42.202(e). If the contracting officer be- lieves the nature of the subcontract work poses a potential danger to Gov- Subpart 223.5—Drug-Free ernment property, Government per- Workplace sonnel, production capability, or con- tract completion, request supporting SOURCE: 57 FR 32737, July 23, 1992, unless contract administration. otherwise noted.
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223.570 Drug-free work force. (2) When performance or partial per- formance will be outside the United 223.570–1 Definitions. States, its territories, and possessions, Employee in a sensitive position and il- unless the contracting officer deter- legal drugs, as used in this section, are mines such inclusion to be in the best defined in the clause at 252.223–7004, interest of the Government; or Drug-Free Work Force. (3) When the value of the acquisition is at or below the simplified acquisi- 223.570–2 Policy. tion threshold. DoD policy is to ensure that its con- tractors maintain a program for [57 FR 32737, July 23, 1992, as amended at 64 achieving a drug-free work force. FR 2598, Jan. 15, 1999] 223.570–3 General. Subpart 223.8—Ozone-Depleting (a) The use of illegal drugs is incon- Substances sistent with the law-abiding behavior expected of all citizens. Employees who 223.803 Policy. use illegal drugs tend to be less produc- Section 211.271, Elimination of use of tive, less reliable, and prone to greater class I ozone-depleting substances, absenteeism. The use of illegal drugs places restrictions on award or modi- by contractor employees results in the potential for increased cost, delay, and fication of DoD contracts requiring the risk in the performance of a Govern- use of class I ozone-depleting sub- ment contract. stances. These restrictions are in addi- (b) If a contractor’s employees use il- tion to any imposed by the Clean Air legal drugs at any time, it can— Act and apply after June 1, 1993, to all (1) Impair their ability to perform DoD contracts, regardless of place of tasks that are critical to proper con- performance. tract performance; [61 FR 50452, Sept. 26, 1996] (2) Increase the potential for acci- dents and for failures that can pose a serious threat to the national security, Subpart 223.70 [Reserved] health, and safety; (3) Cause less than the complete reli- Subpart 223.71—Storage and Dis- ability, stability, and good judgment posal of Toxic and Hazardous required of an individual who has ac- Materials cess to sensitive information; (4) Create the possibility of coercion, influence, and irresponsible action SOURCE: 58 FR 28466, May 13, 1993, unless under pressure that may post a serious otherwise noted. risk to national security, health, and safety. 223.7100 Policy. 10 U.S.C. 2692 prohibits storage or dis- 223.570–4 Contract clause. posal of non-DoD-owned toxic or haz- (a) Use the clause at 252.223–7004, ardous materials on DoD installations, Drug-Free Work Force, in all solicita- except as provided in 223.7102. DoD Di- tions and contracts— rective 6050.8, Storage and Disposal of (1) That involve access to classified Non-DoD-Owned Hazardous or Toxic information; or Materials on DoD Installations, imple- (2) When the contracting officer de- ments 10 U.S.C. 2692. termines that the clause is necessary for reasons of national security or for 223.7101 Procedures. the purpose of protecting the health or safety of those using or affected by the (a) If the contracting officer is uncer- product of, or performance of, the con- tain as to whether particular activities tract. are prohibited or fall under one of the (b) Do not use the clause in solicita- exceptions in 223.7102, the contracting tions and contracts— officer should seek advice from the (1) For commercial items; cognizant office of counsel.
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(b) When storage, treatment, or dis- to provide assistance and refuge for posal of non-DoD-owned toxic or haz- commercial carriers of such material ardous materials is authorized in ac- during a transportation emergency; cordance with this subpart, the con- (8) The storage of any material that tract or authorization should specify is not owned by DoD, if the Secretary the types, conditions, and quantities of of the military department concerned toxic or hazardous materials that may determines that the material is re- be temporarily stored, treated, or dis- quired or generated by a private person posed of in connection with the con- in connection with the authorized and tract or as a result of the authorized compatible use by that person of an in- commercial use of a DoD industrial- dustrial-type DoD facility; or type facility. (9) The treatment and disposal of any [60 FR 61597, Nov. 30, 1995] non-DoD-owned material if the Sec- retary of the military department con- 223.7102 Exceptions. cerned— (a) The prohibition of 10 U.S.C. 2692 (i) Determines that the material is does not apply to— required or generated by a private per- (1) The storage of strategic and crit- son in connection with the authorized ical materials in the National Defense and compatible commercial use by that Stockpile under an agreement for such person of an industrial-type facility of storage with the Administrator of Gen- that military department; and eral Services Administration; (ii) Enters into a contract with that (2) The temporary storage or disposal person that— of explosives in order to protect the public or to assist agencies responsible (A) Is consistent with the best inter- for Federal law enforcement in storing est of national defense and environ- or disposing of explosives when no al- mental security; and ternative solution is available, if such (B) Provides for that person’s contin- storage or disposal is made in accord- ued financial and environmental re- ance with an agreement between the sponsibility and liability with regard Secretary of Defense and the head of to the material. the Federal agency concerned; (b) The Secretary of Defense, where (3) The temporary storage or disposal DoD Directive 6050.8 applies, may grant of explosives in order to provide emer- exceptions to the prohibition of 10 gency lifesaving assistance to civil au- U.S.C. 2692 when essential to protect thorities; the health and safety of the public (4) The disposal of excess explosives from imminent danger. produced under a DoD contract, if the head of the military department con- [58 FR 28466, May 13, 1993, as amended at 60 cerned determines, in each case, that FR 13076, Mar. 10, 1995; 60 FR 61597, Nov. 30, an alternative feasible means of dis- 1995] posal is not available to the con- 223.7103 Contract clause. tractor, taking into consideration pub- lic safety, available resources of the (a) Use the clause at 252.223–7006, Pro- contractor, and national defense pro- hibition on Storage and Disposal of duction requirements; Toxic and Hazardous Materials, in all (5) The temporary storage of nuclear solicitations and contracts which re- materials or nonnuclear classified ma- quire, may require, or permit con- terials in accordance with an agree- tractor performance on a DoD installa- ment with the Secretary of Energy; tion. (6) The storage of materials that con- (b) Use the clause at 252.223–7006 with stitute military resources intended to its Alternate I, when the Secretary of be used during peacetime civil emer- the military department issues a deter- gencies in accordance with applicable mination under the exception at DoD regulations; 223.7102(a)(9). (7) The temporary storage of mate- rials of other Federal agencies in order [60 FR 13076, Mar. 10, 1995]
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Subpart 223.72—Safeguarding graph (b) of the clause based on infor- Sensitive Conventional Arms, mation provided by cognizant tech- Ammunition, and Explosives nical or requirements personnel. [61 FR 7743, Feb. 29, 1996; 61 FR 18195, Apr. 24, SOURCE: 61 FR 7743, Feb. 29, 1996, unless 1996] otherwise noted. PART 224—PROTECTION OF PRI- 223.7200 Definition. VACY AND FREEDOM OF INFOR- ‘‘Arms, ammunition, and explosives MATION (AA&E),’’ as used in this subpart, means those items within the scope Subpart 224.1—Protection of Individual (chapter 1, paragraph B) of DoD 5100.76– Privacy M, Physical Security of Sensitive Con- ventional Arms, Ammunition, and Ex- Sec. plosives. 224.102 General. 224.103 Procedures. 223.7201 Policy. Subpart 224.2—Freedom of Information Act (a) The requirements of DoD 5100.76– M, Physical Security of Sensitive Con- 224.203 Policy. ventional Arms, Ammunition, and Ex- AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- plosives, shall be applied to contracts ter 1. when— (1) AA&E will be provided to the con- SOURCE: 56 FR 36367, July 31, 1991, unless tractor or subcontractor as Govern- otherwise noted. ment-furnished property; or (2) The principal development, pro- Subpart 224.1—Protection of duction, manufacture, or purchase of Individual Privacy AA&E is for DoD use. (b) The requirements of DoD 5100.76– 224.102 General. M need not be applied to contracts The Act does not apply to— when— (1) Systems of records the contractor (1) The AA&E to be acquired under maintains on its employees; or the contract is a commercial item (2) The records generated by a State within the meaning of FAR 2.101; or or private educational organization (2) The contract will be performed in under a contract with the Government a Government-owned contractor-oper- to provide training, when the records ated ammunition production facility. (admission forms, grade reports) are However, if subcontracts issued under similar to and commingled with those such a contract will meet the criteria maintained on other students. of paragraph (a) of this section, the re- quirements of DoD 5100.76–M shall 224.103 Procedures. apply. (b)(2) DoD rules and regulations are contained in DoDD 5400.11, Department 223.7202 Preaward responsibilities. of Defense Privacy Program, and DoD When an acquisition involves AA&E, 5400.11–R, Department of Defense Pri- technical or requirements personnel vacy Program. shall specify in the purchase request— (a) That AA&E is involved; and Subpart 224.2—Freedom of (b) Which physical security require- ments of DoD 5100.76–M apply. Information Act
223.7203 Contract clause. 224.203 Policy. Use the clause at 252.223–7007, Safe- (a) DoD implementation is in DoDD guarding Sensitive Conventional Arms, 5400.7, DoD Freedom of Information Ammunition, and Explosives, in all so- Act Program, and DoD 5400.7–R, DoD licitations and contracts to which DoD Freedom of Information Act Program. 5100.76–M applies, in accordance with [56 FR 36367, July 31, 1991. Redesignated at 62 the policy at 223.7201. Complete para- FR 34122, June 24, 1997]
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PART 225—FOREIGN ACQUISITION 225.802–70 Contracts for performance outside the United States and Canada. 225.802–71 End user certificates. Sec. 225.870 Contracting with Canadian contrac- 225.000 Scope of part. tors. 225.001 General. 225.870–1 General. 225.003 Definitions. 225.870–2 Solicitation of Canadian contrac- tors. Subpart 225.1—Buy American Act— 225.870–3 Submission of offers. Supplies 225.870–4 Contracting procedures. 225.870–5 Contract administration. 225.103 Exceptions. 225.870–6 Termination procedures. 225.104 Nonavailable articles. 225.870–7 Acceptance of Canadian supplies. 225.170 Acquisition from or through other 225.870–8 Industrial security. Government agencies. 225.871 North Atlantic Treaty Organization 225.171 Solicitations. (NATO) cooperative projects. 225.871–1 Scope. Subpart 225.2—Buy American Act— 225.871–2 Definitions. Construction Materials 225.871–3 General. 225.871–4 Statutory waivers. 225.202 Exceptions. 225.871–5 Directed subcontracting. 225.206 Noncompliance. 225.871–6 Disposal of property. 225.871–7 Congressional notification. Subpart 225.3—Balance of Payments 225.872 Contracting with qualifying country Program sources. 225.872–1 General. 225.302 Policy. 225.872–2 Applicability. 225.304 Procedures. 225.872–3 Solicitation procedures. 225.872–4 Evaluation of offers. Subpart 225.4—Trade Agreements 225.872–5 Contract administration. 225.872–6 Audit. 225.401 Exceptions. 225.872–7 Industrial security for qualifying 225.401–70 Products subject to trade agree- countries. ment acts. 225.872–8 Subcontracting with qualifying 225.402 General. country sources. 225.403 Trade Agreements Act. 225.873 Waiver of United Kingdom commer- 225.408 Procedures. cial exploitation levies. 225.873–1 Policy. Subpart 225.5—Evaluating Foreign Offers— 225.873–2 Procedures. Supply Contracts 225.873–3 Contract clause.
225.502 Application. Subpart 225.9—Customs and Duties 225.504 Evaluation examples. 225.901 Policy. Subpart 225.7—Prohibited Sources 225.902 Procedures. 225.903 Exempted supplies. 225.701 Restrictions. 225.770 Secondary Arab boycott of Israel. Subpart 225.10—Additional Foreign 225.770–1 Restriction. Acquisition Regulations 225.770–2 Procedures. 225.770–3 Exceptions. 225.1070 Clause deviations in overseas con- 225.770–4 Waivers. tracts. 225.770–5 Solicitation provision and con- tract clause. Subpart 225.11—Solicitation Provisions and 225.771 Prohibition on acquisition from the Contract Clauses People’s Republic of China. 225.771–1 Definition. 225.1101 Acquisition of supplies. 225.771–2 Legal authority. 225.1103 Other provisions and clauses. 225.771–3 Prohibition on contract award. 225.771–4 Procedures. Subpart 225.70—Authorization Acts, Appro- 225.771–5 Solicitation provision. priations Acts, and Other Statutory Re- strictions on Foreign Acquisition Subpart 225.8—Other International Agreements and Coordination 225.7000 Scope of subpart. 225.7001 Definitions. 225.801 General. 225.7002–1 Restrictions. 225.802 Procedures. 225.7002–2 Exceptions.
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225.7002–3 Contract clauses. 225.7020–4 Contract clause. 225.7003 Restriction on overseas military 225.7021 Restriction on aircraft fuel cells. construction. 225.7021–1 Restriction. 225.7004 Restriction on overseas architect- 225.7021–2 Waiver. engineer services. 225.7021–3 Contract clause. 225.7005 Waiver of certain restrictions. 225.7022 Restrictions on totally enclosed 225.7006 Restrictions on construction or re- lifeboat survival systems. pair of vessels in foreign shipyards. 225.7022–1 Restrictions. 225.7007 Restriction on acquisition of for- 225.7022–2 Exceptions. eign buses. 225.7022–3 Waiver. 225.7007–1 Restriction. 225.7022–4 Contract clause. 225.7007–2 Applicability. 225.7023 Restriction on supercomputers. 225.7007–3 Exceptions. 225.7023–1 Restriction. 225.7007–4 Waiver. 225.7023–2 Waiver. 225.7008 Restriction on research and devel- 225.7023–3 Contract clause. opment. 225.7009 [Reserved] Subpart 225.71—Other Restrictions on 225.7010 Restriction on certain chemical Foreign Acquisition weapons antidote. 225.7010–1 Restriction. 225.7100 Scope of subpart. 225.7010–2 Exception. 225.7101 Definitions. 225.7010–3 Waiver. 225.7102 Forgings. 225.7011 Restriction on Ballistic Missile De- 225.7102–1 Policy. fense research, development, test, and 225.7102–2 Exceptions. 225.7102–3 Waiver. evaluation. 225.7102–4 Contract clause. 225.7011–1 Definitions. 225.7103 Polyacrylonitrile (PAN) carbon 225.7011–2 Restriction. fiber. 225.7011–3 Exceptions. 225.7103–1 Policy. 225.7011–4 Procedures. 225.7103–2 Waivers. 225.7011–5 Solicitation provision. 225.7103–3 Contract clause. 225.7012 Restrictions on anchor and mooring chain. Subpart 225.72—Reporting Contract 225.7012–1 Restrictions. 225.7012–2 Waiver. Performance Outside the United States 225.7012–3 Contract clauses. 225.7200 Scope of subpart. 225.7013—225.7014 [Reserved] 225.7201 Exception. 225.7015 Restriction on night vision image 225.7202 Distribution of reports. intensifier tubes and devices. 225.7203 Contract clause. 225.7015–1 Restriction. 225.7015–2 Exception. Subpart 225.73—Acquisitions for Foreign 225.7015–3 Contract clause. Military Sales 225.7016 Restriction on air circuit breakers for naval vessels. 225.7300 Scope of subpart. 225.7016–1 Restriction. 225.7301 General. 225.7016–2 Exceptions. 225.7302 Procedures. 225.7016–3 Waiver. 225.7303 Pricing acquisitions for FMS. 225.7016–4 Contract clause. 225.7303–1 Contractor sales to other foreign 225.7017 Restriction on carbon, alloy, and customers. armor steel plate. 225.7303–2 Cost of doing business with a for- 225.7017–1 Restriction. eign government or an international or- 225.7017–2 Exceptions. ganization. 225.7017–3 Waiver. 225.7303–3 Government-to-government 225.7017–4 Contract clause. agreements. 225.7018 Restriction on four ton dolly jacks. 225.7303–4 Contingent fees. 225.7018–1 Restriction. 225.7303–5 Acquisitions wholly paid for from 225.7018–2 Waiver. nonrepayable funds. 225.7018–3 Contract clause. 225.7304 Source selection. 225.7019 Restrictions on ball and roller bear- 225.7305 Limitation of liability. ings. 225.7306 Exercise of options for FMS. 225.7019–1 Restrictions. 225.7307 Offset arrangements. 225.7019–2 Exceptions. 225.7308 Contract clauses. 225.7019–3 Waiver. 225.7019–4 Contract clause. Subpart 225.74—Antiterrorism/Force Pro- 225.7020 Restriction on vessel propellers. tection Policy for Defense Contractors 225.7020–1 Restriction. Outside the United States 225.7020–2 Exceptions. 225.7020–3 Waiver. 225.7400 Scope of subpart.
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225.7401 General. uct, or a U.S. made end product, pur- 225.7402 Contract clause. chase of the foreign end product may AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- be prohibited (see FAR 25.403(c) and ter 1. 225.403(c). SOURCE: 56 FR 36367, July 31, 1991, unless (4) Contractors controlled by terrorist otherwise noted. nations. (i) Determine whether the contractor 225.000 Scope of part. is controlled by a terrorist nation. This part also provides policy and (ii) If the contractor is controlled by procedures for— a terrorist nation, comply with 209.104– (1) Purchasing foreign defense sup- 1(g). plies, services, and construction mate- (5) Buy American Act and Balance of rials; Payments Program. See the evaluation (2) Foreign military sale acquisi- procedures in subpart 225.5. tions; [65 FR 19850, Apr. 13, 2000] (3) Coordinating acquisitions involv- ing work to be performed in foreign 225.003 Definitions. countries; (4) Cooperative programs. As used in this part— (1) ‘‘Caribbean Basin country end 225.001 General. product’’ includes petroleum or any To apply the policies and procedures product derived from petroleum. of this part, analyze and evaluate of- (2) ‘‘Defense equipment’’ means any fers of foreign end products generally equipment, item of supply, component, as follows: or end product purchased by the DoD. (1) Statutory or policy restrictions. (3) ‘‘Domestic concern’’ means a con- (i) Determine whether the product is cern incorporated in the United States restricted by— or an unincorporated concern having (A) Defense authorization or appro- its principal place of business in the priations acts (see subpart 225.70); or United States. (B) DoD policy (see subpart 225.71 and (4) ‘‘Domestic end product’’ has the FAR 6.302–3). meaning given in the clauses at 252.225– (ii) Where an exception to or waiver 7001, Buy American Act and Balance of of a restriction would result in award Payments Program; 252.225–7007, Buy of a foreign end product, apply the poli- American Act—Trade Agreements— cies and procedures of the Buy Amer- Balance of Payments Program; and ican Act or the Balance of Payments 252.225–7036, Buy American Act—North Program, and, if applicable the trade American Free Trade Agreement Im- agreements. plementation Act—Balance of Pay- (2) Memoranda of understanding or ments Program, instead of the meaning other international agreements. in FAR 25.003. (i) Determine whether the offered (5) ‘‘Eligible product’’ means, instead product is the product of one of the of the definition at FAR 25.003, a des- countries (qualifying country), listed ignated, NAFTA, or Caribbean Basin in 225.872–1. country end product in the categories (ii) If the product is the product of a listed in 225.401–70. qualifying country, evaluate the offer (6) ‘‘Foreign concern’’ means any under subpart 225.5 and 225.872–4. concern other than a domestic concern. (3) Trade agreements. (7) ‘‘Nondesignated country end prod- (i) Determine whether the product is uct’’ means any end product which is covered by the Trade Agreements Act not a U.S. made end product or a des- or the North American Free Trade ignated country end product. Agreement Implementation Act (see (8) ‘‘Nonqualifying country’’ means a subpart 225.4). country other than the United States (ii) If the product is an eligible prod- or a qualifying country. uct under subpart 225.4,evaluate the (9) ‘‘Nonqualifying country end prod- offer under subpart 225.5. uct’’ means an end product which is (iii) If the product is not an eligible neither a domestic nor qualifying coun- product, a qualifying country end prod- try end product.
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(10) ‘‘Nonqualifying country offer’’ exception where the purposes of the means an offer of a nonqualifying coun- Buy American Act are not served, or in try end products, including the price of order to meet a need set forth in 10 transportation to destination. U.S.C. 2533. For example, a public in- (11) ‘‘Qualifying country’ is a term terest exception may be appropriate— used to describe certain countries with (1) If accepting the low domestic memoranda of understanding or inter- offer will involve substantial foreign national agreements with the United expenditures, or accepting the low for- States. These countries are listed in eign offer will involve substantial do- 225.872–1. mestic expenditures; (12) ‘‘Qualifying country component’’ (2) To ensure access to advanced and ‘‘qualifying country end product’’ state-of-the-art commercial tech- are defined in the clauses at 252.225– nology; or 7001, Buy American Act and Balance of (3) To maintain the same source of Payments Program; 252.225–7007. Buy supply for spare and replacement parts Americn Act—Trade Agreements—Bal- (also see paragraph (b)(iii)(B) of this ance of Payments Program; and section)— 252.225–7036, Buy American Act—North (i) For an end item that qualifies as American Free Trade Agreement Im- an American good; or plementation Act—Balance of Pay- (ii) In order not to impair ments Program. ‘‘Qualifying country intergration of the military and end product’’ is also defined in the commerical industrial base. clause at 252.225–7021, Trade Agree- (B) A determination whether to grant ments. a public interest exception shall be (13) ‘‘Qualifying country offer’’ made after consideration of the factors means an offer of a qualifying country in 10 U.S.C. 2533— end product, including the price of (1) At a level above the contracting transportation to destination. officer for acquisitions valued at less (14) ‘‘Source’’ when restricted by than $100,000; such words as foreign, domestic, quali- (2) By the head of the contracting ac- fying country, etc., refers to the actual tivity for acquisitions valued at manufacturer or producer of the end $100,000 or more but less than $1,000,000; product or component. or [65 FR 19850, Apr. 13, 2000] (3) By the agency head for acquisi- tions valued at $1,000,000 or more. Subpart 225.1—Buy American (b)(i) A determination that an arti- Act—Supplies cle, material, or supply is not reason- ably available is required where no do-
SOURCE: 65 FR 19850, Apr. 13, 2000, unless mestic offer is received or when domes- otherwise noted. tic offers are insufficient to meet the requirement and award is to be made 225.103 Exceptions. on a nonqualifying country end prod- (a)(1)(A) Specific public interest ex- uct. ceptions for DoD for certain countries (ii) Except as provided in FAR are in 225.872. 25.103(b)(3), the determination must be (B) The Under Secretary of Defense approved— (Acquisition, Technology, and Logis- (A) At a level above the contracting tics) has determined that, for procure- officer, if the acquisition is estimated ments subject to the Trade Agreements not to exceed $25,000; Act, it is inconsistent with the public (B) By the chief of the contracting of- interest to apply the Buy American ficer if the acquisition is estimated not Act to information technology prod- to exceed $250,000; ucts in Federal Supply Group 70 or 74 (C) By the head of the contracting ac- that are substantially transformed in tivity (HCA) or immediate deputy if the United States. the acquisition is estimated not to ex- (ii)(A) Normally, use the evaluation ceed $2 million; or procedures in subpart 225.5, but con- (D) By the head of the agency, or des- sider recommending a public interest ignee at a level no lower than an HCA,
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if the acquisition is estimated to ex- 225.170 Acquisition from or through ceed $2 million. other Government agencies. (iii) A determination as to whether Contracting activities must apply an article, material, or supply is rea- the evaluation procedures in subpart sonably available is not required for— 225.5 when using Federal supply sched- (A) End products or components list- ules. ed in 225.104(a)(iii) or FAR 25.104(a); (B) Acquisitions for spare/replace- 225.171 Solicitations. ment parts when the acquisition is re- (a) For oral solicitations, inform pro- stricted to the original manufacturer spective vendors that only domestic or supplier; or and qualifying country end products (C) Acquisition of foreign drugs by are acceptable, except nonqualifying the Defense Supply Center, Philadel- country end products are acceptable phia, when the Chief of the Technical if— Operations Division, Directorate of (1) The items are excepted either on a Medical Materiel, determines that only blanket or an individual basis; or the requested foreign drug will fulfill (2) The price of the nonqualifying the requirements. country end product is the low offer (iv) Under coordinated acquisition under the evaluation procedures in sub- (see Subpart 208.70), the determination part 225.5. is the responsibility of the requiring (b) When only domestic end products department when the requiring depart- are acceptable, the solicitation must ment specifies acquisition of a foreign make a statement to that effect. end product. (c) The cost of a domestic end prod- uct is unreasonable if it is not the low Subpart 225.2—Buy American evaluated offer when evaluated under Act—Construction Materials Subpart 225.5. 225.202 Exceptions. [65 FR 19850, Apr. 13, 2000, as amended at 65 (a)(2) A nonavailability determina- FR 39705, June 27, 2000] tion is not required for construction materials listed in FAR 25.104(a) or in 225.104 Nonavailable articles. 225.104(a)(iii). For other materials, a (a)(i) DoD has determined that the nonavailability determination must be articles, materials, and supplies listed approved at the levels specified in in FAR 25.104(a) and in paragraph 225.103(b)(ii). Use the estimated value (a)(iii) of this section, when purchased of the construction materials to deter- as end items or components, are not mine the approval level. mined, produced, or manufactured in the United States in sufficient and rea- [65 FR 19851, Apr. 13, 2000] sonably available commercial quan- 225.206 Noncompliance. tities of a satisfactory quality. Regard these items or components as being of (c)(4) Prepare any report of non- domestic origin when incorporated in— compliance in accordance with the pro- (A) An end product or construction cedures at 209.406–3 or 209.407–3. material manufactured in the United [64 FR 62986, Nov. 18, 1999] States; or (B) A qualifying country end product Subpart 225.3—Balance of or construction material. (For con- Payments Program struction material, see FAR Subpart 25.2.) (ii) Scrap is domestic in origin if gen- SOURCE: 65 FR 19851, Apr. 13, 2000, unless otherwise noted. erated in, collected in, and prepared for processing in the United States. 225.302 Policy. (iii)(A) Aluminum clad steel wire. (1) DoD implements the Balance of (B) Sperm oil. Payments Program using evaluation
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factors similar to those which imple- ADVANCED RESEARCH PROJECTS ment the Buy American Act. The Bal- AGENCY ance of Payments Program restric- Director, Contracts Management Office tions— (i) Apply to acquisitions for foreign DEFENSE INFORMATION SYSTEMS military sales; AGENCY (ii) Do not apply to services, except Director services which primarily involve the acquisition of supplies; DEFENSE LOGISTICS AGENCY (iii) Do not apply to qualifying coun- Executive Director, Procurement try end products; (iv) Do not apply to articles, mate- NATIONAL IMAGERY AND MAPPING AGENCY rials, or supplies produced or manufac- tured in Panama when purchased by Deputy Director for Acquisition, Installa- and for the use of U.S. forces in Pan- tions, and Logistics ama; and DEPARTMENT OF DEFENSE EDUCATION (v) For acquisitions subject to the ACTIVITY Trade Agreements Act, do not apply to information technology products in Director Federal Supply Group 70 or 74 that are (ii) The authority to make the deter- substantially transformed in the minations referred to in paragraph United States. (2)(i) of this section may be redelegated (2)(i) Before solicitation, the deter- below the levels specified in that para- minations required by FAR 25.303(b) graph for acquisitions estimated at may be made by the following individ- 500,000 or less in foreign cost. uals or their immediate deputies: (3)(i) This authority is not intended for use in making repetitive supply ac- ARMY quisitions or acquisitions of total an- Deputy Chief of Staff for Research, Develop- nual supply requirements of items ment and Acquisition, Headquarters, U.S. available in the United States but not Army Material Command available within the time required. Commander in Chief, U.S. Army Europe and DCSLOG, U.S. Army, Europe (ii) DoD has determined that require- Commander Eighth U.S. Army and Chief of ments for the items on the lists at FAR Staff, Eighth U.S. Army 25.104(a) and at 225.104(a)(iii) can only Commander, Corps of Engineers Command be filled by a foreign end product. Commander, U.S. Army, Japan (4) DoD has determined the following Commander, U.S. Army Medical Research items can only be acquired or per- and Development Command formed in the country concerned: Commander, U.S. Army Forces Command Commander, U.S. Army, South (i) Maintenance and repair of, and ac- quisition of spare parts for, foreign- NAVY manufactured vehicles, equipment, ma- Commander-in-Chief, U.S. Naval Forces, Eu- chinery, and systems; provided, in the rope case of spare parts, the acquisition is Commander, U.S. Naval Forces, Japan restricted to the original manufacturer Commander, U.S. Naval Forces, Philippines or its supplier in accordance with DoD Commander-in-Chief, U.S. Atlantic Fleet standardization policy (see DoD Direc- Commander-in-Chief, U.S. Pacific Fleet Commander, Military Sealift Command tive 4120.3, Defense Standardization Commandant, U.S. Marine Corps and Specification Program). Commander, Naval Facilities Engineering (ii) Industrial gases. Command (iii) Brand drugs specified by the De- Commanding General, III Marine Amphib- fense Medical Materiel Board. ious Force (iv) Bulk construction materials: AIR FORCE sand, gravel, and other soil materials, stone, concrete masonry units, and Commander, U.S. Air Forces in Europe fired brick. Commander, Pacific Air Forces Commander, Air Mobility Command (v) Overhaul and repair of vessels, Commander, Air Force Materiel Command aircraft, and vehicles which— Commander, Air Combat Command (A) Are home-ported/stationed/de- Commander, Air Force Space Command ployed overseas; and
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(B) Cannot practically return to the Subpart 225.4—Trade Agreements United States or to U.S. operated re- pair facilities. SOURCE: 65 FR 19852, Apr. 13, 2000, unless (vi) Ready-mixed asphalt and port- otherwise noted. land cement concrete, provided that foreign cost is estimated at not more 225.401 Exceptions. than $100,000. (b)(i) If a department or agency con- (5)(i) Purchase of materials, equip- siders an individual acquisition of a ment, and supplies for construction product to be indispensable for na- overseas shall generally be the respon- tional security or national defense pur- sibility of the contractor performing poses and appropriate for exclusion the work; but where necessary to com- from the provisions of FAR subpart ply with foreign law, to avoid taxation, 25.4, it may submit a request with sup- or to obtain other advantages, consider porting rationale to the Director of De- direct purchase. Consider savings that fense Procurement (USD (AT&L) DP). may be obtained by exemptions from (ii) The following national security/ import and other taxes and, to the ex- national defense exceptions do not re- tent economical, take advantage of tax quire approval by USD (AT&L) DP: exemptions available under existing (A) Where purchase from foreign agreements. sources is restricted by the DoD annual (ii) When purchase of materials is the appropriations or authorization acts responsibility of the construction con- (see subpart 225.70) or by the establish- tractor, the evaluation differential is ment of required sources of supplies determined through the estimating and services under FAR part 8. process and applied before solicitation. (B) Where competition from foreign 225.304 Procedures. sources is restricted under the author- ity of FAR 6.302–3(a)(2)(i). Provide USD (a) Solicitation of offers. When solic- (AT&L) DP a copy of the justification iting orally, advise vendors that only for restricting competition (see FAR domestic and qualifying country end 6.303–1(d)). products are acceptable unless an ex- (C) Where competition from foreign ception applies or the price of a domes- sources is restricted under subpart tic end product is unreasonable. 225.71. (b) Evaluation of offers. (i) Use the evaluation procedures in 225.401–70 Products subject to trade subpart 225.5 instead of the evaluation agreement acts. procedures in FAR subpart 25.5. Treat- Foreign end products subject to the ment of duty may differ when delivery Trade Agreements Act and NAFTA are is overseas. those in the following Federal supply (A) Duty may not be applicable to groups (FSG). If a product is not in one nonqualifying country offers. of the listed groups, the Trade Agree- (B) The U.S. Government cannot ments Act and NAFTA do not apply. guarantee the exemption of duty for The definition of Caribbean Basin components or end products imported country end products in FAR 25.003 ex- into foreign countries. cludes those end products that are not (C) Foreign governments may impose eligible for duty-free treatment under duties, and offers including such duties 19 U.S.C. 2703(b). However, 225.003 ex- must be evaluated as offered. pands the definition of Caribbean Basin (ii) Where the evaluation procedures country end products to include petro- in Subpart 225.5 result in the award of leum and any product derived from pe- nonqualifying country end product, the troleum. The list of products has been acquisition of domestic end products is annotated to indicate those products unreasonable or inconsistent with pub- that are eligible for designated and lic interests. If no domestic end prod- NAFTA countries, but are not pres- uct offers are received, the determina- ently eligible for Caribbean Basin tion in FAR 25.303(b)(1) is not required. countries.
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FSG Category/Description FSG Category/Description
22 Railway equipment 74 Office machines, visible record equip- 23 Motor vehicles, trailers, and cycles ment and ADP equipment (except 2350 and buses under 2310) 75 Office supplies and devices 24 Tractors 76 Books, maps, and other publications 25 Vehicular equipment components 77 Musical instruments, phonographs, 26 Tires and tubes and home type radios 29 Engine accessories 78 Recreational and athletic equipment 30 Mechanical power transmission 79 Cleaning equipment and supplies equipment 80 Brushes, paints, sealers, and adhe- 32 Woodworking machinery and equip- sives ment 81 Containers, packaging and packing 34 Metalworking machinery supplies (except 8140) 35 Service and trade equipment 84 Luggage (only 8460)—See FAR 25.003 36 Special industry machinery (except for exclusion of luggage for Carib- 3690) bean Basin countries 37 Agricultural machinery and equip- 85 Toiletries ment 87 Agricultural supplies 38 Construction, mining, excavating, 88 Live animals and highway maintenance equip- 91 Fuels, oils, and waxes ment 93 Nonmetallic fabricated materials 39 Materials handling equipment 94 Nonmetallic crude materials 40 Rope, cable, chain and fittings 96 Ores, minerals, and their primary 41 Refrigeration and air conditioning products equipment 99 Miscellaneous 42 Fire fighting, rescue and safety equipment 43 Pumps and compressors 225.402 General. 44 Furnace, steam plant and drying (1) To estimate the value of the ac- equipment (except 4470) quisition, use the total estimated value 45 Plumbing, heating, and sanitation of end products subject to trade agree- equipment ment acts (see 225.401–70). 46 Water purification and sewage treat- ment equipment (2) See subpart 225.5 for evaluation of 47 Piping, tubing, hose, and fitting eligible products and U.S. made end 48 Valves products, except when acquiring infor- 49 Maintenance and repair shop equip- mation technology end products in ment (except 4920–4927, 4931–4935, Federal Supply Group 70 or 74 that are 4960) subject to the Trade Agreements Act. 53 Hardware and abrasives 54 Prefabricated structures and scaf- 225.403 Trade Agreements Act. folding 55 Lumber, millwork, plywood, and ve- (c)(i) Except as provided in para- neer graphs (c)(ii) and (iii) of this section, 56 Construction and building materials do not purchase nondesignated country 61 Electric wire, and power and dis- end products subject to the Trade tribution equipment Agreements Act unless they are 62 Lighting fixtures and lamps NAFTA, Caribbean Basin, or qualifying 63 Alarm and signal systems 65 Medical, dental, and veterinary country end products (see 225.872–1). equipment and supplies (ii) The prohibition in paragraph 66 Instruments and laboratory equip- (c)(i) of this section does not apply ment (except aircraft clocks under when the contracting officer deter- 6645)—See FAR 25.003 exclusion of mines that offers of U.S. made, quali- certain watches and watch parts for fying country, or eligible products certain Caribbean Basin countries from responsive, responsible offerors 67 Photographic equipment 68 Chemicals and chemical products are either— 69 Training aids and devices (A) Not received; or 70 General purpose ADPE, software, (B) Insufficient to fill the Govern- supplies, and support equipment ment’s requirements. 71 Furniture 72 Household and commercial fur- In these cases, accept all responsive, nishings and appliances responsible offers of U.S. made, quali- 73 Food preparation and serving equip- fying country, and eligible products be- ment fore accepting any other offers.
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(iii) National interest waivers under (including duty) of each nonqualifying section 302(b)(2) of the Trade Agree- country offer (see 225.504 (1)). ments Act are approved on a case-by- (i) Nonqualifying country offers in- case basis. Except as delegated in para- clude duty in the offered price. When graphs (c)(iii)(A) and (B) of this sec- applying the factor, evaluate based on tion, a request for a national interest the inclusion of duty, whether or not waiver shall include supporting ration- duty is to be exempted. If award is ale and be submitted under depart- made on the nonqualifying country ment/agency procedures to the Direc- offer and duty is to be exempted tor of Defense Procurement. through inclusion of the clause at FAR (A) The head of the contracting ac- 52.225–8, Duty-Free Entry, award at the tivity may approve a national interest offered price minus the amount of duty waiver for a purchase by an overseas identified in the provision at 252.225– purchasing activity of products critical 7003, Information for Duty-Free Entry to the support of U.S. forces stationed Evaluation (see 225.504(1)(ii)). abroad. The waiver must be supported (ii) When a nonqualifying country by a written statement from the re- offer includes more than one line item, quiring activity stating that the re- apply the 50 percent factor— quirement is critical for the support of (A) On an item-by-item basis; or U.S. forces stationed abroad. (B) On a group of items, if the solici- (B) The Commander, Defense Energy tation specifically provides for award Support Center, may approve national on a group basis. interest waivers for purchases of fuel (3) When application of the factor for use by U.S. forces overseas. would not result in the award of a do- § 225.408 Procedures. mestic end product, i.e., when no do- mestic offers are received (see (a)(4) The requirements of FAR 225.504(3)) or when a qualifying country 25.408(a)(4) do not apply to offshore ac- offer is lower than the domestic offer quisitions or to Defense Energy Sup- (see 225.504(2)), evaluate nonqualifying port Center post, camp, or station country offers without the 50 percent overseas requirements. factor. (i) If duty is to be exempted through Subpart 225.5—Evaluating Foreign inclusion of the clause at FAR 52.225–8, Offers—Supply Contracts Duty-Free Entry, evaluate the non- qualifying country offer exclusive of SOURCE: 65 FR 19853, Apr. 13, 2000, unless duty by reducing the offered price by otherwise noted. the amount of duty identified in the clause at 252.225–7003, Information for § 225.502 Application. Duty-Free Entry Evaluation (see Use the following procedures instead 225.504(2)(ii) and (3)(ii)). If award is of those in FAR 25.502. These proce- made on the nonqualifying country dures do not apply to acquisitions of offer, award at the offered price minus information technology end products duty. in Federal Supply Group 70 or 74 that (ii) If duty is not to be exempted, are subject to the Trade Agreements evaluate the nonqualifying country Act. offer inclusive of duty (see 225.504(2)(i) (1) Treat offers of eligible end prod- and (3)(i)). ucts under acquisitions subject to the (4) If these evaluation procedures re- Trade Agreements Act or NAFTA as if sult in a tie between a nonqualifying they were qualifying country offers. As country offer and a domestic offer, used in this section, the term ‘‘non- make award on the domestic offer. qualifying country offer’’ may also (5)(i) There are two tests that must apply to an offer that is not an eligible be met to determine whether a manu- offer under a trade agreement (see factured item is a domestic end prod- 225.504(4)). uct— (2) Except as provided in paragraph (A) The end product must have been (3) of this section, evaluate offers by manufactured in the United States; adding a 50 percent factor to the price and
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(B) The cost of its U.S. and quali- Domestic Offer ...... 8,500 fying country components must exceed Qualifying Country Offer ...... 7,800 50 percent of the cost of all of its com- Award on Nonqualifying Country Offer. ponents. This test is applied to end Since the qualifying country offer is products only, and not to individual lower than the domestic offer, the non- components. qualifying country offer is evaluated (ii) Because of the component test, without the factor. Since duty is not the definition of ‘‘domestic end produc- being exempted for nonqualifying tion’’ is more restrictive than the defi- country offers, the offer is evaluated nition for— and award is made at the price inclu- (A) ‘‘U.S. made end product’’ under sive of duty ($6,000). trade agreements; (ii) Alternate II: Duty Exempted: (B) ‘‘Domestically produced or manu- Nonqualifying Country Offer factured products’’ under small busi- (including $1,000 duty ...... $880,500 ness set-asides or small business res- Domestic Offer ...... 950,000 ervations; and Qualifying Country Offer ...... 880,000 (C) Products of small businesses under FAR Part 19. Award on Nonqualifying Country Offer. (iii) If an offer is for a ‘‘U.S. made Again, the qualifying country offer is end product,’’ ‘‘domestically produced lower than the domestic offer. The non- end product,’’ or the product of a small qualifying country offer is, therefore, business, but is not a ‘‘domestic end evaluated without the factor. Since product’’ as defined in the clause at duty is being exempted for nonquali- 252.225–7001, Buy American Act and fying country offers, the duty identi- Balance of Payments Program, treat fied by the offeror is subtracted from the offer as a nonqualifying country the offered price, which is evaluated offer (see 225.504(4)). and awarded at $879,500. (3) Example 3. 225.504 Evaluation examples. (i) Alternate I: Duty Not Exempted for Nonqualifying Country Offers: (1) Example 1. (i) Alternate I: Duty Not Exempted Nonqualifying Country Offer (including $150 duty ...... $9,600 for Nonqualifying Country Offers: Qualifying Country Offer ...... 9,500 Nonqualifying Country Offer (including $100 duty) ...... $6,000 Award on Qualifying Country Offer. Domestic Offer ...... 8,900 Since no domestic offers are received, Qualifying Country Offer ...... 9,100 the nonqualifying country offer is eval- uated without the evaluation factor. Award on Domestic Offer. The 50% Since duty is not being exempted and evaluation factor is added to the non- would be paid by the Government, the qualifying country offer, inclusive of nonqualifying country offer is evalu- duty, yielding an evaluated price of ated inclusive of duty. $9,000. (ii) Alternate II: Duty Exempted: (ii) Alternate II: Duty Exempted: Nonqualifying Country Offer Nonqualifying Country Offer (including $1,000 duty ...... $880,500 (including $,1000 duty ...... $600,000 Qualifying Country Offer ...... 880,000 Domestic Offer ...... 910,000 Qualifying Country Offer ...... 920,000 Award on Nonqualifying Country Offer. Since no domestic offers are received, Award on Nonqualifying Country Offer. the nonqualifying country offer is eval- The addition of the evaluation factor uated without the evaluation factor. yields an evaluated price of $900,000. Since duty is being exempted, duty is Since duty is being exempted for non- subtracted from the nonqualifying qualifying country offers, the duty is country offer, which is evaluated and subtracted from the offered price, awarded at $879,500. which is awarded at $599,000. (4) Example 4. (2) Example 2. (i) Alternate I: (i) Alternate I: Duty Not Exempted Offer of U.S. Made End Product for Nonqualifying Country Offers: which is not a Domestic Offer $800,000 Nonqualifying Country Offer Domestic Offer ...... 820,000 (including $100 duty ...... $6,000 Eligible Product ...... 830,000 172
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Award on Domestic End Product. U.S. 225.770–3 Exceptions. made end products which are not also The restriction does not apply to— domestic end products are evaluated the same as nonqualifying country end (a) Purchases at or below the sim- products. Adding the 50% evaluation plified acquisition threshold; factor yields an evaluated price of (b) Contracts for consumable sup- $1,200,000. plies, provisions, or services for the (ii) Alternate II: support of the United States or of al- Offer of U.S. Made End Product lied forces in a foreign country; or which is not a Domestic Offer $800,000 (c) Contracts pertaining to any Eligible Product ...... 820,000 equipment, technology, data, or serv- Domestic Offer ...... 830,000 ices for intelligence or classified pur- poses, or the acquisition or lease there- Award on U.S. Made End Product. Add- of in the interest of national security. ing the 50% evaluation factor to the U.S. made end product would not result [57 FR 53599, Nov. 12, 1992, as amended at 64 in the award of a domestic end product FR 2598, Jan. 15, 1999] since the eligible product, which is evaluated the same as a qualifying 225.770–4 Waivers. country offer, is lower. All offers are The Secretary of Defense may waive evaluated without the factor. the restriction on the basis of national security interests. Waiver requests Subpart 225.7—Prohibited Sources should be forwarded to the Director of Defense Procurement, Office of the 225.701 Restrictions. Under Secretary of Defense (Acquisi- See 209.104–1(g)(i) for restrictions on tion, Technology, and Logistics). contracting with firms owned or con- [57 FR 53599, Nov. 12, 1992, as amended at 60 trolled by foreign governments that FR 61597, Nov. 30, 1995; 65 FR 39705, June 27, support terrorism. See 209.104–1(g)(ii) 2000] for prohibition on award of a DoD con- tract under a national security pro- 225.770–5 Solicitation provision and gram to an entity controlled by a for- contract clause. eign government when access to pro- Unless an exception applies or a scribed information is required to per- waiver has been granted, use the clause form the contract. at 252.225–7031, Secondary Arab Boycott [59 FR 51133, Oct. 7, 1994. Redesignated at 65 of Israel, in all solicitations and con- FR 19854, Apr. 13, 2000] tracts. 225.770 Secondary Arab boycott of [57 FR 53599, Nov. 12, 1992] Israel. 225.771 Prohibition on acquisition 225.770–1 Restriction. from the People’s Republic of In accordance with 10 U.S.C. 2410i, do China. not enter into a prime contract with a foreign person, company, or entity un- 225.771–1 Definition. less it has certified that it does not ‘‘People’s Republic of China’’ is de- comply with the secondary Arab boy- fined in the provision at 252.225–7017, cott of Israel. Prohibition on Award to Companies [58 FR 28467, May 13, 1993] Owned by the People’s Republic of China. 225.770–2 Procedures. [64 FR 8728, Feb. 23, 1999] For contracts awarded to the Cana- dian Commercial Corporation (CCC), 225.771–2 Legal authority. the CCC will submit a certification This section implements Section 8120 from its proposed subcontractor with of the DoD Appropriations Act for fis- the other required precontractual ma- cal year 1999 (Pub. L. 105–262), as terial (see 225.870). amended by Section 144 of Title I, Divi- [57 FR 53599, Nov. 12, 1992] sion C, of the Omnibus Consolidated
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and Emergency Supplemental Appro- (ii) Performance of DoD contracts in priations Act, 1999 (Pub. L. 105–277). foreign countries. (2) This subpart covers acquisition [65 FR 6554, Feb. 10, 2000] policy and procedures based on treaties 225.771–3 Prohibition on contract and international agreements. award. (3) Information on specific agree- ments is available as follows— If using fiscal year 1999 funds made (i) Memoranda of understanding available by Title III (Procurement) or (MOU) and other international agree- Title IV (Research, Development, Test ments between the United States and and Evaluation) of Pub. L. 105–262, do the countries listed in 225.872–1 are not award or renew a contract with any maintained in the Office of the Deputy company in which the Director of De- Assistant Secretary of Defense (Pro- fense Procurement has determined that curement) (Foreign Contracting) (703) the People’s Republic of China or the 697–9351, DSN 227–9351). People’s Liberation Army of the Peo- (ii) Military Assistance Advisory ple’s Republic of China owns more than Groups, Naval Missions, and Joint U.S. 50 percent interest. Military Aid Groups normally have [65 FR 6554, Feb. 10, 2000] copies of the agreements applicable to the countries concerned. 225.771–4 Procedures. (iii) Copies of international agree- (a) Forward any information that the ments covering existing agreements in People’s Republic of China or the Peo- the United Kingdom of Great Britain ple’s Liberation Army of the People’s and Northern Ireland, Western Euro- Republic of China owns more than 50 pean countries, North Africa, and in percent interest in a company, through the Middle East are filed with the U.S. the head of the agency, to the Director, European Command (EUCOM). Defense Procurement, ATTN: OUSD (iv) Agreements with countries in the (AT&L) DP/FC, 3060 Defense Pentagon, Pacific and Far East are filed with the Washington, DC 20301–3060. U.S. Pacific Command (CINCPAC). (b) Upon verification of the informa- tion, the Director of Defense Procure- 225.802 Procedures. ment will ask the General Services Ad- 225.802–70 Contracts for performance ministration to list the company as in- outside the United States and Can- eligible on the List of Parties Excluded ada. from Federal Procurement and Non- (a) When a purchasing activity an- procurement Programs. ticipates placement of a contract for [65 FR 6554, Feb. 10, 2000] performance outside the United States or Canada and the contracting activity 225.771–5 Solicitation provision. is not under the command jurisdiction Use the provision at 252.225–7017, Pro- of a unified or specified command for hibition on Award to Companies Owned the country involved, the purchasing by the People’s Republic of China, in activity shall maintain liaison with solicitations for contracts that will use the cognizant contract administration fiscal year 1999 funds made available by office (CAO) during preaward negotia- Title III or IV of Pub. L. 105–262. tions and postaward administration. The CAO will provide pertinent infor- [65 FR 6554, Feb. 10, 2000] mation for contract negotiations, ef- fect appropriate coordination, and ob- Subpart 225.8—Other International tain required approvals for the per- Agreements and Coordination formance of the contract. (b) Where the acquisition requires 225.801 General. the performance of work in the foreign (1) Treaties and agreements between country by U.S. personnel or a third the U.S. and foreign governments af- country contractor, or where the ac- fect both— quisition will require logistics support (i) The way offers from foreign con- for contract employees, source inspec- tractors are evaluated in DoD acquisi- tion, or additional Government em- tions; and ployees—
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(1) The contracting activity must co- tering this situation, refer to DoD Di- ordinate with the cognizant contract rective 2040.3, End User Certificates, administration office before contract for guidance. award. (2) The contracting officer shall re- [57 FR 42630, Sept. 15, 1992] quest the following information from 225.870 Contracting with Canadian the contract administration office— contractors. (i) The applicability of any inter- national agreements to the acquisition; 225.870–1 General. (ii) Security requirements applicable to the area; (a) The Canadian Government guar- (iii) The standards of conduct re- antees to the U.S. Government all com- quired to be observed by the prospec- mitments, obligations, and covenants tive contractor and its employees, and of the Canadian Commercial Corpora- any action that may be taken in the tion under any contract or order issued event required standards are not main- to the Corporation by any contracting tained; activity of the U.S. Government. The (iv) Requirements for use of foreign Canadian Government has waived no- currencies, including applicability of tice of any change or modification U.S. holdings of excess foreign cur- which may be made, from time to time, rencies; in these commitments, obligations, or (v) Availability of logistics support covenants. for contractor employees; and (b) For production planning purposes, (vi) Information on taxes and duties Canada is considered to be part of the from which the Government may be ex- defense industrial base (see 225.870– empt. 2(b)). (3) The contracting officer shall fur- (c) Contracts with contractors lo- nish the following information to the cated in Canada should be awarded to contract administration office— and administered by the Canadian (i) A synopsis of the work to be per- Commercial Corporation, except for— formed and, if practical, a copy of the (1) Negotiated purchases for experi- solicitation; mental, developmental, or research (ii) Any contractor logistical support work unless the contract is for a desired in support of U.S. or foreign project under the Defense Development military sale requirements; Sharing Program; (iii) Contract performance period and (2) Purchases of unusual or compel- estimated contract value; ling urgency; (iv) Number and nationality of con- (3) Small purchases; or tractor employees and date of planned (4) Purchases made by DoD activities arrival of contractor personnel; located in Canada. (v) Contract security requirements; (d) The Canadian Commercial Cor- and poration, in placing contracts with Ca- (vi) Other pertinent information to nadian or U.S. concerns, uses provi- effect complete coordination and co- sions in the contracts that give DoD operation. the same production rights, data, and [56 FR 36367, July 31, 1991, as amended at 65 information that DoD would obtain in FR 52952, Aug. 31, 2000] contracts with U.S. concerns. (e) When contracts are placed with 225.802–71 End user certificates. the Canadian Commercial Corporation, Contracting officers considering the the government of Canada will provide purchase of an item from a foreign the following services, without charge source may encounter a request for the to DoD departments and agencies— signing of a certificate to the effect (1) Contract administration services, in- that the Armed Forces of the United cluding— States is the end user of the equip- (i) Cost and pricing analysis; ment, and that it will not be trans- (ii) Industrial security; ferred to third parties without author- (iii) Accountability and disposal of ization from the Government of the Government property; country selling the item. When encoun- (iv) Production expediting;
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(v) Compliance with Canadian labor and not through the Canadian Com- laws; mercial Corporation. (vi) Processing termination claims [56 FR 36367, July 31, 1991, as amended at 57 and disposing of termination inven- FR 42630, Sept. 15, 1992] tory; (vii) Customs documentation; 225.870–3 Submission of offers. (viii) Processing of disputes and ap- (a) As indicated in 225.870–4, the Ca- peals; and nadian Commercial Corporation is the (ix) Such other related contract ad- prime contractor. To indicate accept- ministration functions as may be re- ance of offers by individual Canadian quired with respect to the Canadian companies, the Canadian Commercial Commercial Corporation contract with Corporation issues a letter, supporting the Canadian supplier; and the Canadian offer, containing the fol- lowing information— (2) Audits. When required, audits are (1) Name of the Canadian offeror; performed by the Audit Service Group, (2) Confirmation and endorsement of Supply and Services Canada. Requests the offer in the name of the Canadian for audit on non-Canadian Commercial Commercial Corporation; and Corporation contracts should be routed (3) A statement that the Corporation through the cognizant contract man- shall subcontract 100 percent with the agement office of the Defense Contract offeror. Management Agency. (b) When a Canadian offer cannot be (3) Inspection. The Department of Na- processed through the Canadian Com- tional Defence (Canada) provides in- mercial Corporation in time to meet spection personnel, services, and facili- the bid-opening requirement or the ties, at no charge to DoD departments closing date for receipt of proposals, and agencies (see 225.870–7). the Corporation may permit Canadian firms to submit offers directly. The Ca- [56 FR 36367, July 31, 1991, as amended at 65 nadian Commercial Corporation’s en- FR 52952, Aug. 31, 2000] dorsement of award, however, must be received by the contracting officer be- 225.870–2 Solicitation of Canadian fore contract award. contractors. (c) All sealed bids will be submitted (a) Except for the acquisitions in by the Canadian Commercial Corpora- 225.870–1(c) (1) through (4), include Ca- tion in terms of U.S. currency. Do not nadian firms on bidders mailing lists adjust contracts awarded under sealed and comparable source lists only at the bidding for losses or gains from fluc- request of the Canadian Commercial tuation in exchange rates. Corporation. (d) Except for sealed bids, all offers (b) Include Canadian planned pro- and quotations submitted by the Cana- ducers under the Industrial Readiness dian Commercial Corporation are nor- Planning Program on bidders mailing mally in terms of Canadian currency. lists for their planned items (see FAR The Corporation may, at the time of 14.205–1). submitting an offer, elect to quote and receive payment in terms of U.S. cur- (c) Send solicitations directly to Ca- rency, in which case the contract nadian firms appearing on the appro- shall— priate bidders mailing lists. Send a (1) Provide for payment in U.S. cur- complete copy of the solicitation and a rency; and listing of Canadian firms solicited to (2) Shall not be adjusted for losses or the Canadian Commercial Corporation, gains from fluctuation in exchange 11th Floor, 50 O’Connor Street, Ottawa, rates. Ontario, K1A–0S6, Canada. (d) Furnish a solicitation, if re- 225.870–4 Contracting procedures. quested, to the Canadian Commercial (a) Award individual contracts cov- Corporation even if no Canadian firm is ering purchases from suppliers located solicited. in Canada, except for those in 225.870– (e) Handle small purchases (see FAR 1(c)(1) through (4), to the Canadian part 13) directly with Canadian firms Commercial Corporation, 11th Floor, 50
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O’Connor Street, Ontario, Canada, (i) Invoices are approved by the ASB/ K1A–0S6. DSS auditor on a provisional basis (b) Direct communication with the pending completion of the contract and Canadian supplier is authorized and en- final audit. couraged in connection with all tech- (ii) The ASB/DSS forwards these in- nical aspects of the contract; provided, voices, accompanied by SF 1034, Public that the Corporation’s approval is ob- Voucher, to the administrative con- tained on any matters involving tracting officer for further processing changes to the contract. and transmittal to the disbursing offi- (c) Identify in the contract, the type cer. of currency, i.e., U.S. or Canadian. Con- (iii) ASB/DSS furnishes periodic advi- tracts that provide for payment in Ca- sory audit reports directly to the ad- nadian currency shall quote the con- ministrative contracting officer. tract price in terms of Canadian dollars [56 FR 36367, July 31, 1991, as amended at 65 and shall identify the amount by the FR 52952, Aug. 31, 2000] initials CN; e.g., $1,647.23CN. The con- tract shall clearly indicate on its face 225.870–6 Termination procedures. the U.S./Canadian conversion rate at (a) The Canadian Commercial Cor- the time of award and the U.S. dollar poration will continue administering equivalent of the Canadian dollar con- contracts that may be terminated by tract amount. the U.S. contracting officer. (b) The Corporation will settle all Ca- [56 FR 36367, July 31, 1991, as amended at 57 nadian subcontracts in accordance FR 42630, Sept. 15, 1992] with the policies, practices, and proce- 225.870–5 Contract administration. dures of the Canadian Government. (c) The U.S. agency administering (a) Assign contract administration in the contract with the Canadian Com- accordance with part 242. When con- mercial Corporation shall provide any tract administration is performed in services required by the Canadian Com- Canada by the cognizant contract man- mercial Corporation, including disposal agement office of the Defense Contract of inventory, for settlement of any sub- Management Agency, the paying office contracts placed in the United States. to be named in the contract for dis- Settlement of such U.S. subcontracts is bursement of DoD funds (DoD Depart- made under this regulation. ment Code: 17-Navy; 21-Army; 57-Air Force; 97-all other DoD components), 225.870–7 Acceptance of Canadian sup- whether payment is in Canadian or plies. U.S. dollars, shall be: DFAS-Columbus (a) When contracts placed in Canada, Center, DFAS–CO/New Dominion Divi- either with the Canadian Commercial sion, PO Box 182041, Columbus, OH Corporation or directly with Canadian 43218–2041. suppliers, require contract quality as- (b) For cost-reimbursement type con- surance (CQA) and/or acceptance before tracts— shipment, CQA and/or acceptance, as (1) Audits on contracts with the Ca- applicable, will be performed by the nadian Commercial Corporation (CCC) Department of National Defence (Can- are automatically arranged by the De- ada), under paragraph 6 of the Letter of partment of Supplies and Services Agreement. (DSS), Canada. Audit reports are fur- (b) Signature by the Department of nished to DSS. Upon advice from DSS, National Defence (Canada) quality as- the CCC will certify the invoice and surance representative on the DoD in- forward it with SF 1034, Public Vouch- spection and acceptance form is satis- er, to the administrative contracting factory evidence of acceptance for pay- officer for further processing and trans- ment purposes. mittal to the disbursing office. (2) On contracts placed directly with 225.870–8 Industrial security. Canadian firms, the administrative Industrial security for Canada shall contracting officer requests audits be in accordance with the U.S.-Canada from the Audit Services Bureau (ASB), Industrial Security Agreement of Ottawa, Ontario, Canada. March 31, 1952, as amended.
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225.871 North Atlantic Treaty Organi- plicable laws relating to Government zation (NATO) cooperative projects. acquisition, unless a waiver is granted under 225.871–4. A waiver of certain 225.871–1 Scope. laws and regulations may be obtained (a) This section provides guidance on if— awarding contracts based on NATO co- (1) Required by the terms of a writ- operative projects. ten cooperative project agreement; (b) The authority is 22 U.S.C. 2767 and (2) It will significantly further NATO 10 U.S.C. 2350b. standardization, rationalization, and interoperability; and 225.871–2 Definitions. (3) It is approved by the appropriate (a) Cooperative project means a jointly DoD official. managed arrangement— (1) Described in a written agreement 225.871–4 Statutory waivers. between the parties; (2) Undertaken to further the objec- (a) The Deputy Secretary of Defense tives of standardization, rationaliza- may waive for contracts or sub- tion, and interoperability of the armed contracts placed outside the United forces of North Atlantic Treaty Organi- States any provision of law that spe- zation member countries; and cifically prescribes— (3) Providing for— (1) Procedures for the formation of (i) One or more of the other partici- contracts; pants to share with the United States (2) Terms and conditions for inclu- the cost of research and development, sion in contracts; testing, evaluation, or joint production (3) Requirements for, or preferences (including follow-on support) of certain to be given— defense articles; (i) To goods grown, produced, or man- (ii) Concurrent production in the ufactured in the United States or in United States and in another member U.S. Government-owned facilities; or country of a defense article jointly de- (ii) For services to be performed in veloped; or the United States; or (iii) Acquisition by the United States (4) Requirements regulating the per- of a defense article or defense service formance of contracts. from another member country. (b) There is no authority for waiver (b) means a coopera- Other participant of— tive project participant other than the (1) Any provision of the Arms Export United States. Control Act (22 U.S.C. 2751); 225.871–3 General. (2) Any provision of 10 U.S.C. 2304; (a) Cooperative project authority. (1) (3) The cargo preference laws of the Departments or agencies, that have au- United States, including the Military thority to do so, may enter into a coop- Cargo Preference Act of 1904 (10 U.S.C. erative project agreement with NATO 2631) and the Cargo Preference Act of or with one or more member countries 1954 (46 U.S.C. 1241(b)); or of that organization under DoD Direc- (4) Any of the financial management tive 5530.3, International Agreements. responsibilities administered by the (2) Under laws and regulations gov- Secretary of the Treasury. erning the negotiation and implemen- (c) If a waiver is contemplated under tation of cooperative project agree- the terms of a cooperative project ments, departments and agencies may agreement, forward a request for the enter into contracts, or incur other ob- waiver to the Deputy Secretary of De- ligations, on behalf of other partici- fense, through the Director of Defense pants without charge to any appropria- Procurement. The waiver request must tion or contract authorization. include a draft Determination and (3) Agency heads have authority to Findings for signature by the Deputy solicit and award contracts to imple- Secretary of Defense establishing that ment cooperative projects. the waiver is necessary to significantly (b) Contracts implementing coopera- further NATO standardization, ration- tive projects shall comply with all ap- alization, and interoperability.
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(d) The approval of the Deputy Sec- ignate a particular contractor or sub- retary of Defense must be obtained be- contractor should be used. fore committing to make waivers in an (b) Congressional notification is also agreement or an amendment to an required each time a statutory waiver agreement or contract. is exercised under 225.871–4, if such in- formation was not provided in the cer- 225.871–5 Directed subcontracting. tification to Congress before finalizing (a) The Director of Defense Procure- the cooperative agreement. Exercise of ment may authorize the direct place- the waiver means a contract award or ment of subcontracts with particular modification which provides for a stat- subcontractors. Directed subcon- utory exception. tracting is not authorized unless spe- cifically addressed in the cooperative [56 FR 36367, July 31, 1991, as amended at 60 FR 61597, Nov. 30, 1995; 65 FR 39705, June 27, project agreement. 2000] (b) In some instances, it may not be feasible to name specific subcontrac- 225.872 Contracting with qualifying tors at the time the agreement is con- country sources. cluded. The general provisions for work sharing at the prime and subcontractor 225.872–1 General. level, however, must be clearly delin- (a) As a result of memoranda of un- eated in the agreement. This will pro- derstanding and other international vide the authority necessary to imple- agreements, the DoD has determined it ment such arrangements during the ac- inconsistent with the public interest to quisition phase. apply restrictions of the Buy American (c) The agreement is the authority Act/Balance of Payments Program to necessary for including a contractual the acquisition of defense equipment provision requiring the prime con- which is mined, produced, or manufac- tractor to place certain subcontracts tured in any of the following countries with particular subcontractors. No sep- (referred to in this part as ‘‘qualifying arate justification and approval during countries’’)— the acquisition process is required. Australia 225.871–6 Disposal of property. Belgium Canada Dispose of property that is jointly ac- Denmark quired by the members of a cooperative Egypt project under the procedures estab- Federal Republic of Germany lished in the agreement or in a manner France consistent with the terms of the agree- Greece ment. Israel Italy 225.871–7 Congressional notification. Luxembourg (a) Congress must be notified when- Netherlands ever DoD determines to award a prime Norway contract or subcontract to a particular Portugal Spain contractor if the determination was Turkey not part of the certification made United Kingdom of Great Britain and under Section 27(f) of the Arms Export Northern Ireland Control Act before finalizing the coop- erative agreement. (b) Individual acquisitions for prod- (1) Departments and agencies must ucts of the following qualifying coun- provide a proposed Congressional no- tries may, on a purchase-by-purchase tice to the Director of Defense Procure- basis, be exempted from application of ment, Office of the Under Secretary of the Buy American Act and Balance of Defense (Acquisition, Technology, and Payments Program as inconsistent Logistics), in sufficient time to for- with the public interest— ward to Congress before the time of Austria contract award. Finland (2) The proposed notice shall include Sweden the reason why the authority to des- Switzerland
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(c) The determination in paragraph for the end product. Do not consider an (a) of this subsection does not limit the offer of a qualifying country end prod- authority of the cognizant Secretary to uct if the solicitation is identified for restrict acquisitions to domestic the exclusive participation of small sources or reject an otherwise accept- business firms. able offer from a qualifying country (c) Send solicitations directly to source in instances where considered qualifying country sources. Solicit Ca- necessary for national defense reasons. nadian sources through the Canadian [56 FR 36367, July 31, 1991, as amended at 57 Commercial Corporation in accordance FR 53599, Nov. 12, 1992; 60 FR 61597, Nov. 30, with 225.870. 1995; 62 FR 34122, June 24, 1997; 63 FR 5745, (d) Use international air mail if solic- Feb. 4, 1998] itation destinations are outside the United States and security classifica- 225.872–2 Applicability. tion permits such use (see FAR 14.202 (a) This section applies to all acquisi- and FAR 14.203). tions of supplies except where re- (e) If unusual technical or security stricted by— requirements preclude the acquisition (1) Provision of U.S. National Disclo- of otherwise acceptable defense equip- sure Policy (NDP), DOD Directive ment from qualifying country sources, 5230.11, Disclosure of Classified Mili- review the need for such requirements. tary Information to Foreign Govern- Do not impose unusual technical or se- ments and International Organizations; curity requirements solely for the pur- (2) U.S. defense mobilization base re- pose of precluding the acquisition of quirements purchased under the au- defense equipment from qualifying thority of FAR 6.302–3(a)(2)(i) except countries. for quantities in excess of that required (f) Do not automatically exclude to maintain the defense mobilization qualifying country sources from sub- base. This restriction does not apply to mitting offers because their supplies Canadian planned producers— have not been tested and evaluated by (i) Review individual solicitations to the department/agency. determine whether this restriction ap- (1) Consider the adequacy of quali- plies. fying country service testing on a case- (ii) Information concerning re- by-case basis. Departments or agencies stricted items may be obtained from that must limit solicitations to sources the Deputy Under Secretary of Defense whose items have been service tested (Industrial Affairs); and evaluated by the department/agen- (3) Other U.S. laws or regulations cy shall consider supplies from quali- (e.g., the annual defense appropriations fying country sources that have been act); and tested and accepted by the qualifying (4) U.S. industrial security require- country for service use. ments. (2) The department/agency may per- (b) This section does not apply to form a confirmatory test, if necessary. construction contracts. (3) Apply U.S. test and evaluation [56 FR 36367, July 31, 1991, as amended at 60 standards, policies, and procedures FR 61597, Nov. 30, 1995; 62 FR 34123, June 24, when the department/agency decides 1997; 65 FR 39705, June 27, 2000] that confirmatory tests of qualifying country end products are necessary. 225.872–3 Solicitation procedures. (4) Where it appears that these provi- (a) Include qualifying country sions might adversely delay service sources on bidders mailing lists and programs, obtain the concurrence of comparable source lists upon their re- the DoD Acquisition Executive, Under quest (see FAR 14.205). Secretary of Defense (Acquisition, (b) Except for items developed under Technology, and Logistics), before ex- the U.S./Canadian Development Shar- cluding the qualifying country source ing Program, use the criteria for solic- from consideration. iting and making awards under FAR (g) Permit industry representatives part 19 for small business concerns from a qualifying country to attend without regard to whether there are symposia, program briefings, prebid potential qualifying country sources conferences (see FAR 14.207 and
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15.201(c)), and similar meetings that ad- SERVICE OR AGENCY dress U.S. defense equipment needs and Exemption of the Buy American Act/Balance requirements. When practical, struc- of Payments Program ture these meetings to allow attend- ance by representatives of qualifying Determination and Findings country concerns. Upon the basis of the following findings [56 FR 36367, July 31, 1991, as amended at 60 and determination which I hereby make in FR 61597, Nov. 30, 1995; 63 FR 55052, Oct. 14, accordance with the provisions of FAR 1998; 65 FR 39705, June 27, 2000] 25.102, acquisition of (qualifying country— identify country) (describe item) may be made 225.872–4 Evaluation of offers. as provided below. (a) Qualifying country sources com- Findings peting for DoD requirements must be 1. The (contracting activity) proposes to pur- responsive to the terms and conditions chase under contract number, llllll, of DoD solicitations. mined, produced, or manufactured in (b) Evaluate offers of end products (country of origin). The total estimated cost from the qualifying country sources in of this acquisition is llllll. 225.872–1(a) without application of the 2. The United States Government and the 50 percent Buy American Act or Bal- Government of llllll have agreed to ance of Payments Program evaluation remove barriers to procurement at the prime and subcontract level for defense equipment factor, in accordance with 225.304 and produced in each other’s countries insofar as 225.502. laws and regulations permit. (c) Evaluate offers of end products 3. The agreement provides that competi- from the qualifying country sources in tive offers of (qualifying country) end prod- 225.872–1(b) without application of the ucts will be evaluated by the Department of 50 percent Buy American Act or Bal- Defense without imposing any price differen- ance of Payments Program evaluation tial under the Buy American Act or Balance factor. If the offer, as evaluated, is low of Payments Program and without taking applicable U.S. customs and duties into con- or otherwise eligible for award, the sideration so that (qualifying country) items contracting officer shall request an ex- may better compete for sales of defense emption of the Buy American Act/Bal- equipment to the Department of Defense. In ance of Payments Program as incon- addition, the Agreement stipulates that ac- sistent with the public interest, unless quisitions of (qualifying country) items must another exception such as the Trade fully satisfy Department of Defense require- Agreements Act applies. ments for performance, quality, and delivery (1) To obtain an exemption, process a and shall cost the Department of Defense no more than would comparable U.S. source or Determination and Findings for signa- other foreign source defense equipment eligi- ture— ble for award. (i) At a level above the contracting 4. To achieve the above objectives, the so- officer, for acquisitions of $25,000 or licitation contained the (title and number of less; the Buy American Act clause contained in the (ii) By the chief of the contracting of- contract). Offers were solicited from other fice, for acquisitions of $250,000 or less; sources and the offer received for (qualifying (iii) By the head of the contracting country end item) is found to be otherwise eli- gible for award. activity (HCA), for acquisitions of $2 million or less; or Determination (iv) By the head of the agency, or Pursuant to the Buy American Act and designee at a level no lower than an Balance of Payments Program, I hereby de- HCA, for acquisitions over $2 million. termine that it is inconsistent with the pub- (2) The Determination and Findings lic interest to apply the restrictions of the shall be substantially as follows for end Buy American Act or the Balance of Pay- items, or modified as necessary for ments Program to the proposed offer. components— llllllllllllllllllllllll
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(Date) tracting), ((703) 697–9351/2/3, DSN 227– [56 FR 36367, July 31, 1991, as amended at 57 9351/2/3). FR 42630, Sept. 15, 1992; 63 FR 11534, Mar. 9, (c) Handle requests for audits in 1998; 65 FR 39705, June 27, 2000] qualifying countries under 215.404–2(c). (1) Except for the United Kingdom 225.872–5 Contract administration. (UK), send the request to the adminis- (a) Arrangements exist with some trative contracting officer at the cog- qualifying countries to provide recip- nizant activity listed in Section 2B of rocal contract administration services. the Federal Directory of Contract Ad- Some arrangements are at no cost to ministration Services Components. either government. To determine Send the request for audit from the UK whether such an arrangement has been directly to their Ministry of Defence. negotiated and what contract adminis- (2) Send an advance copy of the re- tration functions are covered, contact quest to the focal point identified by the Deputy Director of Defense Pro- the Foreign Contracting Directorate, curement (Foreign Contracting), ((703) Office of the Director of Defense Pro- 697–9351, DSN 227–9351). curement. (b) When contract administration services are required on contracts to be [56 FR 36367, July 31, 1991, as amended at 60 performed in qualifying countries, di- FR 29498, June 5, 1995; 63 FR 55052, Oct. 14, rect the request to the cognizant activ- 1998; 64 FR 61028, Nov. 9, 1999] ity under DLAH 4105.4, section II, part 225.872–7 Industrial security for quali- 2 (DoD Directory of Contract Adminis- fying countries. tration Services Components). Con- tract administration services for DoD The required procedures for safe- subcontracts placed by qualifying guarding classified defense information country sources in the United States necessary for the performance of con- will be arranged by the cognizant ac- tracts awarded to qualifying country tivity under DLAH 4105.4, section II, sources are in the DoD Industrial Secu- part 2. rity Regulation DoD 5220.22–R (imple- (c) The contract administration ac- mented for the Army by AR 380–49; for tivity receiving a delegation or sec- the Navy by SECNAV Instruction ondary delegation shall review the del- 5510.1H; for the Air Force by AFI 31–601; egation to determine whether any por- for the Defense Information Systems tion of the delegation are covered by Agency by DCA Instruction 240–110–8; memoranda of understanding annexes, and for the National Imagery and Map- and delegate those functions to the ap- ping Agency by NIMA Instruction propriate organization in the quali- 5220.22). fying country’s government. (d) Information on quality assurance [56 FR 36367, July 31, 1991, as amended at 56 FR 67215, Dec. 30, 1991; 64 FR 51076, Sept. 21, delegations to foreign governments is 1999; 64 FR 61029, Nov. 9, 1999] in subpart 246.4, Government Contract Quality Assurance. 225.872–8 Subcontracting with quali- [56 FR 36367, July 31, 1991, as amended at 60 fying country sources. FR 29498, June 5, 1995] In reviewing contractor subcon- tracting procedures, the contracting 225.872–6 Audit. officer shall ensure that the prime con- (a) Memoranda of understanding with tract does not preclude qualifying some qualifying countries contain an- country sources from competing for nexes that provide for reciprocal ‘‘no- subcontracts, except when restricted cost’’ audits of contracts and sub- by national security interest reasons, contracts (pre- and post-award). mobilization base considerations, or (b) To determine if such an annex is applicable U.S. laws or regulations. applicable to a particular qualifying (See the clause at 252.225–7002, Quali- country, contact the Deputy Director fying Country Sources as Subcontrac- of Defense Procurement (Foreign Con- tors.)
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225.873 Waiver of United Kingdom Subpart 225.9—Customs and commercial exploitation levies. Duties 225.873–1 Policy. SOURCE: 65 FR 19855, Apr. 13, 2000, unless DoD and the Government of the otherwise noted. United Kingdom (U.K.) have agreed to waive U.K. commercial exploitation 225.901 Policy. levies and U.S. nonrecurring cost (1) Section XXII, Chapter 98, Sub- recoupment charges on a reciprocal chapter VIII, Item 9808.00.30 of the Har- basis. In order for U.K. levies to be monized Tariff Schedule of the United waived, they must be identified and a States authorizes duty-free importa- waiver must be requested before award tion of defense supplies. of the contract or subcontract under (2) 19 U.S.C. 1309 authorizes duty-free which the levies are charged. importation of certain supplies (not in- [57 FR 53599, Nov. 12, 1992] cluding equipment) for vessels or air- craft operated by the United States 225.873–2 Procedures. (see FAR 25.903(b)). (a) Waiver of U.K. levies must be ap- (3) Unless the supplies are entitled to proved by the Government of the U.K. duty-free treatment under a special When an offeror or contractor identi- category in the Harmonized Tariff fies a levy included in an offered or Schedule of the United States (e.g., the contract price, the contracting officer Caribbean Basin Economic Recovery shall provide written notification to Act or NAFTA), or unless the supplies the Defense Security Cooperation already have entered into the customs Agency, Attn: PSD–PMD, 1111 Jeffer- territory of the United States and duty son Davis Highway, Arlington, VA already has been paid, DoD will issue 22202–4306, telephone (703) 601–3864. The duty-free entry certificates for— Defense Security Cooperation Agency (i) Qualifying country supplies (end will request a waiver of the levy from products and components) on all de- the Government of the U.K. The notifi- fense contracts; cation shall include— (ii) Eligible products (end products (1) Name of the U.K. firm; but not components) on defense con- (2) Prime contract number; tracts subject to the Trade Agreement (3) Description of item for which Act or NAFTA; and waiver is being sought; (iii) Other foreign supplies, if there is (4) Quantity being acquired; and reasonable assurance that the adminis- (5) Amount of levy. trative and other costs of processing (b) Waiver may occur after contract and controlling the certificates will award. Where levies are waived before not exceed the amount of duty that contract award, the offer will be evalu- would be paid. ated without the levy. Where levies are identified but not waived before con- 225.902 Procedures. tract award, the offer will be evaluated (1) General. inclusive of the levies. (i) Preaward. (A) Unless duty was paid prior to sub- [57 FR 53599, Nov. 12, 1992, as amended at 64 FR 51076, Sept. 21, 1999] mission of the offer, an offer of domes- tic end products with no nonqualifying 225.873–3 Contract clause. country components, an offer of quali- fying country end products, or an offer Use the clause at 252.225–7032, Waiver of eligible products under the Trade of United Kingdom Levies, in all solici- Agreements Act or NAFTA, should not tations and contracts for supplies— include duty. (a) Where U.K. firms are expected to (B) Offers of U.S. made end products participate as offerors/prime contrac- with nonqualifying country compo- tors; or nents, and offers that are neither quali- (b) If a subcontract over $1 million fying country offers nor offers of eligi- with a U.K. firm is anticipated. ble products under a trade agreement, [57 FR 53599, Nov. 12, 1992] should contain applicable duty.
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(c) Exclude from the evaluation of or at destination in the United States, domestic end products, or information provided the contract states that the technology end products in Federal final price is exclusive of duty. Supply Group 70 or 74 in acquisitions (ii) Purchases of foreign supplies by a subject to the Trade Agreements Act, domestic prime contractor under a any duty for nonqualifying country cost-reimbursement type contract or components listed in the provision at by a cost-reimbursement type subcon- 252.225–7003, Information for Duty-Free tractor (where no fixed-price prime or Entry Evaluation, for which duty-free fixed-price subcontract intervenes be- entry will be granted. tween the purchaser and the Govern- (D) Except for acquisitions of infor- ment), whether title passes at point of mation technology end products in origin or at destination in the United Federal Supply Group 70 or 74 subject States. If a fixed-price prime or fixed- to the Trade Agreements Act, apply price subcontract intervenes, follow the evaluation procedures for the Buy the criteria stated in paragraph American Act in accordance with (a)(iii)(A)(1)(iii) of this section. 225.502. (iii) Purchases of foreign supplies by (ii) Award. Exclude duty from the a fixed-price domestic prime con- contract price for supplies (end prod- tractor, a fixed-price subcontractor, or ucts or components) that are to be ac- a cost-type subcontractor where a corded duty-free entry. If duty-free fixed-price prime contract or fixed- entry is granted to the successful offer- price subcontract intervenes, provided or in accordance with the clause at the fixed-price prime contract and, FAR 52.225–8, Duty-Free Entry, and the where applicable, fixed-price sub- clause at 252.225–7003, Information for contract prices are, or are amended to Duty-Free Entry Evaluation, request be, exclusive of duty; that the offeror provide the list of for- (2) For which the supplies so pur- eign supplies that are subject to such chased will be delivered to the Govern- duty-free entry, and list such supplies ment or incorporated in Government- in the contract clause at 252.225–7008, Supplies to be Accorded Duty-Free owned property or in an end product to Entry. be furnished to the Government, and for which duty will be paid if such sup- (iii) Postaward. (A) Issue duty-free entry certificates plies or any portion are used for other for all qualifying country supplies in than the performance of the Govern- accordance with the policy at ment contract or disposed of other 225.901(3)(i) and the clause at 252.225– than for the benefit of the Government 7009, Duty-Free Entry—Qualifying in accordance with the contract terms; Country Supplies (End Products and and Components); for all eligible products (3) For which such acquisition abroad subject to trade agreements in accord- is authorized by the terms of the con- ance with the policy at 225.901(3)(ii) and tract or subcontract or by the con- the clause at 252.225–7037, Duty-Free tracting officer. Entry—Eligible End Products; and for (B) Under a fixed-price contract, ne- other foreign supplies in accordance gotiate an equitable reduction in the with the policy at 225.901(3)(iii) on con- contract price if duty-free entry is tracts containing the clause at FAR granted for any nonqualifying country 52.225–8, Duty-Free Entry; or (following component not listed in the Schedule to the extent practicable the proce- as duty-free, even if contract award dures required by the clause at FAR was based on furnishing a domestic 52.225–8, Duty-Free Entry, and the component or a qualifying country clause at 252.225–7010, Duty-Free component. Entry—Additional Provisions) on other (2) Formal entry and release. contracts— (i) The administrative contracting (1) That fall within one of the fol- officer must— lowing categories: (A) Ensure that prime contractors (i) Direct purchases of foreign sup- are aware of and understand any Duty- plies under a DoD prime contract, Free Entry clause requirements. Con- whether title passes at point of origin tractors should understand that failure
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by them or their subcontractors to in- Foreign Supplier Name and Address: clude the data required by the clause Number of Subcontract/Purchase Order for will result in treatment of the ship- Foreign Supplies: ment as without benefit of free entry Total Dollar Value of the Subcontract for Foreign Supplies: under Section XXII, Chapter 98, Sub- Expiration Date of the Subcontract for chapter VIII, Item 9808.00.30 of the Har- Foreign Supplies: monized Tariff Schedule of the United CAO Activity Address Number: States. ACO Name and Telephone Number: (B) Upon receipt of the required no- ACO Code: tice of purchase of foreign supplies Signature: from the contractor or any tier subcon- Title: tractor— (E) If a contract modification results (1) Verify the duty-free entitlement in a change to any data verifying duty- of goods entering under the contract; free entitlement previously furnished, and forward a revised notification includ- (2) Review the prime contract to en- ing the changed data to DCM New sure that performance of the contract York. requires the foreign supplies (quantity (ii) The responsibility for issuing and price) identified in the notice. duty-free entry certificates for foreign (C) Upon receipt of notification from supplies purchased under a DoD con- the contractor that it is placing a for- tract or subcontract rests with the eign purchase that was not identified Customs Team, DCMDE–GNIC, DCM at the time of contract award— New York. Upon receipt of import doc- (1) Determine whether a reduction in umentation for incoming shipments the contract price is required under the from the contractor, its agent, or the clause at FAR 52.225–8, Duty-Free U.S. Customs Service, DCM New York Entry; will verify the duty-free entitlement (2) If so, make an equitable adjust- and execute the duty-free entry certifi- ment in the contract price, unless the cate. procuring contracting officer waives (iii) Upon arrival of foreign supplies this adjustment; at ports of entry, the consignee, gen- (3) Determine the price of the foreign erally the contractor or its agent (im- supplies exclusive of duty, and advise port broker) for shipments to other the contractor that that amount will than a military installation, will file be the maximum dollar value of sup- U.S. Customs Form 7501, 7501A, or 7506, plies for which duty-free entry certifi- with the District Director of Customs. cates will be issued. (3) Immediate entry and release. Impor- (D) Within 20 days after receiving the tations made in the name of a DoD notification of purchase of foreign sup- military facility or being shipped di- plies, forward the following informa- rectly to a military facility are enti- tion in the format indicated to the tled to release under the immediate de- Commander, DCM New York, ATTN: livery procedure. Customs Team, DCMDE–GNIC, 207 New (i) A DoD immediate delivery appli- York Avenue, Building 120, Staten Is- cation has been approved and is on file land, NY 10305–5013: at Customs Headquarters. We have received a contractor notifica- (ii) The application is for an indefi- tion of the purchase of foreign sup- nite period and is good for all Customs plies. I have verified that foreign sup- districts, areas, and ports. plies are required for the perform- [65 FR 19855, Apr. 13, 2000, as amended at 65 ance of the contract. If required, the FR 52952, Aug. 31, 2000] prime contract price has been or will be adjusted. 225.903 Exempted supplies. Prime Contractor Name and Address: (b)(i) The term ‘‘supplies’’— Prime Contractor CAGE Code: (A) Includes articles known as Prime Contract Number plus Delivery ‘‘stores,’’ such as food, medicines, and Order Number, if applicable: Total Dollar Value of the Prime Contract toiletries, as well as all consumable ar- or Delivery Order: ticles necessary and appropriate for the Expiration Date of the Prime Contract or propulsion, operation, and mainte- Delivery Order: nance of the vessel or aircraft, such as
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fuel, oil, gasoline, grease, paint, cleans- (2) Use the clause at 252.225–7001, Buy ing compounds, solvents, wiping rags, American Act and Balance of Pay- and polishes. ments Program, instead of the clause (B) Does not include portable articles at FAR 52.225–1, Buy American Act— necessary and appropriate for the navi- Balance of Payments Program—Sup- gation, operation, or maintenance of plies, in solicitations and contracts for vessel or aircraft and for the comfort supplies or services that require the and safety of the persons on board, furnishing of supplies. such as rope, bolts and nuts, bedding, (i) Do not use the clause if an excep- china and cutlery, which are included tion to the Buy American Act or Bal- in the term ‘‘equipment.’’ ance of Payments Program is known to (ii) The duty-free certificate shall be apply or if using the clause at 252.225– printed, stamped, or typed on the face 7007, Buy American Act—Trade Agree- of Customs Form 7501, or attached, and ments—Balance of Payments Program; shall be executed by a duly designated 252.225–7021, Trade Agreements; or officer or civilian official of the appro- 252.225–7036, Buy American Act—North priate department or agency in the fol- American Free Trade Agreement Im- lowing form: plementation Act—Balance of Pay- (Date) lllllllllllllllllll ments Program. I certify that the acquisition of this material (ii) The clause need not be used if constituted a purchase of supplies by the nonqualifying country end products are United States for vessels or aircraft oper- ineligible for award, including— ated by the United States, and is admis- (A) End products restricted to domes- sible free of duty pursuant to 19 U.S.C. tic or domestic and qualifying country 1309. sources under appropriations and au- (Name) llllllllllllllllll thorization act restrictions (see sub- (Title) lllllllllllllllllll part 225.70); (Organization lllllllllllllll (B) End products restricted to domes- tic or domestic and Canadian sources Subpart 225.10—Additional (see subpart 225.71); and Foreign Acquisition Regulations (C) End products restricted under the 225.1070 Clause deviations in overseas authority of FAR 6.302–3. contracts. (iii) The clause may be used if the contracting officer anticipates a waiv- See 201.403(2) for approval authority er of the restriction in paragraph for clause deviations in overseas con- (2)(ii)(A) or (B) of this section. tracts with governments of North At- lantic Treaty Organization (NATO) (3) Use the clause at 252.225–7002, countries or other allies or with United Qualifying Country Sources as Sub- Nations or NATO organizations. contractors, in solicitations and con- tracts that include one of the following [65 FR 19856, Apr. 13, 2000] clauses: (i) 252.225–7001, Buy American Act Subpart 225.11—Solicitation and Balance of Payments Program. Provisions and Contract Clauses (ii) 252.225–7007, Buy American Act— Trade Agreements—Balance of Pay- SOURCE: 65 FR 19856, Apr. 13, 2000, unless ments Program. otherwise noted. (iii) 252.225–7021, Trade Agreements. (iv) 252.225–7036, Buy American Act— 225.1101 Acquisition of supplies. North American Free Trade Agreement (1) Use the provision at 252.225–7000, Implementation Act—Balance of Pay- Buy American Act—Balance of Pay- ment Program. ments Program Certificate, instead of (4) Use the provision at 252.225–7003, the provision at FAR 52.225–2, Buy Information for Duty-Free Entry Eval- American Act—Balance of Payments uation, in solicitations that include Program Certificate. Use the provision the clause at FAR 52.225–8, Duty-Free in any solicitation that includes the Entry. Use the provision with its Alter- clause at 252.225–7001, Buy American nate I when the clause at 252.225–7021, Act and Balance of Payments Program. Trade Agreements, is used.
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(5) Use the provision at 252.225–7006, 252.225–7036, Buy American Act-North Buy American Act—Trade Agree- American Free Trade Agreement Im- ments—Balance of Payments Program plementation Act—Balance of Pay- Certificate, instead of the provision at ments Program. FAR 52.225–6, Trade Agreements Cer- (i) Use the basic provision when the tificate, in all solicitations that in- basic clause at 252.225–7036 is used. clude the clause at 252.225–7007, Buy (ii) Use the provision with its Alter- American Act—Trade Agreements— nate I when the clause at 252.225–7036 is Balance of Payments Program. used with its Alternate I. (6) Except as provided in paragraph (13) Use the clause at 252.225–7036, (11) of this section, use the clause at 252.225–7007, Buy American Act—Trade Buy American Act—North American Agreements—Balance of Payments Free Trade Agreement Implementation Program, instead of the clause at FAR Act—Balance of Payments Program, 52.225–5, Trade Agreements. The clause instead of the clause at FAR 52.225–3, need not be used where purchase from Buy American Act—North American foreign sources is restricted (see Free Trade Agreement—Israeli Trade 225.401(b)(ii)). The clause may be used Act—Balance of Payments Program. where the contracting officer antici- The clause need not be used where pur- pates a waiver of the restriction. chase from foreign sources is restricted (7) Use the clause at 252.225–7008, Sup- (see 225.401 (b)(ii)). The clause may be plies to be Accorded Duty-Free Entry, used where the contracting officer an- in solicitations and contracts that pro- ticipates a waiver of the restriction. vide for duty-free entry and that in- (i)(A) Use the clause in all solicita- clude the clause at FAR 52.225–8, Duty- tions and contracts for the items listed Free Entry. at 225.401–70, when the estimated value (8) Use the clause at 252.225–7009, is $54,372 or more and the Trade Agree- Duty-Free Entry—Qualifying Country ments Act does not apply. Include the Supplies (End Products and Compo- clause in solicitations for multiple line nents), in solicitations and contracts items if any line item is subject to for supplies and in solicitations and NAFTA. contracts for supplies for exclusive use (B) Use the clause with its Alternate outside the United States. (9) Use the clause at 252.225–7010, I when the estimated value is between Duty-Free Entry—Additional Provi- $25,000 and $54,372. sions, in solicitations and contracts (ii) Application of the procedures in that include the clause at FAR 52.225– 225.402 and the acquisition of non- 8, Duty-Free Entry. eligible and eligible products under the (10) Use the provision at 252.225–7020, same solicitation may result in the ap- Trade Agreements Certificate, in all plication of the North American Free solicitations that include the clause at Trade Agreement Implementation Act 252.225–7021, Trade Agreements. to only some of the items solicited. In (11) Use the clause at 252.225–7021, such case, indicate in the Schedule Trade Agreements, instead of the those items covered by the Act. clause at FAR 52.225–5, Trade Agree- (14) Use the clause at 252.225–7037, ments, when acquiring information Duty-Free Entry—Eligible End Prod- technology products in Federal Supply ucts, in solicitations and contracts for Group 70 or 74. supplies and services when the clause (12) Use the provision at 252.225–7035, at 252.225–7007, Buy American Act— Buy American Act—North American Trade Agreements—Balance of Pay- Free Trade Agreement Implementation ments Program; 252.225–7021, Trade Act—Balance of Payments Program Agreements; or 252.225–7036, Buy Amer- Certificate, instead of the provision at ican Act—North American Free Trade FAR 52.225–4, Buy American Act— Agreement Implementation Act—Bal- North American Free Trade Agree- ance of Payments Program, is used. ment—Israeli Trade Act—Balance of Payments Program Certificate, in all [65 FR 19856, Apr. 13, 2000, as amended at 65 solicitations that include the clause at FR 36034, June 6, 2000]
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225.1103 Other provisions and clauses. (a) Bearing components and miniature (1) In order to allow accurate report- and instrument ball bearings are defined ing, by cognizant accounting and dis- in the clause at 252.225–7016, Restric- bursing officers, of foreign and domes- tion on Acquisition of Ball and Roller tic expenditures, use the clause at Bearings. 252.225–7005, Identification of Expendi- (b) Hand or measuring tools means tures in the United States, in all nego- those tools listed in Federal supply tiated contracts over $25,000 where— classifications 51 and 52, respectively. (i) For supply contracts, the contract (c) Possessions, as used in the phrase requires end products manufactured or ‘‘United States or its possessions,’’ in- produced in the United States; and cludes Puerto Rico. (A) The contractor is a foreign con- (d) Specialty metals is defined in the cern; or clause at 252.225–7014, Preference for (B) The contractor is a domestic con- Domestic Specialty Metals. cern and the Government will take [61 FR 10899, Mar. 18, 1996, as amended at 61 title outside the United States. FR 50453, Sept. 26, 1996] (ii) For contracts for construction, repair, and maintenance of real prop- 225.7002–1 Restrictions. erty, or services to be performed out- (a) In accordance with Section 9005 of side the United States— Public Law 102–396, as amended (10 (A) The contractor is a domestic con- U.S.C. 2241 note, Limitations on Food, cern; or Clothing, and Specialty Metals Not (B) The contractor is a foreign con- Produced in the United States), and cern and the contract requires acquisi- Section 8109 of Public Law 104–208, do tion of materials, equipment, or serv- not acquire supplies consisting in ices from U.S. sources. whole or in part of any of the fol- (2) Use the clause at 252.225–7041, Cor- lowing, that have not been grown or respondence in English, in solicitations produced in the United States or its and contracts when contract perform- possessions— ance will be wholly or in part in a for- (1) Food, but this does not restrict eign country. acquisition of foods manufactured or (3) Use the clause at 252.225–7042, Au- processed in the United States or its thorization to Perform, in solicitations possessions; and contracts when contract perform- (2) Clothing; ance will be wholly or in part in a for- (3) Tents, tarpaulins, or covers; eign country. (4) Cotton and other natural fiber products, or wool (whether in the form Subpart 225.70—Authorization of fiber or yarn or contained in fabrics, Acts, Appropriations Acts, materials, or manufactured articles), and Other Statutory Restric- but this does not restrict acquisition of tions on Foreign Acquisition cotton or wool reprocessed or reused in the United States or its possessions; 225.7000 Scope of subpart. (5) Woven silk or woven silk blends; (6) Spun silk yarn for cartridge cloth; (a) This subpart contains restrictions (7) Synthetic fabric or coated syn- on the acquisition of foreign products thetic fabric, including all textile fi- and services, imposed by Defense ap- bers and yarns that are for use in such propriations and authorization acts fabrics; and other statutes. Refer to the acts to (8) Canvas products; or verify current applicability of the re- (9) Any item of individual equipment strictions. (Federal Supply Class 8465) manufac- (b) Nothing in this subpart affects tured from or containing any of the the applicability of the Buy American listed fibers, yarns, fabrics, or mate- Act or Balance of Payments Program. rials. [56 FR 36367, July 31, 1991, as amended at 62 (b) Do not acquire specialty metals, FR 2856, Jan. 17, 1997] including stainless steel flatware, that were not melted in steel manufacturing 225.7001 Definitions. facilities located within the United As used in this subpart— States or its possessions.
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(c) Do not acquire hand or measuring synthetic fabric (but not the purchase tools that were not produced in the of the synthetic or coated synthetic United States or its possessions. fabric itself), if— [56 FR 36367, July 31, 1991, as amended at 59 (1) The fabric is to be used as a com- FR 27671, May 27, 1994; 62 FR 5780, Feb. 7, ponent of an end item that is not a tex- 1997; 62 FR 47154, Sept. 8, 1997] tile product. Examples of textile prod- ucts, made in whole or in part of fabric, 225.7002–2 Exceptions. include— Acquisitions in the following cat- (i) Draperies, floor coverings, fur- egories are not subject to the restric- nishings, and bedding (Federal Supply tions in 225.7002–1— Group 72, Household and Commercial (a) Any of the items in 225.7002–1(a) Furnishings and Appliances); or (b), if the Secretary concerned, or (ii) Items made in whole or in part of designee, determines that they cannot fabric in Federal Supply Group 83, Tex- be acquired when needed in a satisfac- tile/leather/furs/apparel/findings/tents/ tory quality and sufficient quantity flags, or Federal Supply Group 84, grown or produced in the United States Clothing, Individual Equipment and In- or its possessions at U.S. market signia; prices. (b) Outside the United States— (iii) Upholstered seats (whether for (1) In support of combat operations; household, office, or other use); and (2) Perishable foods by activities lo- (iv) Parachutes (Federal Supply Class cated outside the United States for 1670); or their personnel; or (2) The fibers and yarns are para- (3) Emergency acquisitions by such aramid fibers and yarns manufactured activities for their personnel. in— (c) Acquisitions by vessels in foreign (i) The Netherlands; or waters. (ii) Another qualifying country (see (d) Acquisitions of those supplies list- 225.872) if the Under Secretary of De- ed in FAR 25.104(a), unless the supplies fense (Acquisition, Technology, and are hand or measuring tools. Logistics) makes a determination in (e) Acquisitions not exceeding the accordance with section 807 of Pub. L. simplified acquisition threshold. 105–261 that— (f) Acquisitions of end items inciden- (A) Procuring articles that contain tally incorporating cotton or wool, for only para-aramid fibers and yarns man- which the estimated value of the cot- ufactured from suppliers within the ton or wool is not more than 10 percent United States or its possessions would of the total price of the end item; pro- result in sole source contracts or sub- vided the estimated value of the cotton contracts for the supply of such para- or wool does not exceed the simplified aramid fibers and yarns; acquisition threshold. (g) Supplies purchased specifically (B) Such sole source contracts or sub- for commissary resale. contracts would not be in the best in- (h) Purchases of specialty metals by terest of the Government or consistent subcontractors at any tier for pro- with the objectives of the Competition grams, except— in Contracting Act (10 U.S.C. 2304); and (1) Aircraft; (C) The qualifying country permits (2) Missile and space systems; U.S. firms that manufacture para- (3) Ships; aramid fibers and yarns to compete (4) Tank-automotive; with foreign films for the sale of para- (5) Weapons; and aramid fibers and yarns in that coun- (6) Ammunition. try. (i) Purchases of specialty metals and chemical warfare protective clothing [56 FR 36367, July 31, 1991, as amended at 58 FR 28467, May 13, 1993; 59 FR 27671, May 27, when the acquisition furthers an agree- 1994; 60 FR 61597, Nov. 30, 1995; 61 FR 50453, ment with a qualifying country (see Sept. 26, 1996; 62 FR 5780, Feb. 7, 1997; 62 FR section 225.872). 47154, Sept. 8, 1997; 64 FR 24529, May 7, 1999; (j) Purchases of fibers and yarns that 65 FR 39705, June 27, 2000; 65 FR 52952, Aug. are for use in synthetic fabric or coated 31, 2000]
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225.7002–3 Contract clauses. tain foreign purchases under 10 U.S.C. Unless an exception is known to 2534(a) may be waived as follows: apply— (1)(i) The Under Secretary of Defense (a) Use the clause at 252.225–7012, (Acquisition, Technology, and Logis- Preference for Certain Domestic Com- tics), without power of delegation, may modities, in all solicitations and con- waive the restriction for a particular tracts which meet or exceed the sim- item for a particular foreign country plified acquisition threshold. upon determination that— (b) Use the clause at 252.225–7014, (A) United States producers of the Preference for Domestic Specialty Met- item would not be jeopardized by com- als, in all solicitations and contracts petition from a foreign country, and over the simplified acquisition thresh- that country does not discriminate old that require delivery of an article against defense items produced in the containing specialty metals. Use the United States to a greater degree than clause with its Alternate I in all solici- the United States discriminates tations and contracts over the sim- against defense items produced in that plified acquisition threshold requiring country; or delivery, for one of the following major (B) Application of the restriction programs, of an article containing spe- would impede cooperative programs en- cialty metals— tered into between DoD and a foreign (1) Aircraft; country, or would impede the recip- (2) Missile and space systems; rocal procurement of defense items (3) Ships; under a memorandum of understanding (4) Tank-automotive; providing for reciprocal procurement of (5) Weapons; or defense items under 225.872, and that (6) Ammunition. country does not discriminate against (c) Use the clause at 252.225–7015, defense items produced in the United Preference for Domestic Hand or Meas- States to a greater degree than the uring Tools, in all solicitations and United States discriminates against de- contracts over the simplified acquisi- fense items produced in that country. tion threshold calling for delivery of hand or measuring tools. (ii) A notice of determination to ex- ercise the waiver authority must be [61 FR 50453, Sept. 26, 1996] published in the FEDERAL REGISTER and submitted to the congressional de- 225.7003 Restriction on overseas mili- fense committees at least 15 days be- tary construction. fore the effective date of the waiver. For restriction on award of military (iii) Such waiver shall be in effect for construction contracts to be performed a period not greater than 1 year. in the United States territories and (iv) For contracts entered into prior possessions in the Pacific and on Kwaj- to the effective date of a waiver, pro- alein Atoll, or in countries bordering vided adequate consideration is re- the Arabian Gulf, see 236.274(a). ceived to modify the contract, such [62 FR 2856, Jan. 17, 1997] waiver shall be applied as directed or authorized in the waiver to— 225.7004 Restriction on overseas ar- (A) Subcontracts entered into on or chitect-engineer services. after the effective date of the waiver; For restriction on award of architect- and engineer contracts to be performed in (B) Options for the procurement of Japan, in any North Atlantic Treaty items that are exercised after the effec- Organization member country, or in tive date of the waiver, if the option countries bordering the Arabian Gulf, prices are adjusted for any reason see 236.602–70. other than the application of the waiv- [62 FR 2857, Jan. 17, 1997] er. (2) The head of the contracting activ- 225.7005 Waiver of certain restric- ity may waive the restriction on a tions. case-by-case basis upon execution of a (a) Where provided for elsewhere in determination and findings that any of this subpart, the restrictions on cer- the following applies:
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(i) The restriction would cause unrea- homeported in the United States. This sonable delays. restriction does not apply to voyage re- (ii) Satisfactory quality items manu- pairs. factured in the United States or Can- ada are not available. 225.7007 Restriction on acquisition of (iii) Application of the restriction foreign buses. would result in the existence of only one source for the item in the United 225.7007–1 Restriction. States or Canada. In accordance with 10 U.S.C. 2534, do (iv) Application of the restriction is not acquire a multipassenger motor ve- not in the national security interests hicle (bus) unless it is manufactured in of the United States. the United States or Canada. (v) Application of the restriction would adversely affect a U.S. company. [63 FR 5745, Feb. 4, 1998] (3) The restriction is waived when it 225.7007–2 Applicability. would cause unreasonable costs. The cost of the item of U.S. or Canadian or- Apply this restriction if the buses are igin is unreasonable if it exceeds 150 purchased, leased, rented, or made percent of the offered price, inclusive available under contracts for transpor- of duty, of items which are not of U.S. tation services. or Canadian origin. [60 FR 19533, Apr. 19, 1995] (b) In accordance with the provisions of paragraphs (a)(1)(i) through (a)(1)(iii) 225.7007–3 Exceptions. of this section, the Under Secretary of Defense (Acquisition, Technology, and This restriction does not apply in Logistics) has waived the restrictions any of the following circumstances: of 10 U.S.C. 2534(a) for certain items (a) Buses manufactured outside the manufactured in the United Kingdom, United States and Canada are needed including air circuit breakers for naval for temporary use because buses manu- vessels and totally enclosed lifeboats factured in the United States or Can- (see 225.7016 and 225.7022). This waiver ada are not available to satisfy require- applies to— ments that cannot be postponed. Such (1) Procurements under solicitations use may not, however, exceed the lead issued on or after August 4, 1998; and time required for acquisition and deliv- (2) Subcontracts and options under ery of buses manufactured in the contracts entered into prior to August United States or Canada. 4, 1998, under the conditions described (b) The requirement for buses is tem- in paragraphs (a)(1)(iv) of this section. porary in nature. For example, to meet a special, nonrecurring requirement or [63 FR 5745, Feb. 4, 1998, as amended at 63 FR a sporadic and infrequent recurring re- 28284, May 22, 1998; 63 FR 43888, Aug. 17, 1998; quirement, buses manufactured outside 65 FR 39705, June 27, 2000] the United States and Canada may be 225.7006 Restrictions on construction used for temporary periods of time. or repair of vessels in foreign ship- Such use may not, however, exceed the yards. period of time needed to meet the spe- 10 U.S.C. 7309 restricts constructing cial requirement. or repairing vessels in foreign ship- (c) Buses manufactured outside the yards. United States and Canada are available (a) Do not award a contract to con- at no cost to the U.S. Government. struct either of the following in a for- (d) The acquisition is for an amount eign shipyard— that does not exceed the simplified ac- (1) A vessel constructed for any of quisition threshold. the armed forces; or [63 FR 5745, Feb. 4, 1998] (2) A major component of the hull or superstructure of any such vessel. 225.7007–4 Waiver. (b) Do not overhaul, repair, or main- The waiver criteria at 225.7005(a) tain in a foreign shipyard, a naval ves- apply to this restriction. sel (or any other vessel under the juris- diction of the Secretary of the Navy) [63 FR 43888, Aug. 17, 1998]
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225.7008 Restriction on research and 225.7010–3 Waiver. development. The waiver criteria at 225.7005(a) (a) Public Law 92–570 precludes use of apply to this restriction. DoD appropriations for award to any [63 FR 43888, Aug. 17, 1998] foreign corporation, organization, per- son, or entity for research and develop- 225.7011 Restriction on Ballistic Mis- ment in connection with any weapon sile Defense research, development, system or other military equipment if test, and evaluation. there is a U.S. corporation, organiza- tion, person, or entity— 225.7011–1 Definitions. (1) Equally competent; and Competent, foreign firm, and U.S. (2) Willing to perform at a lower cost. firm have the meanings given in the (b) The statutory restriction in para- provision at 252.225–7018, Notice of Pro- graph (a) of this section does not hibition of Certain Contracts with For- change the rules for selecting research eign Entities for the Conduct of Bal- and development contractors in FAR listic Missile Defense RDT&E. part 35. However, when a U.S. source [56 FR 36367, July 31, 1991, as amended at 59 and a foreign source are equally com- FR 27672, May 27, 1994] petent, award to the source that will provide the services at the lower cost. 225.7011–2 Restriction. (a) Section 222 of the Defense Author- 225.7009 [Reserved] ization Act for FY1988 and 1989 (Pub. L. 100–180) prohibits the award of certain 225.7010 Restriction on certain chem- contracts for the conduct of Ballistic ical weapons antidote. Missile Defense (BMD) Program re- 225.7010–1 Restriction. search, development, test, and evalua- tion (RDT&E), to foreign governments In accordance with 10 U.S.C. 2534 and or firms unless the Secretary of De- defense industrial mobilization re- fense certifies to Congress in writing at quirements (see subpart 208.72), do not any time during the applicable fiscal acquire chemical weapons antidote year that work cannot be competently contained in automatic injectors, or performed by a U.S. firm at a price the components for such injectors, un- equal to or less than the price of the less the chemical weapons antidote or foreign government or firm. component is manufactured in the (b) For purposes of implementing this United States or Canada by a company section, heads of contracting activities that— are authorized to make this certifi- (a) Is a producer under the industrial cation (see 225.7011–3(b)). preparedness program at the time of (c) Except as provided in 225.7011–3, contract award; do not use any funds appropriated to, (b) Has received all required regu- or for the use of, DoD to enter into or latory approvals; and carry out any contract, including any (c) Has the plant, equipment, and contract awarded as a result of a broad personnel to perform the contract in agency announcement, with a foreign the United States or Canada at the government or firm if the contract pro- time of contract award. vides for the conduct of RDT&E in con- nection with the BMD. [60 FR 19533, Apr. 19, 1995, as amended at 62 (d) This prohibition is not intended FR 34123, June 24, 1997; 63 FR 5745, Feb. 4, to deny access to foreign expertise 1998] when contract performance requires a level of competency unavailable in the 225.7010–2 Exception. United States. The restriction of 225.7010–1 does not [56 FR 36367, July 31, 1991, as amended at 59 apply if—the acquisition is for an FR 27672, May 27, 1994] amount that does not exceed the sim- plified acquisition threshold. 225.7011–3 Exceptions. [63 FR 5745, Feb. 4, 1998] This prohibition shall not apply—
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(a) To contracts awarded to a foreign (PRDA) is used, or when the deter- government or firm if the contracting mination is otherwise not based on di- officer determines that— rect competition between foreign and (1) The contract will be performed domestic proposals, the determination within the United States; must not be merely conclusory. (2) The contract is exclusively for (i) The determination must specifi- RDT&E in connection with antitactical cally explain its basis, include a de- ballistic missile systems; or scription of the method used to deter- (3) The foreign government or foreign mine the competency of U.S. firms, and firm agrees to share a substantial por- describe the cost or price analysis per- tion of the total contract cost. Con- formed. sider the foreign share as substantial if (ii) Alternately, the determination it is equitable with respect to the rel- ative benefits to be derived from the may contain— contract by the United States and the (A) A finding, including the basis for foreign parties. For example, if the such finding, that the proposal was contract is more beneficial to the for- submitted solely in response to the eign party, its share of the cost should terms of a BAA or PRDA, or other so- be correspondingly higher; or licitation document without any tech- (b) If the head of the contracting ac- nical guidance from the program office; tivity certifies in writing, before con- and tract award, that a contract for re- (B) A finding, including the basis for search, development, testing, or eval- such finding, that disclosure of the in- uation (other than for RDT&E de- formation in the proposal for the pur- scribed in paragraph (a)(2) of this sub- pose of conducting a competitive ac- section) cannot be competently per- quisition is prohibited. formed by a U.S. firm at a price equal (b) Forward a copy of the certifi- to or less than the price at which the cation (from 225.7011–3(b)) and, as ap- RDT&E would be performed by a for- propriate, the determination or jus- eign government or firm. tification and approval (J&A) within 30 days of contract award to the Ballistic 225.7011–4 Procedures. Missile Defense Organization, Attn: (a) When awarding a prime contract BMDO/DRI, 7100 Defense Pentagon, to a foreign government or firm under Washington, DC 20301–7100, if award is 225.7011–3(b), the contracting officer or based on— source selection authority, as applica- (1) A determination under paragraph ble, shall make a determination that (a) of this subsection; will be the basis for the certification. (2) Other than full and open competi- (1) The determination must— (i) Describe the contract effort; tion under FAR subpart 6.3; or (ii) State the number of proposals so- (3) An unsolicited proposal under licited and received from both U.S. and FAR subpart 15.6. foreign firms; [56 FR 36367, July 31, 1991, as amended at 59 (iii) Identify the proposed awardee FR 27672, May 27, 1994; 61 FR 50453, Sept. 26, and the amount of the contract; 1996; 63 FR 11534, Mar. 9, 1998] (iv) State that selection of the con- tractor was based on the evaluation 225.7011–5 Solicitation provision. factors contained in the solicitation, or Use the provision at 252.225–7018, No- the criteria contained in the broad tice of Prohibition of Certain Contracts agency announcement; and With Foreign Entities for the Conduct (v) State that the effort cannot be of Ballistic Missile Defense RDT&E, in competently performed by a U.S. firm all competitively negotiated BMD so- at a price equal to, or less than, the licitations for research, development, price at which it would be performed test, and evaluation, unless foreign by the foreign awardee. participation is otherwise excluded. (2) When either a broad agency an- nouncement (BAA) or program re- [56 FR 36367, July 31, 1991, as amended at 59 search and development announcement FR 27672, May 27, 1994]
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225.7012 Restrictions on anchor and chor and Mooring Chain, in all solicita- mooring chain. tions and contracts— (a) Using fiscal year 1991 or later 225.7012–1 Restrictions. funds; and (a) Under Public Law 101–511, Section (b) Requiring welded shipboard an- 8041, and similar sections in subsequent chor or mooring chain of four inches in Defense appropriations acts, DoD ap- diameter or less. propriations for fiscal years 1991 and after may not be used to acquire weld- [61 FR 13107, Mar. 26, 1996, as amended at 61 ed shipboard anchor and mooring FR 50453, Sept. 26, 1996] chain, four inches in diameter and 225.7013—225.7014 [Reserved] under, unless— (1) It is manufactured in the United 225.7015 Restriction on night vision States, including cutting, heat treat- image intensifier tubes and devices. ing, quality control, testing, and weld- ing (both forging and shot blasting 225.7015–1 Restriction. process); and In accordance with Pub. L. 101–165 (2) The cost of the components manu- and 101–511, fiscal years 1990 and 1991 factured in the United States exceeds funds may not be used to acquire sec- 50 percent of the total cost of compo- nents. ond and third generation night vision (b) Acquisition of welded shipboard image intensifier tubes and devices un- anchor and mooring chain, four inches less they are manufactured in the in diameter and under, when used as a United States or Canada. component of a naval vessel, is also re- [58 FR 28467, May 13, 1993] stricted under 10 U.S.C. 2534(a)(3)(ii). However, the more stringent restric- 225.7015–2 Exception. tion under 225.7012–1(a) takes prece- Second and third generation night vi- dence. sion image intensifier tubes and de- [61 FR 13107, Mar. 26, 1996] vices manufactured outside the United States or Canada may be acquired if— 225.7012–2 Waiver. (a) Adequate domestic supplies are The restriction in 225.7012–1(a) may not available to meet DoD require- be waived by the Secretary of the De- ments on a timely basis; and partment responsible for acquisition, (b) The Secretary of the Department on a case-by-case basis, where suffi- responsible for the acquisition certifies cient domestic suppliers are not avail- to the House and Senate Committees able to meet DoD requirements on a on Appropriations that the acquisition timely basis and the acquisition is nec- of tubes and devices manufactured out- essary to acquire capability for na- side the United States or Canada is tional security purposes. necessary in order to acquire capa- (a) Document the waive in a written bility for national security purposes. D&F containing— (1) The factors supporting the waiver; 225.7015–3 Contract clause. and (2) A certification that the acquisi- Use the clause at 252.225–7024, Re- tion must be made in order to acquire striction on Acquisition of Night Vi- capability for national security pur- sion Image Intensifier Tubes and De- poses. vices, in all solicitations and contracts (b) Provide a copy of the D&F to the which— House and Senate Committees on Ap- (a) Use fiscal year 1990 or 1991 funds; propriations. and (b) Require second and third genera- [61 FR 13107, Mar. 26, 1996] tion night vision image intensifier 225.7012–3 Contract clause. tubes and devices. Use the clause at 252.225–7019, Re- [58 FR 28467, May 13, 1993] striction on Acquisition of Foreign An-
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225.7016 Restriction on air circuit Steel Institute (AISI) specifications, breakers for naval vessels. purchased by the Government or a con- tractor for use in a Government-owned 225.7016–1 Restriction. facility or in a facility controlled (e.g., In accordance with 10 U.S.C. 2534 and leased) by DoD, shall be melted and 225.7005(b), do not acquire air circuit rolled in the United States or Canada. breakers for naval vessels unless they [58 FR 28468, May 13, 1993] are manufactured in the United States, Canada, or the United Kingdom. 225.7017–2 Exceptions. [63 FR 43888, Aug. 17, 1998] This restriction does not apply to— 225.7016–2 Exceptions. (a) Contracts in effect as of Novem- ber 26, 1991; This restriction does not apply if— (b) Direct purchases by DoD using (a) The acquisition is for an amount other than fiscal year 1992 or subse- that does not exceed the simplified ac- quent year funds; or quisition threshold; or (c) Purchases by contractors unless (b) Spare or repair parts are needed the prime contract uses fiscal year 1992 to support air circuit breakers manu- or subsequent year funds. factured outside the United States. Support includes the purchase of spare [58 FR 28468, May 13, 1993] air circuit breakers where those from alternate sources are not interchange- 225.7017–3 Waiver. able. The restriction may be waived by the [62 FR 34124, June 24, 1997, as amended at 63 Secretary of the department respon- FR 5746, Feb. 4, 1998; 63 FR 43888, Aug. 17, sible for acquisition, on a case-by-case, 1998] by certifying to the House and Senate Committees on Appropriations that— 225.7016–3 Waiver. (a) Adequate U.S. or Canadian sup- The waiver criteria at 225.7005(a) plies are not available to meet DoD re- apply to this restriction. quirements on a timely basis; and [63 FR 43888, Aug. 17, 1998] (b) The acquisition must be made in order to acquire capability for national 225.7016–4 Contract clause. security purposes. Use the clause at 252.225–7029, Pref- [57 FR 14994, Apr. 23, 1992] erence for United States or Canadian Air Circuit Breakers, in all solicita- 225.7017–4 Contract clause. tions and contracts requiring air cir- Unless an exception under 225.7017–2 cuit breakers for naval vessels, un- is known to apply or a waiver has been less— granted in accordance with 225.7017–3, (a) An exception under 225.7016–2 is use the clause at 252.225–7030, Restric- known to apply; or tion on Acquisition of Carbon, Alloy, (b) A waiver has been granted in ac- and Armor Steel Plate, in all solicita- cordance with 225.7016–3. tions and contracts which— [60 FR 19534, Apr. 19, 1995] (a) Require the delivery to the Gov- ernment of carbon, alloy, or armor 225.7017 Restriction on carbon, alloy, steel plate which will be used in a facil- and armor steel plate. ity owned by the Government or under 225.7017–1 Restriction. the control of DoD; or (b) Require contractors operating in In accordance with section 8111 of a Government-owned facility or a facil- Pub. L. 102–172, and similar sections in ity under the control of DoD to pur- subsequent appropriations acts, all car- chase carbon, alloy, or armor steel bon, alloy, and armor steel plate in Federal stock class 9515 or described by plate. American Society for Testing Mate- [57 FR 14994, Apr. 23, 1992, as amended at 57 rials (ASTM) or American Iron and FR 53600, Nov. 12, 1992]
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225.7018 Restriction on four ton dolly bearings and bearing components man- jacks. ufactured in the United States or Can- ada. 225.7018–1 Restriction. [61 FR 10900, Mar. 18, 1996, as amended at 61 In accordance with section 9108 of FR 58489, Nov. 15, 1996; 62 FR 34124, June 24, Public Law 102–396, no fiscal year 1993 1997; 63 FR 43888, Aug. 17, 1998; 65 FR 77828, funds shall be used to procure four ton Dec. 13, 2000] dolly jacks manufactured outside the United States. 225.7019–2 Exceptions. [59 FR 27672, May 27, 1994] (a) The restriction in 225.7019–1(a) does not apply to— 225.7018–2 Waiver. (1) Acquisitions using simplified ac- quisition procedures, unless ball or The restriction is 225.7018–1 may be roller bearings or bearing components waived on a case-by-case basis where are the end items being purchased; the Secretary of the Military Depart- (2) Purchases of commercial items in- ment or the Under Secretary of De- corporating ball or roller bearings; fense (Acquisition, Technology, and (3) Miniature and instrument ball Logistics) certifies to the Committees bearings when necessary to meet ur- on Appropriations of the House and gent military requirements; Senate that— (4) Items acquired overseas for use (a) Adequate domestic supplies are overseas; or available to meet requirements on a (5) Ball and roller bearings or bearing timely basis; and components or items containing bear- (b) The acquisition must be made in ings for use in a cooperative or co-pro- order to acquire capability for national duction project under an international security purposes. agreement. This exception does not [58 FR 28468, May 13, 1993, as amended at 60 apply to miniature and instrument ball FR 61597, Nov. 30, 1995; 65 FR 39705, June 27, bearings. 2000] (b) The restriction in 225.7019–1(b) does not apply to contracts or sub- 225.7018–3 Contract clause. contracts for acquisition of commer- Use the clause at section 252.225–7033, cial items, except for commercial ball Restriction on Acquisition of Four Ton and roller bearings acquired as end Dolly Jacks, in solicitations and con- items. tracts that use fiscal year 1993 funds [61 FR 50453, Sept. 26, 1996, as amended at 65 for the acquisition of four ton dolly FR 52952, Aug. 31, 2000; 65 FR 58607, Sept. 29, jacks. 2000; 65 FR 77828, Dec. 13, 2000] [59 FR 27672, May 27, 1994] 225.7019–3 Waiver. 225.7019 Restrictions on ball and roll- (a) The head of the contracting activ- er bearings. ity may waive the restriction in 225.7019–1(a)— 225.7019–1 Restrictions. (1) Upon execution of a determina- (a) In accordance with 10 U.S.C. 2534 tion and findings that— and 225.7019–3(b)(5), through fiscal year (i) No domestic (U.S. or Canadian) 2005, do not acquire ball and roller bearing manufacturer meets the re- bearings or bearing components that quirement; are not manufactured in the United (ii) It is not in the best interests of States, Canada, or the United King- the United States to qualify a domestic dom. bearing to replace a qualified non- (b) In accordance with Section 8099 of domestic bearing. This determination Public Law 104–61 and similar sections must be based on a finding that the in subsequent Defense appropriations qualification of a domestically manu- acts, do not use fiscal year 1996 or sub- factured bearing would cause unreason- sequently appropriated funds to ac- able costs or delay. A finding that a quire ball and roller bearings other cost is unreasonable should take into than those produced by a domestic consideration DoD policy to assist the source and of domestic origin, i.e., domestic industrial mobilization base.
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Contracts should be awarded to domes- (i) United States producers of the tic bearing manufacturers to increase item would not be jeopardized by com- their capability to reinvest and become petition from a foreign country, and more competitive; that country does not discriminate (iii) Application of the restriction against defense items produced in the would result in the existence of only United States to a greater degree than one source for the item in the United the United States discriminates States or Canada; against defense items produced in that (iv) Application of the restriction is country; or not in the national security interests (ii) Application of the restriction of the United States; or would impede cooperative programs en- (v) Application of the restriction tered into between DoD and a foreign would adversely affect a U.S. company. country, or would impede the recip- (2) If the acquisition is for an amount rocal procurement of defense items less than the simplified acquisition under a memorandum of understanding threshold and simplified acquisition providing for reciprocal procurement of procedures are being used. defense items under 225.872, and that (3) For multiyear contracts or con- country does not discriminate against tracts exceeding 12 months, except defense items produced in the United those for miniature and instrument States to a greater degree than the ball bearings, only if— United States discriminates against de- fense items produced in that country. (i) The head of the contracting activ- (2) A notice of the determination to ity executes a determination and find- exercise the waiver authority must be ings in accordance with paragraph (a) published in the FEDERAL REGISTER of this subsection; and submitted to the congressional de- (ii) The contractor submits a written fense committees at least 15 days be- plan for transitioning from the use of fore the effective date of the waiver. nondomestic to domestically manufac- (3) Such waiver shall be in effect for tured bearings; a period not greater than 1 year. (iii) The plan— (4) For contracts entered into prior (A) States whether a domestically to the effective date of a waiver, pro- manufactured bearing can be qualified, vided adequate consideration is re- at a reasonable cost, for use during the ceived to modify the contract, such course of the contract period; waiver shall be applied as directed or (B) Identifies any bearings that are authorized in the waiver to— not domestically manufactured, their (i) Subcontracts entered into on or application, and source of supply; and after the effective date of the waiver; (C) Describes, including cost and and timetable, the transition to a domesti- (ii) Options for the procurement of cally manufactured bearing. (The time- items that are exercised after the effec- table for the transition should nor- tive date of the waiver, if the option mally take no longer than 24 months prices are adjusted for any reason from the date the waiver is granted); other than the application of the waiv- and er. (iv) The contracting officer accepts (5) In accordance with the provisions the plan and incorporates it in the con- of paragraphs (b)(1) through (b)(3) of tract. this subsection, the Under Secretary of (4) For miniature and instrument Defense (Acquisition, Technology, and ball bearings, only if the contractor Logistics) has waived the restrictions agrees to acquire a like quantity and of 10 U.S.C. 2534(a)(5) for ball and roller type of domestic manufacture for non- bearings manufactured in the United governmental use. Kingdom. This waiver applies to— (b)(1) The Under Secretary of Defense (i) Procurements under solicitations (Acquisition, Technology, and Logis- issued on or after August 4, 1998; and tics), without power of delegation, may (ii) Subcontracts and options under waive the restriction in 225.7019–1(a) for contracts entered into prior to August a particular foreign country upon de- 4, 1998, under the conditions described termination that— in paragraph (b)(4) of this subsection.
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(c) The Secretary of the department 225.7020–2 Exceptions. responsible for the acquisition may This restriction does not apply to waive the restriction in 225.7019–1(b) on contracts or subcontracts for acquisi- a case-by-case basis, by certifying to tion of commercial items. the House and Senate Committees on Appropriations that— [65 FR 77828, Dec. 13, 2000] (1) Adequate domestic supplies are 225.7020–3 Waiver. not available to meet DoD require- ments on a timely basis; and The Secretary of the department re- (2) The acquisition must be made in sponsible for acquisition may waive order to acquire capability for national this restriction on a case-by-case basis, security purposes. by certifying to the House and Senate Committees on Appropriations that— [61 FR 10900, Mar. 18, 1996, as amended at 61 (a) Adequate domestic supplies are FR 50453, Sept. 26, 1996; 62 FR 34124, June 24, not available to meet DoD require- 1997; 63 FR 5746, Feb. 4, 1998; 63 FR 28285, May ments on a timely basis; and 22, 1998; 63 FR 43888, Aug. 17, 1998; 65 FR 39705, (b) The acquisition must be made in June 27, 2000] order to acquire capability for national security purposes. 225.7019–4 Contract clause. (a) Use the clause at 252.225–7016, Re- [65 FR 77828, Dec. 13, 2000] striction on Acquisition of Ball and 225.7020–4 Contract clause. Roller Bearings, in solicitations and contracts, unless— Use the clause at 252.225–7023, Re- (1) The restrictions in 225.7019–1 do striction on Acquisition of Vessel Pro- pellers, in solicitations and contracts not apply or a waiver has been granted; for the acquisition of vessels or vessel or propellers, unless— (2) The contracting officer knows (a) An exception under 225.7020–2 is that the items being acquired do not known to apply or a waiver has been contain ball or roller bearings. granted in accordance with 225.7020–3; (b) In solicitations and contracts or that use simplified acquisition proce- (b) The vessels being acquired do not dures, use the clause with its Alternate contain vessel propellers. I. [65 FR 77828, Dec. 13, 2000] [65 FR 77828, Dec. 13, 2000] 225.7021 Restriction on aircraft fuel 225.7020 Restriction on vessel propel- cells. lers. 225.7021–1 Restriction. 225.7020–1 Restriction. In accordance with section 8090 of the In accordance with Section 8064 of Fiscal Year 1994 Defense Appropria- the National Defense Appropriations tions Act (Pub. L. 103–139) and section Act for Fiscal Year 2001 (Public Law 8075 of the Fiscal Year 1995 Defense Ap- 106–259), do not use fiscal year 2000 or propriations Act (Pub. L. 103–335), do 2001 funds to acquire vessel propellers not purchase aircraft fuel cells unless other than those produced by a domes- they are produced or manufactured in tic source of domestic origin, i.e., ves- the United States by a domestic-oper- sel propellers— ated entity. (a) Manufactured in the United [60 FR 29498, June 5, 1995] States or Canada; and (b) For which all component castings 225.7021–2 Waiver. were poured and finished in the United The restriction may be waived by the States or Canada. Secretary of the department respon- sible for the acquisition, on a case-by- [65 FR 77828, Dec. 13, 2000] case basis, by certifying to the House and Senate Committees on Appropria- tions that—
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(a) Adequate U.S. supplies are not 225.7022–2 Exceptions. available to meet requirements on a The restriction in 225.7022–1(b) does timely basis; and not apply if— (b) The acquisition must be made in (a) The acquisition is for an amount order to acquire capability for national that does not exceed the simplified ac- security purposes. quisition threshold; or [59 FR 11729, Mar. 14, 1994] (b) Spare or repair parts are needed to support totally enclosed lifeboats 225.7021–3 Contract clause. manufactured outside the United Unless a waiver has been granted in States. accordance with 225.7021–2, use the [62 FR 34124, June 24, 1997, as amended at 63 clause at 252.225–7038, Restriction on FR 5746, Feb. 4, 1998; 63 FR 43888, Aug. 17, Acquisition of Aircraft Fuel Cells, in 1998] all solicitations and contracts which— (a) Use fiscal year 1994 or 1995 funds; 225.7022–3 Waiver. and The waiver criteria at 225.7005(a) (b) Require delivery of aircraft fuel apply only to the restriction of cells. 225.7022–1(b). [60 FR 29498, June 5, 1995] [63 FR 43888, Aug. 17, 1998] 225.7022 Restrictions on totally en- closed lifeboat survival systems. 225.7022–4 Contract clause. Use the clause at 252.225–7039, Re- 225.7022–1 Restrictions. striction on Acquisition of Totally En- (a) In accordance with Section 8124 of closed Lifeboat Survival Systems, in the Fiscal Year 1994 Defense Appropria- all solicitations and contracts which tions Act (Public Law 103–139) and Sec- require delivery of totally enclosed tion 8093 of the Fiscal Year 1995 De- lifeboat survival systems. fense Appropriations Act (Public Law [61 FR 13107, Mar. 26, 1996] 103–335), do not purchase a totally en- closed lifeboat survival system, which 225.7023 Restriction on supercom- consists of the lifeboat and associated puters. davits and winches, unless 50 percent or more of the components are manu- 225.7023–1 Restriction. factured in the United States, and 50 In accordance with section 8112 of percent or more of the labor in the Pub. L. 100–202, and similar sections in final manufacture and assembly of the subsequent Defense Appropriations entire system is performed in the Acts, do not purchase any supercom- United States. puter that is not manufactured in the (b) In accordance with 10 U.S.C. United States. 2534(a)(3)(B) and 225.7005(b), do not pur- chase a totally enclosed lifeboat that is [60 FR 34471, July 3, 1995, as amended at 60 a component of a naval vessel, unless it FR 61597, Nov. 30, 1995] is manufactured in the United States, 225.7023–2 Waiver. Canada, or the United Kingdom.In ac- cordance with 10 U.S.C. 2534(h), this re- The restriction in 225.7023–1 may be striction may not be implemented waived by the Secretary of Defense on through the use of a contract clause or a case-by-case basis, after the Sec- certification. Implementation shall be retary of Defense certifies to the effected through management and Armed Services and Appropriations oversight techniques that achieve the Committees of Congress that— objective of the restriction without im- (a) Adequate U.S. supplies are not posing a significant management bur- available to meet requirements on a den on the Government or the con- timely basis; and tractor involved. (b) The acquisition must be made in order to acquire capability for national [61 FR 13107, Mar. 26, 1996, as amended at 62 security purposes. FR 34124, June 24, 1997; 63 FR 43888, Aug. 17, 1998] [60 FR 34471, July 3, 1995]
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225.7023–3 Contract clause. qualifying country sources may com- pete. Use the clause at 252.225–7011, Re- striction on Acquisition of Supercom- 225.7102–3 Waiver. puters, in solicitations and contracts for the acquisition of supercomputers. Upon request from a prime con- tractor, the contracting officer may [60 FR 34471, July 3, 1995, as amended at 60 waive the requirement for domestic FR 61597, Nov. 30, 1995] manufacture of the items covered by the policy in 225.7102–1. Subpart 225.71—Other Restrictions on Foreign Acquisition 225.7102–4 Contract clause. (a) Use the clause at 252.225–7025, Re- striction on Acquisition of Forgings, in SOURCE: 62 FR 34124, June 24, 1997, unless otherwise noted. solicitations and contracts, except for acquisitions— 225.7100 Scope of subpart. (1) Excepted in 225.7102–2; or (2) Where the contracting officer This subpart contains foreign prod- knows that the supplies being acquired uct restrictions which are based on do not contain the restricted items. policies designed to protect the defense (b) If an exception under 225.7102–2 industrial base. applies to any portion of the acquisi- tion, specify the exception in the solic- 225.7101 Definitions. itation and contract. Relevant definitions are in the clause at 252.225–7025, Restriction on Acquisi- 225.7103 Polyacrylonitrile (PAN) car- tion of Forgings. bon fiber.
225.7102 Forgings. 225.7103–1 Policy. DoD has imposed restrictions on the 225.7102–1 Policy. acquisitions of PAN carbon fiber from DoD requirements for the following foreign sources. DoD is phasing out the forging items, whether as end items or restrictions over the 5-year period end- components, shall be acquired from do- ing May 31, 2005. Contractors with con- mestic sources (as described in the tracts that contain the clause at clause at 252.225–7025) to the maximum 252.225–7022 must use U.S. or Canadian extent practicable— manufacturers or producers for all PAN carbon fiber requirements. Items Categories [65 FR 77832, Dec. 13, 2000] Ship propulsion shafts ...... Excludes service and landing craft shafts. 225.7103–2 Waivers. Periscope tubes ...... All. Contracting officers may, with the Ring forgings for bull gears ... All greater than 120 inches in diameter. approval of the chief of the contracting office, waive, in whole or in part, the requirement of the clause at 252.225– 225.7102–2 Exceptions. 7022. For example, a waiver may be jus- The policy in 225.7102–1 does not tified if a qualified U.S. or Canadian apply to acquisitions— source cannot meet scheduling require- (a) Using simplified acquisition pro- ments. cedures, unless the restricted item is the end item being purchased; 225.7103–3 Contract clause. (b) Overseas for overseas use; or Use the clause at 252.225–7022, Re- (c) When the quantity acquired ex- striction on Acquisition of ceeds the amount needed to maintain Polyacrylonitrile (PAN) Carbon Fiber, the U.S. defense mobilization base in solicitations and contracts for major (provided such quantity is an economi- systems as follows: cal purchase quantity). The restriction (a) In solicitations and contracts to domestic sources does not apply to issued on or before May 31, 2003, if— the quantity above that required to (1) The system is not yet in produc- maintain the base, in which case, tion (milestone III as defined in DoD
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5000.2–R, Mandatory Procedures for tained in compiled form for five years Major Defense Acquisition Programs after the date of submission. (MDAPS) and Major Automated Infor- [58 FR 28469, May 13, 1993, as amended at 60 mation System (MAIS) Acquisition FR 29499, June 5, 1995; 65 FR 39705, June 27, Programs); or 2000] (2) The clause was used in prior pro- gram contracts. 225.7203 Contract clause. (b) In solicitations and contracts Except for acquisitions in 225.7201, issued during the period beginning use the clause at 252.225–7026, Reporting June 1, 2003, and ending May 31, 2005, if of Contract Performance Outside the the system is not yet in engineering United States, in all solicitations and and manufacturing development (mile- contracts with an estimated or actual stone II as defined in DoD 5000.2–R). value exceeding $500,000, including those modified to exceed $500,000. [65 FR 77832, Dec. 13, 2000] Subpart 225.73—Acquisitions for Subpart 225.72—Reporting Con- Foreign Military Sales tract Performance Outside the United States 225.7300 Scope of subpart. (a) This subpart contains policies and SOURCE: 58 FR 28469, May 13, 1993, unless procedures for acquisitions for foreign otherwise noted. military sales (FMS) under the Arms Export Control Act (22 U.S.C. Chapter 225.7200 Scope of subpart. 39). Section 22 of the Arms Export Con- This subpart prescribes procedures trol Act (22 U.S.C. 2762) authorizes DoD for contractor reporting and DoD mon- to enter into contracts for resale to itoring of the volume, type, and nature foreign countries or international orga- of contract performance outside the nizations. United States, to include subcontracts, (b) This subpart does not apply to— purchases, and intracompany transfers. (1) FMS made from inventories or It implements 10 U.S.C. 2410g which re- stocks; quires advance notification of contract (2) Acquisitions for replenishment of performance outside the United States inventories or stocks; or and Canada when the contract could (3) Acquisitions made under DoD co- have been performed inside the United operative logistic supply support ar- States or Canada. rangements. [63 FR 43889, Aug. 17, 1998] 225.7201 Exception. This subpart does not apply to con- 225.7301 General. tracts for commercial items, construc- (a) The U.S. Government sells de- tion, ores, natural gas, utilities, petro- fense articles and services to foreign leum products and crudes, timber governments or international organiza- (logs), or subsistence. tions through FMS agreements. The agreement is documented in a Letter of [60 FR 61597, Nov. 30, 1995] Offer and Acceptance (LOA) (see DoD 5105.38–M, Security Assistance Manage- 225.7202 Distribution of reports. ment Manual). The LOA— The contracting officer shall forward (1) Lists the items and services, esti- a copy of reports submitted by success- mated costs, and terms and conditions ful offerors as required by the clause at of the sale; 252.225–7026, Reporting of Contract Per- (2) Is presented to the foreign cus- formance Outside the United States, to tomer; and the Deputy Director of Defense Pro- (3) Provides for signature of the for- curement (Foreign Contracting), eign customer to indicate acceptance. OUSD(AT&L)DP(FC), Washington, DC (b) Acquisitions for FMS are con- 20301–3060. This is necessary to satisfy ducted under the same acquisition and the requirement of 10 U.S.C. 2410g that contract management procedures as the notifications (or copies) be main- other defense acquisitions.
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(c) Solicitations shall separately (b) If the foreign government has identify known FMS requirements and conducted a competition resulting in the FMS customer. adequate price competition (see FAR (d) Contracts for known FMS require- 15.403–1(b)(1)), the contracting officer ments shall clearly be marked ‘‘FMS must not require the submission of requirement’’ on the face of the con- cost or pricing data. The contracting tract along with the FMS customer officer should consult with the foreign and the case identifier code. government through security assist- [56 FR 36367, July 31, 1991, as amended at 63 ance personnel to determine if ade- FR 43889, Aug. 17, 1998] quate price competition has occurred. [64 FR 49683, Sept. 14, 1999] 225.7302 Procedures. On FMS programs that will require 225.7303–1 Contractor sales to other an acquisition, the contracting officer foreign customers. assists the departmental/agency activ- If the contractor has made sales of ity responsible for preparing the LOA the item required for the foreign mili- by— tary sale to foreign customers under (a) Working with prospective con- comparable conditions, including quan- tractors to— tity and delivery, price the FMS con- (1) Identify, in advance of the LOA, tract in accordance with FAR part 15. any unusual provisions or deviations. (2) Advise the contractor if the de- 225.7303–2 Cost of doing business with partmental/agency activity expands, a foreign government or an inter- modifies, or does not accept any re- national organization. quirements proposed by the contractor; (3) Identify any logistics support nec- (a) In pricing FMS contracts where essary to perform the contract; and non-U.S. Government prices as de- (4) For acquisitions over $10,000 that scribed in 225.7303–1 do not exist, except are to be awarded noncompetitively, as provided in 225.7303–5, recognize the asking the prospective contractor(s) reasonable and allocable costs of doing for information on price, delivery, and business with a foreign government or other relevant factors. The request for international organization, even information must identify the fact that though such costs might not be recog- the information is for a potential for- nized in the same amounts in pricing eign military sale and must identify other defense contracts. Examples of the foreign customer. such costs include, but are not limited (b) Working with the departmental/ to— agency activity responsible for pre- (1) Selling expenses (not otherwise paring the LOA to— limited by FAR part 31), e.g.— (1) Assist, as necessary, in prepara- (i) Maintaining international sales tion of the LOA; and service organizations; (2) Identify and explain all unusual (ii) Sales commissions and fees in ac- contractual requirements or requests cordance with FAR subpart 3.4; for deviations; and (iii) Sales promotions, demonstra- (3) Assist in preparing the price and tions, and related travel for sales to availability data. foreign governments. Paragraph 126.8 [56 FR 36367, July 31, 1991, as amended at 62 of the International Traffic in Arms FR 2617, Jan. 17, 1997; 63 FR 43889, Aug. 17, Regulations (ITAR) (22 CFR part 121) 1998] may require Government approval for these costs to be allowable. If Govern- 225.7303 Pricing acquisitions for FMS. ment approval is required for pro- (a) Price FMS contracts using the motion or demonstration costs to be same principles as are used in pricing allowable, the approval must be ob- other defense contracts. Application of tained. the pricing principles in FAR parts 15 (iv) Configuration studies and related and 31 to an FMS contract may result technical services undertaken as a di- in prices that differ from other defense rect selling effort to a foreign country. contract prices for the same item due (2) Product support and post-delivery to the considerations in this section. service expenses, such as—
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(i) Operations or maintenance train- (d) Under paragraph (e)(1)(A) of Sec- ing, training or tactics films, manuals, tion 21 of the Arms Export Control Act or other related data; and (22 U.S.C. 2761), the United States must (ii) Technical field services provided charge for administrative services to in a foreign country related to accident recover the estimated cost of adminis- investigations, weapon system prob- tration of sales made under the Army lems, operations/tactics enhancement, Export Control Act. and related travel to foreign countries. [56 FR 36367, July 31, 1991, as amended at 56 (3) Offset costs. FR 67216, Dec. 30, 1991; 57 FR 42631, Sept. 15, (i) A U.S. defense contractor may re- 1992; 57 FR 53600, Nov. 12, 1992; 59 FR 50511, cover all costs incurred for offset Oct. 4, 1994; 61 FR 7744, Feb. 29, 1996; 61 FR agreements with a foreign government 18987, Apr. 30, 1996; 63 FR 43889, Aug. 17, 1998; or international organization if the 64 FR 8729, Feb. 23, 1999; 64 FR 49684, Sept. 14, LOA is financed wholly with customer 1999] cash or repayable foreign military fi- nance credits. 225.7303–3 Government-to-government agreements. (ii) The U.S. Government assumes no obligation to satisfy or administer the If a government-to-government offset requirement or to bear any of agreement between the United States the associated costs. and a foreign government for the sale, (4) Costs that are the subject of ad- coproduction, or cooperative logistic vance agreement under the appropriate support of a specifically defined weap- provisions of FAR part 31; or where the on system, major end item, or support advance understanding places a limit item, contains language in conflict on the amounts of cost that will be rec- with the provisions of this section, the ognized as allowable in defense con- language of the government-to-govern- tract pricing, and the agreement con- ment agreement prevails. templated that it will apply only to DoD contracts for the U.S. Govern- 225.7303–4 Contingent fees. ment’s own requirement (as distin- (a) Except as provided in paragraph guished from contracts for FMS). (b) of this subsection, contingent fees (b) Costs not allowable under FAR are generally allowable under DoD con- part 31 are not allowable in pricing tracts, provided the fees are deter- FMS contracts, except as noted in mined by the contracting officer to be paragraph (c) of this subsection. fair and reasonable and are paid to a (c) The cost limitations for major bona fide employee or a bona fide es- contractors on independent research tablished commercial or selling agency and development and bid and proposal maintained by the prospective con- (IR&D/B&P) costs for projects that are tractor for the purpose of securing of potential interest to DoD, in 231.205– business (see FAR Part 31 and FAR 18(c)(iii), do not apply to FMS con- Subpart 3.4). tracts, except as provided in 225.7303–5. (b)(1) Under DoD 5105.38–M, LOAs for Therefore, the cost limitations on inde- requirements for the governments of pendent research and development and Australia, Taiwan, Egypt, Greece, bid and proposal (IR&D/B&P) costs in Israel, Japan, Jordan, Republic of FAR 31.205–18 do not apply to such con- Korea, Kuwait, Pakistan, Philippines, tracts, except as provided in 225.7303–5. Saudi Arabia, Turkey, Thailand, or The allowability of IR&D/B&P costs on Venezuela (Air Force) must provide contracts for FMS not wholly paid for that all U.S. Government contacts re- from funds made available on a non- sulting from the LOAs prohibit the re- repayable basis shall be limited to the imbursement of contingent fees as an contract’s allocable share of the con- allowable cost under the contract, un- tractor’s total IR&D/B&P expenditures. less the payments have been identified In pricing contracts for such FMS— and approved in writing by the foreign (1) Use the best estimate of reason- customer before contract award (see able costs in forward pricing. 225.7308(a)). (2) Use actual expenditures, to the (2) For FMS to countries not listed in extent that they are reasonable, in de- paragraph (b)(1) of this subsection, con- termining final cost. tingent fees exceeding $50,000 per FMS
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case shall be unallowable under DoD firms. (They may suggest the inclusion contracts, unless payment has been of certain firms); identified and approved in writing by (2) Interfere with a contractor’s the foreign customer before contract placement of subcontracts; or award. (3) Participate in the price negotia- [63 FR 11534, Mar. 9, 1998, as amended at 63 tions between the U.S. Government FR 43890, Aug. 17, 1998] and the contractor. (c) Do not accept directions from the 225.7303–5 Aquisitions wholly paid for FMS customer on source selection de- from nonrepayable funds. cisions or contract terms (except that, (a) In accordance with 22 U.S.C. upon timely notice, the contracting of- 2762(d), FMS wholly paid for from funds ficer may attempt to obtain any spe- made available on a nonrepayable basis cial contract provisions and warranties shall be priced on the same costing requested by the FMS customer). basis with regard to profit, overhead, (d) Do not honor any requests by the IR&D/B&P, and other costing elements, FMS customer to reject any bid or pro- as is applicable to acquisitions of like posal. items purchased by DoD for its own [56 FR 36367, July 31, 1991, as amended at 63 use. FR 43890, Aug. 17, 1998] (b) Direct costs associated with meet- ing a foreign customer’s additional or 225.7305 Limitation of liability. unique requirements will be allowable The contracting officer must advise under such contracts. Indirect burden the contractor whenever the foreign rates applicable to such direct costs customer will assume the risk for loss shall be permitted at the same rates or damage under the appropriate limi- applicable to acquisitions of like items tation of liability clause(s) (see FAR purchased by DoD for its own use. subpart 46.8). Consider the costs of nec- (c) A U.S. defense contractor may not essary insurance, if any, obtained by recover costs incurred for offset agree- the contractor to cover the risk of loss ments with a foreign government or or damage in establishing the FMS international organization if the LOA contract price. is financed with funds made available on a nonrepayable basis. 225.7306 Exercise of options for FMS. [61 FR 18988, Apr. 30, 1996; 61 FR 49531, Sept. Consider changes to cost and profit 20, 1996, as amended at 63 FR 43890, Aug. 17, attributable to pricing differences be- 1998; 64 FR 49684, Sept. 14, 1999] tween U.S. and FMS requirements 225.7304 Source selection. when exercising an option to satisfy an FMS requirement. Also consider such (a) FMS customers may request that changes if the option is already identi- a defense article or defense service be fied for FMS, but it is exercised for obtained from a particular contractor. country B requirements instead of the In such cases, FAR 6.302–4 provides au- country A requirements for which it thority to contract without full-and- was priced. open competition. The FMS customer may also request that a subcontract be 225.7307 Offset arrangements. placed with a particular firm. The con- In accordance with the Presidential tracting officer shall honor such re- quests from the FMS customer only if policy statement of April 16, 1990, DoD the LOA or other written direction suf- does not encourage, enter into, or com- ficiently fulfills the requirements of mit U.S. firms to FMS offset arrange- FAR subpart 6.3. ments. The decision whether to engage in offsets, and the responsibility for ne- (b) Do not allow representatives of gotiating and implementing offset ar- the FMS customer to— rangements, resides with the compa- (1) Direct the deletion of names of nies involved. firms from bidders mailing lists or slates of proposed architect-engineer [62 FR 34125, June 24, 1997]
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225.7308 Contract clauses. 225.7402 Contract clause. (a) Use the clause at 252.225–7027, Re- Use the clause at 252.225–7043, striction on Contingent Fees for For- Antiterrorism/Force Protection Policy eign Military Sales, in all solicitations for Defense Contractors Outside the and contracts for FMS. United States, in solicitations and con- (b) Use the clause at 252.225–7028, Ex- tracts that require performance or clusionary Policies and Practices of travel outside the United States, ex- Foreign Governments, in all solicita- cept for contracts with— tions and contracts for the purchase of goods and services for international (a) Foreign governments; military education training and FMS. (b) Representatives of foreign govern- ments; or [56 FR 36367, July 31, 1991, as amended at 62 (c) Foreign corporations wholly FR 2617, Jan. 17, 1997; 63 FR 43890, Aug. 17, 1998] owned by foreign governments.
Subpart 225.74—Antiterrorism/ PART 226—OTHER Force Protection Policy for SOCIOECONOMIC PROGRAMS Defense Contractors Outside the United States Subpart 226.1—Indian Incentive Program Sec. SOURCE: 63 FR 31937, June 11, 1998, unless 226.103 Procedures. otherwise noted. 226.104 Contract clause.
225.7400 Scope of subpart. Subpart 226.70—Historically Black Colleges This subpart pertains to and Universities and Minority Institutions antiterrorism/force protection policy for contracts that require performance 226.7000 Scope of subpart. or travel outside the United States. 226.7001 Definitions. 226.7002 General policy. 225.7401 General. 226.7003 Set-asides for HBCUs and MIs. Information and guidance pertaining 226.7003–1 Set-aside criteria. to DoD antiterrorism/force protection 226.7003–2 Set-aside procedures. can be obtained from the following of- 226.7004 [Reserved] 226.7005 Eligibility as an HBCU or MI. fices: 226.7006 Protesting an HBCU or MI represen- (a) For Navy contracts: Naval Crimi- tation. nal Investigative Service (NCIS), Code 226.7007 Goals and incentives for subcon- 24; telephone, DSN 228–9113 or commer- tracting with HBCU/MIs. cial (202) 433–9113. 226.7008 Solicitation provision and contract (b) For Army contracts: HQDA clause. (DAMO–ODL)/ODCSOP; telephone, DSN 225–8491 or commercial (703) 695–8491. Subpart 226.71—Preference for Local and (c) For Marine Corps contracts: CMC Small Businesses Code POS–10; telephone, DSN 224–4177 or commercial (703) 614–4177. 226.7100 Scope of subpart. (d) For Air Force contracts: HQ 226.7101 Definition. AFSFC/SFPT; telephone, DSN 473–0927/ 226.7102 Policy. 0928 or commercial (210) 671–0927/0928. 226.7103 Procedure. (e) For Combatant Command con- 226.7104 Other considerations. tracts: The appropriate Antiterrorism Force Protection Office at the Com- Subpart 226.72—Base Closures and mand Headquarters. Realignments (f) For Defense Agencies: The appro- 226.7200 Scope. priate agency security office. (g) For additional information: As- AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- sistant Secretary of Defense for Spe- ter 1. cial Operations and Low Intensity Con- SOURCE: 56 FR 36388, July 31, 1991, unless flict, ASD (SOLIC); telephone, DSN otherwise noted. 255–0044 or commercial (703) 695–0044.
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Subpart 226.1—Indian Incentive subset of the five percent goal, for the Program participation of HBCUs and MIs. [59 FR 27672, May 27, 1994, as amended at 64 226.103 Procedures. FR 62987, Nov. 18, 1999] (f) The contracting officer must sub- mit a request for funding of the Indian 226.7001 Definitions. incentive to the Office of Small and Definitions of HBCUs and MIs are in Disadvantaged Business Utilization, the clause at 252.226–7000. Office of the Under Secretary of De- fense (Acquisition, Technology, and 226.7002 General policy. Logistics) (OUSD (AT&L) SADBU, 1777 The DoD will use outreach efforts, North Kent Street, Suite 9100, Arling- technical assistance programs, advance ton, VA 22209. Upon receipt of funding payments, HBCU/MI set-asides, and from OUSD (AT&L) SADBU, the con- evaluation preferences to meet its con- tracting officer must issue a contract tract and subcontract goal for use of modification to add the Indian incen- HBCUs and MIs. In addition, DoD will tive funding for payment of the con- establish ‘‘infrastructure assistance’’ tractor’s request for adjustment as de- (e.g., scholarships, faculty develop- scribed at FAR 52.226–1, Utilization of ment, teaming agreements with de- Indian Organizations and Indian-Owned fense laboratories, and laboratory ren- Economic Enterprises. ovation) at colleges, universities, and institutions that agree to bear a sub- [65 FR 19859, Apr. 13, 2000] stantial portion of the costs associated with the progams. 226.104 Contract clause. [56 FR 67216, Dec. 30, 1991] Use the clause at 252.226–7001, Utiliza- tion of Indian Organizations and In- 226.7003 Set-asides for HBCUs and dian-Owned Economic Enterprises-DoD MIs. Contracts, in solicitations and con- tracts that— 226.7003–1 Set-aside criteria. (1) Do not use FAR part 12 proce- Set-aside acquisitions for exclusive dures; and HBCU and MI participation when the (2) Are for supplies or services ex- acquisition is for research, studies, or pected to exceed the simplified acquisi- services of the type normally acquired tion threshold. from higher educational institutions and there is a reasonable expectation [65 FR 19859, Apr. 13, 2000, as amended at 65 FR 52952, Aug. 31, 2000; 66 FR 47111, Sept. 11, that— 2001] (a) Offers will be submitted by at least two responsible HBCUs or MIs which can comply with the subcon- Subpart 226.70—Historically Black tracting limitations in the clause at Colleges and Universities and FAR 52.219–14; Minority Institutions (b) Award will be made at not more than ten percent above fair market 226.7000 Scope of subpart. price; and This subpart implements the histori- (c) Scientific and/or technological cally black college and university talent consistent with the demands of (HBCU) and minority institution (MI) the acquisition will be offered. provisions of 10 U.S.C. 2323, which— (a) Set a goal for DoD for each of fis- 226.7003–2 Set-aside procedures. cal years 1987 through 2003 to award (a) As a general rule, use competitive five percent of contract and sub- negotiation for HBCU/MI set-asides. contract dollars to small disadvan- (b) When using a broad agency an- taged business concerns and HBCU/MIs; nouncement (FAR 35.016) for basic or and applied research, make partial set- (b) Require a separate goal, for each asides for HBCU/MIs as explained in of fiscal years 1991 through 2003, as a 235.016.
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(c) Follow the special synopsis in- (1) Ensure that the contractor in- structions in 205.207(d) (iii), (iv), and cluded anticipated awards to HBCU/MIs (v). in the small disadvantaged business (d) Cancel the set-aside if the low re- goal; sponsible offer exceeds the fair market (2) Consider whether subcontracts are price (defined in FAR part 19) by more contemplated which involve research than ten percent. or studies of the type normally per- formed by higher educational institu- 226.7004 [Reserved] tions. 226.7005 Eligibility as an HBCU or MI. (b) The contracting officer may, when contracting by negotiation, in- (a) To be eligible for award as an sert in solicitations and contracts a HBCU or MI under the preference pro- clause similar to the clause at FAR cedures of this subpart, an offeror 52.219–10, Incentive Subcontracting must— Program, when a subcontracting plan (1) Be an HBCU or MI, as defined in is required, and inclusion of a mone- the clause at 252.226–7000, Notice of His- tary incentive is, in the judgment of torically Black College or University the contracting officer, necessary to and Minority Institution Set-Aside, at increase subcontracting opportunities the time of submission of its initial for historically black colleges or uni- offer including price; and versities and minority institutions. (2) Provide the contracting officer The clause should include a separate with evidence of its HBCU or MI status upon request. goal for historically black colleges or universities and minority institutions. (b) The contracting officer shall ac- cept an offeror’s HBCU or MI status [56 FR 36388, July 31, 1991, as amended at 63 under the provision at 252.226–7001, un- FR 64429, Nov. 20, 1998] less— (1) Another offeror challenges the 226.7008 Solicitation provision and status; or contract clause. (2) The contracting officer has reason (a) Use the clause at 252.226–7000, No- to question the offeror’s HBCU/MI sta- tice of Historically Black College or tus. (A list of HBCUs is published peri- University and Minority Institution odically by the Department of Edu- Set-Aside, in solicitations and con- cation.) tracts set-aside for HBCU/MIs. [56 FR 36388, July 31, 1991, as amended at 59 (b) Use the provision at FAR 52.226–2, FR 22131, Apr. 29, 1994; 62 FR 2613, Jan. 17, Historically Black College or Univer- 1997] sity and Minority Institution Rep- resentation, in solicitations set aside 226.7006 Protesting an HBCU or MI for HBCU/MIs. representation. Any offeror or other interested party [56 FR 36388, July 31, 1991, as amended at 64 FR 52671, Sept. 30, 1999] may challenge an offeror’s HBCU or MI representation by filing a protest with the contracting officer. The protest Subpart 226.71—Preference for must contain specific detailed evidence Local and Small Businesses supporting the basis for the challenge. Such protests are handled in accord- SOURCE: 59 FR 12192, Mar. 16, 1994, unless ance with FAR 33.103 and are decided otherwise noted. by the contracting officer. 226.7100 Scope of subpart. 226.7007 Goals and incentives for sub- contracting with HBCU/MIs. This subpart implements section 2912 of the Fiscal Year 1994 Defense Author- (a) In reviewing subcontracting plans ization Act (Pub. L. 103–160) and sec- submitted under the clause at FAR tion 817 of the Fiscal Year 1995 Defense 52.219–9, Small Business and Small Dis- Authorization Act (Pub. L. 103–337). advantaged Business Subcontracting Plan, the contracting officer shall— [60 FR 5870, Jan. 31, 1995]
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226.7101 Definition. 226.7104 Other considerations. Vicinity, as used in this subpart, When planning for contracts for serv- means the county or counties in which ices related to base closure activities the military installation to be closed at a military installation affected by a or realigned is located and all adjacent closure or realignment under a base counties, unless otherwise defined by closure law, contracting officers shall the agency head. consider including, as a factor in source selection, the extent to which [60 FR 29499, June 5, 1995] offerors specifically identify and com- 226.7102 Policy. mit, in their proposals, to a plan to hire residents of the vicinity of the Businesses located in the vicinity of military installation that is being a military installation that is being closed or realigned. closed or realigned under a base closure law, including 10 U.S.C. 2687, and small [60 FR 61598, Nov. 30, 1995] and small disadvantaged businesses shall be provided maximum practicable Subpart 226.72—Base Closures opportunity to participate in acquisi- and Realignments tions that support the closure or re- alignment, including acquisitions for 226.7200 Scope. environmental restoration and mitiga- This subpart identifies the various tion. policies and statutory authorities that affect contracts associated with the 226.7103 Procedure. closure and realignment of military in- In considering acquisitions for award stallations. These policies and authori- through the section 8(a) program (sub- ties are— part 219.8 and FAR subpart 19.8) or in (a) Right of first refusal of employment. making set-aside decisions under sub- This authority is embodied in a clause part 219.5 and FAR subpart 19.5 for ac- for use in solicitations and contracts quisitions in support of a base closure arising from the closure of a military or realignment, the contracting officer installation. The clause establishes shall— employment rights for Government (a) Determine whether there is a rea- employees who are adversely affected sonable expectation that offers will be by closure of the installation (see sub- received from responsible business con- part 222.71). cerns located in the vicinity of the (b) Preference for local and small busi- military installation that is being ness. This authority allows contracting closed or realigned. officers, when entering into a contract (b) If offers can not be expected from as part of the closure or realignment of business concerns in the vicinity, pro- a military installation, to give pref- ceed with section 8(a) or set-aside con- erence, to the greatest extent prac- sideration as otherwise indicated in ticable, to qualified businesses located part 219 and FAR part 19. in the vicinity of the installation and (c) If offers can be expected from to small and small disadvantaged busi- business concerns in the vicinity— ness concerns (see subpart 226.71). (1) Consider section 8(a) only if the (c) Services at installations being closed. 8(a) contractor is located in the vicin- This authority allows DoD, under cer- ity. tain conditions, to contract with local (2) Set aside the acquisition for small governments for police, fire protection, business only if one of the expected of- airfield operations and other commu- fers is from a small business located in nity services at installations being the vicinity. closed (see subpart 237.74). [60 FR 29499, June 5, 1995, as amended at 63 [59 FR 36089, July 15, 1994, as amended at 60 FR 41974, Aug. 6, 1998] FR 29499, June 5, 1995]
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PART 227—PATENTS, DATA, AND 227.7009–4 Additional clauses—contracts providing for payment of a running roy- COPYRIGHTS alty. 227.7010 Assignments. Subpart 227.3—Patent Rights Under 227.7011 Procurement of rights in inven- Government Contracts tions, patents, and copyrights. 227.7012 Contract format. Sec. 227.7013 Recordation. 227.303 Contract clauses. 227.304 Procedures. Subpart 227.71—Rights in Technical Data 227.304–1 General. 227.304–4 Subcontracts. 227.7100 Scope of subpart. 227.7101 Definitions. Subpart 227.4—Rights in Data and 227.7102 Commercial items, components, or Copyrights processes. 227.7102–1 Policy. 227.400 Scope of subpart. 227.7102–2 Rights in technical data. 227.7102–3 Contract clause. Subpart 227.6—Foreign License and 227.7103 Noncommercial items or processes. Technical Assistance Agreements 227.7103–1 Policy. 227.7103–2 Acquisition of technical data. 227.670 Scope. 227.7103–3 Early identification of technical 227.671 General. data to be furnished to the Government 227.672 Policy. with restrictions on use, reproduction or 227.673 Foreign license and technical assist- disclosure. ance agreements between the Govern- 227.7103–4 License rights. ment and domestic concerns. 227.7103–5 Government rights. 227.674 Supply contracts between the Gov- 227.7103–6 Contract clauses. ernment and a foreign government or 227.7103–7 Use and non-disclosure agree- concern. ment. 227.675 Foreign license and technical assist- 227.7103–8 Deferred delivery and deferred or- ance agreements between a domestic dering of technical data. concern and a foreign government or 227.7103–9 Copyright. concern. 227.7103–10 Contractor identification and 227.675–1 International Traffic in Arms Reg- marking of technical data to be fur- ulations. nished with restrictive markings. 227.675–2 Review of agreements. 227.7103–11 Contractor procedures and 227.676 Foreign patent interchange agree- records. ments. 227.7103–12 Government right to establish conformity of markings. Subpart 227.70—Infringement Claims, 227.7103–13 Government right to review, Licenses, and Assignments verify, challenge and validate asserted restrictions. 227.7000 Scope. 227.7103–14 Conformity, acceptance, and 227.7001 Policy. warranty of technical data. 227.7002 Statutes pertaining to administra- 227.7103–15 Subcontractor rights in tech- tive claims of infringement. nical data. 227.7003 Claims for copyright infringement. 227.7103–16 Providing technical data to for- 227.7004 Requirements for filing an adminis- eign governments, foreign contractors, trative claim for patent infringement. or international organizations. 227.7005 Indirect notice of patent infringe- 227.7103–17 Overseas contracts with foreign ment claims. sources. 227.7006 Investigation and administrative 227.7104 Contracts under the Small Business disposition of claims. Innovation Research (SBIR) Program. 227.7007 Notification and disclosure to 227.7105 Contracts for the acquisition of ex- claimants. isting works. 227.7008 Settlement of indemnified claims. 227.7105–1 General. 227.7009 Patent releases, license agree- 227.7105–2 Acquisition of existing works ments, and assignments. without modification. 227.7009–1 Required clauses. 227.7105–3 Acquisition of modified existing 227.7009–2 Clauses to be used when applica- works. ble. 227.7106 Contracts for special works. 227.7009–3 Additional clauses—contracts ex- 227.7107 Contracts for architect-engineer cept running royalty contracts. services.
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227.7107–1 Architectural designs and data 227.7203–17 Overseas contracts with foreign clauses for architect-engineer or con- sources. struction contracts. 227.7204 Contracts under the Small Business 227.7107–2 Contracts for construction sup- Innovative Research Program. plies and research and development 227.7205 Contracts for special works. work. 227.7206 Contracts for architect-engineer 227.7107–3 Approval of restricted designs. services. 227.7108 Contractor data repositories. 227.7207 Contractor data repositories.
Subpart 227.72—Rights in Computer Soft- AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- ware and Computer Software Docu- ter 1. mentation SOURCE: 56 FR 36389, July 31, 1991, unless 227.7200 Scope of subpart. otherwise noted. 227.7201 Definitions. 227.7202 Commercial computer software and commercial computer software docu- Subpart 227.3—Patent Rights mentation. Under Government Contracts 227.7202–1 Policy. 227.7202–2 [Reserved] 227.303 Contract clauses. 227.7202–3 Rights in commercial computer (a) Pursuant to FAR 27.304–1(e), the software or commercial computer soft- ware documentation. contracting officer shall insert the 227.7202–4 Contract clause. clause at 252.227–7039, Patents—Report- 227.7203 Noncommercial computer software ing of Subject Inventions, in solicita- and noncommercial computer software tions and contracts containing the documentation. clause at FAR 52.227–11, Patent 227.7203–1 Policy. Rights—Retention by the Contractor 227.7203–2 Acquisition of noncommercial computer software and computer soft- (Short Form). ware documentation. 227.7203–3 Early identification of computer 227.304 Procedures. software or computer software docu- mentation to be furnished to the Govern- 227.304–1 General. ment with restrictions on use, reproduc- Interim and final invention reports tion or disclosure. 227.7203–4 License rights. and notification of all subcontracts for 227.7203–5 Government rights. experimental, developmental, or re- 227.7203–6 Contract clauses. search work (FAR 27.304–1(e)(2)(ii)) may 227.7203–7 [Reserved] be submitted on DD Form 882, Report 227.7203–8 Deferred delivery and deferred or- of Inventions and Subcontracts. dering of computer software and com- puter software documentation. [56 FR 36389, July 31, 1991, as amended at 57 227.7203–9 Copyright. FR 53600, Nov. 12, 1992] 227.7203–10 Contractor identification and marking of computer software or com- 227.304–4 Subcontracts. puter software documentation to be fur- nished with restrictive markings. The contracting officer shall insert 227.7203–11 Contractor procedures and the clause at 252.227–7034, Patents-Sub- records. contracts, in solicitations and con- 227.7203–12 Government right to establish tracts containing the clause at FAR conformity of markings. 52.227–11, Patent Rights—Retention by 227.7203–13 Government right to review, the Contractor (Short Form). verify, challenge and validate asserted restrictions. 227.7203–14 Conformity, acceptance, and Subpart 227.4—Rights in Data and warranty of computer software and com- Copyrights puter software documentation. 227.7203–15 Subcontractor rights in com- 227.400 Scope of subpart. puter software or computer software doc- umentation. DoD activities shall use the guidance 227.7203–16 Providing computer software or in subparts 227.71 and 227.72 instead of computer software documentation to for- the guidance in FAR subpart 27.4. eign governments, foreign contractors, or international organizations. [60 FR 33471, June 28, 1995]
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Subpart 227.6—Foreign License license fee whether or not patent rights and Technical Assistance are involved. Agreements 227.672 Policy. 227.670 Scope. It is Government policy not to pay in connection with its contracts, and not This subpart prescribes policy with to allow to be paid in connection with respect to foreign license and technical contracts made with funds derived assistance agreements. through the Military Assistance Pro- gram or otherwise through the United 227.671 General. States Government, charges for use of In furtherance of the Military Assist- patents in which it holds a royalty-free ance Program or for other national de- license or charges for data which it has fense purposes, the Government may a right to use and disclose to others, or undertake to develop or encourage the which is in the public domain, or which development of foreign additional the Government has acquired without sources of supply. The development of restriction upon its use and disclosure such sources may be accomplished by to others. This policy shall be applied an agreement, often called a foreign li- by the Departments in negotiating con- censing agreement or technical assist- tract prices for foreign license tech- ance agreement, wherein a domestic nical assistance contracts (227.675) or concern, referred to in this subpart as supply contracts with second sources a ‘‘primary source,’’ agrees to furnish (227.674); and in commenting on such to a foreign concern or government, agreements when they are referred to herein referred to as a ‘‘second source;’’ the Department of Defense by the De- foreign patent rights; technical assist- partment of State pursuant to section ance in the form of data, know-how, 414 of the Mutual Security Act of 1954 trained personnel of the primary as amended (22 U.S.C. 1934) and the source, instruction and guidance of the International Traffic in Arms Regula- personnel of the second source, jigs, tions (see 227.675). dies, fixtures, or other manufacturing aids, or such other assistance, informa- 227.673 Foreign license and technical tion, rights, or licenses as are needed assistance agreements between the to enable the second source to produce Government and domestic con- particular supplies or perform par- cerns. ticular services. Agreements calling for (a) Contracts between the Govern- one or more of the foregoing may be ment and a primary source to provide entered into between the primary technical assistance or patent rights to source and the Government, a foreign a second source for the manufacture of government, or a foreign concern. The supplies or performance of services consideration for providing such for- shall, to the extent practicable, specify eign license and technical assistance the rights in patents and data and any may be in the form of a lump sum pay- other rights to be supplied to the sec- ment, payments for each item manu- ond source. Each contract shall pro- factured by the second source, an vide, in connection with any separate agreement to exchange data and patent agreement between the primary source rights on improvements made to the and the second source for patent rights article or service, capital stock trans- or technical assistance relating to the actions, or any combination of these. articles or services involved in the con- The primary source’s bases for com- tract, that— puting such consideration may include (1) The primary source and his sub- actual costs; charges for the use of pat- contractors shall not make, on account ents, data, or know-how reflecting the of any purchases by the Government or primary source’s investment in devel- by others with funds derived through oping and engineering and production the Military Assistance Program or techniques; and the primary source’s otherwise through the Government, ‘‘price’’ for setting up a second source. any charge to the second source for Such agreements often refer to the royalties or amortization for patents compensation to be paid as a royalty or or inventions in which the Government
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holds a royalty-free license; or data (b) Shall not accept or allow charges which the Government has the right to which in effect are— possess, use, and disclose to others; or (1) For royalties or amortization for any technical assistance provided to patents or inventions in which the the second source for which the Gov- Government holds a royalty-free li- ernment has paid under a contract be- cense; or tween the Government and the primary (2) For data which the Government source; and has a right to possess, use, and disclose (2) The separate agreement between to others; or the primary and second source shall in- (3) For any technical assistance pro- clude a statement referring to the con- vided to the second source for which tract between the Government and the the Government has paid under a con- primary source, and shall conform to tract between the Government and a the requirements of the International primary source. Traffic in Arms Regulations (see 227.675 Foreign license and technical 227.675–1). assistance agreements between a (b) The following factors, among oth- domestic concern and a foreign gov- ers, shall be considered in negotiating ernment or concern. the price to be paid the primary source under contracts within (a) of this sec- 227.675–1 International Traffic in Arms Regulations. tion: (1) The actual cost of providing data, Pursuant to section 414 of the Mutual personnel, manufacturing aids, sam- Security Act of 1954, as amended (22 ples, spare parts, and the like; U.S.C. 1934), the Department of State controls the exportation of data relat- (2) The extent to which the Govern- ing to articles designated in the United ment has contributed to the develop- States Munitions List as arms, ammu- ment of the supplies or services, and to nition, or munitions of war. (The Muni- the methods of manufacture or per- tions List and pertinent procedures are formance, through past contracts for set forth in the International Traffic in research and development or for manu- Arms Regulations, 22 CFR, et seq.) Be- facture of the supplies or performance fore authorizing such exportation, the of the services; and Department of State generally requests (3) The Government’s patent rights comments from the Department of De- and rights in data relating to the sup- fense. On request of the Office of the plies or services and to the methods of Assistant Secretary of Defense (Inter- manufacture or of performance. national Security Affairs), each De- partment shall submit comments 227.674 Supply contracts between the thereon as the basis for a Department Government and a foreign govern- of Defense reply to the Department of ment or concern. State. In negotiating contract prices with a second source, including the redeter- 227.675–2 Review of agreements. mination of contract prices, or in de- (a) In reviewing foreign license and termining the allowability of costs technical assistance agreements be- under a cost-reimbursement contract tween primary and second sources, the with a second source, the contracting Department concerned shall, insofar as officer: its interests are involved, indicate (a) Shall obtain from the second whether the agreement meets the re- source a detailed statement (see FAR quirements of §§ 124.07–124.10 of the 27.204–1(a)(2)) of royalties, license fees, International Traffic in Arms Regula- and other compensation paid or to be tions or in what respects it is deficient. paid to a primary source (or any of his Paragraphs (b) through (g) of this sub- subcontractors) for patent rights, section provide general guidance. rights in data, and other technical as- (b) When it is reasonably anticipated sistance provided to the second source, that the Government will purchase including identification and descrip- from the second source the supplies or tion of such patents, data, and tech- services involved in the agreement, or nical assistance; and that Military Assistance Program
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funds will be provided for the procure- (i) The agreement requires the second ment of the supplies or services, the source to advise the primary source following guidance applies. when he has knowledge of any purchase (1) If the agreement specifies a reduc- made or to be made from him by or for tion in charges thereunder, with re- the Government or by others with spect to purchases by or for the Gov- funds derived through the Military As- ernment or by others with funds de- sistance Program or otherwise through rived through the Military Assistance the Government; Program or otherwise through the Gov- (ii) The primary source separately ernment, in recognition of the Govern- agrees with the Government that upon ment’s rights in patents and data, the such advice to him from the second Department concerned shall evaluate source or from the Government or oth- the amount of the reduction to deter- erwise as to any such a purchase or mine whether it is fair and reasonable prospective purchase, he will negotiate in the circumstances, before indicating with the Department concerned an ap- its approval. propriate reduction in his charges to (2) If the agreement does not specify the second source in recognition of any any reduction in charges or otherwise Government rights in patents or data; fails to give recognition to the Govern- and ment’s rights in the patents or data in- (iii) The agreement between the pri- volved, approval shall be conditioned mary and second sources further pro- upon amendment of the agreement to vides that in the event of any such pur- reflect a reduction, evaluated by the chase and resulting reduction in Department concerned as acceptable to charges, the second source shall pass the Government, in any charge there- on this reduction to the Government under with respect to purchases made by giving the Government a cor- by or for the Government or by others responding reduction in the purchase with funds derived through the Mili- price of the article or service. tary Assistance Program or otherwise (2) If the agreement provides that no through the Government, in accord- charge is to be made to the second ance with § 124.10 of the International source for data or patent rights to the Traffic in Arms Regulations. extent to which the Government has (3) If the agreement provides that no rights, the Department concerned charge is to be made to the second shall: source for data or patent rights to the (i) Evaluate the acceptability of the extent of the Government’s rights, the provision before indicating its ap- Department concerned shall evaluate proval; or the acceptability of the provision be- (ii) Explicitly condition its approval fore indicating its approval. on the right to evaluate the accept- (4) If time or circumstances do not ability of the provision at a later time. permit the evaluation called for in (b) (d) When there is a technical assist- (1), (2), or (3) of this subsection, the ance agreement between the primary guidance in (c) of this subsection shall source and the Government related to be followed. the agreement between the primary (c) When it is not reasonably antici- and second sources that is under re- pated that the Government will pur- view, the latter agreement shall reflect chase from the second source the sup- the arrangements contemplated with plies or services involved in the agree- respect thereto by the Government’s ment nor that Military Assistance Pro- technical assistance agreement with gram funds will be provided for the the primary source. purchase of the supplies or services, (e) Every agreement shall provide then the following guidance applies. that any license rights transferred (1) If the agreement provides for under the agreement are subject to ex- charges to the second source for data isting rights of the Government. or patent rights, it may suffice to ful- (f) In connection with every agree- fill the requirements of § 124.10 insofar ment referred to in (b) of this section, as the Department of Defense is con- a request shall be made to the primary cerned if: source—
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(1) To identify the patents, data, and DSN 430–8001/7263, Commercial 49–0711– other technical assistance to be pro- 680–8001/7263; Telefax: 49–0711–680–5732. vided to the second source by the pri- [62 FR 34125, June 24, 1997, as amended at 63 mary source or any of his subcontrac- FR 11534, Mar. 9, 1998] tors, (2) To identify any such patents and Subpart 227.70—Infringement data in which, to the knowledge of the Claims, Licenses, and Assign- primary source, the Government may ments have rights, and (3) To segregate the charges made to 227.7000 Scope. the second source for each such cat- This subpart prescribes policy, proce- egory or item of patents, data, and dures, and instructions for use of other technical assistance. clauses with respect to processing li- Reviewing personnel shall verify this censes, assignments, and infringement information or, where the primary claims. source does not furnish it, obtain such information from Governmental 227.7001 Policy. sources so far as practicable. Whenever a claim of infringement of (g) The Department concerned shall privately owned rights in patented in- make it clear that its approval of any ventions or copyrighted works is as- agreement does not necessarily recog- serted against any Department or nize the propriety of the charges or the Agency of the Department of Defense, amounts thereof, or constitute ap- all necessary steps shall be taken to in- proval of any of the business arrange- vestigate, and to settle administra- ments in the agreement, unless the De- tively, deny, or otherwise dispose of partment expressly intends by its ap- such claim prior to suit against the proval to commit itself to the fairness United States. This subpart 227.70 does and reasonableness of a particular not apply to licenses or assignments charge or charges. In any event, a dis- acquired by the Department of Defense claimer should be made to charges or under the Patent Rights clauses. business terms not affecting any pur- chase made by or for the Government 227.7002 Statutes pertaining to admin- istrative claims of infringement. or by others with funds derived through the Military Assistance Pro- Statutes pertaining to administra- gram or otherwise through the Govern- tive claims of infringement in the De- ment. partment of Defense include the fol- lowing: the Foreign Assistance Act of 227.676 Foreign patent interchange 1961, 22 U.S.C. 2356 (formerly the Mu- agreements. tual Security Acts of 1951 and 1954); the Invention Secrecy Act, 35 U.S.C. 181– (a) Patent interchange agreements 188; 10 U.S.C. 2386; 28 U.S.C. 1498; and 35 between the United States and foreign U.S.C. 286. governments provide for the use of pat- ent rights, compensation, free licenses, 227.7003 Claims for copyright infringe- and the establishment of committees ment. to review and make recommendations The procedures set forth herein will on these matters. The agreements also be followed, where applicable, in copy- may exempt the United States from right infringement claims. royalty and other payments. The con- tracting officer shall ensure that roy- 227.7004 Requirements for filing an alty payments are consistent with pat- administrative claim for patent in- ent interchange agreements. fringement. (b) Assistance with patent rights and (a) A patent infringement claim for royalty payments in the United States compensation, asserted against the European Command (USEUCOM) area United States under any of the applica- of responsibility is available from HQ ble statutes cited in 227.7002, must be USEUCOM, ATTN: ECLA, Unit 30400, actually communicated to and received Box 1000, APO AE 09128; Telephone: by a Department, agency, organization,
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office, or field establishment within ent(s), and copies of all license agree- the Department of Defense. Claims ments and releases involving the pat- must be in writing and should include ent(s). the following: (5) A brief description of all litiga- (1) An allegation of infringement; tion in which the patent(s) has been or (2) A request for compensation, ei- is now involved, and the present status ther expressed or implied; thereof. (3) A citation of the patent or patents (6) A list of all persons to whom no- alleged to be infringed; tices of infringement have been sent, (4) A sufficient designation of the al- including all departments and agencies leged infringing item or process to per- of the Government, and a statement of mit identification, giving the military the ultimate disposition of each. or commercial designation, if known, (7) A description of Government em- to the claimant; ployment or military service, if any, by (5) A designation of at least one the inventor and/or patent owner. claim of each patent alleged to be in- (8) A list of all Government contracts fringed; or under which the inventor, patent (6) As an alternative to (a) (4) and (5) owner, or anyone in privity with him of this section, a declaration that the performed work relating to the pat- claimant has made a bona fide attempt ented subject matter. to determine the item or process which (9) Evidence of title to the patent(s) is alleged to infringe, but was unable to alleged to be infringed or other right to do so, giving reasons, and stating a rea- make the claim. sonable basis for his belief that his pat- (10) A copy of the Patent Office file of ent or patents are being infringed. each patent if available to claimant. (b) In addition to the information (11) Pertinent prior art known to listed in (a) of this section, the fol- claimant, not contained in the Patent lowing material and information is Office file, particularly publications generally necessary in the course of and foreign art. processing a claim of patent infringe- ment. Claimants are encouraged to fur- In addition in the foregoing, if claim- nish this information at the time of fil- ant can provide a statement that the ing a claim to permit the most expedi- investigation may be limited to the tious processing and settlement of the specifically identified accused articles claim. or processes, or to a specific procure- (1) A copy of the asserted patent(s) ment, it may materially expedite de- and identification of all claims of the termination of the claim. patent alleged to be infringed. (c) Any Department receiving an al- (2) Identification of all procurements legation of patent infringement which known to claimant which involve the meets the requirements of this para- alleged infringing item or process, in- graph shall acknowledge the same and cluding the identity of the vendor or supply the other Departments which contractor and the Government pro- may have an interest therein with a curing activity. copy of such communication and the (3) A detailed identification of the ac- acknowledgement thereof. cused article or process, particularly (1) For the Department of the where the article or process relates to Army—Chief, Patents, Copyrights, and a component or subcomponent of the Trademarks Division, U.S. Army Legal item procured, an element by element Services Agency; comparison of the representative (2) For the Department of the Navy— claims with the accused article or The Patent Counsel for Navy, Office of process. If available, this identification Naval Research; should include documentation and (3) For the Department of the Air drawings to illustrate the accused arti- Force—Chief, Patents Division, Office cle or process in suitable detail to en- of The Judge Advocate General; able verification of the infringement (4) For the Defense Logistics Agen- comparison. cy—The Office of Counsel; for the Na- (4) Names and addresses of all past tional Security Agency, the General and present licenses under the pat- Counsel;
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(5) For the Defense Information Sys- lished by each Department, subject to tems Agency—the Counsel; the following: (6) For the Defense Threat Reduction (a) When the procurement responsi- Agency—The General Counsel; and bility for the alleged infringing item or (7) For the National Imagery and process is assigned to a single Depart- Mapping Agency—The Counsel. ment or only one Department is the (d) If a communication alleging pat- purchaser of the alleged infringing ent infringement is received which item or process, and the funds of that does not meet the requirements set Department only are to be charged in forth in paragraph (c) of this section, the settlement of the claim, that De- the sender shall be advised in writing— partment shall have the sole responsi- (1) That his claim for infringement bility for the investigation and admin- has not been satisfactorily presented, istrative determination of the claim and and for the execution of any agreement (2) Of the elements considered nec- in settlement of the claim. Where, how- essary to establish a claim. ever, funds of another Department are (e) A communication making a prof- to be charged, in whole or in part, the fer of a license in which no infringe- approval of such Department shall be ment is alleged shall not be considered obtained as required by 208.7002. Any as a claim for infringement. agreement in settlement of the claim, approved pursuant to 208.7002 shall be [56 FR 36389, July 31, 1991, as amended at 56 executed by each of the Departments FR 67216, Dec. 30, 1991; 61 FR 50454, Sept. 26, 1996; 62 FR 2613, Jan. 17, 1997; 64 FR 51076, concerned. Sept. 21, 1999] (b) When two or more Departments are the respective purchasers of alleged 227.7005 Indirect notice of patent in- infringing items or processes and the fringement claims. funds of those Departments are to be (a) A communication by a patent charged in the settlement of the claim, owner to a Department of Defense con- the investigation and administrative tractor alleging that the contractor determination shall be the responsi- has committed acts of infringement in bility of the Department having the performance of a Government contract predominant financial interest in the shall not be considered a claim within claim or of the Department or Depart- the meaning of 227.7004 until it meets ments as jointly agreed upon by the the requirements specified therein. Departments concerned. The Depart- (b) Any Department receiving an al- ment responsible for negotiation shall, legation of patent infringement which throughout the negotiation, coordinate meets the requirements of 227.7004 shall with the other Departments concerned acknowledge the same and supply the and keep them advised of the status of other Departments (see 227.7004(c)) the negotiation. Any agreement in the which may have an interest therein settlement of the claim shall be exe- with a copy of such communication cuted by each Department concerned. and the acknowledgement thereof. (c) If a communication covering an 227.7007 Notification and disclosure to infringement claim or notice which claimants. does not meet the requirements of When a claim is denied, the Depart- 227.7004(a) is received from a con- ment responsible for the administra- tractor, the patent owner shall be ad- tive determination of the claim shall vised in writing as covered by the in- so notify the claimant or his author- structions of 227.7004(d). ized representative and provide the claimant a reasonable rationale of the 227.7006 Investigation and administra- basis for denying the claim. Disclosure tive disposition of claims. of information or the rationale referred An investigation and administrative to above shall be subject to applicable determination (denial or settlement) of statutes, regulations, and directives each claim shall be made in accordance pertaining to security, access to offi- with instructions and procedures estab- cial records, and the rights of others.
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227.7008 Settlement of indemnified tracts providing for payment of a run- claims. ning royalty. Settlement of claims involving pay- (c) Termination. The clause at 252.227– ment for past infringement shall not be 7003, Termination, is an example for made without the consent of, and equi- use in contracts providing for the pay- table contribution by, each indem- ment of a running royalty. This clause nifying contractor involved, unless may be modified or omitted as appro- such settlement is determined to be in priate for particular circumstances, the best interests of the Government but only upon the advice of cognizant and is coordinated with the Depart- patent or legal counsel (see 227.7004(c)). ment of Justice with a view to pre- 227.7009–3 Additional clauses—con- serving any rights of the Government tracts except running royalty con- against the contractors involved. If tracts. consent of and equitable contribution by the contractors are obtained, the The following clauses are examples settlement need not be coordinated for use in patent release and settle- with the Department of Justice. ment agreements, and license agree- ments not providing for payment by 227.7009 Patent releases, license the Government of a running royalty. agreements, and assignments. (a) License Grant. Insert the clause This section contains clauses for use at 252.227–7004. in patent release and settlement agree- (b) License Term. Insert one of the ments, license agreements, and assign- clauses at 252.227–7005 Alternate I or ments, executed by the Government, Alternate II, as appropriate. under which the Government acquires 227.7009–4 Additional clauses—con- rights. Minor modifications of lan- tracts providing for payment of a guage (e.g., pluralization of ‘‘Sec- running royalty. retary’’ or ‘‘Contracting Officer’’) in The clauses set forth below are exam- multi-departmental agreements may ples which may be used in patent re- be made if necessary. lease and settlement agreements, and 227.7009–1 Required clauses. license agreements, when it is desired to cover the subject matter thereof and (a) Covenant Against Contingent the contract provides for payment of a Fees. Insert the clause at FAR 52.203–5. running royalty. (b) Gratuities. Insert the clause at (a) License grant—running royalty. No FAR 52.203–3. Department shall be obligated to pay (c) Assignment of Claims. Insert the royalties unless the contract is signed clause at FAR 52.232–23. on behalf of such Department. Accord- (d) Disputes. Pursuant to FAR 33.014, ingly, the License Grant clause at insert the clause at FAR 52.233–1. 252.227–7006 should be limited to the (e) Non-Estoppel. Insert the clause at practice of the invention by or for the 252.227–7000. signatory Department or Departments. [56 FR 36389, July 31, 1991, as amended at 61 (b) License term—running royalty. The FR 50454, Sept. 26, 1996] clause at 252.227–7007 is a sample form for expressing the license term. 227.7009–2 Clauses to be used when (c) Computation of royalties. The applicable. clause at 252.227–7008 providing for the (a) Release of past infringement. The computation of royalties, may be of clause at 252.227–7001, Release of Past varying scope depending upon the na- Infringement, is an example which may ture of the royalty bearing article, the be modified or omitted as appropriate volume of procurement, and the type of for particular circumstances, but only contract pursuant to which the pro- upon the advice of cognizant patent or curement is to be accomplished. legal counsel. (See footnotes at end of (d) Reporting and payment of royalties. clause.) (1) The contract should contain a pro- (b) Readjustment of payments. The vision specifying the office designated clause at 252.227–7002, Readjustment of within the specific Department in- Payments, shall be inserted in con- volved to make any necessary reports
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to the contractor of the extent of use 227.7012 Contract format. of the licensed subject matter by the The format at 252.227–7012 appro- entire Department, and such office priately modified where necessary, shall be charged with the responsibility may be used for contracts of release, li- of obtaining from all procuring offices cense, or assignment. of that Department the information necessary to make the required reports 227.7013 Recordation. and corresponding vouchers necessary Executive Order No. 9424 of 18 Feb- to make the required payments. The ruary 1944 requires all executive De- clause at 252.227–7009 is a sample for ex- partments and agencies of the Govern- pressing reporting and payment of roy- ment to forward through appropriate alties requirements. channels to the Commissioner of Pat- (2) Where more than one Department ents and Trademarks, for recording, all or Government Agency is licensed and Government interests in patents or ap- there is a ceiling on the royalties pay- plications for patents. able in any reporting period, the licens- ing Departments or Agencies shall co- ordinate with respect to the pro rata Subpart 227.71—Rights in share of royalties to be paid by each. Technical Data (e) License to other government agen- cies. When it is intended that a license SOURCE: 60 FR 33471, June 28, 1995, unless on the same terms and conditions be otherwise noted. available to other departments and 227.7100 Scope of subpart. agencies of the Government, the clause at 252.227–7010 is an example which may This subpart— be used. (a) Prescribes policies and procedures for the acquisition of technical data 227.7010 Assignments. and the rights to use, modify, repro- (a) The clause at 252.227–7011 is an ex- duce, release, perform, display, or dis- close technical data. It implements re- ample which may be used in contracts quirements in the following laws and of assignment of patent rights to the Executive Order: Government. (1) 10 U.S.C. 2302(4). (b) To facilitate proof of contracts of (2) 10 U.S.C. 2305 (subsection (d)(4)). assignments, the acknowledgement of (3) 10 U.S.C. 2320. the contractor should be executed be- (4) 10 U.S.C. 2321. fore a notary public or other officer au- thorized to administer oaths (35 U.S.C. (5) 10 U.S.C. 2325. 261). (6) Pub. L. 103–355. (7) Executive Order 12591 (Subsection 227.7011 Procurement of rights in in- 1(b)(6)). ventions, patents, and copyrights. (b) Does not apply to computer soft- ware or technical data that is com- Even though no infringement has oc- puter software documentation (see sub- curred or been alleged, it is the policy part 227.72). of the Department of Defense to pro- cure rights under patents, patent appli- 227.7101 Definitions. cations, and copyrights whenever it is in the Government’s interest to do so (a) As used in this subpart, unless and the desired rights can be obtained otherwise specifically indicated, the at a fair price. The required and sug- terms ‘‘offeror’’ and ‘‘contractor’’ in- gested clauses at 252.227–7004 and clude an offeror’s or contractor’s sub- 252.227–7010 shall be required and sug- contractors, suppliers, or potential gested clauses, respectively, for license subcontractors or suppliers at any tier. agreements and assignments made (b) Other terms used in this subpart under this paragraph. The instructions are defined in the clause at 252.227–7013, at 227.7009–3 and 227.7010 concerning the Rights in Technical Data—Non- applicability and use of those clauses commercial Items. shall be followed insofar as they are [56 FR 36389, July 31, 1991, as amended at 60 pertinent. FR 61598, Nov. 30, 1995]
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227.7102 Commercial items, compo- that is not customarily provided to the nents, or processes. public; or Section 2320(b)(1) of Title 10 U.S.C. (2) Relinquish to, or otherwise pro- establishes a presumption that com- vide, the Government rights to use, mercial items are developed at private modify, reproduce, release, perform, expense whether or not a contractor display, or disclose technical data per- submits a justification in response to a taining to commercial items or proc- challenge notice. Therefore, do not esses except for a transfer of rights mu- challenge a contractor’s assertion that tually agreed upon. a commercial item, component, or 227.7102–2 Rights in technical data. process was developed at private ex- pense unless the Government can dem- (a) The clause at 252.227–7015, Tech- onstrate that it contributed to develop- nical Data—Commercial Items, pro- ment of the item, component or proc- vides the Government specific license ess. Follow the procedures in 227.7103– rights in technical data pertaining to 13 and the clause at 252.227–7037, Vali- commercial items or processes. DoD dation of Restrictive Markings on may use, modify, reproduce, release, Technical Data, when information pro- perform, display, or disclose data only vided by the Department of Defense within the Government. The data may demonstrates that an item, component, not be used to manufacture additional or process was not developed exclu- quantities of the commercial items sively at private expense. However, and, except for emergency repair or when a challenge is warranted, a con- overhaul, may not be released or dis- tractor’s or subcontractor’s failure to closed to, or used by, third parties respond to the challenge notice cannot without the contractor’s written per- be the sole basis for issuing a final de- mission. Those restrictions do not cision denying the validity of an as- apply to the technical data described in serted restriction. 227.7102–1(a). (b) If additional rights are needed, 227.7102–1 Policy. contracting activities must negotiate (a) DoD shall acquire only the tech- with the contractor to determine if nical data customarily provided to the there are acceptable terms for transfer- public with a commercial item or proc- ring such rights. The specific addi- ess, except technical data that— tional rights granted to the Govern- (1) Are form, fit, or function data; ment shall be enumerated in a license (2) Are required for repair or mainte- agreement made part of the contract. nance of commercial items or proc- esses, or for the proper installation, op- 227.7102–3 Contract clause. erating, or handling of a commercial (a) Except as provided in paragraph item, either as a stand alone unit or as (b) of this subsection, use the clause at a part of a military system, when such 252.227–7015, Technical Data—Commer- data are not customarily provided to cial Items, in all solicitations and con- commercial users or the data provided tracts when the contractor will be re- to commercial users is not sufficient quired to deliver technical data per- for military purposes; or taining to commercial items, compo- (3) Describe the modifications made nents, or processes. Do not require the at Government expense to a commer- contractor to include this clause in its cial item or process in order to meet subcontracts. the requirements of a Government so- (b) Use the clause at 252.227–7013, licitation. Rights in Technical Data—Non- (b) To encourage offerors and con- commercial Items, in lieu of the clause tractors to offer or use commercial at 252.227–7015 if the Government will products to satisfy military require- pay any portion of the development ments, offerors, and contractors shall costs. Do not require the contractor to not be required, except for the tech- include this clause in its subcontracts nical data described in paragraph (a) of for commercial items or commercial this subsection, to— components. (1) Furnish technical information re- (c) Use the clause at 252.227–7037, Val- lated to commercial items or processes idation of Restrictive Markings on
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Technical Data, in all solicitations and ment contracts shall not require contracts for commercial items that offerors to submit proposals that would include the clause at 252.227–7015 or the permit the Government to acquire clause at 252.227–7013. Do not require competitively items identical to items the contractor to include this clause in developed at private expense unless a its subcontracts for commercial items determination is made at a level above or commercial components. the contracting officer that— [56 FR 36389, July 31, 1991, as amended at 60 (1) The offeror will not be able to sat- FR 61598, Nov. 30, 1995] isfy program schedule or delivery re- quirements; or 227.7103 Noncommercial items or (2) The offeror’s proposal to meet mo- processes. bilization requirements does not sat- 227.7103–1 Policy. isfy mobilization needs. (a) DoD policy is to acquire only the 227.7103–2 Acquisition of technical technical data, and the rights in that data. data, necessary to satisfy agency needs. (a) Contracting officers shall work (b) Solicitations and contracts closely with data managers and re- shall— quirements personnel to assure that (1) Specify the technical data to be data requirements included in solicita- delivered under a contract and delivery tions are consistent with the policy ex- schedules for the data; pressed in 227.7103–1. (2) Establish or reference procedures (b)(1) Data managers or other re- for determining the acceptability of quirements personnel are responsible technical data; for identifying the Government’s min- (3) Establish separate contract line imum needs for technical data. Data items, to the extent practicable, for needs must be established giving con- the technical data to be delivered sideration to the contractor’s economic under a contract and require offerors interests in data pertaining to items, and contractors to price separately components, or processes that have each deliverable data item; and been developed at private expense; the (4) Require offerors to identify, to the Government’s costs to acquire, main- extent practicable, technical data to be tain, store, retrieve, and protect the furnished with restrictions on the Gov- data; reprocurement needs; repair, ernment’s rights and require contrac- maintenance and overhaul philoso- tors to identify technical data to be de- phies; spare and repair part consider- livered with such restrictions prior to ations; and whether procurement of the delivery. items, components, or processes can be (c) Offerors shall not be required, ei- accomplished on a form, fit, or func- ther as a condition of being responsive tion basis. When it is anticipated that to a solicitation or as a condition for award, to sell or otherwise relinquish the Government will obtain unlimited to the Government any rights in tech- or government purpose rights in tech- nical data related to items, compo- nical data that will be required for nents or processes developed at private competitive spare or repair parts pro- expense except for the data identified curements, such data should be identi- at 227.7103–5(a)(2) and (a)(4) through (9). fied as deliverable data items. Re- (d) Offerors and contractors shall not procurement needs may not be a suffi- be prohibited or discouraged from fur- cient reason to acquire detailed manu- nishing or offering to furnish items, facturing or process data when items components, or processes developed at or components can be acquired using private expense solely because the Gov- performance specifications, form, fit ernment’s rights to use, modify, re- and function data, or when there are a lease, reproduce, perform, display, or sufficient number of alternate sources disclose technical data pertaining to which can reasonably be expected to those items may be restricted. provide such items on a performance (e) As provided in 10 U.S.C. 2305, so- specification or form, fit, or function licitations for major systems develop- basis.
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(2) When reviewing offers received in 227.7103–4 License rights. response to a solicitation or other re- (a) Grant of license. The Government quest for data, data managers must obtains rights in technical data, in- balance the original assessment of the cluding a copyright license, under and Government’s data needs with data irrevocable license granted or obtained prices contained in the offer. for the Government by the contractor. (c) Contracting officers are respon- The contractor or licensor retains all sible for ensuring that, wherever prac- rights in the data not granted to the ticable, solicitations and contracts— Government. For technical data that (1) Identify the type and quantity of pertain to items, components, or proc- the technical data to be delivered esses, the scope of the license is gen- under the contract and the format and erally determined by the source of media in which the data will be deliv- funds used to develop the item, compo- ered; nent, or process. When the technical (2) Establish each deliverable data data do not pertain to items, compo- item as a separate contract line item nents, or processes, the scope of the li- (this requirement may be satisfied by cense is determined by the source of listing each deliverable data item on funds used to create the data. an exhibit to the contract); (1) Techical data pertaining to items, (3) Identify the prices established for components, or processes. Contractors or each deliverable data item under a licensors may, with some exceptions fixed-price type contract; (see 227.7103–5(a)(2) and (a)(4) through (9)), restrict the Government’s rights (4) Include delivery schedules and ac- to use, modify, release, reproduce, per- ceptance criteria for each deliverable form, display or disclose technical data data item; and pertaining to items, components, or (5) Specifically identify the place of processes developed exclusively at pri- delivery for each deliverable item of vate expense (limited rights). They technical data. may not restrict the Government’s rights in items, components, or proc- 227.7103–3 Early identification of tech- esses developed exclusively at Govern- nical data to be furnished to the Government with restrictions on ment expense (unlimited rights) with- use, reproduction or disclosure. out the Government’s approval. When an item, component, or process is de- (a) 10 U.S.C. 2320 requires, to the veloped with mixed funding, the Gov- maximum extent practicable, an iden- ernment may use, modify, release, re- tification prior to delivery of any tech- produce, perform, display or disclose nical data to be delivered to the Gov- the data pertaining to such items, com- ernment with restrictions on use. ponents, or processes within the Gov- (b) Use the provision at 252.227–7017, ernment without restriction but may Identification and Assertion of Use, Re- release or disclose the data outside the lease, or Disclosure Restrictions, in all Government only for government pur- solicitations that include the clause at poses (government purpose rights). 252.227–7013, Rights in Technical Data— (2) Technical data that do not pertain Noncommercial Items. The provision to items, components, or processes. Tech- requires offerors to identify any tech- nical data may be created during the nical data for which restrictions, other performance of a contract for a concep- than copyright, on use, release, or dis- tual design or similar effort that does closure are asserted and to attach the not require the development, manufac- identification and assertions to the ture, construction, or production of offer. items, components or processes. The (c) Subsequent to contract award, the Government generally obtains unlim- clause at 252.277–7013 permits a con- ited rights in such data when the data tractor, under certain conditions, to were created exclusively with Govern- make additional assertions of use, re- ment funds, government purpose rights lease, or disclosure restrictions. The when the data were created with mixed prescription for the use of that clause funding, and limited rights when the and its alternate is at 227.7103–6 (a) and data were created exclusively at pri- (b). vate expense.
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(b) Source of funds determination. The poses (other than detailed manufac- determination of the source of develop- turing or process data); ment funds for technical data per- (6) Corrections or changes to tech- taining to items, components, or proc- nical data furnished to the contractor esses should be made at any practical by the Government; sub-item or subcomponent level or for (7) Publicly available or have been any segregable portion of a process. released or disclosed by the contractor Contractors may assert limited rights or subcontractor without restrictions in a segregable sub-item, sub-compo- on further use, release or disclosure nent, or portion of a process which oth- other than a release or disclosure re- erwise qualifies for limited rights sulting from the sale, transfer, or other under the clause at 252.227–7013, Rights assignment of interest in the software in Technical Data—Noncommercial to another party or the sale or transfer Items. of some or all of a business entity or its assets to another party; 227.7103–5 Government rights. (8) Data in which the Government The standard license rights that a li- has obtained unlimited rights under censor grants to the Government are another Government contract or as a unlimited rights, government purpose result of negotiations; or rights, or limited rights. Those rights (9) Data furnished to the Govern- are defined in the clause at 252.227–7013, ment, under a Government contract or Rights in Technical Data—Non- subcontract thereunder, with— commercial Items. In unusual situa- (i) Government purpose license rights tions, the standards rights may not or limited rights and the restrictive satisfy the Government’s needs or the condition(s) has/have expired; or Government may be willing to accept lesser rights in data in return for other (ii) Government purpose rights and consideration. In those cases, a special the contractor’s exclusive right to use license may be negotiated. However, such data for commercial purposes has the licensor is not obligated to provide expired. the Government greater rights and the (b) Government purpose rights. (1) The contracting officer is not required to Government obtains government pur- accept lesser rights than the rights pose rights in technical data— provided in the standard grant of li- (i) That pertain to items, compo- cense. The situations under which a nents, or processes developed with particular grant of license applies are mixed funding except when the Govern- enumerated in paragraphs (a) through ment is entitled to unlimited rights as (d) of this subsection. provided in paragraphs (a)(2) and (a)(4) (a) Unlimited rights. The Government through (9) of this subsection; or obtains unlimited rights in technical (ii) Created with mixed funding in data that are— the performance of a contract that (1) Data pertaining to an item, com- does not require the development, man- ponent, or process which has been or ufacture, construction, or production will be developed exclusively with Gov- of items, components, or processes. ernment funds; (2) The period during which govern- (2) Studies, analyses, test data, or ment purpose rights are effective is ne- similar data produced in the perform- gotiable. The clause at 252.227–7013 pro- ance of a contract when the study, vides a nominal five-year period. Ei- analysis, test, or similar work was ther party may request a different pe- specified as an element of performance; riod. Changes to the government pur- (3) Created exclusively with Govern- pose rights period may be made at any ment funds in the performance of a time prior to delivery of the technical contract that does not require the de- data without consideration from either velopment, manufacture, construction, party. Longer periods should be nego- or production of items, components, or tiated when a five-year period does not processes; provide sufficient time to apply the (4) Form, fit, and function data; data for commercial purposes or when (5) Necessary for installation, oper- necessary to recognize subcontractors’ ation, maintenance, or training pur- interests in the data.
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(3) The government purpose rights may be obtained at any time prior to period commences upon execution of release or disclosure of the government the contract, subcontract, letter con- purpose rights data. Documents trans- tract (or similar contractual instru- mitting government purpose rights ment), contract modification, or option data to persons under class agreements exercise that required the develop- shall identify the technical data sub- ment. Upon expiration of the Govern- ject to government purpose rights and ment rights period, the Government the class agreement under which such has unlimited rights in the data includ- data are provided. ing the right to authorize others to use (c) Limited rights. (1) The Government the data for commercial purposes. obtains limited rights in technical (4) During the government purpose data— rights period, the government may not use, or authorize other persons to use, (i) That pertain to items, compo- technical data marked with govern- nents, or processes developed exclu- ment purpose rights legends for com- sively at private expense except when mercial purposes. The Government the Government is entitled to unlim- shall not release or disclose data in ited rights as provided in paragraphs which it has government purpose (a)(2) and (a)(4) through (9) of this sub- rights to any person, or authorize oth- section; or ers to do so, unless— (ii) Created exclusively at private ex- (i) Prior to release or disclosure, the pense in the performance of a contract intended recipient is subject to the use that does not require the development, and non-disclosure agreement at manufacture, construction, or produc- 227.7103–7; or tion of items, components, or proc- (ii) The intended recipient is a Gov- esses. ernment contractor receiving access to (2) Data in which the Government the data for performance of a Govern- has limited rights may not be used, re- ment contract that contains the clause leased, or disclosed outside the Govern- at 252.227–7025, Limitations on the Use ment without the permission of the or Disclosure of Government-Furnished contractor asserting the restriction ex- Information Marked with Restrictive cept for a use, release or disclosure Legends. that is— (5) When technical data marked with government purpose rights legends will (i) Necessary for emergency repair be released or disclosed to a Govern- and overhaul; or ment contractor performing a contract (ii) To a foreign government, other that does not include the clause at 252– than detailed manufacturing or process 227–7025, the contract may be modified, data, when use, release, or disclosure is prior to release or disclosure, to in- in the interest of the United States and clude that clause in lieu of requiring is required for evaluation or informa- the contractor to complete a use and tional purposes. non-disclosure agreement. (3) The person asserting limited (6) Contracting activities shall estab- rights must be notified of the Govern- lish procedures to assure that technical ment’s intent to release, disclose, or data marked with government purpose authorize others to use such data prior rights legends are released or disclosed, to release or disclosure of the data ex- including a release or disclosure cept notification of an intended re- through a Government solicitation, lease, disclosure, or use for emergency only to persons subject to the use and repair or overhaul which shall be made non-disclosure restrictions. Public an- as soon as practicable. nouncements in the Commerce Busi- (4) When the person asserting limited ness Daily or other publications must provide notice of the use and non-dis- rights permits the Government to re- closure requirements. Class use and lease, disclose, or have others use the non-disclosure agreements (e.g., agree- data subject to restrictions on further ments covering all solicitations re- use, release, or disclosure, or for a re- ceived by the XYZ company within a lease under paragraph (c)(2)(i) or (ii) of reasonable period) are authorized and this subsection, the intended recipient
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must complete the use and non-disclo- items to facilitate the development of sure agreement at 227.7103–7 prior to re- equivalent items through reverse engi- lease or disclosure of the limited rights neering. data. (d) Specifically negotiated license 227.7103–6 Contract clauses. rights. (1) Negotiate specific licenses (a) Use the clause at 252.227–7013, when the parties agree to modify the Rights in Technical Data—Non- standard license rights granted to the commercial Items, in solicitations and government or when the government contracts when the successful offeror(s) wants to obtain rights in data in which will be required to deliver technical it does not have rights. When negoti- data to the Government. Do not use ating to obtain, relinquish, or increase the clause when the only deliverable the Government’s rights in technical items are computer software or com- data, consider the acquisition strategy puter software documentation (see for the item, component, or process, in- 227.72), commercial items (see 227.7102– cluding logistics support and other fac- 3), existing works (see 227.7105), special tors which may have relevance for a works (see 227.7106), or when con- particular procurement. The Govern- tracting under the Small Business In- ment may accept lesser rights when it novation Research Program (see has unlimited or government purpose 227.7104). Except as provided in 227.7107– rights in data but may not accept less 2, do not use the clause in architect-en- than limited rights in such data. The gineer and construction contracts. negotiated license rights must stipu- (b) Use the clause at 252.227–7013 with late what rights the Government has its Alternate I in research contracts to release or disclose the data to other when the contracting officer deter- persons or to authorize others to use mines, in consultation with counsel, the data. Identify all negotiated rights that public dissemination by the con- in a license agreement made part of tractor would be— the contract. (1) In the interest of the government; (2) When the Government needs addi- and tional rights in data acquired with gov- (2) Facilitated by the Government re- ernment purpose or limited rights, the linquishing its right to publish the contracting officer must negotiate work for sale, or to have others publish with the contractor to determine the work for sale on behalf of the Gov- whether there are acceptable terms for ernment. transferring such rights. Generally, (c) Use the clause at 252.227–7025, such negotiations should be conducted Limitations on the Use or Disclosure of only when there is a need to disclose Government Furnished Information the data outside the Government or if Marked with Restrictive Legends, in the additional rights are required for solicitations and contracts when it is competitive reprocurement and the an- anticipated that the Government will ticipated savings expected to be ob- provide the contractor, for perform- tained through competition are esti- ance of its contract, technical data mated to exceed the acquisition cost of marked with another contractor’s re- the additional rights. Prior to negoti- strictive legend(s). ating for additional rights in limited (d) Use the provision at 252.227–7028, rights data, consider alternatives such Technical Data or Computer Software as— Previously Delivered to the Govern- (i) Using performance specifications ment, in solicitations when the result- and form, fit, and function data to ac- ing contract will require the con- quire or develop functionally equiva- tractor to deliver technical data. The lent items, components, or processes; provision requires offerors to identify (ii) Obtaining a contractor’s contrac- any technical data specified in the so- tual commitment to qualify additional licitations as deliverable data items sources and maintain adequate com- that are the same or substantially the petition among the sources; or same as data items the offeror has de- (iii) Reverse engineering, or pro- livered or is obligated to deliver, either viding items from Government inven- as a contractor or subcontractor, under tories to contractors who request the any other federal agency contract.
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(e) Use the following clauses in so- clause at 252.227–7025, Limitations on licitations and contracts that include the Use or Disclosure of Government- the clause at 252.227–7013: Furnished Information Marked with (1) 252.227–7016, Rights in Bid or Pro- Restrictive Legends. posal Information; (c) The prescribed use and non-disclo- (2) 252.227–7030, Technical Data— sure agreement is: Withholding of Payment; (3) 252.227–7036, Declaration of Tech- Use and Non-Disclosure Agreement nical Data Conformity; and The undersigned, llllllll (Insert (4) 252.227–7037, Validation of Restric- Name) llllllll, an authorized rep- tive Markings on Technical Data (para- resentative of the llllllll (Insert graph (e) of the clause contains infor- Company Name) llllllll, (which is mation that must be included in a hereinafter referred to as the ‘‘Recipient’’) challenge). requests the Government to provide the Re- cipient with technical data or computer soft- [60 FR 33471, June 28, 1995; 60 FR 41157, Aug. ware (hereinafter referred to as ‘‘Data’’) in 11, 1995; 60 FR 61598, Nov. 30, 1995; 62 FR 2613, which the Government’s use, modification, Jan. 17, 1997] reproduction, release, performance, display or disclosure rights are restricted. Those 227.7103–7 Use and non-disclosure Data are identified in an attachment to this agreement. Agreement. In consideration for receiving (a) Except as provided in paragraph such Data, the Recipient agrees to use the Data strictly in accordance with this Agree- (b) of this subsection, technical data or ment: computer software delivered to the (1) The Recipient shall— Government with restrictions on use, (a) Use, modify, reproduce, release, per- modification, reproduction, release, form, display, or disclose Data marked with performance, display, or disclosure government purpose rights or SBIR data may not be provided to third parties rights legends only for government purposes unless the intended recipient com- and shall not do so for any commercial pur- pletes and signs the use and non-disclo- pose. The Recipient shall not release, per- form, display, or disclose these Data, with- sure agreement at paragraph (c) of this out the express written permission of the subsection prior to release, or disclo- contractor whose name appears in the re- sure of the data. strictive legend (the ‘‘Contractor’’), to any (1) The specific conditions under person other than its subcontractors or sup- which an intended recipient will be au- pliers, or prospective subcontractors or sup- thorized to use, modify, reproduce, re- pliers, who require these Data to submit of- lease, perform, display, or disclose fers for, or perform, contracts with the Re- technical data subject to limited rights cipient. The Recipient shall require its sub- or computer software subject to re- contractors or suppliers, or prospective sub- contractors or suppliers, to sign a use and stricted rights must be stipulated in an non-disclosure agreement prior to disclosing attachment to the use and non-disclo- or releasing these Data to such persons. sure agreement. Such agreement must be consistent with the (2) For an intended release, disclo- terms of this agreement. sure, or authorized use of technical (b) Use, modify, reproduce, release, per- data or computer software subject to form, display, or disclose technical data special license rights, modify para- marked with limited rights legends only as graph (1)(d) of the use and non-disclo- specified in the attachment to this Agree- ment. Release, performance, display, or dis- sure agreement to enter the conditions, closure to other persons is not authorized consistent with the license require- unless specified in the attachment to this ments, governing the recipient’s obli- Agreement or expressly permitted in writing gations regarding use, modification, re- by the Contractor. The Recipient shall production, release, performance, dis- promptly notify the Contractor of the execu- play or disclosure of the data or soft- tion of this Agreement and identify the Con- ware. tractor’s Data that has been or will be pro- (b) The requirement for use and non- vided to the Recipient, the date and place the Data were or will be received, and the disclosure agreements does not apply name and address of the Government office to Government contractors which re- that has provided or will provide the Data. quire access to a third party’s data or (c) Use computer software marked with re- software for the performance of a Gov- stricted rights legends only in performance ernment contract that contains the of Contract Number llllllll (insert
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contract number(s)) llllllll. The re- shown in paragraph (8) of this Agreement, to cipient shall not, for example, enhance, have all persons to whom it released the decompile, disassemble, or reverse engineer Data do so by that date, and to notify the the software; time share, or use a computer Contractor that the Data have been de- program with more than one computer at a stroyed. time. The recipient may not release, per- (8) This Agreement shall be effective for form, display, or disclose such software to the period commencing with the Recipient’s others unless expressly permitted in writing execution of this Agreement and ending upon by the licensor whose name appears in the llll (Insert Date) llll. The obliga- restrictive legend. The Recipient shall tions imposed by this Agreement shall sur- promptly notify the software licensor of the vive the expiration or termination of the execution of this Agreement and identify the Agreement. software that has been or will be provided to Recipient’s Business Name lllllllll the Recipient, the date and place the soft- By llllllllllllllllllllll ware were or will be received, and the name Authorized Representative and address of the Government office that llllllllllllllllllllllll has provided or will provide the software. Date (d) Use, modify, reproduce, release, per- Representative’s Typed Name lllllll form, display, or disclose Data marked with and Title llllllllllllllllll special license rights legends (To be com- pleted by the contracting officer. See (End of use and non-disclosure agreement) 227.7103–7(a)(2). Omit if none of the Data re- quested is marked with special license rights 227.7103–8 Deferred delivery and de- legends). ferred ordering of technical data. (2) The Recipient agrees to adopt or estab- (a) Deferred delivery. Use the clause at lish operating procedures and physical secu- 252.227–7026, Deferred Delivery of Tech- rity measures designed to protect these Data nical Data or Computer Software, when from inadvertent release or disclosure to un- authorized third parties. it is in the Government’s interests to (3) The Recipient agrees to accept these defer the delivery of technical data. Data ‘‘as is’’ without any Government rep- The clause permits the contracting of- resentation as to suitability for intended use ficer to require the delivery of tech- or warranty whatsoever. This disclaimer nical data identified as ‘‘deferred deliv- does not affect any obligation the Govern- ery’’ data at any time until two years ment may have regarding Data specified in a after acceptance by the Government of contract for the performance of that con- all items (other than technical data or tract. (4) The Recipient may enter into any computer software) under the contract agreement directly with the Contractor with or contract termination, whichever is respect to the use, modification, reproduc- later. The obligation of subcontractors tion, release, performance, display, or disclo- or suppliers to deliver such technical sure of these Data. data expires two years after the date (5) The Recipient agrees to indemnify and the prime contractor accepts the last hold harmless the Government, its agents, item from the subcontractor or sup- and employees from every claim or liability, including attorneys fees, court costs, and ex- plier for use in the performance of the penses arising out of, or in any way related contract. The contract must specify to, the misuse or unauthorized modification, which technical data is subject to de- reproduction, release, performance, display, ferred delivery. The contracting officer or disclosure of Data received from the Gov- shall notify the contractor sufficiently ernment with restrictive legends by the Re- in advance of the desired delivery date cipient or any person to whom the Recipient for such data to permit timely deliv- has released or disclosed the Data. ery. (6) The Recipient is executing this Agree- ment for the benefit of the Contractor. The (b) Deferred ordering. Use the clause Contractor is a third party beneficiary of at 252.227–7027, Deferred Ordering of this Agreement who, in addition to any Technical Data or Computer Software, other rights it may have, is intended to have when a firm requirement for a par- the rights of direct action against the Re- ticular data item(s) has not been estab- cipient or any other person to whom the Re- lished prior to contract award but cipient has released or disclosed the Data, to there is a potential need for the data. seek damages from any breach of this Agree- Under this clause, the contracting offi- ment or to otherwise enforce this Agree- ment. cer may order any data that has been (7) The Recipient agrees to destroy these generated in the performance of the Data, and all copies of the Data in its posses- contract or any subcontract there- sion, no later than 30 days after the date under at any time until three years
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after acceptance of all items (other erations when acquiring existing or than technical data or computer soft- special works. ware) under the contract or contract termination, whichever is later. The 227.7103–10 Contractor identification obligation of subcontractors to deliver and marking of technical data to be such data expires three years after the furnished with restrictive mark- date the contractor accepts the last ings. item under the subcontract. When the (a) Identification requirements. (1) The data are ordered, the delivery dates solicitation provision at 252.227–7017, shall be negotiated and the contractor Identification and Assertion of Use, Re- compensated only for converting the lease, or Disclosure Restrictions, re- data into the prescribed form, repro- quires offerors to identify to the con- duction costs, and delivery costs. tracting officer, prior to contract award, any technical data that the of- 227.7103–9 Copyright. feror asserts should be provided to the (a) Copyright license. (1) The clause at Government with restrictions on use, 252.227–7013, Rights in Technical Data— modification, reproduction, release or Noncommercial Items, requires a con- disclosure. This requirement does not tractor to grant or obtain for the Gov- apply to restrictions based solely on ernment license rights which permit copyright. The notification and identi- the Government to reproduce data, dis- fication must be submitted as an at- tribute copies of the data, publicly per- tachment to the offer. If an offeror form or display the data or, through fails to submit the attachment or fails the right to modify data, prepare deriv- to complete the attachment in accord- ative works. The extent to which the ance with the requirements of the so- Government, and others acting on its licitation provision, such failure shall behalf, may exercise these rights varies constitute a minor informality. Pro- for each of the standard data rights li- vide offerors an opportunity to remedy censes obtained under the clause. When a minor informality in accordance with non-standard license rights in tech- the procedures at FAR 14.405 or 15.607. nical data will be negotiated, negotiate An offeror’s failure to correct the in- the extent of the copyright license con- formality within the time prescribed current with negotiations for the data by the contracting officer shall render rights license. Do not negotiate a copy- the offer ineligible for award. right license that provides less rights (2) The procedures for correcting than the standard limited rights li- minor informalities shall not be used cense in technical data. to obtain information regarding as- (2) The clause at 252.227–7013 does not serted restrictions or an offeror’s sug- permit a contractor to incorporate a gested asserted rights category. Ques- third party’s copyrighted data into a tions regarding the justification for an deliverable data item unless the con- asserted restriction or asserted rights tractor has obtained an appropriate li- category must be pursued in accord- cense for the Government and, when ance with the procedures at 227.7103–13. applicable, others acting on the Gov- (3) The restrictions asserted by a suc- ernment’s behalf, or has obtained the cessful offeror shall be attached to its contracting officer’s written approval contract unless, in accordance with the to do so. Grant approval to use third procedures at 227.7103–13, the parties party copyrighted data in which the have agreed that an asserted restric- Government will not receive a copy- tion is not justified. The contract at- right license only when the Govern- tachment shall provide the same infor- ment’s requirements cannot be satis- mation regarding identification of the fied without the third party material technical data, the asserted rights cat- or when the use of the third party ma- egory, the basis for the assertion, and terial will result in cost savings to the the name of the person asserting the Government which outweigh the lack restrictions as required by paragraph of a copyright license. (d) of the solicitation provision at (b) Copyright considerations—acquisi- 252.227–7017. Subsequent to contract tion of existing and special works. See award, the clause at 252.227–7013, Rights 227.7105 or 227.7106 for copyright consid- in Technical Data—Noncommercial
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Items, permits the contractor to make appropriate restrictive legend for additional assertions under certain which the data qualified. conditions. The additional assertions (c) Unmarked technical data. (1) Tech- must be made in accordance with the nical data delivered or otherwise pro- procedures and in the format pre- vided under a contract without restric- scribed by that clause. tive markings shall be presumed to (4) Neither the pre- or post-award as- have been delivered with unlimited sertions made by the contractor, nor rights and may be released or disclosed the fact that certain assertions are without restriction. To the extent identified in the attachment to the practicable, if a contractor has re- contract, determine the respective quested permission (see paragraph rights of the parties. As provided at (c)(2) of this subsection) to correct an 227.7103–13, the Government has the inadvertent omission of markings, do right to review, verify, challenge and not release or disclose the technical validate restrictive markings. data pending evaluation of the request. (5) Information provided by offerors (2) A contractor may request permis- in response to the solicitation provi- sion to have appropriate legends placed sion may be used in the source selec- on unmarked technical data at its ex- tion process to evaluate the impact on pense. The request must be received by evaluation factors that may be created the contracting officer within six by restrictions on the Government’s months following the furnishing or de- ability to use or disclose technical livery of such data, or any extension of data. However, offerors shall not be that time approved by the contracting prohibited from offering products for officer. The person making the request which the offeror is entitled to provide must: the Government limited rights in the (i) Identify the technical data that technical data pertaining to such prod- should have been marked; ucts and offerors shall not be required, either as a condition of being respon- (ii) Demonstrate that the omission of sive to a solicitation or as a condition the marking was inadvertent, the pro- for award, to sell or otherwise relin- posed marking is justified and con- quish any greater rights in technical forms with the requirements for the data when the offeror is entitled to marking of technical data contained in provide the technical data with limited the clause at 252.227–7013; and rights. (iii) Acknowledge, in writing, that (b) Contractor marking requirements. the Government has no liability with The clause at 252.227–7013, Rights in respect to any disclosure, reproduction, Technical Data—Noncommercial or use of the technical data made prior Items— to the addition of the marking or re- (1) Requires a contractor that desires sulting from the omission of the mark- to restrict the Government’s rights in ing. technical data to place restrictive (3) Contracting officers should grant markings on the data, provides instruc- permission to mark only if the tech- tions for the placement of the restric- nical data were not distributed outside tive markings, and authorizes the use the Government or were distributed of certain restrictive markings; and outside the Government with restric- (2) Requires a contractor to deliver, tions on further use or disclosure. furnish, or otherwise provide to the Government any technical data in 227.7103–11 Contractor procedures which the Government has previously and records. obtained rights with the Government’s (a) The clause at 252.227–7013, Rights pre-existing rights in that data unless in Technical Data—Noncommercial the parties have agreed otherwise or Items, requires a contractor, and its restrictions on the Government’s subcontractors or suppliers that will rights to use, modify, reproduce, re- deliver technical data with other than lease, perform, display, or disclose the unlimited rights, to establish and fol- data have expired. When restrictions low written procedures to assure that are still applicable, the contractor is restrictive markings are used only permitted to mark the data with the when authorized and to maintain
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records to justify the validity of as- ment contract either exclusively at serted restrictions on delivered data. Government expense or with mixed (b) The clause at 252.227–7037, Valida- funding (situations under which the tion of Restrictive Markings on Tech- Government obtains unlimited or gov- nical Data requires contractors and ernment purpose rights) is an unjusti- their subcontractors at any tier to fied marking. maintain records sufficient to justify (2) Contracting officers have the the validity of restrictive markings on right to review and challenge the valid- technical data delivered or to be deliv- ity of unjustified markings. However, ered under a Government contract. at any time during performance of a contract and notwithstanding exist- 227.7103–12 Government right to es- ence of a challenge, the contracting of- tablish conformity of markings. ficer and the person who has asserted a (a) Nonconforming markings. (1) Au- restrictive marking may agree that the thorized markings are identified in the restrictive marking is not justified. clause at 252.227–7013, Rights in Tech- Upon such agreement, the contracting nical Data—Noncommercial Items. All officer may, at his or her election, ei- other markings are nonconforming ther— markings. An authorized marking that (i) Strike or correct the unjustified is not in the form, or differs in sub- marking at that person’s expense; or stance, from the marking requirements (ii) Return the technical data to the in the clause at 252.227–7013 is also a person asserting the restriction for cor- nonconforming marking. rection at that person’s expense. If the (2) The correction of nonconforming data are returned and that person fails markings on technical data is not sub- to correct or strike the unjustified re- ject to 252.227–7037, Validation of Re- striction and return the corrected data strictive Markings on Technical Data. to the contracting officer within 60 To the extent practicable, the con- tracting officer should return technical days following receipt of the data, the data bearing nonconforming markings unjustified marking shall be corrected to the person who has placed the non- or stricken at that person’s expense. conforming markings on such data to 227.7103–13 Government right to re- provide that person an opportunity to view, verify, challenge and validate correct or strike the nonconforming asserted restrictions. marking at that person’s expense. If that person fails to correct the noncon- (a) General. An offeror’s assertion(s) formity and return the corrected data of restrictions on the Government’s within 60 days following the person’s rights to use, modify, reproduce, re- receipt of the data, the contracting of- lease, or disclose technical data do not, ficer may correct or strike the noncon- by themselves, determine the extent of formity at that person’s expense. When the Government’s rights in the tech- it is impracticable to return technical nical data. Under 10 U.S.C. 2321, the data for correction, contracting offi- Government has the right to challenge cers may unilaterally correct any non- asserted restrictions when there are conforming markings at Government reasonable grounds to question the va- expense. Prior to correction, the data lidity of the assertion and continued may be used in accordance with the adherence to the assertion would make proper restrictive marking. it impractical to later procure com- (b) Unjustified markings. (1) An un- petitively the item to which the data justified marking is an authorized pertain. marking that does not depict accu- (b) Pre-award considerations. The chal- rately restrictions applicable to the lenge procedures required by 10 U.S.C. Government’s use, modification, repro- 2321 could significantly delay awards duction, release, performance, display, under competitive procurements. or disclosure of the marked technical Therefore, avoid challenging asserted data. For example, a limited rights leg- restrictions prior to a competitive con- end placed on technical data pertaining tract award unless resolution of the as- to items, components, or processes sertion is essential for successful com- that were developed under a Govern- pletion of the procurement.
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(c) Challenge and validation. Con- asserted restriction, a challenge should tracting officers must have reasonable be considered. grounds to challenge the current valid- (3)Transacting matters directly with ity of an asserted restriction. Before subcontracts. The clause at 252.227–7037 issuing a challenge to an asserted re- obtains the contractor’s agreement striction, carefully consider all avail- that the Government may transact able information pertaining to the as- matters under the clause directly with sertion. All challenges must be made in a subcontractor, at any tier, without accordance with the provisions of the creating or implying privity of con- clause at 252.227–7037, Validation of Re- tract. Contracting officers should per- strictive Markings on Technical Data. mit a subcontractor or supplier to (1) Challenge period. Asserted restric- transact challenge and validation mat- tions should be reviewed before accept- ters directly with the Government ance of technical data deliverable when— under the contract. Assertions must be (i) A subcontractor’s or supplier’s challenged within three years after business interests in its technical data final payment under the contract or would be compromised if the data were three years after delivery of the data, disclosed to a higher tier contractor; whichever is later. However, restrictive (ii) There is reason to believe that markings may be challenged at any the contractor will not respond in a time if the technical data— timely manner to a challenge and an (i) Are publicly available without re- untimely response would jeopardize a strictions; subcontractor’s or suppliers right to assert restrictions; or (ii) Have been provided to the United (iii) Requested to do so by a subcon- States without restriction; or tractor or supplier. (iii) Have been otherwise made avail- (4) Challenge notice. Do not issue a able without restriction other than a challenge notice unless there are rea- release or disclosure resulting from the sonable grounds to question the valid- sale, transfer, or other assignment of ity of an assertion. Assertions may be interest in the technical data to an- challenged whether or not supporting other party or the sale or transfer of documentation was requested from the some or all of a business entity or its person asserting the restriction. Chal- assets to another party. lenge notices must be in writing and (2) Pre-challenge requests for informa- issued to the contractor or, after con- tion. (i) After consideration of the situ- sideration of the situations described ation described in paragraph (c)(3) of in paragraph (c)(3) of this subsection, this subsection, contracting officers the person asserting the restriction. may request the person asserting a re- The challenge notice must include the striction to furnish a written expla- information in paragraph (e) of the nation of the facts and supporting doc- clause at 252.227–7037. umentation for the assertion in suffi- (5) Extension of response time. The con- cient detail to enable the contracting tracting officer, at his or her discre- officer to ascertain the basis of the re- tion, may extend the time for response strictive markings. Additional sup- contained in a challenge notice, as ap- porting documentation may be re- propriate, if the contractor submits a quested when the explanation provided timely written request showing the by the person making the assertion need for additional time to prepare a does not, in the contracting officer’s response. opinion, establish the validity of the (6) Contracting officer’s final decision. assertion. Contracting officers must issue a final (ii) If the person asserting the re- decision for each challenged assertion, striction fails to respond to the con- whether or not the assertion has been tracting officer’s request for informa- justified. tion or additional supporting docu- (i) A contracting officer’s final deci- mentation, or if the information sub- sion that an assertion is not justified mitted or any other available informa- must be issued a soon as practicable tion pertaining to the validity of a re- following the failure of the person as- strictive marking does not justify the serting the restriction to respond to
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the contracting officer’s challenge nical data are delivered or are made within 60 days, or any extension to available to the Government, that the that time granted by the contracting technical data are complete, accurate, officer. and satisfy the requirements of the (ii) A contracting officer who, fol- contract concerning such data; lowing a challenge and response by the (2) Provides for the establishment of person asserting the restriction, deter- remedies applicable to technical data mines that an asserted restriction is found to be incomplete, inadequate, or justified, shall issue a final decision not to satisfy the requirements of the sustaining the validity of the asserted contract concerning such data; and restriction. If the asserted restriction (3) Authorizes agency heads to with- was made subsequent to submission of hold payments (or exercise such other the contractor’s offer, add the asserted remedies an agency head considers ap- restriction to the contract attachment. propriate) during any period if the con- (iii) A contracting officer who deter- tractor does not meet the requirements mine that the validity of an asserted of the contract pertaining to the deliv- restriction has not been justified shall ery of technical data. issue a contracting officer’s final deci- (b) Conformity and acceptance. (1) So- sion within the time frames prescribed licitations and contracts requiring the in 252.227–7037. As provided in para- delivery of technical data shall specify graph (g) of that clause, the Govern- the requirements the data must satisfy ment is obligated to continue to re- to be acceptable. Contracting officers, spect the asserted restrictions through or their authorized representatives, are final disposition of any appeal unless responsible for determining whether the agency head notifies the person as- technical data tendered for acceptance serting the restriction that urgent or conform to the contractual require- compelling circumstances do not per- ments. mit the Government to continue to re- spect the asserted restriction. (2) The clause at 252.227–7030, Tech- (7) Multiple challenges to an asserted nical Data—Withholding of Payment, restriction. When more than one con- provides for withholding up to 10 per- tracting officer challenges an asserted cent of the contract price pending cor- restriction, the contracting officer who rection or replacement of the noncon- made the earliest challenge is respon- forming technical data or negotiation sible for coordinating the Government of an equitable reduction in contract challenges. That contracting officer price. The amount subject to with- shall consult with all other contracting holding may be expressed as a fixed officers making challenges, verify that dollar amount or as a percentage of the all challenges apply to the same as- contract price. In either case, the serted restriction and, after consulting amount shall be determined giving with the contractor, subcontractor, or consideration to the relative value and supplier asserting the restriction, issue importance of the data. For example— a schedule that provides that person a (i) When the sole purpose of a con- reasonable opportunity to respond to tract is to produce the data, the rel- each challenge. ative value of that data may be consid- (8) Validation. Only a contracting of- erably higher than the value of data ficer’s final decision, or actions of an produced under a contract where the agency board of contract appeals or a production of the data is a secondary court of competent jurisdiction, that objective; or sustain the validity of an asserted re- (ii) When the Government will main- striction constitute validation of the tain or repair items, repair and mainte- asserted restriction. nance data may have a considerably higher relative value than data that 227.7103–14 Conformity, acceptance, merely describe the item or provide and warranty of technical data. performance characteristics. (a) Statutory requirements. 10 U.S.C. (3) Do not accept technical data that 2320— do not conform to the contractual re- (1) Requires contractors to furnish quirements in all respects. Except for written assurance, at the time tech- nonconforming restrictive markings
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(see paragraph (b)(4) of this sub- Noncommercial Items, and 252.227–7037, section), correction or replacement of Validation of Restrictive Markings on nonconforming data or an equitable re- Technical Data, implement the statu- duction in contract price when correc- tory requirements. tion or replacement of the noncon- (b) 10 U.S.C. 2321 permits a subcon- forming data is not practicable or is tractor to transact directly with the not in the Government’s interests, Government matters relating to the shall be accomplished in accordance validation of its asserted restrictions with— on the Government’s rights to use or (i) The provisions of a contract disclose technical data. The clause at clause providing for inspection and ac- 252.227–7037 obtains a contractor’s ceptance of deliverables and remedies agreement that the direct transaction for nonconforming deliverables; or (ii) The procedures at FAR 46.407(c) of validation or challenge matters with through (g), if the contract does not subcontractors at any tier does not es- contain an inspection clause providing tablish or imply privity of contract. remedies for nonconforming When a subcontractor or supplier exer- deliverables. cise its right to transact validation (4) Follow the procedures at 227.7103– matters directly with the Government, 12(a)(2) if nonconforming markings are contracting officers shall deal directly the sole reason technical data fail to with such persons, as provided at conform to contractual requirements. 227.7103–13(c)(3). The clause at 252.227–7030 may be used (c) Require prime contractors whose to withhold an amount for payment, contracts include the following clauses consistent with the terms of the to include those clauses, without modi- clause, pending correction of the non- fication except for appropriate identi- conforming markings. fication of the parties, in contracts (c) Warranty. (1) The intended use of with subcontractors or suppliers, at all the technical data and the cost, if any, tiers, who will be furnishing technical to obtain the warranty should be con- data for non-commercial items in re- sidered before deciding to obtain a data sponse to a Government requirement: warranty (see FAR 46.703). The fact (1) 252.227–7013, Rights in Technical that a particular item, component, or Data—Noncommercial Items; process is or is not warranted is not a consideration in determining whether (2) 252.227–7025, Limitations on the or not to obtain a warranty for the Use or Disclosure of Government-Fur- technical data that pertain to the nished Information Marked with Re- item, component, or process. For exam- strictive Legends; ple, a data warranty should be consid- (3) 252.227–7028, Technical Data or ered if the Government intends to re- Computer Software Previously Deliv- pair or maintain an item and defective ered to the Government; and repair or maintenance data would im- (4) 252.227–7037, Validation of Restric- pair the Government’s effective use of tive Markings on Technical Data. the item or result in increased costs to (d) Do not require contractors to the Government. have their subcontractors or suppliers (2) As prescribed in 246.710, use the at any tier relinquish rights in tech- clause at 252.246–7001, Warranty of nical data to the contractor, a higher Data, and its alternates, or a substan- tier subcontractor, or to the Govern- tially similar clause when the Govern- ment, as a condition for award of any ment needs a specific warranty of tech- contract, subcontract, purchase order, nical data. or similar instrument except for the 227.7103–15 Subcontractor rights in rights obtained by the Government technical data. under the Rights in Technical Data— Noncommercial Items clause contained (a) 10 U.S.C. 2320 provides subcontrac- in the contractor’s contract with the tors at all tiers the same protection for Government. their rights in data as is provided to prime contractors. The clauses at [56 FR 36389, July 31, 1991, as amended at 60 252.227–7013, Rights in Technical Data— FR 61598, Nov. 30, 1995]
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227.7103–16 Providing technical data tained under the data rights clause(s) to foreign governments, foreign prescribed in this part for a comparable contractors, or international orga- procurement performed within the nizations. United States or its possessions. Technical data may be released or (c) Contracts for Canadian purchases disclosed to foreign governments, for- shall include the appropriate data eign contractors, or international orga- rights clause prescribed in this part for nizations only if release or disclosure is a comparable procurement performed otherwise permitted both by Federal within the United States or its posses- export controls and other national se- sions. curity laws or regulations. Subject to such laws and regulations, the Depart- 227.7104 Contracts under the Small ment of Defense— Business Innovation Research (a) May release or disclose technical (SBIR) Program. data in which it has obtained unlimited (a) Use the clause at 252.227–7018, rights to such foreign entities or au- Rights in Noncommercial Technical thorize the use of such data by those Data and Computer Software—Small entities; and Business Innovation Research (SBIR) (b) Shall not release or disclose tech- Program, when technical data or com- nical data for which restrictions on puter software will be generated during use, release, or disclosure have been as- performance of contracts under the serted to foreign entities, or authorize SBIR program. the use of technical data by those enti- (b) Under the clause at 252.227–7018, ties, unless the intended recipient is the Government obtains a royalty-free subject to the same provisions as in- license to use technical data marked cluded in the use and non-disclosure with an SBIR data rights legend only agreement at 227.7103–7 and the re- for government purposes during the pe- quirements of the clause at 252.227–7103, riod commencing with contract award Rights in Technical Data—Non- and ending five years after completion commercial Items, governing use, of the project under which the data modification, reproduction, release, were generated. Upon expiration of the performance, display, or disclosure of five-year restrictive license, the Gov- such data have been satisfied. ernment has unlimited rights in the SBIR data. During the license period, 227.7103–17 Overseas contracts with the Government may not release or foreign sources. disclose SBIR data to any person other (a) The clause at 252.227–7032, Rights than its support services contractors in Technical Data and Computer Soft- except— ware (Foreign), may be used in con- (1) For evaluational purposes; tracts with foreign contractors to be (2) As expressly permitted by the performed overseas, except Canadian contractor; or purchases (see paragraph (c) of this (3) A use, release, or disclosure that subsection), in lieu of the clause at is necessary for emergency repair or 252.227–7013, Rights in Technical Data— overhaul of items operated by the Gov- Noncommercial Items, when the Gov- ernment. ernment requires the unrestricted (c) Do not make any release or dis- right to use, modify, reproduce, per- closure permitted by paragraph (b) of form, display, release or disclose all this section unless, prior to release or technical data to be delivered under disclosure, the intended recipient is the contract. Do not use the clause in subject to the use and nondisclosure contracts for existing or special works. agreement at 227.7103–7. (b) When the Government does not (d) Use the clause at 252.227–7018 with require unlimited rights, the clause at its Alternate I in research contracts 252.227–7032 may be modified to accom- when the contracting officer deter- modate the needs of a specific overseas mines, in consultation with counsel, procurement situation. The Govern- that public dissemination by the con- ment should obtain rights in the tech- tractor would be— nical data that are not less than the (1) In the interest of the Government; rights the Government would have ob- and
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(2) Facilitated by the Government re- the work if it intends to reproduce the linquishing its right to publish the work, distribute copies of the work, work for sale, or to have others publish prepare derivative works, or perform or the work for sale on behalf of the Gov- display the work publicly. When the ernment. Government is not responsible for the (e) Use the following provision and content of an existing work, it should clauses in SBIR solicitations and con- require the copyright owner to indem- tracts that include the clause at nify the Government for liabilities that 252.227–7018: may arise out of the content, perform- (1) 252.227–7016, Rights in Bid or Pro- ance, use, or disclosure of such data. posal Information; (b) Follow the procedures at 227.7106 (2) 252.227–7017, Identification and As- for works which will be first created, sertion of Use, Release, or Disclosure developed, generated, originated, pre- Restrictions; pared, or produced under a Government (3) 252.227–7019, Validation of As- contract and the Government needs to serted Restrictions—Computer Soft- control distribution of the work or has ware; a specific need to obtain indemnity for (4) 252.227–7030, Technical Data— liabilities that may arise out of the Withholding of Payment; creation, content, performance, use, or (5) 252.227–7036, Declaration of Tech- disclosure of the work or from libelous nical Data Conformity; and or other unlawful material contained (6) 252.227–7037, Validation of Restric- in the work. Follow the procedures at tive Markings on Technical Data (para- 227.7103 when the Government does not graph (e) of the clause contains infor- need to control distribution of such mation that must be included in a works or obtain such indemnities. challenge). (f) Use the following clauses and pro- 227.7105–2 Acquisition of existing vision in SBIR solicitations and con- works without modification. tracts in accordance with the guidance (a) Use the clause at 252.227–7021, at 227.7103–6 (c) and (d): Rights in Data—Existing Works, in (1) 252.227–7025, Limitations on the lieu of the clause at 252.227–7013, Rights Use or Disclosure of Government-Fur- in Technical Data—Noncommercial nished Information Marked with Re- Items, in solicitations and contracts strictive Legends; and exclusively for existing works when— (2) 252.227–7028, Technical Data or (1) The existing works will be ac- Computer Software Previously Deliv- quired without modification; and ered to the Government. (2) The Government requires the right to reproduce, prepare derivative [56 FR 36389, July 31, 1991, as amended at 60 FR 61598, Nov. 30, 1995; 62 FR 2614, Jan. 17, works, or publicly perform or display 1997] the existing works; or (3) The Government has a specific 227.7105 Contracts for the acquisition need to obtain indemnity for liabilities of existing works. that may arise out of the content, per- formance, use, or disclosure of such 227.7105–1 General. data. (a) Existing works include motion (b) The clause at 252.227–7021 provides pictures, television recordings, video the Government, and others acting on recordings, and other audiovisual its behalf, a paid-up, non-exclusive, ir- works in any medium; sound record- revocable, world-wide license to repro- ings in any medium; musical, dra- duce, prepare derivative works and matic, and literary works; pantomimes publicly perform or display the works and choreographic works; pictorial, called for by a contract and to author- graphic, and sculptural works; and ize others to do so for government pur- works of a similar nature. Usually, poses. these or similar works were not first (c) A contract clause is not required created, developed, generated, origi- to acquire existing works such as nated, prepared, or produced under a books, magazines and periodicals, in Government contract. Therefore, the any storage or retrieval medium, when Government must obtain a license in the Government will not reproduce the
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books, magazines or periodicals, or pre- the contracting officer’s permission to pare derivative works. do so and obtains for the Government a non-exclusive, paid up, world-wide li- 227.7105–3 Acquisition of modified ex- cense to make and distribute copies of isting works. that work, to prepare derivative works, Use the clause at 252.227–7020, Rights to perform or display publicly any por- in Special Works, in solicitations and tion of the work, and to permit others contracts for modified existing works to do so for government purposes. in lieu of the clause at 252.227–7021, Grant permission only when the Gov- Rights in Data—Existing Works. ernment’s requirements cannot be sat- isfied unless the third party work is in- 227.7106 Contracts for special works. cluded in the deliverable work. (a) Use the clause at 252.227–7020, (d) Examples of works which may be Rights in Special Works, in solicita- procured under the Rights in Special tions and contracts where the Govern- Works clause include, but are not lim- ment has a specific need to control the ited, to audiovisual works, computer distribution of works first produced, data bases, computer software docu- created, or generated in the perform- mentation, scripts, soundtracks, musi- ance of a contract and required to be cal compositions, and adaptations; his- delivered under that contract, includ- tories of departments, agencies, serv- ing controlling distribution by obtain- ices or units thereof; surveys of Gov- ing an assignment of copyright, or a ernment establishments; instructional specific need to obtain indemnity for works or guidance to Government offi- liabilities that may arise out of the cers and employees on the discharge of creation, delivery, use, modification, their official duties; reports, books, reproduction, release, performance, studies, surveys or similar documents; display, or disclosure of such works. collections of data containing informa- Use the clause— tion pertaining to individuals that, if (1) In lieu of the clause at 252.227– disclosed, would violate the right of 7013, Rights in Technical Data—Non- privacy or publicity of the individuals commercial Items, when the Govern- to whom the information relates; or in- ment must own or control copyright in vestigative reports. all works first produced, created, or generated and required to be delivered 227.7107 Contracts for architect-engi- under a contract; or neer services. (2) In addition to the clause at This section sets forth policies and 252.227–7013 when the Government must procedures, pertaining to data, copy- own or control copyright in a portion rights, and restricted designs unique to of a work first produced, created, or the acquisition of construction and ar- generated and required to be delivered chitect-engineer services. under a contract. The specific portion in which the Government must own or 227.7107–1 Architectural designs and control copyright must be identified in data clauses for architect-engineer a special contract requirement. or construction contracts. (b) Although the Government obtains (a) Except as provided in paragraph an assignment of copyright and unlim- (b) of this subsection and in 227.7107–2, ited rights in a special work under the use the clause at 252.227–7022, Govern- clause at 252.227–7020, the contractor ment Rights (Unlimited), in solicita- retains use and disclosure rights in tions and contracts for architect-engi- that work. If the Government needs to neer services and for construction in- restrict a contractor’s rights to use or volving architect-engineer services. disclose a special work, it must also (b) When the purpose of a contract negotiate a special license which spe- for architect-engineer services, or for cifically restricts the contractor’s use construction involving architect-engi- or disclosure rights. neer services, is to obtain a unique ar- (c) The clause at 252.227–7020 does not chitectural design of a building, a permit a contractor to incorporate into monument, or construction of similar a special work any works copyrighted nature, which for artistic, aesthetic or by others unless the contractor obtains other special reasons the Government
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does not want duplicated, the Govern- (3) When required by the contracting ment may acquire exclusive control of officer, deliver data to the Government the data pertaining to the design by in- on paper or in other specified media; cluding the clause at 252.227–7023, (4) Be responsible for maintaining the Drawings and Other Data to Become currency of data delivered directly by Property of Government, in solicita- Government contractors or subcontrac- tions and contracts. tors to the repository; (c) The Government shall obtain un- (5) Obtain use and non-disclosure limited rights in shop drawings for con- agreements (see 227.7103–7) from all per- struction. In solicitations and con- sons to whom government purpose rights data is released or disclosed; and tracts calling for delivery of shop draw- (6) Indemnify the Government from ings, include the clause at 252.227–7033, any liability to data owners or Rights in Shop Drawings. licensors resulting from, or as a con- sequence of, a release or disclosure of 227.7107–2 Contracts for construction supplies and research and develop- technical data made by the data reposi- ment work. tory contractor or its officers, employ- ees, agents, or representatives. Use the provisions and clauses re- (b) If the contractor is or will be the quired by 227–7103–6 and 227.7203–6 when data repository manager, the contrac- the acquisition is limited to— tor’s data management and distribu- (a) Construction supplies or mate- tion responsibilities must be identified rials; in the contract or the contract must (b) Experimental, developmental, or reference the agreement between the research work, or test and evaluation Government and the contractor that studies of structures, equipment, proc- establishes those responsibilities. esses, or materials for use in construc- (c) If the contractor is not and will tion; or not be the data repository manager, do (c) Both. not require a contractor or subcon- tractor to deliver technical data 227.7107–3 Approval of restricted de- marked with limited rights legends to signs. a data repository managed by another contractor unless the contractor or The clause at 252.227–7024, Notice and subcontractor who has asserted limited Approval of Restricted Designs, may be rights agrees to release the data to the included in architect-engineer con- repository or has authorized, in writ- tracts to permit the Government to ing, the Government to do so. make informed decisions concerning (d) Repository procedures may pro- noncompetitive aspects of the design. vide for the acceptance, delivery, and subsequent distribution of technical 227.7108 Contractor data repositories. data in storage media other than (a) Contractor data repositories may paper, including direct electronic ex- be established when permitted by agen- change of data between two computers. cy procedures. The contractual instru- The procedures must provide for the ment establishing the data repository identification of any portions of the must require, as a minimum, the data data provided with restrictive legends, repository management contractor when appropriate. The acceptance cri- to— teria must be consistent with the au- (1) Establish and maintain adequate thorized delivery format. procedures for protecting technical data delivered to or stored at the re- Subpart 227.72—Rights in Com- pository from unauthorized release or puter Software and Computer disclosure; Software Documentation (2) Establish and maintain adequate procedures for controlling the release SOURCE: 60 FR 33482, June 28, 1995, unless or disclosure of technical data from the otherwise noted. repository to third parties consistent with the Government’s rights in such 227.7200 Scope of subpart. data; This subpart—
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(a) Prescribes policies and procedures mation documenting the specific modi- for the acquisition of computer soft- fications made at Government expense ware and computer software docu- to such software or documentation to mentation, and the rights to use, mod- meet the requirements of a Govern- ify, reproduce, release, perform, dis- ment solicitation; or play, or disclose such software or docu- (2) Relinquish to, or otherwise pro- mentation. It implements require- vide, the Government rights to use, ments in the following laws and Execu- modify, reproduce, release, perform, tive Order: display, or disclose commercial com- (1) 10 U.S.C. 2302(4). puter software or commercial com- (2) 10 U.S.C. 2305 (subsection (d)(4)). puter software documentation except (3) 10 U.S.C. 2320. for a transfer of rights mutually agreed (4) 10 U.S.C. 2321. upon. (5) 10 U.S.C. 2325. (6) Executive Order 12591 (subsection 227.7202–2 [Reserved] 1(b)(6)). (b) Does not apply to computer soft- 227.7202–3 Rights in commercial com- puter software or commercial com- ware or computer software documenta- puter software documentation. tion acquired under GSA schedule con- tracts. (a) The Government shall have only the rights specified in the license under 227.7201 Definitions. which the commercial computer soft- (a) As used in this subpart, unless ware or commercial computer software otherwise specifically indicated, the documentation was obtained. terms ‘‘offeror’’ and ‘‘contractor’’ in- (b) If the Government has a need for clude an offeror’s or contractor’s sub- rights not conveyed under the license contractors, suppliers, or potential customarily provided to the public, the subcontractors or suppliers at any tier. Government must negotiate with the (b) Other terms used in this subpart contractor to determine if there are ac- are defined in the clause at 252.227–7014, ceptable terms for transferring such Rights in Noncommercial Computer rights. The specific rights granted to Software and Noncommercial Com- the Government shall be enumerated in puter Software Documentation. the contract license agreement or an addendum thereto. 227.7202 Commercial computer soft- ware and commercial computer 227.7202–4 Contract clause. software documentation. A specific contract clause governing the Government’s rights in commercial 227.7202–1 Policy. computer software or commercial com- (a) Commercial computer software or puter software documentation is not commercial computer software docu- prescribed. As required by 227.7202–3, mentation shall be acquired under the the Government’s rights to use, mod- licenses customarily provided to the ify, reproduce, release, perform, dis- public unless such licenses are incon- play, or disclose computer software or sistent with Federal procurement law computer software documentation or do not otherwise satisfy user needs. shall be identified in a license agree- (b) Commercial computer software ment. and commercial computer software documentation shall be obtained com- 227.7203 Noncommercial computer petitively, to the maximum extent software and noncommercial com- practicable, using firm-fixed-price con- puter software documentation. tracts or firm-fixed-priced orders under available pricing schedules. 227.7203–1 Policy. (c) Offerors and contractors shall not (a) DoD policy is to acquire only the be required to— computer software and computer soft- (1) Furnish technical information re- ware documentation, and the rights in lated to commercial computer software such software or documentation, nec- or commercial computer software doc- essary to satisfy agency needs. umentation that is not customarily (b) Solicitations and contracts provided to the public except for infor- shall—
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(1) Specify the computer software or or other technical considerations, computer software documentation to needs determinations should consider be delivered under a contract and the such factors as multiple site or shared delivery schedules for the software or use requirements, whether the Govern- documentation; ment’s software maintenance philos- (2) Establish or reference procedures ophy will require the right to modify for determining the acceptability of or have third parties modify the soft- computer software or computer soft- ware, and any special computer soft- ware documentation; ware documentation requirements. (3) Establish separate contract line (2) When reviewing offers received in items, to the extent practicable, for response to a solicitation or other re- the computer software or computer quest for computer software or com- software documentation to be delivered puter software documentation, data under a contract and require offerors managers must balance the original as- and contractors to price separately sessment of the Government’s needs each deliverable data item; and with prices offered. (4) Require offerors to identify, to the (c) Contracting officers are respon- extent practicable, computer software sible for ensuring that, wherever prac- or computer software documentation ticable, solicitations and contracts— to be furnished with restrictions on the (1) Identify the types of computer Government’s rights and require con- software and the quantity of computer tractors to identify computer software programs and computer software docu- or computer software documentation mentation to be delivered, any require- to be delivered with such restrictions ments for multiple users at one site or prior to delivery. multiple site licenses, and the format (c) Offerors shall not be required, ei- and media in which the software or ther as a condition of being responsive documentation will be delivered; to a solicitation or as a condition for (2) Establish each type of computer award, to sell or otherwise relinquish software or computer software docu- to the Government any rights in com- mentation to be delivered as a separate contract line item (this requirement puter software developed exclusively at may be satisfied by an exhibit to the private expense except for the software contract); identified at 227.7203–5(a) (3) through (3) Identify the prices established for (6). each separately priced deliverable item (d) Offerors and contractors shall not of computer software or computer soft- be prohibited or discouraged from fur- ware documentation under a fixed- nishing or offering to furnish computer price type contract; software developed exclusively at pri- (4) Include delivery schedules and ac- vate expense solely because the Gov- ceptance criteria for each deliverable ernment’s rights to use, modify, re- item; and lease, reproduce, perform, display, or (5) Specifically identify the place of disclose the software may be re- delivery for each deliverable item. stricted. 227.7203–3 Early identification of com- 227.7203–2 Acquisition of noncommer- puter software or computer soft- cial computer software and com- ware documentation to be fur- puter software documentation. nished to the Government with re- (a) Contracting officers shall work strictions on use, reproduction or closely with data managers and re- disclosure. quirements personnel to assure that (a) Use the provision at 252.227–7017, computer software and computer soft- Identification and Assertion of Use, Re- ware documentation requirements in- lease, or Disclosure Restrictions, in all cluded in solicitations are consistent solicitation that include the clause at with the policy expressed in 227.7203–1. 252.227–7014, Rights in Noncommercial (b)(1) Data managers or other re- Computer Software and Noncommer- quirements personnel are responsible cial Computer Software Documenta- for identifying the Government’s min- tion. The provision requires offerors to imum needs. In addition to desired identify any computer software or software performance, compatibility, computer software documentation for
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which restrictions, other than copy- 227.7203–5 Government rights. right, on use, modification, reproduc- The standard license rights in com- tion, release, performance, display, or puter software that a licensor grants to disclosure are asserted and to attach the Government are unlimited rights, the identification and assertion to the government purpose rights, or re- offer. (b) Subsequent to contract award, stricted rights. The standard license in the clause at 252.227–7014 permits a con- computer software documentation con- tractor, under certain conditions, to veys unlimited rights. Those rights are make additional assertions of restric- defined in the clause at 252.227–7014, tions. The prescriptions for the use of Rights in Noncommercial Computer that clause and its alternates are at Software and Noncommercial Com- 227.7203–6(a). puter Software Documentation. In un- usual situations, the standard rights 227.7203–4 License rights. may not satisfy the Government’s needs or the Government may be will- (a) Grant of license. The Government ing to accept lesser rights in return for obtains rights in computer software or other consideration. In those cases, a computer software documentation, in- special license may be negotiated. cluding a copyright license, under an However, the licensor is not obligated irrevocable license granted or obtained to provide the Government greater by the contractor which developed the rights and the contracting officer is software or documentation or the li- not required to accept lesser rights censor of the software or documenta- than the rights provided in the stand- tion if the development contractor is ard grant of license. The situations not the licensor. The contractor or li- under which a particular grant of li- censor retains all rights in the soft- cense applies are enumerated in para- ware or documentation not granted to graphs (a) through (d) of this sub- the Government. The scope of a com- section. puter software license is generally de- termined by the source of funds used to (a) Unlimited rights. The Government develop the software. Contractors or obtains an unlimited rights license in— licensors may, with some exceptions, (1) Computer software developed ex- restrict the Government’s rights to clusively with Government funds; use, modify, reproduce, release, per- (2) Computer software documentation form, display, or disclose computer required to be delivered under a Gov- software developed exclusively or par- ernment contract; tially at private expense (see 227.7203–5 (3) Corrections or changes to com- (b) and (c)). They may not, without the puter software or computer software Government’s agreement (see 227.7203– documentation furnished to the con- 5(d)), restrict the Government’s rights tractor by the Government; in computer software developed exclu- (4) Computer software or computer sively with Government funds or in software documentation that is other- computer software documentation re- wise publicly available or has been re- quired to be delivered under a contract. leased or disclosed by the contractor or (b) Source of funds determination. The subcontractor without restrictions on determination of the source of funds further use, release or disclosure other used to develop computer software than a release or disclosure resulting should be made at the lowest prac- from the sale, transfer, or other assign- ticable segregable portion of the soft- ment of interest in the software to an- ware or documentation (e.g., a software other party or the sale or transfer of sub-routine that performs a specific some or all of a business entity or it function). Contractors may assert re- assets to another party; stricted rights in a segregable portion (5) Computer software or computer of computer software which otherwise software documentation obtained with qualifies for restricted rights under the unlimited rights under another Gov- clause at 252.227–7014, Rights in Non- ernment contract or as a result of ne- commercial Computer Software and gotiations; or Noncommercial Computer Software (6) Computer software or computer Documentation. software documentation furnished to
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the Government, under a Government and non-disclosure agreement at contract or subcontract with— 227.7103–7; or (i) Restricted rights in computer (ii) The intended recipient is a Gov- software, limited rights in technical ernment contractor receiving access to data, or government purpose license the software for performance of a Gov- rights and the restrictive conditions ernment contract that contains the have expired; or clause at 252.227–7025, Limitations on (ii) Government purpose rights and the Use or Disclosure of Government- the contractor’s exclusive right to use Furnished Information Marked with such software or documentation for Restrictive Legends. commercial purposes has expired. (5) When computer software marked (b) Government purpose rights. (1) Ex- with government purpose rights leg- cept as provided in paragraph (a) of ends will be released or disclosed to a this subsection, the Government ob- Government contractor performing a tains government purpose rights in contract that does not include the computer software developed with clause at 252.227–7025, the contract may mixed funding. be modified, prior to release or disclo- sure, to include such clause in lieu of (2) The period during which govern- requiring the contractor to complete a ment purpose rights are effective is ne- use and non-disclosure agreement. gotiable. The clause at 252.227–7014 pro- (6) Contracting activities shall estab- vides a nominal five-year period. Ei- lish procedures to assure that com- ther party may request a different pe- puter software or computer software riod. Changes to the government pur- documentation marked with govern- pose rights period may be made at any ment purpose rights legends are re- time prior to delivery of the software leased or disclosed, including a release without consideration from either or disclosure through a Government so- party. Longer periods should be nego- licitation, only to persons subject to tiated when a five-year period does not the use and non-disclosure restrictions. provide sufficient time to commer- Public announcements in the Com- cialize the software or, for software de- merce Business Daily or other publica- veloped by subcontractors, when nec- tions must provide notice of the use essary to recognize the subcontractors’ and non-disclosure requirements. Class interests in the software. use and non-disclosure agreements (3) The government purpose rights (e.g., agreements covering all solicita- period commences upon execution of tions received by the XYZ company the contract, subcontract, letter con- within a reasonable period) are author- tract (or similar contractual instru- ized and may be obtained at any time ment), contract modification, or option prior to release or disclosure of the exercise that required development of government purpose rights software or the computer software. Upon expira- documentation. Documents transmit- tion of the government purpose rights ting government purpose rights soft- period, the Government has unlimited ware or documentation to persons rights in the software including the under class agreements shall identify right to authorize others to use data the specific software or documentation for commercial purposes. subject to government purpose rights (4) During the government purpose and the class agreement under which rights period, the Government may not such software or documentation are use, or authorize other persons to use, provided. computer software marked with gov- (c) Restricted rights. (1) The Govern- ernment purpose rights legends for ment obtains restricted rights in non- commercial purposes. The Government commercial computer software re- shall not release or disclose, or author- quired to be delivered or otherwise pro- ize others to release or disclose, com- vided to the Government under a con- puter software in which it has govern- tract that were developed exclusively ment purpose rights to any person un- at private expense. less— (2) Contractors are not required to (i) Prior to release or disclosure, the provide the Government additional intended recipient is subject to the use rights in computer software delivered
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or otherwise provided to the Govern- 227.7203–6 Contract clauses. ment with restricted rights. When the (a)(1) Use the clause at 252.227–7014, Government has a need for additional Rights in Noncommercial Computer rights, the Government must negotiate Software and Noncommercial Com- with the contractor to determine if puter Software Documentation, in so- there are acceptable terms for transfer- licitations and contracts when the suc- ring such rights. List or describe all cessful offeror(s) will be required to de- software in which the contractor has liver computer software or computer granted the Government additional software documentation. Do not use rights in a license agreement made the clause when the only deliverable part of the contract (see paragraph (d) items are technical data (other than of this subsection). The license shall computer software documentation), enumerate the specific additional commercial computer software or com- rights granted to the Government. mercial computer software documenta- (d) Specifically negotiated license tion, commercial items (see 227.7102–3), rights. Negotiate specific licenses when special works (see 227.7205), or con- the parties agree to modify the stand- tracts under the Small Business Inno- ard license rights granted to the Gov- vative Research Program (see 227.7104), ernment or when the Government Except as provided in 227.7107–2, do not wants to obtain rights in computer use the clause in architect-engineer software in which it does not have and construction contracts.. rights. When negotiating to obtain, re- (2) Use the clause at 252.227–7014 with linquish, or increase the Government’s its Alternate I in research contracts rights in computer software, consider when the contracting officer deter- the planned software maintenance phi- mines, in consultation with counsel, losophy, anticipated time or user shar- that public dissemination by the con- ing requirements, and other factors tractor would be— which may have relevance for a par- (i) In the interest of the Government; ticular procurement. If negotiating to and relinquish rights in computer software (ii) Facilitated by the Government documentation, consider the adminis- relinquishing its right to publish the trative burden associated with pro- work for sale, or to have others publish tecting documentation subject to re- the work for sale on behalf of the Gov- strictions from unauthorized release or ernment. disclosure. The negotiated license (b) Use the clause at 252.227–7016, rights must stipulate the rights grant- Rights in Bid or Proposal Information, ed the Government to use, modify, re- in solicitations and contracts that in- produce, release, perform, display, or clude the clause at 252.227–7014. disclose the software or documentation (c) Use the clause at 252.227–7019, Val- and the extent to which the Govern- idation of Asserted Restrictions—Com- ment may authorize others to do so. puter Software, in solicitations and Identify all negotiated rights in a li- contracts that include the clause at cense agreement made part of the con- 252.227–7014. The clause provides proce- tract. dures for the validation of asserted re- (e) Rights in derivative computer soft- strictions on the Government’s rights ware or computer software documenta- to use, release, or disclose computer tion. The clause at 252.227–7014 protects software. the Government’s rights in computer (d) Use the provision at 252.227–7025, software, computer software docu- Limitations on the Use or Disclosure of mentation, or portions thereof that the Government-Furnished Information contractor subsequently uses to pre- Marked with Restrictive Legends, in pare derivative software or subse- solicitations and contracts when it is quently embeds or includes in other anticipated that the Government will software or documentation. The Gov- provide the contractor, for perform- ernment retains the rights it obtained ance of its contract, computer software under the development contract in the or computer software documentation unmodified portions of the derivative marked with another contractor’s re- software or documentation. strictive legend(s).
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(e) Use the provision at 252.227–7028, ficiently in advance of the desired de- Technical Data or Computer Software livery date for such software or docu- Previously Delivered to the Govern- mentation to permit timely delivery. ment, in solicitations when the result- (b) Deferred ordering. Use the clause ing contract will require the con- at 252.227–7027, Deferred Ordering of tractor to deliver computer software or Technical Data or Computer Software, computer software documentation. The when a firm requirement for software provision requires offerors to identify or documentation has not been estab- any software or documentation speci- lished prior to contract award but fied in the solicitation as deliverable there is a potential need for computer items that are the same or substan- software or computer software docu- tially the same as software or docu- mentation. Under this clause the con- mentation which the offeror has deliv- tracting officer may order any com- ered or is obligated to deliver, either as puter software or computer software a contractor or subcontractor, under documentation generated in the per- any other federal agency contract. formance of the contract or any sub- (f) Use the clause at 252.227–7037, Val- contract thereunder at any time until idation of Restrictive Markings on three years after acceptance of all Technical Data, in solicitations and items (other than technical data or contracts that include the clause at computer software) under the contract 252.227–7014 when the contractor will be or contract termination, whichever is required to deliver noncommercial later. The obligation of subcontractors computer software documentation to deliver such technical data or com- (technical data). The clause imple- puter software expires three years after ments statutory requirements under 10 the date the contractor accepts the U.S.C. 2321. Paragraph (e) of the clause last item under the subcontract. When contains information that must be in- the software or documentation are or- cluded in a formal challenge. dered, the delivery dates shall be nego- tiated and the contractor compensated 227.7203–7 [Reserved] only for converting the software or 227.7203–8 Deferred delivery and de- documentation into the prescribed ferred ordering of computer soft- form, reproduction costs, and delivery ware and computer software docu- costs. mentation. (a) Deferred delivery. Use the clause at 227.7203–9 Copyright. 252.227–7026, Deferred Delivery of Tech- (a) Copyright license. (1) The clause at nical Data or Computer Software, when 252.227–7014, Rights in Noncommercial it is in the Government’s interests to Computer Software and Noncommer- defer the delivery of computer software cial Computer Software Documenta- or computer software documentation. tion, requires a contractor to grant, or The clause permits the contracting of- obtain for the Government license ficer to require the delivery of data rights which permit the Government to identified as ‘‘deferred delivery’’ data reproduce the software or documenta- or computer software at any time until tion, distribute copies, perform or dis- two years after acceptance by the Gov- play the software or documentation ernment of all items (other than tech- and, through the right to modify data, nical data or computer software) under prepare derivative works. The extent the contract or contract termination, to which the Government, and others whichever is later. The obligation of acting on its behalf, may exercise these subcontractors or suppliers to deliver rights varies for each of the standard such data expires two years after the data rights licenses obtained under the date the prime contractor accepts the clause. When non-standard license last item from the subcontractor or rights in computer software or com- supplier for use in the performance of puter software documentation will be the contract. The contract must speci- negotiated, negotiate the extent of the fy the computer software or computer copyright license concurrent with ne- software documentation that is subject gotiations for the data rights license. to deferred delivery. The contracting Do not negotiate copyright licenses for officer shall notify the contractor suf- computer software that provide less
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rights than the standard restricted rect an informality within the time rights in computer software license. prescribed by the contracting officer For computer software documentation, shall render the offer ineligible for do not negotiate a copyright license award. that provides less rights than the (2) The procedures for correcting standard limited rights in technical minor informalities shall not be used data license. to obtain information regarding as- (2) The clause at 252.227–7013, Rights serted restrictions or an offeror’s sug- in Technical Data—Noncommercial gested asserted rights category. Ques- Items, does not permit a contractor to tions regarding the justification for an incorporate a third party’s copyrighted asserted restriction or asserted rights software into a deliverable software category must be pursued in accord- item unless the contractor has ob- ance with the procedures at 227.7203–13. tained an appropriate license for the (3) The restrictions asserted by a suc- Government and, when applicable, oth- cessful offeror shall be attached to its ers acting on the Government’s behalf, contract unless, in accordance with the or has obtained the contracting offi- procedures at 227.7203–13, the parties cer’s written approval to do so. Grant have agreed that an asserted restric- approval to use third party copyrighted tion is not justified. The contract at- software in which the Government will tachment shall provide the same infor- not receive a copyright license only mation regarding identification of the when the Government’s requirements computer software or computer soft- cannot be satisfied without the third ware documentation, the asserted party material or when the use of the rights category, the basis for the asser- third party material will result in cost tion, and the name of the person as- savings to the Government which out- serting the restrictions as required by weigh the lack of a copyright license. paragraph (d) of the solicitation provi- (b) Copyright considerations—special sion at 252.227–7017. Subsequent to con- works. See 227.7205 for copyright consid- tract award, the clause at 252.227–7014, erations when acquiring special works. Rights in Noncommercial Computer Software and Noncommercial Com- 227.7203–10 Contractor identification and marking of computer software puter Software Documentation, per- or computer software documenta- mits a contractor to make additional tion to be furnished with restrictive assertions under certain conditions. markings. The additional assertions must be (a) Identification requirements. (1) The made in accordance with the proce- solicitation provision at 252.227–7017, dures and in the format prescribed by Identification and Assertion of Use, Re- that clause. lease, or Disclosure Restrictions, re- (4) Neither the pre- or post-award as- quires offerors to identify, prior to con- sertions made by the contractor nor tract award, any computer software or the fact that certain assertions are computer software documentation that identified in the attachment to the an offeror asserts should be provided to contract, determine the respective the Government with restrictions on rights of the parties. As provided at use, modification, reproduction, re- 227.7203–13, the Government has the lease, or disclosure. This requirement right to review, verify, challenge and does not apply to restrictions based validate restrictive markings. solely on copyright. The notification (5) Information provided by offerors and identification must be submitted in response to the solicitation provi- as an attachment to the offer. If an of- sion at 252.227–7017 may be used in the feror fails to submit the attachment or source selection process to evaluate fails to complete the attachment in ac- the impact on evaluation factors that cordance with the requirements of the may be created by restrictions on the solicitation provision, such failure Government’s ability to use or disclose shall constitute a minor informality. computer software or computer soft- Provide offerors an opportunity to ware documentation. remedy a minor informality in accord- (b) Contractor marking requirements. ance with the procedures at FAR 14.405 The clause at 252.227–7014, Rights in or 15.306(a). An offeror’s failure to cor- Noncommercial Computer Software
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and Noncommercial Computer Soft- mentation, or any extension of that ware Documentation— time approved by the contracting offi- (1) Requires a contractor who desires cer. The person making the request to restrict the Government’s rights in must— computer software or computer soft- (i) Identify the software or docu- ware documentation to place restric- mentation that should have been tive markings on the software or docu- marked; mentation, provides instructions for (ii) Demonstrate that the omission of the placement of the restrictive mark- the marking was inadvertent, the pro- ings, and authorizes the use of certain posed marking is justified and con- restrictive markings. When it is antici- forms with the requirements for the pated that the software will or may be used in combat or situations which marking of computer software or com- simulate combat conditions, do not puter software documentation con- permit contractors to insert instruc- tained in the clause at 252.227–7014; and tions into computer programs that (iii) Acknowledge, in writing, that interfere with or delay operation of the the Government has no liability with software to display a restrictive rights respect to any disclosure, reproduction, legend or other license notice; and or use of the software or documenta- (2) Requires a contractor to deliver, tion made prior to the addition of the furnish, or otherwise provide to the marking or resulting from the omis- Government any computer software or sion of the marking. computer software documentation in (3) Contracting officers should grant which the Government has previously permission to mark only if the soft- obtained rights with the Government’s ware or documentation were not dis- pre-existing rights in that software or tributed outside the Government or documentation unless the parties have were distributed outside the Govern- agreed otherwise or restrictions on the ment with restrictions on further use Government’s rights to use, modify, or disclosure. produce, release, or disclose the soft- ware or documentation have expired. [60 FR 33482, June 28, 1995, as amended at 63 When restrictions are still applicable, FR 55052, Oct. 14, 1998] the contractor is permitted to mark the software or documentation with 227.7203–11 Contractor procedures the appropriate restrictive legend. and records. (c) Unmarked computer software or (a) The clause at 252.227–7014, Rights computer software documentation. (1) in Noncommercial Computer Software Computer software or computer soft- and Noncommercial Computer Soft- ware documentation delivered or oth- ware Documentation, requires a con- erwise provided under a contract with- tractor, and its subcontractors or sup- out restrictive markings shall be pre- pliers that will deliver computer soft- sumed to have been delivered with un- ware or computer software documenta- limited rights and may be released or tion with other than unlimited rights, disclosed without restriction. To the to establish and follow written proce- extent practicable, if a contractor has dures to assure that restrictive mark- requested permission (see paragraph ings are used only when authorized and (c)(2) of this subsection) to correct an to maintain records to justify the va- inadvertent omission of markings, do not release or disclose the software or lidity of restrictive markings. documentation pending evaluation of (b) The clause at 252.227–7019, Valida- the request. tion of Asserted Restrictions—Com- (2) A contractor may request permis- puter Software, requires contractors sion to have appropriate legends placed and their subcontractors or suppliers on unmarked computer software or at any tier to maintain records suffi- computer software documentation at cient to justify the validity of mark- its expense. The request must be re- ings that assert restrictions on the use, ceived by the contracting officer with- modification, reproduction, release, in six months following the furnishing performance, display, or disclosure of or delivery of such software or docu- computer software.
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227.7203–12 Government right to es- a Government contract either exclu- tablish conformity of markings. sively at Government expense or with (a) Nonconforming markings. (1) Au- mixed funding (situations under which thorized markings are identified in the the Government obtains unlimited or clause at 252.227–7014, Rights in Non- government purpose rights) is an un- commercial Computer Software and justified marking. Noncommercial Computer Software (2) Contracting officers have the Documentation. All other markings right to review and challenge the valid- are nonconforming markings. An au- ity of unjustified markings. However, thorized marking that is not in the at any time during performance of a form, or differs in substance, from the contract and notwithstanding exist- marking requirements in the clause at ence of a challenge, the contracting of- 252.227–7014 is also a nonconforming ficer and the person who has asserted a marking. restrictive marking may agree that the (2) The correction of nonconforming restrictive marking is not justified. markings on computer software is not subject to 252.227–7019, Validation of Upon such agreement, the contracting Asserted Restrictions—Computer Soft- officer may, at his or her election, ei- ware, and the correction of noncon- ther— forming markings on computer soft- (i) Strike or correct the unjustified ware documentation (technical data) is marking at that person’s expense; or not subject to 252.227–7037, Validation (ii) Return the computer software or of Restrictive Markings on Technical computer software documentation to Data. To the extent practicable, the the person asserting the restriction for contracting officer should return com- correction at that person’s expense. If puter software or computer software the software or documentation are re- documentation bearing nonconforming turned and that person fails to correct markings to the person who has placed or strike the unjustified restriction the nonconforming markings on the and return the corrected software or software or documentation to provide documentation to the contracting offi- that person an opportunity to correct cer within 60 days following receipt of or strike the nonconforming markings the software or documentation, the un- at that person’s expense. If that person justified marking shall be corrected or fails to correct the nonconformity and stricken at that person’s expense. return the corrected software or docu- mentation within 60 days following the 227.7203–13 Government right to re- person’s receipt of the software or doc- view, verify, challenge and validate umentation, the contracting officer asserted restrictions. may correct or strike the noncon- formity at the person’s expense. When (a) General. An offeror’s or contrac- it is impracticable to return computer tor’s assertion(s) of restrictions on the software or computer software docu- Government’s rights to use, modify, re- mentation for correction, contracting produce, release, or disclose computer officers may unilaterally correct any software or computer software docu- nonconforming markings at Govern- mentation do not, by themselves, de- ment expense. Prior to correction, the termine the extent of the Govern- software or documentation may be ment’s rights in such software or docu- used in accordance with the proper re- mentation. The Government may re- strictive marking. quire an offeror or contractor to sub- (b) Unjustified markings. (1) An un- mit sufficient information to permit an justified marking is an authorized evaluation of a particular asserted re- marking that does not depict accu- striction and may challenge asserted rately restrictions applicable to the restrictions when there are reasonable Government’s use, modification, repro- grounds to believe that an assertion is duction, release, or disclosure of the not valid. marked computer software or com- (b) Requests for information. Con- puter software documentation. For ex- tracting officers should have a reason ample, a restricted rights legend placed to suspect that an asserted restriction on computer software developed under
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might not be correct prior to request- strictive Markings on Technical Data, ing information. When requesting in- and the guidance at 227.7103–13. The formation, provide the offeror or con- procedures in the clause at 252.227–7037 tractor the reason(s) for suspecting implement requirements contained in that an asserted restriction might not 10 U.S.C. 2321. Resolution of questions be correct. A need for additional li- regarding the validity of asserted re- cense rights is not, by itself, a suffi- strictions using the process described cient basis for requesting information at 227.7103–12(b)(2) is strongly encour- concerning an asserted restriction. Fol- aged. low the procedures at 227.7203–5(d) (3) Computer software. (i) Asserted re- when additional license rights are strictions should be reviewed before ac- needed but there is no basis to suspect ceptance of the computer software de- that an asserted restriction might not liverable under a contract. The Govern- be valid. ment’s right to challenge an assertion (c) Transacting matters directly with expires three years after final payment subcontractors. The clause at 252.227– under the contract or three years after 7019, Validation of Asserted Restric- delivery of the software, whichever is tions—Computer Software, obtains the later. Those limitations on the Govern- contractor’s agreement that the Gov- ment’s challenge rights do not apply to ernment may transact matters under software that is publicly available, has the clause directly with a subcon- been furnished to the Government tractor or supplier, at any tier, with- without restrictions, or has been other- out creating or implying privity of con- wise made available without restric- tract. Contracting officers should per- tions. mit a subcontractor or supplier to (ii) Contracting officers must have transact challenge and validation mat- reasonable grounds to challenge the ters directly with the Government current validity of an asserted restric- when— tion. Before challenging an asserted re- (1) A subcontractor’s or supplier’s striction, carefully consider all avail- business interests in its technical data able information pertaining to the as- would be compromised if the data were serted restrictions. Resolution of ques- disclosed to a higher tier contractor. tions regarding the validity of asserted (2) There is reason to believe that the restrictions using the process described contractor will not respond in a timely at 227.7203–12(b)(2) is strongly encour- manner to a challenge and an untimely aged. After consideration of the situa- response would jeopardize a sub- tions described in paragraph (c) of this contractor’s or supplier’s right to as- subsection, contracting officers may sert restrictions; or request the person asserting a restric- (3) Requested to do so by a subcon- tion to furnish a written explanation of tractor or supplier. the facts and supporting documenta- (d) Challenging asserted restrictions— tion for the assertion in sufficient de- (1) Pre-award considerations. The chal- tail to enable the contracting officer to lenge procedures in the clause at determine the validity of the assertion. 252.227–7019 could significantly delay Additional supporting documentation competitive procurements. Therefore, may be requested when the explanation avoid challenging asserted restrictions provided by that person does not, in prior to a competitive contract award the contracting officer’s opinion, estab- unless resolution of the assertion is es- lish the validity of the assertion. sential for successful completion of the (iii) Assertions may be challenged procurement. whether or not supporting documenta- (2) Computer software documentation. tion was requested. Challenges must be Computer software documentation is in writing and issued to the person as- technical data. Challenges to asserted serting the restriction. restrictions on the Government’s (4) Extension of response time. The con- rights to use, modify, reproduce, re- tracting officer, at his or her discre- lease, perform, display, or disclose tion, may extend the time for response computer software documentation contained in a challenge, as appro- must be made in accordance with the priate, if the contractor submits a clause at 252.227–7037, Validation of Re- timely written request showing the
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need for additional time to prepare a quirements the software must satisfy response. to be acceptable. Contracting officers, (e) Validating or denying asserted re- or their authorized representatives, are strictions. (1) Contracting officers must responsible for determining whether promptly issue a final decision denying computer software tendered for accept- or sustaining the validity of each chal- ance conforms to the contractual re- lenged assertion unless the parties quirements. Except for nonconforming have agreed on the disposition of the restrictive markings (follow the proce- assertion. When a final decision deny- dures at 227.7203–12(a) if nonconforming ing the validity of an asserted restric- markings are the sole reason computer tion is made following a timely re- software tendered for acceptance fails sponse to a challenge, the Government to conform to contractual require- is obligated to continue to respect the ments), do not accept software that asserted restrictions through final dis- does not conform in all respects to ap- position of any appeal unless the agen- plicable contractual requirements. Cor- cy head notifies the person asserting rection or replacement of noncon- the restriction that urgent or compel- forming software, or an equitable re- ling circumstances do not permit the duction in contract price when correc- Government to continue to respect the tion or replacement of the noncon- asserted restriction. See 252.227–7019(g) forming data is not practicable or is for restrictions applicable following a not in the Government’s interests, determination of urgent and compel- shall be accomplished in accordance ling circumstances. with— (2) Only a contracting officer’s final (i) The provisions of a contract decision, or actions of an agency Board clause providing for inspection and ac- of Contract Appeals or a court of com- ceptance of deliverables and remedies petent jurisdiction, that sustain the for nonconforming deliverables; or validity of an asserted restriction con- (ii) The procedures at FAR 46.407(c) stitute validation of the restriction. through (g), if the contract does not (f) Multiple challenges to an asserted contain an inspection clause providing restriction. When more than one con- remedies for nonconforming tracting officer challenges an asserted deliverables. restriction, the contracting officer who (2) Warranties—(i) Weapon systems. made the earliest challenge is respon- Computer software that is a component sible for coordinating the Government of a weapon system or major sub- challenges. That contracting officer system should be warranted as part of shall consult with all other contracting the weapon system warranty. Follow officers making challenges, verify that the procedures at 246.770. all challenges apply to the same as- serted restriction and, after consulting (ii) Non-weapon systems. Approval of with the contractor, subcontractor, or the chief of the contracting office must supplier asserting the restriction, issue be obtained to use a computer software a schedule that provides that person a warranty other than a weapon system reasonable opportunity to respond to warranty. Consider the factors at FAR each challenge. 46.703 in deciding whether to obtain a computer software warranty. When ap- 227.7203–14 Conformity, acceptance, proval for a warranty has been ob- and warranty of computer software tained, the clause at 252.246–7001, War- and computer software documenta- ranty of Data, and its alternates, may tion. be appropriately modified for use with (a) Computer software documentation. computer software or a procurement Computer software documentation is specific clause may be developed. technical data. See 227.7103–14 for ap- propriate guidance and statutory re- 227.7203–15 Subcontractor rights in quirements. computer software or computer (b) Computer software. (1) Conformity software documentation. and acceptance. Solicitations and con- (a) Subcontractors and suppliers at tracts requiring the delivery of com- all tiers should be provided the same puter software shall specify the re- protection for their rights in computer
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software or computer software docu- in the contractor’s contract with the mentation as are provided to prime Government. contractors. (b) The clauses at 252.227–7019, Vali- 227.7203–16 Providing computer soft- dation of Asserted Restrictions—Com- ware or computer software docu- puter Software, and 252.227–7037, Vali- mentation to foreign governments, dation of Restrictive Markings on foreign contractors, or inter- Technical Data, obtain a contractor’s national organizations. agreement that the Government’s Computer software or computer soft- transaction of validation or challenge ware documentation may be released matters directly with subcontractors or disclosed to foreign governments, at any tier does not establish or imply foreign contractors, or international privity of contract. When a subcon- organizations only if release or disclo- tractor or supplier exercises its right sure is otherwise permitted both by to transact validation matters directly Federal export controls and other na- with the Government, contracting offi- tional security laws or regulations. cers shall deal directly with such per- Subject to such laws and regulations, sons, as provided at 227.7203–13(c) for the Department of Defense— computer software and 227.7103–13(c)(3) (a) May release or disclose computer for computer software documentation software or computer software docu- (technical data). mentation in which it has obtained un- (c) Require prime contractors whose limited rights to such foreign entities contracts include the following clauses or authorize the use of such data by to include those clauses, without modi- those entities; and fication except for appropriate identi- (b) Shall not release or disclose com- fication of the parties, in contracts puter software or computer software with subcontractors or suppliers who documentation for which restrictions will be furnishing computer software in on use, release, or disclosure have been response to a Government requirement asserted to such foreign entities or au- (see 227.7103–15(c) for clauses required thorize the use of such data by those when subcontractors or suppliers will entities, unless the intended recipient be furnishing computer software docu- mentation (technical data)): is subject to the same provisions as in- (1) 252.227.7014, Rights in Noncommer- cluded in the use and non-disclosure cial Computer Software and Non- agreement at 227.7103–7 and the re- commercial Computer Software Docu- quirements of the clause at 252.227–7014, mentation; Rights in Noncommercial Computer (2) 252.227.7019, Validation of Asserted Software and Noncommercial Com- Restrictions—Computer Software; puter Software Documentation, gov- (3) 252.227.7025, Limitations on the erning use, modification, reproduction, Use or Disclosure of Government Fur- release, performance, display, or dis- nished Information Marked with Re- closure of such data have been satis- strictive Legends; and fied. (4) 252.227.7028, Technical Data or Computer Software Previously Deliv- 227.7203–17 Overseas contracts with foreign sources. ered to the Government. (d) Do not require contractors to (a) The clause at 252.227–7032, Rights have their subcontractors or suppliers in Technical Data and Computer Soft- at any tier relinquish rights in tech- ware (Foreign), may be used in con- nical data to the contractor, a higher tracts with foreign contractors to be tier subcontractor, or to the Govern- performed overseas, except Canadian ment, as a condition for award of any purchases (see paragraph (c) of this contract, subcontract, purchase order, subsection) in lieu of the clause at or similar instrument except for the 252.227–7014, Rights in Noncommercial rights obtained by the Government Computer Software and Noncommer- under the provisions of the Rights in cial Computer Software Documenta- Noncommercial Computer Software tion, when the Government requires and Noncommercial Computer Soft- the unrestricted right to use, modify, ware Documentation clause contained reproduce, release, perform, display, or
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disclose all computer software or com- erated and required to be delivered puter software documentation to be de- under a contract; or livered under the contract. Do not use (2) In addition to the clause at the clause in contracts for special 252.227–7014 when the Government must works. own or control copyright in some of (b) When the Government does not the computer software or computer require unlimited rights, the clause at software documentation first produced, 252.227–7032 may be modified to accom- created, or generated and required to modate the needs of a specific overseas be delivered under a contract. The spe- procurement situation. The Govern- cific software or documentation in ment should obtain rights to the com- which the Government must own or puter software or computer software control copyright must be identified in documentation that are not less than a special contract requirement. the rights the Government would have (b) Although the Government obtains obtained under the software rights an assignment of copyright and unlim- clause(s) prescribed in this part for a ited rights in the computer software or comparable procurement performed computer software documentation de- within the United States or its posses- livered as a special work under the sions. clause at 252.227–7020, the contractor (c) Contracts for Canadian purchases retains use and disclosure rights in shall include the appropriate software that software or documentation. If the rights clause prescribed in this part for Government needs to restrict a con- a comparable procurement performed tractor’s rights to use or disclose a spe- within the United States or its posses- cial work, it must also negotiate a spe- sions. cial license which specifically restricts the contractor’s use or disclosure 227.7204 Contracts under the Small rights. Business Innovative Research Pro- gram. (c) The clause at 252.227–7020 does not When contracting under the Small permit a contractor to incorporate into Business Innovative Research Pro- a special work any work copyrighted gram, follow the procedures at 227–7104. by others unless the contractor obtains the contracting officer’s permission to 227.7205 Contracts for special works. do so and obtains for the Government a non-exclusive, paid up, world-wide li- (a) Use the clause at 252.227–7020, cense to make and distribute copies of Rights in Special Works, in solicita- that work, to prepare derivative works, tions and contracts where the Govern- to perform or display any portion of ment has a specific need to control the that work, and to permit others to do distribution of computer software or so for government purposes. Grant per- computer software documentation first mission only when the Government’s produced, created, or generated in the requirements cannot be satisfied unless performance of a contract and required the third party work is included in the to be delivered under that contract, in- deliverable work. cluding controlling distribution by ob- (d) Examples of other works which taining an assignment of copyright, or may be procured under the clause at a specific need to obtain indemnity for 252.227–7020 include, but are not limited liabilities that may arise out of the to, audiovisual works, scripts, sound- creation, delivery, use, modification, tracks, musical compositions, and ad- reproduction, release, performance, aptations; histories of departments, display, or disclosure of such software agencies, services or units thereof; sur- or documentation. Use the clause— veys of Government establishments; in- (1) In lieu of the clause at 252.227– structional works or guidance to Gov- 7014, Rights in Noncommercial Com- ernment officers and employees on the puter Software and Noncommercial discharge of their official duties; re- Computer Software Documentation, ports, books, studies, surveys or simi- when the Government must own or lar documents; collections of data con- control copyright in all computer soft- taining information pertaining to indi- ware or computer software documenta- viduals that, if disclosed, would violate tion first produced, created, or gen- the right of privacy or publicity of the
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individuals to whom the information entered into pursuant to 10 U.S.C. 2701 relates; or investigative reports. and executed between December 5, 1991, and December 31, 1999— 227.7206 Contracts for architect-engi- (1) Any rights of action under the neer services. performance bond shall only accrue to, Follow 227.7107 when contracting for and be for the exclusive use of, the ob- architect-engineer services. ligee named in the bond. 227.7207 Contractor data repositories. (2) In the event of default, the sure- ty’s liability on the performance bond Follow 227.7108 when it is in the Gov- is limited to the cost of completion of ernment’s interests to have a data re- the contract work, less the balance of pository include computer software or unexpended funds. Under no cir- to have a separate computer software cumstances shall the liability exceed repository. Contractual instruments establishing the repository require- the penal sum of the bond. ments must appropriately reflect the (3) The surety shall not be liable for repository manager’s software respon- indemnification or compensation of the sibilities. obligee for loss or liability arising from personal injury or property damage, PART 228—BONDS AND even if the injury or damage was INSURANCE caused by a breach of the bonded con- tract. Subpart 228.1—Bonds (4) Once it has taken action to meet its obligations under the bond, the sur- Sec. ety is entitled to any indemnification 228.102 Performance and payment bonds for and identical standard of liability to construction contracts. which the contractor was entitled 228.102–1 General. 228.105 Other types of bonds. under the contract or applicable laws 228.106 Administration. and regulations. 228.106–7 Withholding contract payments. (a) The requirement for performance 228.170 Solicitation provision. and payment bonds is waived for cost- reimbursement contracts. However, for Subpart 228.3—Insurance cost type contracts with fixed-price 228.304 Risk-pooling arrangements. construction subcontracts over $25,000, 228.305 Overseas workers’ compensation and require the prime contractor to obtain war-hazard insurance. from each of its construction sub- 228.307 Insurance under cost-reimbursement contractors— contracts. 228.307–1 Group insurance plans. (i) A payment bond in favor of the 228.311 Solicitation provision and contract prime contractor sufficient to pay clause on liability insurance under cost- labor and material costs; and reimbursement contracts. (ii) A performance bond in an equal 228.311–1 Contract clause. amount if available at no additional 228.370 Additional clauses. cost. AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- ter 1. [56 FR 36404, July 31, 1991, as amended at 57 FR 42631, Sept. 15, 1992; 58 FR 28469, May 13, SOURCE: 56 FR 36404, July 31, 1991, unless 1993; 60 FR 29499, June 5, 1995] otherwise noted. 228.105 Other types of bonds. Subpart 228.1—Bonds Fidelity and forgery bonds generally 228.102 Performance and payment are not required but may be used bonds for construction contracts. when— (1) Necessary for the protection of 228.102–1 General. the Government or the contractor; or For Defense Environmental Restora- (2) The investigative and claims serv- tion Program construction contracts ices of a surety company are desired.
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228.106 Administration. (1) Either domestic or foreign; (2) Cost-reimbursement type; or 228.106–7 Withholding contract pay- (3) Fixed price with redetermination ments. provisions. (a) Withholding may be appropriate (2) Under construction contracts, in- in other than construction contracts clude construction subcontractors in (see 232.970–1(b)). the prime contractor’s plan only when subcontractor operations are at the [57 FR 42707, Sept. 16, 1992] project site, and the subcontract pro- vides that the prime contractor will 228.170 Solicitation provision. furnish insurance. When a requirement for a perform- (3) Use the agreement in Table 28–1, ance bond or other security is included Insurance Rating Plan Agreement, in a solicitation for dismantling, demo- when the Government assumes con- lition, or removal of improvements (see tractor premium payments upon con- FAR 37.300), use the provision at tract termination or completion. 252.228–7004, Bonds or Other Security. (4) The Federal Tort Claims Act pro- Set a period of time (normally ten vides protection for Government em- days) for return of executed bonds. ployees while driving Government- owned vehicles in the performance of Subpart 228.3—Insurance their assigned duties. Include the en- dorsement in Table 28–2, Automobile 228.304 Risk-pooling arrangements. Insurance Policy Endorsement, in The DoD has established the Na- automobile liability insurance policies tional Defense Projects Rating Plan, provided under the National Defense also known as the Special Casualty In- Projects Rating Plan. surance Rating Plan, as a risk-pooling Table 28–1.—Insurance Rating Plan Rating arrangement to minimize the cost to Agreement the Government of purchasing the li- ability insurance listed in FAR 28.307– Special Casualty Insurance Rating Plan As- signment-Assumption of Premium Obliga- 2. Use the plan in accordance with the tions following guidelines when it provides the necessary coverage more advan- It is agreed that 100 percent * of the return tageously than commercially available premiums and premium refunds (and divi- dends) due or to become due the prime con- coverage. tractor under the policies to which the Na- (1) The plan— tional Defense Projects Rating Plan En- (i) Is implemented by attaching an dorsement made a part of policy llllll endorsement to standard insurance pol- applies are hereby assigned to and shall be icy forms for workers’ compensation, paid to the United States of America, and employer’s liability, comprehensive the prime contractor directs the Company to general, and automobile liability. The make such payments to the office designated for contract administration acting for and endorsement states that the instant on account of the United States of America. policy is subject to the National De- fense Projects Rating Plan. The United States of America hereby as- sumes and agrees to fulfill all present and fu- (ii) Applies to eligible Defense ture obligations of the prime contractor with projects of one or more departments/ respect to the payment of 100 percent of the agencies. For purposes of this section, premiums under said policies. a Defense project is any eligible con- This agreement, upon acceptance by the tract or group of contracts with the prime contractor, the United States of same contractor. America, and the Company shall be effective (A) A Defense project is eligible from llllll Accepted llllllllllllllllll when— (Date) (1) Eligible contracts represent, at the inception of the plan, at least 90 percent of the payroll for the total op- * In the event the Government has less than a 100 percent interest in premium funds erations at project locations; and or dividends, modify the assignment to re- (2) The annual insurance premium is flect the percentage of interest and extent of estimated to be at least $10,000. the Government’s assumption of additional (B) A contract is eligible when it is— premium obligation.
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(Name of Insurance Company) lllllll 228.311 Solicitation provision and con- By llllllllllllllllllllll tract clause on liability insurance (Title of Official Signing) under cost-reimbursement con- Accepted llllllllllllllllll tracts. (Date) United States of America 228.311–1 Contract clause. By llllllllllllllllllllll Use the clause at FAR 52.228–7, Insur- (Authorized Representative) ance—Liability to Third Persons, in so- Accepted llllllllllllllllll licitations and contracts, other than (Date) those for construction and those for ar- (Prime Contractor) lllllllllllll chitect-engineer services, when a cost- By llllllllllllllllllllll reimbursement contract is con- (Authorized Representative) templated, unless the head of the con- tracting activity waives the require- Table 28–2.—Automobile Insurance Policy Endorsement ment for use of the clause. It is agreed that insurance provided by the [56 FR 36404, July 31, 1991. Redesignated at 61 FR 50454, Sept. 26, 1996] policy with respect to the ownership, main- tenance, or use of automobiles, including 228.370 Additional clauses. loading and unloading thereof, does not apply to the following as insureds: The (a) Use the clause at 252.228–7000, Re- United States of America, any of its agen- imbursement for War-Hazard Losses, cies, or any of its officers or employees. when— (1) The clause at FAR 52.228–4, Work- 228.305 Overseas workers’ compensa- er’s Compensation and War-Hazard In- tion and war-hazard insurance. surance Overseas, is used; and (d) Submit requests for waiver (2) The head of the contracting activ- through department/agency channels. ity decides not to allow the contractor Include the following— to buy insurance for war-hazard losses. (b)(1) Use the clause at 252.228–7001, (i) Name and address of contractor; Ground and Flight Risk, in negotiated (ii) Contract number; fixed-price contracts for aircraft pro- (iii) Date of award; duction, modification, maintenance, (iv) Place of performance; repair, or overhaul, unless— (v) Name of insurance company pro- (i) The aircraft is being acquired for viding Defense Base Act coverage; a foreign military sale and the foreign (vi) Nationality of employees to government has not agreed to assume whom waiver is to apply; and the risk; or (vii) Reason for waiver. (ii) The cost of insurance for damage, loss, or destruction of aircraft does not 228.307 Insurance under cost-reim- exceed $500, and the contracting officer bursement contracts. agrees to recognize the insurance costs. (2) If appropriate, revise the clause at 228.307–1 Group insurance plans. 252.228–7001, Ground and Flight Risk, as The Defense Department Group Term follows— Insurance Plan is available for con- (i) Include a modified definition of tractor use under cost-reimbursement ‘‘aircraft’’ if the contract covers other type contracts when approved as pro- than conventional types of winged air- craft, i.e., helicopters, vertical take-off vided in department or agency regula- aircraft, lighter-than-air airships or tions. A contractor is eligible if— other nonconventional aircraft. The (a) The number of covered employees modified definition should describe a is 500 or more; and stage of manufacture comparable to (b) The contractor has all cost-reim- the standard definition. bursement contracts; or (ii) Modify ‘‘in the open’’ to include (c) At least 90 percent of the payroll ‘‘hush houses,’’ test hangars and com- for contractor operations to be covered parable structures, and other des- by the Plan is under cost-reimburse- ignated areas. ment contracts. (iii) Expressly define the ‘‘contrac- tor’s premises’’ where the aircraft will
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be located during and for contract per- formed in Spain, unless the contractor formance. These locations may include is a Spanish concern. contract premises which are owned, [56 FR 36404, July 31, 1991, as amended at 57 leased, or premises where the con- FR 42631, Sept. 15, 1992; 62 FR 34125, June 24, tractor is a permittee or licensee or 1997; 63 FR 69006, Dec. 15, 1998] has a right to use, including Govern- ment airfields. PART 229—TAXES (iv) Revise paragraph (d)(iii) of the clause to provide Government assump- Subpart 229.1—General tion of risk for transportation by con- Sec. veyance on streets or highways when 229.101 Resolving tax problems. transportation is— (A) Limited to the vicinity of con- Subpart 229.4—Contract Clauses tractor premises; and 229.402 Foreign contracts. (B) Incidental to work performed 229.402–1 Foreign fixed-price contracts. under the contract. 229.402–70 Additional clauses. (c)(1) Use the clause at 252.228–7002, Aircraft Flight Risk, in cost reim- Subpart 229.70—Special Procedures for bursement contracts— Overseas Contracts (i) For the development, production, 229.7000 Scope of subpart. modification, maintenance, repair, or 229.7001 Tax exemption in Spain. overhaul of aircraft; or 229.7002 Tax exemption in the United King- (ii) Otherwise involving the fur- dom. 229.7002–1 Value added tax. nishing of aircraft to the contractor by 229.7002–2 Import duty. the Government. 229.7002–3 Value added tax or import duty (iii) With the definition of ‘‘aircraft’’ problem resolution. modified, if appropriate, to include hel- 229.7002–4 Information required by HM Cus- icopters, vertical take-off aircraft, toms and Excise. lighter-than-air airships or other non- AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- conventional aircraft. ter 1. (2) Use the clause at 252.228–7002, Air- SOURCE: 56 FR 36405, July 31, 1991, unless craft Flight Risk, appropriately modi- otherwise noted. fied, in fixed price contracts when— (i) The clause at 252.228–7001, Ground Subpart 229.1—General and Flight Risk, is not used; and (ii) Contract performance involves 229.101 Resolving tax problems. the flight of Government furnished air- (a) Within DoD, the agency-des- craft. ignated legal counsels are the defense (d) The clause at 252.228–7003, Capture agency General Counsels, the General and Detention, may be used when con- Counsels of the Navy and Air Force, tractor employees are subject to cap- and for the Army, the Chief, Contract ture and detention and may not be cov- Law Division, Office of the Judge Advo- ered by the War Hazards Compensation cate General. Act (42 U.S.C. 1701 et seq.). (c) The contracting officer may di- rect the contractor to litigate the ap- (e) The clause at 252.228–7005, Acci- plicability of a particular tax if— dent Reporting and Investigation In- (i) The contract is either a cost reim- volving Aircraft, Missiles, and Space bursement type or a fixed price type Launch Vehicles, may be used in solici- with a tax escalation clause; and tations and contracts which involve (ii) The direction is coordinated with the manufacture, modification, over- the agency-designated legal counsel haul, or repair of these items. through the DoD Tax Policy and Advi- (f) Use the clause at 252.228–7006, sory Group. Compliance with Spanish Laws and In- (d)(i) Tax relief agreements between surance, in solicitations and contracts the United States and foreign govern- for services or construction to be per- ments in Europe that exempt the United States from payment of specific
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taxes on purchases made for common has been assessed a tax or duty by a defense purposes are maintained by the foreign government which could in- United States European Command crease the contract price. (USEUCOM). For further information (vi) Also see subpart 229.70 for special contact HQ USEUCOM, ATTN: ECLA, procedures for obtaining tax relief and Unit 30400, Box 1000, APO AE 09128; duty-free import privileges when con- Telephone: DSN 430–8001/7263, Commer- ducting U.S. Government acquisitions cial 49–0711–680–8001/7263; Telefax. 49– in certain foreign countries. 0711–680–5732. (ii) Tax relief also may be available TABLE 29–1—DESIGNATED COMMANDING in countries that have not signed tax OFFICERS relief agreements. The potential for such relief should be explored in ac- Country or area Designated commanding officer cordance with paragraph (d)(iii) of this section. Australia .... Commander in Chief, Pacific Representative, (iii) Review DoDD 5100.64, Depart- Australia. ment of Defense Foreign Tax Relief Azores ...... Commander, U.S. Forces, Azores. Bahrain ...... Commander in Chief, U.S. Naval Forces, Eu- Program, before contracting with a for- rope. eign source. Refer questions on imple- Belgium ...... Commander in Chief, U.S. Army, Europe. mentation of the program to the Com- Bermuda .... Commanding Officer, U.S. Naval Air Station, manding Officers in Table 29–1, Des- Bermuda. ignated Commanding Officers, which Canada ...... Commander, Space Command. Caribbean Commander, Antilles Defense Command. have been designated under subsection Islands E.7 of DoDD 5100.64 to serve as— (including (A) Single point of contact for U.S. Bahamas). contracting offices for investigation Denmark .... Commander in Chief, U.S. Air Forces, Europe. and resolution of specific foreign tax Ethiopia ...... Commander in Chief, U.S. Army, Europe. France ...... Commander in Chief, U.S. Army, Europe. relief matters; and Germany .... Commander in Chief, U.S. Army, Europe. (B) Liaison with responsible diplo- Greece ...... Commander in Chief, U.S. Air Forces, Europe. matic mission and local foreign tax au- Greenland .. Commander, Space Command. thorities. Iceland ...... Commander, Iceland Defense Force. (iv) Refer foreign tax relief questions Iran ...... Commander in Chief, U.S. Army, Europe. which have not been resolved by the Italy ...... Commander in Chief, U.S. Naval Forces, Eu- rope. designated Commanding Officer to the Japan ...... Commander, U.S. Forces, Japan. agency-designated legal counsel. Korea ...... Commander, U.S. Forces, Korea. (v) When an acquisition is for a con- Luxembourg Commander in Chief, U.S. Army, Europe. tract to be performed in a country or Morocco ..... Commander in Chief, U.S. Naval Forces, Eu- area listed in Table 29–1, Designated rope. Commanding Officers— Netherlands Commander in Chief, U.S. Air Forces, Europe. New Zea- Commander, U.S. Naval Support Forces, Ant- (A) Obtain from the designated Com- land. arctica. manding Officer detailed information Norway ...... Commander in Chief, U.S. Air Forces, Europe. concerning the taxes and duties from Philippines Commander in Chief, Pacific Representative, which the Government of the United Philippines. Portugal ..... Commander in Chief, U.S. Naval Forces, Eu- States is exempt, and rope. (B) Provide the information to pro- Spain ...... Commander in Chief, U.S. Air Forces, Europe. spective offerors. Taiwan ...... Commander, U.S. Military Assistance Com- (C) Do not provide prospective mand, Thailand. offerors any other information about Turkey ...... Commander in Chief, U.S. Air Forces, Europe. United King- Commander in Chief, U.S. Air Forces, Europe. foreign taxes or duties. dom. (D) Issue tax exemption certificates, as appropriate, to assist the contractor in obtaining relief from foreign taxes [56 FR 36405, July 31, 1991, as amended at 62 and duties which were excluded from FR 34125, June 24, 1997; 63 FR 11535, Mar. 9, 1998] the contract price. (E) Seek advice and assistance from the designated Commanding Officer Subpart 229.4—Contract Clauses and, if necessary, the agency-des- ignated legal counsel if the contractor SOURCE: 62 FR 34125, June 24, 1997, unless notifies the contracting officer that it otherwise noted.
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229.402 Foreign contracts. diesel) and lubricants used in passenger vehicles (excluding taxis). 229.402–1 Foreign fixed-price con- (j) Use the clause at 252.229–7010, Re- tracts. lief from Customs Duty on Fuel Use the clause at 252.229–7000, In- (United Kingdom), in solicitations voices Exclusive of Taxes or Duties, in issued and contracts awarded in the solicitations and contracts when a United Kingdom that require the use of fixed-price contract will be awarded to fuels (gasoline or diesel) and lubricants a foreign concern. in taxis or vehicles other than pas- senger vehicles. 229.402–70 Additional clauses. (a) Use the clause at 252.229–7001, Tax Subpart 229.70—Special Proce- Relief, in solicitations and contracts dures for Overseas Contracts when a contract will be awarded to a foreign concern in a foreign country. SOURCE: 62 FR 34125, June 24, 1997, unless When contract performance will be in otherwise noted. Germany, use the clause with its Alter- nate I. 229.7000 Scope of subpart. (b) Use the clause at 252.229–7002, Cus- This subpart prescribes procedures to toms Exemptions (Germany), in solici- be used by contracting officers to ob- tations and contracts requiring the im- tain tax relief and duty-free import port of U.S. manufactured products privileges when conducting U.S. Gov- into Germany. ernment acquisitions in certain foreign (c) Use the clause at 252.229–7003, Tax countries. Exemptions (Italy), in solicitations and contracts when contract performance 229.7001 Tax exemption in Spain. will be in Italy. (a) The Joint United States Military (d) Use the clause at 252.229–7004, Sta- Group (JUSMG), Spain Policy Direc- tus of Contractor as a Direct Con- tive 400.4, or subsequent directive, ap- tractor (Spain), in solicitations and plies to U.S. contracting offices acquir- contracts requiring the import into ing supplies or services in Spain when Spain of supplies for construction, de- the introduction of material or equip- velopment, maintenance, or operation ment into Spain is required for con- of Spanish-American installations and tract performance. facilities. (b) Upon award of a contract with a (e) Use the clause at 252.229–7005, Tax Direct Contractor, as defined in the Exemptions (Spain), in solicitations clause at 252.229–7004, the contracting and contracts when contract perform- officer will notify JUSMG–MAAG Ma- ance will be in Spain. drid, Spain, and HQ 16AF/LGTT and (f) Use the clause at 252.229–7006, forward three copies of the contract to Value Added Tax Exclusion (United JUSMG–MAAG, Spain. Kingdom), in solicitations and con- (c) If copies of the contract are not tracts when contract performance will available and duty-free import of be in the United Kingdom. equipment or materials is urgent, the (g) Use the clause at 252.229–7007, contracting officer will send JUSMG– Verification of United States Receipt MAAG three copies of the Letter of In- of Goods, in solicitations and contracts tent or a similar document indicating when contract performance will be in the pending award. In these cases, au- the United Kingdom. thorization for duty-free import will be (h) Use the clause at 252.229–7008, Re- issued by the Government of Spain. lief from Import Duty (United King- Upon formal award, the contracting of- dom), in solicitations issued and con- ficer will forward three copies of the tracts awarded in the United Kingdom. completed contract to JUSMG–MAAG, (i) Use the clause at 252.229–7009, Re- Spain. lief from Customs Duty and Value (d) The contracting officer will notify Added Tax on Fuel (Passenger Vehi- JUSMG–MAAG, Spain, and HQ 16AF/ cles) (United Kingdom), in solicitations LGTT of ports-of-entry and identify issued and contracts awarded in the the customs agents who will clear United Kingdom for fuels (gasoline or property on their behalf. Additional
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documents required for port-of-entry (d) The acquisition does not involve and customs clearance can be obtained the expenditure of any funds to estab- by contacting HQ 16AF/LGTT. This in- lish a permanent military installation. formation will be passed to the Secretaria General Tecnica del 229.7002–3 Value added tax or import Ministerio de Hacienda (Technical Gen- duty problem resolution. eral Secretariat of the Ministry of Fi- In the event a value added tax or im- nance). A list of customs agents may port duty problem cannot be resolved be obtained from the 600 ABG, APO AE at the contracting officer’s level, refer 90646. the issue to HQ Third Air Force, Staff Judge Advocate, Unit 4840, Box 45, APO 229.7002 Tax exemption in the United AE 09459. Direct contact with HM Cus- Kingdom. toms and Excise in London is prohib- This section contains procedures to ited. be followed in securing relief from the 229.7002–4 Information required by British value added tax and import du- HM Customs and Excise. ties. (a) School bus contacts. Provide one 229.7002–1 Value added tax. copy of the contract and all modifica- tions to HM Customs and Excise. (a) U.S. Government purchases quali- (b) Road fuel contracts. For contracts fying for tax relief are equipment, ma- that involve an application for relief terials, facilities, and services for the from duty on the road fuel used in per- common defense effort and for foreign formance of the contract, provide— aid programs. (1) To HM Customs and Excise— (b) To facilitate the resolution of (i) Contract number; issues concerning specific waivers of (ii) Name and address of contractor; import duty or tax exemption for U.S. (iii) Type of work (e.g., laundry, Government purchases (see 229.7002–3), transportation); contracting offices shall provide the (iv) Area of work; and name and activity address of personnel (v) Period of performance. who have been granted warranted con- (2) To the regional office of HM Cus- tracting authority to Her Majesty’s tom and Excise to which the con- (HM) Customs and Excise at the fol- tractor applied for relief from the duty lowing address: HM Customs and Ex- on road fuel—copy of the contract. cise, International Customs Division G, (c) Other contracts awarded to United Branch 4, Adelaide House, London Kingdom firms. Provide information Bridge, London EC4R 9DB. when requested by HM Customs and Excise. 229.7002–2 Import duty. No import duty shall be paid by the PART 230—COST ACCOUNTING United States and contract prices shall STANDARDS ADMINISTRATION be exclusive of duty, except when the administrative cost compared to the Subpart 230.2—CAS Program Requirements low dollar value of a contract makes it impracticable to obtain relief from Sec. contract import duty. In this instance, 230.201–5 Waiver. the contracting officer shall document Subpart 230.70—Facilities Capital the contract file with a statement Employed for Facilities in Use that— (a) The administrative burden of se- 230.7000 Contract facilities capital esti- curing tax relief under the contract mates. was out of proportion to the tax relief 230.7001 Use of DD Form 1861. involved; 230.7001–1 Purpose. 230.7001–2 Completion instructions. (b) It is impracticable to secure tax 230.7002 Preaward facilities capital applica- relief; tions. (c) Tax relief is therefore not being 230.7003 Postaward facilities capital appli- secured; and cations.
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230.7003–1 Interim billings based on costs in- Subpart 230.70—Facilities Capital curred. 230.7003–2 Final settlement. Employed for Facilities in Use 230.7004 Administrative procedures. 230.7004–1 Forms CASB–CMF. 230.7000 Contract facilities capital es- 230.7004–2 DD Form 1861. timates. (a) The contracting officer will esti- Subpart 230.71—Facilities Capital mate the facilities capital cost of Employed for Facilities Under Construction money and capital employed using— 230.7100 Definitions. (1) An analysis of the appropriate 230.7101 Calculations. Forms CASB–CMF and cost of money 230.7101–1 Cost of money. factors; and 230.7101–2 Representative investment. 230.7102 Determining imputed cost of (2) DD Form 1861, Contract Facilities money. Capital Cost of Money. 230.7103 Preaward capital employed applica- tion. 230.7001 Use of DD Form 1861.
AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- 230.7001–1 Purpose. ter 1. The DD Form 1861 provides a means SOURCE: 56 FR 36406, July 31, 1991, unless otherwise noted. of linking the Form CASB–CMF and DD Form 1547, Record of Weighted Subpart 230.2—CAS Program Guidelines Application. It— Requirements (a) Enables the contracting officer to differentiate profit objectives for var- 230.201–5 Waiver. ious types of assets (land, buildings, equipment). The procedure is similar (a)(1)(A) The military departments— to applying overhead rates to appro- (1) May grant CAS waivers that meet priate overhead allocation bases to de- the conditions in FAR 30.201–5(b); and termine contract overhead costs. (2) Unless otherwise authorized by the Director of Defense Procurement, (b) Is designed to record and compute Office of the Under Secretary of De- the contract facilities capital cost of fense (Acquisition, Technology, and money and capital employed which is Logistics), must submit each CAS carried forward to DD Form 1547. waiver request to the Director of De- fense Procurement for review at least 230.7001–2 Completion instructions. 14 days before granting the waiver. Complete a DD Form 1861 only after (B) DoD contracting activities that evaluating the contractor’s cost pro- are not within a military department posal, establishing cost of money fac- must submit CAS waiver requests that tors, and establishing a prenegotiation meet the conditions in FAR 30.201–5(b) objective on cost. Complete the form as to the Director of Defense Procurement follows: for approval at least 30 days before the (a) List overhead pools and direct- anticipated contract award date. charging service centers (if used) in the (2) The military departments must same structure as they appear on the not delegate CAS waiver authority contractor’s cost proposal and Form below the individual responsible for CASB–CMF. The structure and alloca- issuing contracting policy for the de- tion base units-of-measure must be partment. compatible on all three displays. (e)(i) by November 15th of each year, (b) Extract appropriate contract the military departments must provide overhead allocation base data, by year, a report of all waivers granted under from the evaluated cost breakdown or FAR 30.201–5(a) during the previous fis- prenegotiation cost objective and list cal year to the Director of Defense Pro- against each overhead pool and direct- curement. charging service center. (ii) The Director of Defense Procure- (c) Multiply each allocation base by ment will submit a consolidated DoD its corresponding cost of money factor report to the CAS Board. to get the facilities capital cost of [65 FR 36035, June 6, 2000] money estimated to be incurred each
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year. The sum of these products rep- interim estimates subject to adjust- resents the estimated contract facili- ment. ties capital cost of money for the (b) As actual cost of money factors year’s effort. under CAS 414 and FAR 31.205–10 are fi- (d) Total contract facilities cost of nalized, use the new factors to cal- money is the sum of the yearly culate contract facilities cost of money amounts. for the next accounting period. (e) Since the facilities capital cost of money factors reflect the applicable 230.7003–2 Final settlement. cost of money rate in Column 1 of (a) Contract facilities capital cost of Form CASB–CMF, divide the contract money for final cost determination or cost of money by that same rate to de- repricing is based on each year’s final termine the contract facilities capital cost of money factors determined employed. under CAS 414 and supported by sepa- rate Forms CASB–CMF. 230.7002 Preaward facilities capital (b) Separately compute contract fa- applications. cilities cost of money in a manner To establish cost and price objec- similar to yearly final overhead rates. tives, apply the facilities capital cost Also like overhead costs, include in the of money and capital employed, as de- final settlement an adjustment from termined under 230.7000, as follows: interim to final contract cost of (a) Cost of Money—(1) Cost Objective. money. Do not, however, adjust esti- Use the imputed facilities capital cost mated or target cost. of money, with normal, booked costs, to establish a cost objective or the tar- 230.7004 Administrative procedures. get cost when structuring an incentive 230.7004–1 Forms CASB–CMF. type contract. Do not adjust target costs established at the outset even (a) Forms CASB–CMF are normally though actual cost of money rates be- initiated by the contractor under the come available during the period of same circumstances as Forward Pric- contract performance. ing Rate Agreements (see FAR Subpart (2) Profit Objective. When measuring 42.17) and evaluated as complementary the contractor’s effort for the purpose documents and procedures. of establishing a prenegotiation profit (b) Separate forms are required for objective, restrict the cost base to nor- each prospective cost accounting pe- mal, booked costs. Do not include cost riod of contract performance. of money as part of the cost base. (c) The contractor may submit annu- (b) Facilities Capital Employed. Assess ally or with individual contract price and weight the profit objective or risk proposals, as agreed with the adminis- associated with facilities capital em- trative contracting officer (ACO). ployed in accordance with the profit (d) The contractor must submit a guidelines at 215.404–71–4. final form under CAS 414 as soon as possible after the end of each account- [56 FR 36406, July 31, 1991, as amended at 63 ing period, together with a proposal for FR 55052, Oct. 14, 1998] actual overhead costs and rates. 230.7003 Postaward facilities capital [56 FR 36406, July 31, 1991, as amended at 63 applications. FR 55052, Oct. 14, 1998] 230.7003–1 Interim billings based on 230.7004–2 DD Form 1861. costs incurred. (a) The contracting officer may ask (a) The contractor may include con- the ACO to complete the forms as part tract facilities capital cost of money in of field pricing support. cost reimbursement and progress pay- (b) When the Weighted Guidelines ment invoices. To determine the Method is used, completion of the DD amount that qualifies as cost incurred, Form 1861 requires information not in- multiply the incurred portions of the cluded on the Form CASB–CMF, i.e., overhead pool allocation bases by the distribution percentages of land, build- latest available cost of money factors. ing, and equipment for the business These cost of money calculations are unit performing the contract. Choose
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the most practical method for obtain- (1) Multiply the various rates in ef- ing this information, for example— fect during the months of construction (1) Contract administration offices by the number of months each rate was could obtain the information through in effect; and the process used to establish factors for (2) Divide the sum of the products by facilities capital cost of money or the total number of months in which could establish advance agreements on the rates were experienced. distribution percentages for inclusion in field pricing reports; 230.7101–2 Representative investment. (2) The corporate ACO could obtain (a) The calculation of the representa- distribution percentages; or tive investment requires consideration (3) The contracting officer could re- of the rate or expenditure pattern of quest the information through a solici- the costs to construct, fabricate, or de- tation provision. velop a capital asset. (b) If a majority of the costs were in- Subpart 230.71—Facilities Capital curred toward the beginning, middle, Employed for Facilities Under or end of the cost accounting period, the contractor shall either— Construction (1) Determine a representative in- 230.7100 Definitions. vestment amount for the cost account- ing period by calculating the average (a) Intangible capital asset is an asset of the month-end balances for that cost that has no physical substance, has accounting period; or more than minimal value, and is ex- (2) Treat month-end balances as indi- pected to be held by an enterprise for vidual representative investment continued use or possession beyond the amounts. current accounting period for the ben- (c) If the costs were incurred in a efit it yields. fairly uniform expenditure pattern (b) Tangible capital asset is an asset throughout the construction, fabrica- that has physical substance, more than tion, or development period, the con- minimal value, and is expected to be tractor may— held by an enterprise for continued use (1) Determine a representative in- or possession beyond the current ac- vestment amount for the cost account- counting period for the service it ing period by averaging the beginning yields. and ending balances of the construc- (c) Cost of money rate is either— tion, fabrication, or development cost (1) The interest rate determined by account for the cost accounting period; the Secretary of the Treasury under or Public Law 92–41 (85 Stat. 97); or (2) Treat month-end balances as indi- (2) The time-weighted average of the vidual representative investment interest rate for each cost accounting amounts. period during which the asset is being constructed, fabricated, or developed. 230.7102 Determining imputed cost of (d) Representative investment is the money. calculated amount considered invested (a) Determine the imputed cost of by the contractor during the cost ac- money for an asset under construction, counting period to construct, fabricate, fabrication, or development by apply- or develop the asset. ing a cost of money rate (see 230.7101–1) to the representative investment 230.7101 Calculations. amount (see 230.7101–2). (1) When a representative investment 230.7101–1 Cost of money. amount is determined for a cost ac- (a) The interest rate in 230.7100(c)(1) counting period in accordance with is established semi-annually and is 230.7101–2(b)(1) or 230.7101–2(c)(1), the published in the FEDERAL REGISTER cost of money will be the time-weight- during the fourth week of December ed average rate. and June. (2) When a monthly representative (b) To calculate the time-weighted investment amount is used in accord- average interest rate— ance with 230.7101–2(b)(2) or 230.7101–
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2(c)(2), the cost of money will be the in- Subpart 231.7—Contracts With Nonprofit terest rate in effect each month. Organizations (Under this method, the cost of money 231.703 Requirements. is determined monthly and the total for the cost accounting period is the AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- sum of the monthly amounts.) ter 1. (b) The imputed cost of money will be SOURCE: 56 FR 36408, July 31, 1991, unless capitalized only once in any cost ac- otherwise noted. counting period, either at the end of the period or at the end of the con- Subpart 231.1—Applicability struction, fabrication, or development period, whichever comes first. 231.100 Scope of subpart. (c) When the construction of an asset takes more than one cost accounting 231.100–70 Contract clause. period, the cost of money capitalized Use the clause at 252.231–7000, Supple- for the first cost accounting period will mental Cost Principles, in all solicita- be included in determining the rep- tions and contracts which are subject resentative investment amount for any to the principles and procedures de- future cost accounting periods. scribed in FAR subpart 31.1, 31.2, 31.6, or 31.7. 230.7103 Preaward capital employed application. [59 FR 27672, May 27, 1994] An offset to the profit objectives as set forth in FAR 15.404–4 is not required Subpart 231.2—Contracts With for CAS 417 cost of money. Commercial Organizations [56 FR 36406, July 31, 1991, as amended at 63 231.205 Selected costs. FR 55052, Oct. 14, 1998] 231.205–6 Compensation for personal PART 231—CONTRACT COST services. PRINCIPLES AND PROCEDURES (f)(1) In accordance with Section 8122 of Pub. L. 104–61, and similar sections Subpart 231.1—Applicability in subsequent Defense appropriations acts, costs for bonuses or other pay- Sec. ments in excess of the normal salary 231.100 Scope of subpart. paid by the contractor to an employee, 231.100–70 Contract clause. that are part of restructuring costs as- sociated with a business combination, Subpart 231.2—Contracts With Commercial are unallowable under DoD contracts Organizations funded by fiscal year 1996 or subsequent 231.205 Selected costs. appropriations. This limitation does 231.205–6 Compensation for personal serv- not apply to severance payments or ices. early retirement incentive payments. 231.205–10 Cost of money. (See 231.205–70(b) for the definitions of 231.205–18 Independent research and devel- ‘‘business combination’’ and ‘‘restruc- opment and bid and proposal costs. turing costs.’’) 231.205–22 Legislative lobbying costs. [57 FR 53600, Nov. 12, 1992, as amended at 58 231.205–70 External restructuring costs. FR 28469, May 13, 1993; 60 FR 2331, Jan. 9, 1995; 60 FR 61598, Nov. 30, 1995; 61 FR 7077, Subpart 231.3—Contracts With Educational Feb. 26, 1996; 61 FR 36306, July 10, 1996; 61 FR Institutions 50454, Sept. 26, 1996; 61 FR 58490, Nov. 15, 1996; 61 FR 65479, Dec. 13, 1996; 62 FR 63036, Nov. 26, 231.303 Requirements. 1997; 63 FR 14641, Mar. 26, 1998]
Subpart 231.6—Contracts With State, Local, 231.205–10 Cost of money. and Federally Recognized Indian Trib- al Governments The contractor also must comply with subpart 230.70 and maintain 231.603 Requirements. records to demonstrate compliance.
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231.205–18 Independent research and (2) The amount of incurred IR&D/ development and bid and proposal B&P costs for projects having potential costs. interest to DoD. (a) Definitions. As used in this sub- (B) Allowable IR&D/B&P costs are section— limited to those for projects that are of (i) Covered contract means a DoD potential interest to DoD, including ac- prime contract for an amount exceed- tivities intended to accomplish any of ing the simplified acquisition thresh- the following: old, except for a fixed-price contract (1) Enable superior performance of without cost incentives. The term also future U.S. weapon systems and com- includes a subcontract for an amount ponents. exceeding the simplified acquisition (2) Reduce acquisition costs and life- threshold, except for a fixed-price sub- cycle costs of military systems. contract without cost incentives under (3) Strengthen the defense industrial such a prime contract. and technology base of the United (ii) Covered segment means a product States. division of the contractor that allo- (4) Enhance the industrial competi- cated more than $1,100,000 in inde- tiveness of the United States. pendent research and development and (5) Promote the development of tech- bid and proposal (IR&D/B&P) costs to nologies identified as critical under 10 covered contracts during the preceding U.S.C. 2522. fiscal year. In the case of a contractor (6) Increase the development and pro- that has no product divisions, the term motion of efficient and effective appli- means that contractor as a whole. A cations of dual-use technologies. product division of the contractor that (7) Provide efficient and effective allocated less than $1,100,000 in IR&D/ technologies for achieving such envi- B&P costs to covered contracts during ronmental benefits as: Improved envi- the preceding fiscal year is not subject ronmental data gathering, environ- to the limitations in paragraph (c) of mental cleanup and restoration, pollu- this subsection. tion reduction in manufacturing, envi- (iii) Major contractor means any con- ronmental conservation, and environ- tractor whose covered segments allo- mentally safe management of facili- cated a total of more than $11,000,000 in ties. IR&D/B&P costs to covered contracts (iv) For major contractors, the cog- during the preceding fiscal year. For nizant administrative contracting offi- purposes of calculating the dollar cer (ACO) or corporate ACO shall— threshold amounts to determine (A) Determine whether IR&D/B&P whether a contractor meets the defini- projects are of potential interest to tion of ‘‘major contractor,’’ do not in- DoD; and clude contractor segments allocating less than $1,100,000 of IR&D/B&P costs (B) Provide the results of the deter- to covered contracts during the pre- mination to the contractor. ceding fiscal year. (v) The cognizant contract adminis- (c) Allowability. tration office shall furnish contractors with guidance on financial information (i) Departments/agencies shall not needed to support IR&D/B&P costs and supplement this regulation in any way on technical information needed from that limits IR&D/B&P cost allow- major contractors to support the po- ability. tential interest to DoD determination (ii) See 225.7303–2(c) for allowability (also see 242.771–3). provisions affecting foreign military sale contracts. [64 FR 8729, Feb. 23, 1999] (iii) For major contractors, the fol- lowing limitations apply: 231.205–22 Legislative lobbying costs. (A) The amount of IR&D/B&P costs (a) Preparing any material, report, allowable under DoD contracts shall list, or analysis on the actual or pro- not exceed the lesser of— jected economic or employment impact (1) Such contracts’ allocable share of in a particular State or congressional total incurred IR&D/B&O costs; or district of an acquisition program for
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which all research, development, test- or employee relocation), nor do they ing, and evaluation has not been com- include other routine or ordinary ac- pleted (10 U.S.C. 2249). tivities charged as indirect costs that [62 FR 47155, Sept. 8, 1997] would otherwise have been incurred (e.g., planning and analysis, contract 231.205–70 External restructuring administration and oversight, or recur- costs. ring financial and administrative sup- (a) Scope. This subsection prescribes port). policies and procedures for allowing (4) Restructuring costs means the contractor external restructuring costs costs, including both direct and indi- when savings would result for DoD. rect, of restructuring activities. Re- This subsection also implements 10 structuring costs that may be allowed U.S.C. 2325, Section 818 of the National include, but are not limited to, sever- Defense Authorization Act for Fiscal ance pay for employees, early retire- Year 1995 (Pub. L. 103–337) (10 U.S.C. ment incentive payments for employ- 2324 note), Section 8115 of the National ees, employee retraining costs, reloca- Defense Appropriations Act for Fiscal tion expense for retained employees, Year 1997 (Pub. L. 104–208), and Section and relocation and rearrangement of 8092 of the National Defense Appropria- plant and equipment. For purposes of tions Act for Fiscal Year 1998 (Pub. L. this definition, if restructuring costs 105–56). associated with external restructuring (b) Definitions. As used in this sub- activities allocated to DoD contracts section: are less than $2.5 million, the costs (1) Business combination means a shall not be subject to the audit, re- transaction whereby assets or oper- view, certification, and determination ations of two or more companies not requirements of paragraph (c)(1) of this previously under common ownership or subsection; instead, the normal rules control are combined, whether by for determining cost allowability in ac- merger, acquisition, or sale/purchase of cordance with FAR part 31 shall apply. assets. (5) Restructuring savings means cost (2) External restructuring activities reductions, including both direct and means restructuring activities occur- indirect cost reductions, that result ring after a business combination that from restructuring activities. Re- affect the operations of companies not assignments of cost to future periods previously under common ownership or are not restructuring savings. control. They do not include restruc- (c) Limitations on cost allowability. (1) turing activities occurring after a busi- Restructuring costs associated with ex- ness combination that affect the oper- ternal restructuring activities shall ations of only one of the companies not not be allowed unless— previously under common ownership or (i) Such costs are allowable in ac- control, or, when there has been no cordance with FAR part 31 and DFARS business combination, restructuring part 231; activities undertaken within one com- (ii) An audit of projected restruc- pany. External restructuring activities turing costs and restructuring savings are a direct outgrowth of a business is performed; combination. They normally will be (iii) The cognizant administrative initiated within 3 years of the business contracting officer (ACO) reviews the combination. audit report and the projected costs (3) Restructuring activities means non- and projected savings, and negotiates routine, nonrecurring, or extraordinary an advance agreement in accordance activities to combine facilities, oper- with paragraph (d)(8) of this sub- ations, or workforce, in order to elimi- section; and nate redundant capabilities, improve (iv) For business combinations that future operations, and reduce overall occur— costs. Restructuring activities do not (A) Prior to October 1, 1996, the include routine or ongoing reposi- Under Secretary of Defense (Acquisi- tionings and redeployments of a con- tion, Technology, and Logistics) or the tractor’s productive facilities or work- Principal Deputy certifies that projec- force (e.g., normal plant rearrangement tions of future restructuring savings
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resulting for DoD from the business (2) Direct the contractor to segregate combination are based on audited cost restructuring costs and to suspend data and should result in overall re- these amounts from any billings, final duced costs for DoD. contract price settlements, and over- (B) October 1, 1996, through Novem- head settlements until the certifi- ber 18, 1997, the Under Secretary of De- cation, or determination, or both, as fense (Acquisition, Technology, and applicable, in paragraph (c)(1)(iv) of Logistics) or the Principal Deputy— this subsection is obtain. (1) Certifies that projections of future (3) Require the contractor to submit restructuring savings resulting for DoD an overall plan of restructuring activi- from the business combination are ties and an adequately supported pro- based on audited cost data and should posal for planned restructuring result in overall reduced costs for DoD; projects. The proposal must include a and breakout by year by cost element, (2) Determines in writing that the showing the present value of projected audited projected savings for DoD re- restructuring costs and projected re- sulting from the restructuring will ex- structuring savings. ceed either— (4) Notify major buying activities of (i) The costs allowed by a factor of at contractor restructuring actions and least two to one; or inform them about any potential mon- (ii) The costs allowed, and the busi- etary impacts on major weapons pro- ness combination will result in the grams, when known. preservation of a critical capability (5) Upon receipt of the contractor’s that might otherwise be lost to DoD. proposal, as soon as practicable, adjust (C) After November 18, 1997, the forward pricing rates to reflect the im- Under Secretary of Defense (Acquisi- pact of projected restructuring savings. tion, Technology, and Logistics) or the If restructuring costs are included in Principal Deputy determines in writing forward pricing rates prior to execu- that the audited projected savings for tion of an advance agreement in ac- DoD resulting from restructuring will cordance with paragraph (d)(8) of this exceed either— subsection, the contracting officer (1) The costs allowed by a factor of at shall include a repricing clause in each least two to one; or fixed-price action that is priced based (2) The costs allowed, and the busi- on the rates. The repricing clause must ness combination will result in the provide for a downward price adjust- preservation of a critical capability ment to remove restructuring costs if that might otherwise be lost to DoD. the certification, or determination, or (2) The audit, review, certification, both, as applicable, required by para- and determination required by para- graph (c)(1)(iv) of this subsection is not graph (c)(1) of this subsection shall not obtained. apply to any business combination for (6) Upon receipt of the contractor’s which payments for restructuring costs proposal, immediately request an audit were made before August 15, 1994, or for review of the contractor’s proposal. which the cognizant ACO executed an (7) Upon receipt of the audit report, advance agreement establishing cost determine if restructuring savings will ceilings based on audit/negotiation of exceed restructuring costs on a present detailed cost proposals for individual value basis. However, for business com- restructuring projects before August binations that occur on or after Octo- 15, 1994. ber 1, 1996, the audited projected sav- (d) Procedures and ACO responsibilities. ings for DoD must exceed the costs al- As soon as it is known that the con- lowed by a factor of at least two to one tractor will incur restructuring costs on a present value basis, unless the de- for external restructuring activities, termination in paragraph (c)(1)(iv)(B) the cognizant ACO shall: (2)(ii) or (c)(1)(iv)(C) (2) of this sub- (1) Promptly execute a novation section applies. agreement, if one is required, in ac- (8) Negotiate an advance agreement cordance with FAR subpart 42.12 and with the contractor setting forth, at a DFARS subpart 242.12 and include the minimum, a cumulative cost ceiling provision at DFARS 242.1204(e). for restructuring projects and, when
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necessary, a cost amortization sched- that are negotiated during the period ule. The costs may not exceed the between— amount of projected restructuring sav- (i) The time a business combination ings on a present value basis. The ad- is announced; and vance agreement shall not be executed (ii) The time the contractor’s forward until the certification, or determina- pricing rates are adjusted to reflect the tion, or both, as applicable, required by impact of restructuring. paragraph (c)(1)(iv) of this subsection (2) The decision to use a repricing is obtained. clause will depend upon the particular (9) Submit to the Director of Defense circumstances involved, including— Procurement, Office of the Under Sec- (i) When the restructuring will take retary of Defense (Acquisition, Tech- place; nology, and Logistics), ATTN: OUSD (ii) When restructuring savings will (AT&L) DP/CPF, a recommendation for begin to be realized; certification, or determination, or (iii) The contract performance pe- both, as applicable. Include the infor- riod; mation described in paragraph (e) of this subsection. (iv) Whether the contracting parties (10) Consult with the Director of De- are able to make a reasonable estimate fense Procurement, Office of the Under of the impact of restructuring on the Secretary of Defense (Acquisition, contract; and Technology, and Logistics), when para- (v) The size of the potential dollar graph (c)(1) (iv)(B) (2)(ii) or (c)(1)(iv)(C) impact of restructuring on the con- (2) of this subsection applies. tract. (e) Information needed to obtain certifi- (3) If the contracting officer decides cation and determination. (1) The nova- to use a repricing clause, the clause tion agreement (if one is required). must provide for a downward-only (2) The contractor’s restructuring price adjustment to ensure that DoD proposal. receives its appropriate share of re- structuring net savings. (3) The proposed advance agreement. (4) The audit report. [63 FR 7309, Feb. 13, 1998; 63 FR 12862, Mar. 16, (5) Any other pertinent information. 1998, as amended at 64 FR 18828, Apr. 16, 1999; (6) The cognizant ACO’s rec- 65 FR 39705, June 27, 2000] ommendation for certification, or de- termination, or both, as applicable. Subpart 231.3—Contracts With This recommendation must clearly in- Educational Institutions dicate one of the following, consistent with paragraph (c)(1)(iv) of this sub- 231.303 Requirements. section: (1) Pursuant to section 841 of the Na- (i) Contractor projections of future tional Defense Authorization Act for cost savings resulting for DoD from the Fiscal Year 1994 (Pub. L. 103–160), no business combination are based on au- limitation may be placed on the reim- dited cost data and should result in bursement of otherwise allowable indi- overall reduced costs for the Depart- rect costs incurred by an institution of ment. higher education under a DoD contract (ii) The audited projected savings for awarded on or after November 30, 1993, DoD will exceed the costs allowed by a unless that same limitation is applied factor of at least two to one. uniformly to all other organizations (iii) The business combination will performing similar work under DoD result in the preservation of a critical contracts. The 26 percent limitation capability that might otherwise be lost imposed on administrative indirect to DoD, and the audited projected sav- costs by OMB Circular No. A–21 shall ings will exceed the costs allowed. not be applied to DoD contracts award- (f) Contracting officer responsibilities. ed on or after November 30, 1993, to in- (1) The contracting officer, in consulta- stitutions of higher education because tion with the cognizant ACO, should the same limitation is not applied to consider including a repricing clause in other organizations performing similar noncompetitive fixed-price contracts work.
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(2) The cognizant administrative con- Subpart 232.2—Commercial Item Purchase tracting officer may waive the prohibi- Financing tion in 231.303(1) if the governing body of the institution of higher education 232.202–4 Security for Government financ- ing. requests the waiver to simplify the in- 232.206 Solicitation provisions and contract stitution’s overall management of DoD clauses. cost reimbursements under DoD con- 232.207 Administration and payment of com- tracts. mercial financing payments. (3) Under 10 U.S.C. 2249, the costs cited in 231.205–22(a) are unallowable. Subpart 232.3—Loan Guarantees for Defense Production [59 FR 26144, May 19, 1994, as amended at 60 FR 2331, Jan. 9, 1995; 61 FR 36306, July 10, 232.302 Authority. 1996; 62 FR 47155, Sept. 8, 1997; 63 FR 14641, Mar. 26, 1998] Subpart 232.4—Advance Payments 232.404 Exclusions. Subpart 231.6—Contracts With 232.409 Contracting officer action. State, Local, and Federally 232.409–1 Recommendation for approval. Recognized Indian Tribal Gov- 232.410 Findings, determination, and au- thorization. ernments 232.412 Contract clause. 232.412–70 Additional clauses. 231.603 Requirements. 232.470 Advance payment pool. Under 10 U.S.C. 2249, the costs cited in 231.205–22(a) are unallowable. Subpart 232.5—Progress Payments Based on Costs [61 FR 36306, July 10, 1996, as amended at 62 FR 47155, Sept. 8, 1997; 63 FR 14641, Mar. 26, 232.501 General. 1998] 232.501–1 Customary progress payment rates. 232.501–2 Unusual progress payments. Subpart 231.7—Contracts With 232.501–3 Contract price. Nonprofit Organizations 232.502 Preaward matters. 232.502–1 Use of customary progress pay- 231.703 Requirements. ments. Under 10 U.S.C. 2249, the costs cited 232.502–4 Contract clauses. in 231.205–22(a) are unallowable. 232.502–4–70 Additional clauses. 232.503 Postaward matters. [61 FR 36306, July 10, 1996, as amended at 62 232.503–6 Suspension or reduction of pay- FR 47155, Sept. 8, 1997; 63 FR 14641, Mar. 26, ments. 1998] 232.503–15 Application of Government title terms.
PART 232—CONTRACT FINANCING Subpart 232.6—Contract Debts
Sec. 232.605 Responsibilities and cooperation 232.006 Reduction or suspension of contract among Government officials. payments upon finding of fraud. 232.606 Debt determination and collection. 232.006–5 Reporting. 232.610 Demand for payment of contract debt. 232.070 Responsibilities. 232.616 Compromise actions. 232.071 Contract Finance Committee. 232.617 Contract clause. 232.072 Financial responsibility of contrac- 232.670 Transfer of responsibility for debt tors. collection. 232.072–1 Required financial reviews. 232.671 Bankruptcy reporting. 232.072–2 Appropriate information. 232.072–3 Cash flow forecasts. Subpart 232.7—Contract Funding Subpart 232.1—Non-Commercial Item 232.702 Policy. Purchase Financing 232.703 Contract funding requirements. 232.703–1 General. 232.102 Description of contract financing 232.703–3 Contracts crossing fiscal years. methods. 232.703–70 Military construction appropria- 232.102–70 Provisional delivery payments. tions act restriction. 232.108 Financial consultation. 232.704 Limitation of cost or funds.
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232.704–70 Incrementally funded fixed-price and important related procedures. contracts. Agency discretion under FAR Part 32 is 232.705 Contract clauses. at the DoD level and is not delegated 232.705–70 Clause for limitation of Govern- to the departments and agencies. Pro- ment’s obligation. posals by the departments and agen- Subpart 232.8—Assignment of Claims cies, to exercise agency discretion, shall be submitted to OUSD(AT&L)DP 232.803 Policies. through the DoD Contract Finance 232.805 Procedure. Committee (see 232.071). 232.806 Contract clause. (b) Departments and agencies are re- Subpart 232.9—Prompt Payment sponsible for their day-to-day contract financing operations. Refer specific 232.903 Policy. cases involving financing policy or im- 232.905 Invoice payments. portant procedural issues to 232.906 Contract financing payments. OUSD(AT&L)DP for consideration Subpart 232.10—Performance-Based through the department/agency Con- Payments tract Finance Committee members (also see Subpart 204.1 for deviation re- 232.1001 Policy. quest and approval procedures). 232.1004 Procedure. (c) The Under or Assistant Secretary, 232.1007 Administration and payment of per- or other designated official, responsible formance-based payments. for the comptroller function within the Subpart 232.11—Electronic Funds Transfer department or agency is the focal point for financing matters at the depart- 232.1108 Payment by Governmentwide com- ment/agency headquarters. Depart- mercial purchase card. ments and agencies may establish con- 232.1110 Solicitation provision and contract clauses. tract financing offices at operational levels. AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- (1) Department/agency contract fi- ter 1. nancing offices are— SOURCE: 56 FR 36409, July 31, 1991, unless (i) Army: Office of the Assistant Sec- otherwise noted. retary of the Army (Financial Manage- ment); 232.006 Reduction or suspension of contract payments upon finding of (ii) Navy: Office of the Assistant Sec- fraud. retary of the Navy (Financial Manage- ment and Comptroller), Office of Fi- 232.006–5 Reporting. nancial Operations; Departments and agencies in accord- (iii) Air Force: Air Force Contract ance with department/agency proce- Financing Office (SAF/FMPB); dures, shall prepare and submit to the (iv) Defense agencies: Office of the Under Secretary of Defense (Acquisi- agency comptroller. tion, Technology, and Logistics), (2) Contract financing offices should through the Director of Defense Pro- participate in— curement, annual reports (Report Con- (i) Developing regulations for con- trol Symbol DD–AT&L(A) 1891) con- tract financing; taining the information required by (ii) Developing contract provisions FAR 32.006–5. for contract financing; and (iii) Resolving specific cases that in- [63 FR 11535, Mar. 9, 1998, as amended at 65 volve unusual contract financing re- FR 39705, June 27, 2000] quirements. 232.070 Responsibilities. [63 FR 11535, Mar. 9, 1998, as amended at 65 (a) The Director of Defense Procure- FR 39705, June 27, 2000] ment, Office of the Under Secretary of Defense (Acquisition, Technology, and 232.071 Contract Finance Committee. Logistics) (OUSD(AT&L)DP) is respon- (a) The Contract Finance Committee sible for ensuring uniform administra- consists of— tion of DoD contract financing, includ- (1) A representative of ing DoD contract financing policies OUSD(AT&L)DP, serving as the Chair;
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(2) A representative of the Comp- debted to the Government (Hold-Up troller of the Department of Defense; List), or is otherwise known to be in- (3) A representative of the Defense debted to the Government; Finance and Accounting Service; (3) The contractor may receive Gov- (4) A representative of the Civilian ernment assets such as contract fi- Agency Acquisition Council (for mat- nancing payments or Government ters pertaining to the FAR); property; (5) A representative of the National (4) The contractor is experiencing Aeronautics and Space Administration performance difficulties on other work; (for matters pertaining to the FAR); or (6) An advisory consultant from the (5) The contractor is a new company Defense Contract Audit Agency; and or a new supplier of the item. (7) Two representatives of each mili- (b) At periodic intervals after award tary department and the Defense Lo- of a contract, when— gistics Agency (one representing con- (1) Any of the conditions in para- tracting and one representing the con- graphs (a)(2) through (a)(5) of this sub- tract finance office). section are applicable; or (b) The Committee— (2) There is any other reason to ques- (1) Advises and assists tion the contractor’s ability to finance OUSD(AT&L)DP in ensuring proper performance and completion of the and uniform application of policies, contract. procedures, and forms; [63 FR 11535, Mar. 9, 1998] (2) Is responsible for formulating, re- vising, and promulgating uniform con- 232.072–2 Appropriate information. tract financing regulations; (a) The contracting officer shall ob- (3) May recommend to the Secretary tain the type and depth of financial of Defense through OUSD(AT&L)DP and other information that is required further policy directives on financing; to establish a contractor’s financial ca- and pability or disclose a contractor’s fi- (4) Meets at the request of the Chair nancial condition. While the con- or a member. tracting officer should not request in- formation that is not necessary for [63 FR 11535, Mar. 9, 1998, as amended by 65 FR 39706, June 27, 2000] protection for the Government’s inter- ests, the contracting officer must in- 232.072 Financial responsibility of sist upon obtaining the information contractors. that is necessary. The unwillingness or Use the policies and procedures in inability of a contractor to present rea- this section in determining the finan- sonably requested information in a cial capability of current or prospec- timely manner, especially information tive contractors. that a prudent business person would be expected to have and to use in the [63 FR 11535, Mar. 9, 1998] professional management of a business, may be a material fact in the deter- 232.072–1 Required financial reviews. mination of the contractor’s responsi- The contracting officer shall perform bility and prospects for contract com- a financial review when the con- pletion. tracting officer does not otherwise (b) The contracting officer shall ob- have sufficient information to make a tain the following information to the positive determination of financial re- extent required to protect the Govern- sponsibility. In addition, the con- ment’s interest. In addition, if the con- tracting officer shall consider per- tracting officer concludes that infor- forming a financial review— mation not listed in paragraphs (b)(1) (a) Prior to award of a contract, through (b)(10) of this subsection is re- when— quired to comply with 232.072–1, that (1) The contractor is on a list requir- information should be requested. The ing preaward clearance or other special information must be for the person(s) clearance before award; who are legally liable for contract per- (2) The contractor is listed on the formance. If the contractor is not a Consolidated List of Contractors In- corporation, the contracting officer
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shall obtain the required information (iv) Clearly stated confirmations of for each individual/joint venturer/part- credit with no unacceptable qualifica- ner: tions; (1) Balance sheet and income state- (v) Unambiguous written agreement ment— by a creditor if credit arrangements in- (i) For the current fiscal year (in- clude deferred trade payments or cred- terim); itor subordinations/repayment suspen- (ii) For the most recent fiscal year sions. and, preferably, for the 2 preceding fis- (8) Statement of all state, local, and cal years. These should be certified by Federal tax accounts, including special an independent public accountant or by mandatory contributions, e.g., environ- an appropriate officer of the firm; and mental superfund. (9) Description and explanation of the (iii) Forecasted for each fiscal year financial effect of issues such as— for the remainder of the period of con- (i) Leases, deferred purchase arrange- tract performance. ments, or patent or royalty arrange- (2) Summary history of the con- ments; tractor and its principal managers, dis- (ii) Insurance, when relevant to the closing any previous insolvencies—cor- contract; porate or personal, and describing its (iii) Contemplated capital expendi- products or services. tures, changes in equity, or contractor (3) Statement of all affiliations dis- debt load; closing— (iv) Pending claims either by or (i) Material financial interests of the against the contractor; contractor; (v) Contingent liabilities such as (ii) Material financial interests in guarantees, litigation, environmental, the contractor; or product liabilities; (iii) Material affiliations of owners, (vi) Validity of accounts receivable officers, directors, major stockholders; and actual value of inventory, as as- and sets; and (iv) The major stockholders if the (vii) Status and aging of accounts contractor is not a widely-traded, pub- payable. licly-held corporation. (10) Significant ratios such as— (4) Statement of all forms of com- (i) Inventory to annual sales; pensation to each officer, manager, (ii) Inventory to current assets; partner, joint venturer, or proprietor, (iii) Liquid assets to current assets; as appropriate— (iv) Liquid assets to current liabil- ities; (i) Planned for the current year; (v) Current assets to current liabil- (ii) Paid during the past 2 years; and ities; and (iii) Deferred to future periods. (vi) Net worth to net debt. (5) Business base and forecast that— [63 FR 11535, Mar. 9, 1998] (i) Shows, by significant markets, ex- isting contracts and outstanding offers, 232.072–3 Cash flow forecasts. including those under negotiation; and (a) A contractor must be able to sus- (ii) Is reconcilable to indirect cost tain a sufficient cash flow to perform rate projections. the contract. When there is doubt re- (6) Cash forecast for the duration of garding the sufficiency of a contrac- the contract (see 232.072–3). tor’s cash flow, the contracting officer (7) Financing arrangement informa- should require the contractor to sub- tion that discloses— mit a cash flow forecast covering the (i) Availability of cash to finance duration of the contract. contract performance; (b) A contractor’s inability of refusal (ii) Contractor’s exposure to financial to prepare and provide cash flow fore- crisis from creditor’s demands; casts or to reconcile actual cash flow (iii) Degree to which credit security with previous forecasts is a strong indi- provisions could conflict with Govern- cator of serious managerial defi- ment title terms under contract fi- ciencies or potential contract cost or nancing; performance problems.
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(c) Single or one-time cash flow fore- (3) Prospective supply, subcontract, casts are of limited forecasting power. and loan or credit sources. As such, they should be limited to [63 FR 11536, Mar. 9, 1998] preaward survey situations. Reliability of cash flow forecasts can be estab- lished only by comparing a series of Subpart 232.1—Non-Commercial previous actual cash flows with the Item Purchase Financing corresponding forecasts and examining the causes of any differences. SOURCE: 63 FR 11536, Mar. 9, 1998, unless (d) Cash flow forecasts must— otherwise noted. (1) Show the origin and use of all ma- terial amounts of cash within the en- 232.102 Description of contract financ- tire business unit responsible for con- ing methods. tract performance, period by period, for (e)(2) Progress payments based on the length of the contract (or until the percentage or stage of completion are risk of a cash crisis ends); and authorized only for contracts for con- (2) Provide an audit trail to the data struction (as defined in FAR 36.102), and assumptions used to prepare it. shipbuilding, and ship conversion, al- (e) Cash flow forecasts can be no teration, or repair. However, percent- more reliable than the assumptions on age or state of completion methods of which they are based. Most important measuring contractor performance of these assumptions are— may be used for performance-based (1) Estimated amounts and timing of payments in accordance with FAR Sub- purchases and payments for materials, part 32.10. parts, components, subassemblies, and services; 232.102–70 Provisional delivery pay- (2) Estimated amounts and timing of ments. payments of purchase or production of (a) The contracting officer may es- capital assets, test facilities, and tool- tablish provisional delivery payments ing; to pay contractors for the costs of sup- (3) Amounts and timing of fixed cash plies and services delivered to and ac- charges such as debt installments, in- cepted by the Government under the terest, rentals, taxes, and indirect following contract actions if costs; undefinitized: (4) Estimated amounts and timing of (1) Letter contracts contemplating a payments for projected labor, both di- fixed-price contract. rect and indirect; (2) Orders under basic ordering agree- (5) Reasonableness of projected man- ments. ufacturing and production schedules; (3) Spares provisioning documents (6) Estimated amounts and timing of annexed to contracts. billings to customers (including (4) Unpriced equitable adjustments progress payments), and customer pay- on fixed-price contracts. ments; (7) Estimated amounts and timing of (5) Orders under indefinite-delivery cash receipts from lenders or other contracts. credit sources, and liquidation of loans; (b) Provisional delivery payments and shall be— (8) Estimated amount and timing of (1) Used sparingly; cash receipt from other sources. (2) Priced conservatively; and (f) The contracting officer should re- (3) Reduced by liquidating previous view the assumptions underlying the progress payments in accordance with cash flow forecasts. In determining the Progress Payments clause. whether the assumptions are reason- (c) Provisional delivery payments able and realistic, the contracting offi- shall not— cer should consult with— (1) Include profit; (1) The contractor; (2) Exceed funds obligated for the (2) Government personnel in the undefinitized contract action; or areas of finance, engineering, produc- (3) Influence the definitized contract tion, cost, and price analysis; or price.
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232.108 Financial consultation. tomary in the commercial market- See 232.070 for offices to be consulted place. When installment payment fi- regarding financial matters with DoD. nancing is used, the contracting officer shall use the ceiling percentage of con- tract price that is customary in the Subpart 232.2—Commercial Item particular marketplace (not to exceed Purchase Financing the maximum rate established in FAR 52.232–30). SOURCE: 63 FR 11537, Mar. 9, 1998, unless otherwise noted. 232.207 Administration and payment of commercial financing payments. 232.202–4 Security for Government fi- nancing. (b)(2) If the contract contains foreign military sales requirements, each ap- (a)(2) When determining whether an proval shall specify the amount of con- offeror’s financial condition is ade- tract financing to be charged to each quate security, see 232.072–2 and 232.072– country’s account. 3 for guidance. It should be noted that an offeror’s financial condition may be sufficient to make the contractor re- Subpart 232.3—Loan Guarantees sponsible for award purposes, but may for Defense Production not be adequate security for commer- cial contract financing. 232.302 Authority. (a) The use of guaranteed loans as a 232.206 Solicitation provisions and contract financing mechanism requires contract clauses. the availability of certain congres- (d) Instructions for multiple appropria- sional authority. The DoD has not re- tions. If the contract contains foreign quested such authority in recent years, military sales requirements, the con- and none is now available. tracting officer shall provide instruc- tions for distribution of the contract fi- Subpart 232.4—Advance nancing payments to each country’s account. Payments (f) Prompt payment for commercial pur- 232.404 Exclusions. chase payments. The contracting officer shall incorporate the following stand- (a)(9) The requirements of FAR sub- ard prompt payment terms for com- part 32.4 do not apply to advertise- mercial item contract financing: ments in high school and college publi- (i) Commercial advance payments: The cations for military recruitment ef- contractor entitlement date specified forts under 10 U.S.C. 503 when the con- in the contract, or 30 days after receipt tract cost does not exceed $500. by the designated billing office of a proper request for payment, whichever 232.409 Contracting officer action. is later. (ii) Commercial interim payments: The 232.409–1 Recommendation for ap- proval. contractor entitlement date specified in the contract, or 14 days after receipt To ensure uniform application of this by the designated billing office of a subpart (see FAR 32.402(e)(1)), the de- proper request for payment, whichever partmental/agency contract financing is later. The prompt payment stand- office shall prepare the documents re- ards for commercial delivery payments quired by FAR 32.409–1 (e) and (f). shall be the same as specified in FAR Subpart 32.9 for invoice payments for 232.410 Findings, determination, and the item delivered. authorization. (g) Installment payment financing for (b) If an advance payment procedure commercial items. Installment payment is used without a special bank account, financing shall not be used for DoD replace paragraph (a)(4) of the Find- contracts, unless market research has ings, Determination, and Authoriza- established that this form of contract tion for Advance Payments at FAR financing is both appropriate and cus- 32.410 with:
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(4) The proposed advance payment clause (iii) In addition to any other advance contains appropriate provisions as security payment pool agreement at a single for advance payments. These provisions in- contractor location when it is more clude a requirement that the outstanding ad- vance payments will be liquidated from cost convenient or otherwise preferable to reimbursements as they become due the con- have more than one agreement. tractor. This security is considered adequate to protect the interest of the Government. Subpart 232.5—Progress Payments 232.412 Contract clause. Based on Costs
232.412–70 Additional clauses. 232.501 General. (a) Use the clause at 252.232–7000, Ad- 232.501–1 Customary progress pay- vance Payment Pool, in any contract ment rates. that will be subject to the terms of an (a) The customary progress payment advance payment pool agreement with rates for DoD contracts, including con- a nonprofit organization or educational tracts that contain foreign military institution. Normally, use the clause in all cost reimbursement type contracts sales (FMS) requirements, are 80 per- with the organization or institution. cent for large business concerns, 90 per- (b) Use the clause at 252.232–7001, Dis- cent for small business concerns, and 95 position of Payments, in contracts percent for small disadvantaged busi- when payments under the contract are ness concerns. to be made by a disbursing office not [66 FR 49865, Oct. 1, 2001] designated in the advance payment pool agreement. 232.501–2 Unusual progress payments. (c) Use the clause at 252.232–7005, Re- (a) Unusual progress payment imbursement of Subcontractor Ad- arrangmeents require the advance ap- vance Payments-DoD Pilot Mentor- proval of the Director of Defense Protege Program, when advance pay- Procurment, Office of the Under Sec- ments will be provided by the con- retary of Defense (Acquisition, Tech- tractor to a subcontractor pursuant to nology, and Logistics) an approved mentor-protege agreement (OUSD(AT&L)DP). Contracting officers (See subpart 219.71). must submit all unusual progress pay- [56 FR 36409, July 31, 1991, as amended at 56 ment requests to the department or FR 67217, Dec. 30, 1991] agency contract financing office for ap- proval, coordination with the Contract 232.470 Advance payment pool. Finance Committee (see 232.071), and (a) An advance payment pool agree- submission to OUSD(AT&L)DP. ment— (1) Is a means of financing the per- [65 FR 39722, June 27, 2000] formance of more than one contract 232.501–3 Contract price. held by a single contractor; (2) Is especially convenient for the fi- (b) The contracting officer may ap- nancing of cost-type contracts with prove progress payments when the con- nonprofit educational or research insti- tract price exceeds the funds obligated tutions for experimental or research under the contract; provided, the con- and development work when several tract contains an appropriate Limita- contracts require financing by advance tion of Funds clause. However, the con- payments. When appropriate, pooled tracting officer must limit such pay- advance payments may also be used to ments to the lesser of— finance other types of contracts held (i) The applicable rate (i.e., the lower by a single contractor; and of the progress payment rate, the liq- (3) May be established— uidation rate, or the loss-ratio adjusted (i) Without regard to the number of rate); or appropriations involved; (ii) 100 percent of the funds obligated. (ii) To finance contracts for one or more department(s) or contracting ac- [56 FR 36409, July 31, 1991, as amended at 65 tivity(ies); or FR 39722, June 27, 2000]
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232.502 Preaward matters. payment (SF 1443, Contractor’s Re- quest for Progress Payment, or com- 232.502–1 Use of customary progress puter generated equivalent). payments. [56 FR 36409, July 31, 1991, as amended at 60 (b)(1) If the contractor is a small dis- FR 29499, June 5, 1995; 65 FR 39722, June 27, advantaged business, progress pay- 2000] ments may be provided when the con- tract will involve $50,000 or more. 232.503–15 Application of Government title terms. 232.502 Contract clauses. (d) An administrative contracting of- 232.502–4–70 Additional clauses. ficer (ACO) determination that the (a) Use the clause at 252.232–7002, contractor’s material management and Progress Payments for Foreign Mili- accounting system conforms to the tary Sales Acquisitions, in solicita- standard at 252.242–7004(f)(7) con- tions and contracts that— stitutes the contracting officer ap- (i) Contain FMS requirements; and proval requirement of FAR 32.503–15(d). (ii) Provide for progress payments. Prior to granting blanket approval of (b) Use the clause at 252.232–7004, DoD cost transfers between contracts, the Progress Payment Rates, instead of Al- ACO should determine that— ternate I of the clause at FAR 52.232–16, (i) The contractor retains records of if the contractor is a small business or the transfer activity that took place in small disadvantaged business concern. the prior month; [56 FR 36409, July 31, 1991, as amended at 56 (ii) The contractor prepares, at least FR 67217, Dec. 30, 1991; 64 FR 8731, Feb. 23, monthly, a summary of the transfer ac- 1999; 65 FR 39722, June 27, 2000; 66 FR 49865, tivity that took place in the prior Oct. 1, 2001] month; and (iii) The summary report includes as 232.503 Postaward matters. a minimum, the total number and dol- 232.503–6 Suspension or reduction of lar value of transfers. payments. [56 FR 36409, July 31, 1991, as amended at 57 (b) Contractor noncompliance. See also FR 42632, Sept. 15, 1992] 242.7503. (g) Loss contracts. Use the following Subpart 232.6—Contract Debts loss ratio adjustment procedures for making adjustments required by FAR 232.605 Responsibilities and coopera- 32.503–6(f) and (g)— tion among Government officials. (i) Except as provided in paragraph (g)(ii) of this subsection, the con- (b) Disbursing officers are those offi- tracting officer must prepare a supple- cials designated to make payments mentary analysis of the contractor’s under a contract or to receive pay- request for progress payments and cal- ments of amounts due under a con- culate the loss ratio adjustment using tract. At installations where inte- the procedures in FAR 32.503–6(g). grated accounting is in effect, the fi- (ii) The contracting officer may re- nance and accounting officer is a dis- quest the contractor to prepare the bursing officer. The disbursing officer supplementary analysis as an attach- is responsible for determining the ment to the progress payment request amount and collecting contract debts when the contracting officer deter- whenever overpayments or erroneous mines that the contractor’s methods of payments have been made. The dis- estimating the ‘‘Costs to Complete’’ bursing officer also has primary re- are reliable, accurate, and not suscep- sponsibility when the amounts due and tible to improper influences. dates for payment are contained in the (iii) To maintain an audit trail and contract, and a copy of the contract permit verification of calculations, do has been furnished to the disbursing of- not make the loss ratio adjustments by ficer with notice to collect as amounts altering or replacing data on the con- become due. tractor’s original request for progress
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232.606 Debt determination and collec- (C) Transportation contracts with tion. common carriers for common carrier (c)(9)(vii) Upon transfer of a case to services. the contract financing office, the con- [56 FR 36409, July 31, 1991, as amended at 60 tracting officer shall close the debt FR 61598, Nov. 30, 1995; 65 FR 39706, June 27, record by reference to the date of 2000] transfer. 232.670 Transfer of responsibility for 232.610 Demand for payment of con- debt collection. tract debt. Disbursing officers will transfer re- (a)(i) For contract debts resulting sponsibility for debt collection to de- from other than a termination for de- partmental/agency contract financing fault, the office which first determines offices in accordance with comptroller an amount due, whether it be the con- regulations. Notwithstanding the tract administration office, the con- transfer of the debt collection responsi- tracting office, the disbursing office, or bility, contracting officers shall con- the selling office/agency, shall— tinue to provide assistance as re- (A) Make a demand for payment; and quested by the debt collection office. (B) Provide a copy of the demand to the payment office cited in the con- 232.671 Bankruptcy reporting. tract. (a) For those debts covered by this (ii) For contract debts resulting from subpart, the department or agency a termination for default, the con- which awarded the contract shall fur- tracting officer shall make the demand nish the Department of Justice any and direct the debtor to make such claims in bankruptcy, insolvency, or in payment to the designated office. proceedings for reorganization or ar- (b)(3) The contracting office shall for- rangement. Furnish claims which— ward deferment requests to the con- (1) Have been transferred to a con- tract financing office of the con- tract financing office; tracting department or agency for a de- (2) Are on the way to a contract fi- cision on granting the deferment. nancing office at the inception of bank- 232.616 Compromise actions. ruptcy or insolvency proceedings; (3) Are pending and not forwarded to Only the department/agency contract a contract financing office at the in- financing offices (232.108(1)) are author- ception of bankruptcy or insolvency ized to compromise debts covered by proceedings; and this subpart. (4) Are the result of bankruptcy or 232.617 Contract clause. insolvency proceedings. (b) The contract financing office or (a) The DoD Contract Finance Com- other office designated within a depart- mittee, with the approval of the Direc- ment or agency will furnish proof of tor of Defense Procurement, Office of claims to the Department of Justice. the Under Secretary of Defense (Acqui- (c) The office of origin of a debt will sition, Technology, and Logistics) provide, as soon as possible, informa- (OUSD(AT&L)DP), may exempt the tion on a bankruptcy, insolvency, reor- contracts in FAR 32.617(a) (2) through ganization, or rearrangement to the of- (5) and other contracts, in exceptional fice designated within a department/ circumstances, from the administra- agency to receive this information. tive interest charges required by this subpart. (d) The information and proof of claim requirements in paragraphs (b) (a)(7) Other exceptions— and (c) of this section do not apply to (A) Contracts for instructions of debts of less than $600. military or ROTC personnel at civilian schools, colleges, and universities; (B) Basic agreements with telephone Subpart 232.7—Contract Funding companies for communications serv- ices and facilities, and purchases under SOURCE: 58 FR 46092, Sept. 1, 1993, unless such agreements; and otherwise noted.
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232.702 Policy. (1) Allotting additional funds for con- tinued performance and increasing the Fixed-price contracts shall be fully Government’s limitation of obligation funded except as permitted by 232.703–1. in a specified amount; 232.703 Contract funding require- (2) Terminating the contract; or ments. (3) Considering whether to allot addi- tional funds; and 232.703–1 General. (i) The contractor is entitled by the (1) A fixed-price contract may be in- contract terms to stop work when the crementally funded only if— Government’s limitation of obligation (i) The contract is funded with re- is reached; and search and development appropria- (ii) Any costs expended beyond the tions; Government’s limitation of obligation (ii) Congress has otherwise incremen- are at the contractor’s risk. tally appropriated program funds; or (b) Upon learning that the contract (iii) The head of the contracting ac- will receive no further funds, the con- tivity approves the use of incremental tracting officer shall promptly give the funding for either base services con- contractor written notice of the Gov- tracts or hazardous/toxic waste remedi- ernment’s decision and terminate for ation contracts. the convenience of the Government. (c) The contracting officer shall en- (2) Incrementally funded fixed-price sure that, in accordance with para- contracts shall be fully funded as soon graph (b) of the clause at 252.232–7007, as practicable after full funding is Limitation of Government’s Obliga- available. tion, sufficient funds are allotted to 232.703–3 Contracts crossing fiscal the contract to cover the total amount years. payable to the contractor in the event of termination for the convenience of (b) The contracting officer may enter the Government. into a contract, exercise an option, or place an order under a contract for sev- 232.705 Contract clauses. erable services for a period that begins in one fiscal year and ends in the next 232.705–70 Clause for limitation of fiscal year if the period of the contract Government’s obligation. awarded, option exercised, or order Use the clause at 252.232–7007, Limita- placed does not exceed 1 year (10 U.S.C. tion of Government’s Obligation, in so- 2410a). licitations and resultant incrementally [64 FR 28110, May 25, 1999] funded fixed-price contracts. The con- tracting officer may revise the con- 232.703–70 Military construction ap- tractor’s notification period, in para- propriations act restriction. graph (c) of the clause, from ‘‘ninety’’ Annual military construction appro- to ‘‘thirty’’ or ‘‘sixty’’ days, as appro- priations acts restrict the use of funds priate. appropriated by the acts for payments under cost-plus-fixed-fee contracts (see Subpart 232.8—Assignment of 216.306(c)). Claims [61 FR 7744, Feb. 29, 1996] 232.803 Policies. 232.704 Limitation of cost or funds. (b) Only contracts for personal serv- ices may prohibit the assignment of 232.704–70 Incrementally funded fixed- claims. price contracts. (d) Pursuant to Section 3737(e) of the (a) Upon receipt of the contractor’s Revised Statutes (41 U.S.C. 15), and in notice under paragraph (c) of the accordance with Presidential delega- clause at 252.232–7007, Limitation of tion dated October 3, 1995, Secretary of Government’s Obligation, the con- Defense delegation dated February 5, tracting officer shall promptly provide 1996, and Under Secretary of Defense written notice to the contractor that (Acquisition, Technology, and Logis- the Government is— tics) delegation dated February 23,
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1996, the Director of Defense Procure- 232.806 Contract clause. ment determined on May 10, 1996, that (a)(1) Use the clause at 252.232–7008, a need exists for DoD to agree not to Assignment of Claims (Overseas), in- reduce or set off any money due or to stead of the clause at FAR 52.232–23, become due under the contract when Assignment of Claims, in solicitations the proceeds under the contract have and contracts when contract perform- been assigned in accordance with the ance will be in a foreign country. Assignment of Claims provision of the (2) Use Alternate I with the clause at contract. This determination was pub- FAR 52.232–23, Assignment of Claims, lished in the FEDERAL REGISTER on unless otherwise authorized under June 11, 1996, as required by law. Never- 232.803(d). theless, if departments/agencies decide it is in the Government’s interests, or [62 FR 34126, June 24, 1997] if the contracting officer makes a de- termination in accordance with FAR Subpart 232.9—Prompt Payment 32.803(d) concerning a significantly in- debted offeror, they may exclude the 232.903 Policy. no-setoff commitment. DoD policy is to assist small dis- [56 FR 36409, July 31, 1991, as amended at 61 advantaged business concerns by pay- FR 50454, Sept. 26, 1996; 65 FR 39706, June 27, ing them as quickly as possible after 2000] invoices are received and before normal payment due dates established in the 232.805 Procedure. contract (see 232.905(2)). (b) The assignee shall forward— (i) To the administrative contracting 232.905 Invoice payments. officer (ACO), a true copy of the instru- (1) In most cases, Government ac- ment of assignment and an original ceptance or approval can occur within and three copies of the notice of assign- the 7 day constructive acceptance pe- ment. The ACO shall acknowledge re- riod specified in the FAR Prompt Pay- ceipt by signing and dating all copies ment clauses. Government payment of of the notice of assignment and shall— construction progress payments can, in (A) File the true copy of the instru- most cases, be made within the 14 day ment of assignment and the original of period allowed by the Prompt Payment the notice in the contract file; for Construction Contracts clause. (B) Forward two copies of the notice While the contracting officer may to the disbursing officer of the pay- specify a longer period because the pe- ment office cited in the contract; riod specified in the contract is not (C) Return a copy of the notice to the reasonable or practical, such change assignee; and should be coordinated with the Govern- (D) Advise the contracting officer of ment offices responsible for acceptance the assignment. or approval and for payment. Reasons (ii) To the surety or sureties, if any, for specifying a longer period include a true copy of the instrument of as- but are not limited to: the nature of signment and an original and three the work or supplies or services, in- copies of the notice of assignment. The spection or testing requirements, ship- surety shall return three acknowledged ping and acceptance terms, and re- copies of the notice to the assignee, sources available at the acceptance ac- who shall forward two copies to the tivity. A constructive acceptance pe- disbursing officer designated in the riod of less than the cited 7 or 14 days contract. is not authorized. (iii) To the disbursing officer of the (2) Designated payment offices are payment office cited in the contract, a encouraged to pay small disadvantaged true copy of the instrument of assign- business (SDB) concerns as quickly as ment and an original and one copy of possible after invoices are received and the notice of assignment. The dis- before normal payment due dates es- bursing officer shall acknowledge and tablished in the contract. The restric- return to the assignee the copy of the tions of FAR 32.903 prohibiting early notice and shall file the true copy of payment do not apply to invoice pay- the instrument and original notice. ments made to SDBs. Contractors shall
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not, however, be entitled to interest 232.1004 Procedure. penalties if invoice payments are not (c) Instructions for multiple appropria- made before the normal payment due tions. If the contract contains foreign dates established in the contract. military sales requirements, the con- (f)(6) DoD Manual 4000.25–5–M, Mili- tracting officer shall provide instruc- tary Standard Contract Administra- tions for distribution of the contract fi- tion Procedures (MILSCAP), authorizes nancing payments to each country’s electronic notification to the payment account. office of Government acceptance or ap- proval, as appropriate. 232.1007 Administration and payment of performance-based payments. [56 FR 36409, July 31, 1991, as amended at 63 FR 69007, Dec. 15, 1998] (b)(2) If the contract contains foreign military sales requirements, each ap- 232.906 Contract financing payments. proval shall specify the amount of con- (a)(i) DoD policy is to make contract tract financing to be charged to each financing payments as quickly as pos- country’s account. sible. Generally, the contracting offi- cer shall insert the standard due dates Subpart 232.11—Electronic Funds of 7 days for progress payments and 14 Transfer days for interim payments on cost type contracts in paragraph (b)(1) of the SOURCE: 65 FR 46626, July 31, 2000, unless Prompt Payment clauses at FAR otherwise noted. 52.232–25, 52.232–26, and 52.232–27. (ii) The contracting officer should co- 232.1108 Payment by Governmentwide ordinate payment terms with offices commercial purchase card. that will be involved in the payment The Governmentwide commercial process to ensure that terms specified purchase card is the mandatory EFT can be met. Where justified, the con- payment method for purchases valued tracting officer may insert a due date at or below the micropurchase thresh- greater than but not less than the old, except as provided in 213.270. standard. In determining payment terms, consider— 232.1110 Solicitation provision and (A) Geographical separation; contract clauses. (B) Workload; Use the clause at 252.232–7009, Manda- (C) Contractor ability to submit a tory Payment by Governmentwide proper request; and Commercial Purchase Card, in solicita- (D) Other factors that could affect tions, contracts, and agreements timing of payment. when— (1) Placement of orders or calls val- [56 FR 36409, July 31, 1991, as amended at 64 ued at or below the micropurchase FR 51076, Sept. 21, 1999] threshold is anticipated; and (2) Payment by Governmentwide Subpart 232.10—Performance- commercial purchase card is required Based Payments for orders or calls valued at or below the micropurchase threshold under the contract or agreement. SOURCE: 63 FR 11537, Mar. 9, 1998, unless otherwise noted. PART 233—PROTESTS, DISPUTES, 232.1001 Policy. AND APPEALS (d) The contracting officer shall use the following standard prompt pay- Subpart 233.2—Disputes and Appeals ment terms for performance-based pay- Sec. ments: The contractor entitlement 233.204 Policy. date, if any, specified in the contract, 233.204–70 Limitations on payment. or 14 days after receipt by the des- 233.210 Contracting officer’s authority. ignated billing office of a proper re- 233.215 Contract clause. quest for payment, whichever is later. 233.215–70 Additional contract clause.
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AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- (1) The acquisition is for— ter 1. (i) Aircraft SOURCE: 56 FR 36416, July 31, 1991, unless (ii) Spacecraft and launch vehicles otherwise noted. (iii) Naval vessels (iv) Missile systems Subpart 233.2—Disputes and (v) Tracked combat vehicles Appeals (vi) Related electronic systems; 233.204 Policy. (2) The contracting officer deter- mines that continued performance is— When it would be helpful in reviewing (i) Vital to the national security, or the current claim, the contracting offi- (ii) Vital to the public health and cer should get information on claims previously filed by the contractor with welfare; or other contracting officers. (3) The head of the contracting activ- ity determines that continued perform- 233.204–70 Limitations on payment. ance is necessary pending resolution of See 10 U.S.C. 2410(b) for limitations any claim that might arise under or be on Congressionally directed payment of related to the contract. a claim under the Contract Disputes [56 FR 36416, July 31, 1991. Redesignated at 62 Act of 1978, a request for equitable ad- FR 34126, June 24, 1997] justment to contract terms, or a re- quest for relied under Pub. L. 85–804. 233.215–70 Additional contract clause. [63 FR 11537, Mar. 9, 1998] Use the clause at 252.233–7001, Choice of Law (Overseas), in solicitations and 233.210 Contracting officer’s author- ity. contracts when contract performance will be outside of the United States, it DFARS 243.105(a) limits contracting possessions, and Puerto Rico, unless officer authority. otherwise provided for in a govern- 233.215 Contract clause. ment-to-government agreement. Use Alternate I of the clause at FAR [62 FR 34126, June 24, 1997] 52.233–1, Disputes, when—
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PART 234—MAJOR SYSTEM 234.005–71 Solicitation provision and ACQUISITION contract clause. When the Government requires con- Sec. tractor compliance with DoD earned 234.001 Definitions. value management system criteria— 234.003 Responsibilities. (a) Use the provision at 252.234–7000, 234.005 General requirements. Notice of Earned Value Management 234.005–70 Earned value management sys- System, in solicitations; and tems. (b) Use the clause at 252.234–7001, 234.005–71 Solicitation provision and con- Earned Value Management System, in tract clause. solicitations and contracts. AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- [62 FR 9991, Mar. 5, 1997; 62 FR 11953, Mar. 13, ter 1. 1997]
234.001 Definitions. PART 235—RESEARCH AND Systems means a combination of ele- DEVELOPMENT CONTRACTING ments that will function together to produce the capabilities required to Sec. fulfill a mission need. 235.001 Definitions. Systems acquisition means the design, 235.006 Contracting methods and contract development, and production of new type. systems. It also includes modifications 235.006–70 Manufacturing Technology Pro- to existing systems that involve rede- gram. sign of the systems or subsystems. 235.007 Solicitations. 235.010 Scientific and technical reports. [60 FR 61598, Nov. 30, 1995] 235.015 Contracts for research with edu- cational institutions and nonprofit orga- 234.003 Responsibilities. nizations. 235.015–70 Special use allowances for re- DoD 5000.1, Defense Acquisition, and search facilities acquired by educational DoD 5000.2–R, Mandatory Procedures institutions. for Major Defense Acquisition Pro- 235.016 Broad agency announcement. grams (MDAPs) and Major Automated 235.017 Federally Funded Research and De- Information System (MAIS) Acquisi- velopment Centers. tion Programs, contain the DoD imple- 235.017–1 Sponsoring agreements. mentation of OMB Circular A–109. 235.070 Indemnification against unusually hazardous risks. [62 FR 34126, June 24, 1997] 235.070–1 Indemnification under research and development contracts. 234.005 General requirements. 235.070–2 Indemnification under contracts involving both research and development 234.005–70 Earned value management and other work. systems. 235.070–3 Contract clauses. 235.071 Additional contract clauses. When an offeror provides an earned value management system (EVMS) Subpart 235.70—Research and Develop- plan as part of its proposal in accord- ment Streamlined Contracting Proce- ance with paragraph (b) of the provi- dures sion at 252.234–7000, the contracting of- 235.7000 Scope. ficer shall forward a copy of the plan to 235.7001 Definitions. the cognizant administrative con- 235.7002 Applicability. tracting officer (ACO). The procuring 235.7003 Research and development stream- contracting officer shall obtain the as- lined solicitation and contract. sistance of the ACO in determining the 235.7003–1 General. adequacy of the proposed EVMS plan. 235.7003–2 RDSS process. 235.7003–3 Proposal evaluation and contract [62 FR 9991, Mar. 5, 1997, as amended at 63 FR award. 11537, Mar. 9, 1998] 235.7003–4 Additional provisions and clauses.
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AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- contract for the lead ship of a class, ter 1. when the value of the work deleted is SOURCE: 56 FR 36416, July 31, 1991, unless $100 million or more; or otherwise noted. (C) A repricing of fixed-price type production options to a development 235.001 Definitions. contract, or a contract for the lead ‘‘Research and development’’ means ship of a class, that increases the price those efforts described by the Re- or ceiling price by more than $250 mil- search, Development, Test, and Evalua- lion for equivalent quantities. tion (RDT&E) budget activity defini- (iii) Notify the USD (AT&L) of an in- tions found in the DoD Financial Man- tent not to exercise a fixed-price pro- agement Regulation (DoD 7000.14–R), duction option on a development con- Volume 2B, Chapter 5. tract for a major weapon system rea- [65 FR 32040, May 22, 2000] sonably in advance of the expiration of the option exercise period. 235.006 Contracting methods and con- [64 FR 18830, Apr. 16, 1999; 64 FR 48459, Sept. tract type. 3, 1999, as amended at 65 FR 39706, June 27, (b)(i) Do not award a fixed-price type 2000] contract for a development program ef- fort unless— 235.006–70 Manufacturing Technology (A) The level of program risk permits Program. realistic pricing; In accordance with 10 U.S.C. 2525(d), (B) The use of a fixed-price type con- for acquisitions under the Manufac- tract permits an equitable and sensible turing Technology Program— allocation of program risk between the (a) Award all contracts using com- Government and the contractor; and petitive procedures; and (C) A written determination that the (b) Include in all solicitations an criteria of paragraphs (b)(i)(A) and (B) evaluation factor that addresses the of this section have been met is exe- extent to which offerors propose to cuted— share in the cost of the project (see (1) By the Under Secretary of Defense FAR 15.304). (Acquisition, Technology, and Logis- [65 FR 2058, Jan. 13, 2000] tics) (USD(AT&L)) for— (i) Research and development for 235.007 Solicitations. non-major systems, if the contract is (g) To ensure that prospective over $25 million; offerors fully understand the details of (ii) The lead ship of a class; or (iii) The development of a major sys- the work, the contracting officer may tem (as defined in FAR 2.101) or sub- include the Government’s estimate of system thereof, if the contract is over the man-year effort under a research $25 million; or contract. (2) By the contracting officer for any 235.010 Scientific and technical re- development not covered by paragraph ports. (b)(i)(C)(1) of this section. (ii) Obtain USD (AT&L) approval of (b) The Defense Technical Informa- the Government’s prenegotiation posi- tion Center (DTIC) is responsible for tion before negotiations begin, and ob- collecting all scientific or techno- tain USD (AT&L) approval of the nego- logical observations, findings, rec- tiated agreement with the contractor ommendations, and results derived before the agreement is executed, for from DoD endeavors, including both in- any action that is— house and contracted efforts. The DTIC (A) An increase of more than $250 has eligibility and registration require- million in the price or ceiling price of ments for use of its services. Requests a fixed-price type development con- for eligibility and registration infor- tract, or a fixed-price type contract for mation should be addressed to DTIC– the lead ship of a class; BCS, 8725 John J. Kingman Road, Suite (B) A reduction in the amount of 0944, Fort Belvoir, VA 22060–0944. work under a fixed-price type develop- [60 FR 29500, June 5, 1995, as amended at 62 ment contract or a fixed-price type FR 34126, June 24, 1997]
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235.015 Contracts for research with program requirements practically or educational institutions and non- effectively; profit organizations. (3) The proposed agreement for spe- (b) Basic agreements. cial use allowances is a sound business (3) When using a basic agreement— arrangement; (i) Incorporate it by reference in sec- (4) The Government’s furnishing of tion I of the contract; and Government-owned facilities is unde- (ii) Incorporate any special clause re- sirable or impractical; and quirements in section H. (5) The proposed use of the research facility is to conduct essential Govern- [59 FR 27673, May 27, 1994] ment research which requires the new 235.015–70 Special use allowances for or expanded facilities. research facilities acquired by edu- (d) Application of the special use allow- cational institutions. ance. (1) In negotiating a special use al- (a) Definitions. As used in this sub- lowance— section— (i) Compare the needs of DoD and of (1) Research facility means— the institution for the research facility (i) Real property, other than land; to determine the amount of the special and use allowance; (ii) Includes structures, alterations, (ii) Consider rental costs for similar and improvements, acquired for the space in the area where the research fa- purpose of conducting scientific re- cility is or will be located to establish search under contracts with depart- the annual special use allowance; ments and agencies of the DoD. (iii) Do not include or allow— (2) Special use allowance means a ne- (A) The costs of land; or gotiated direct or indirect allowance— (B) Interest charges on capital; (i) For construction or acquisition of (iv) Do not include maintenance, buildings, structures, and real prop- utilities, or other operational costs; erty, other than land; and (v) The period of allowance generally (ii) Where the allowance is computed will be— at an annual rate exceeding the rate (A) At least ten years; or which normally would be allowed under (B) A shorter period if the total FAR subpart 31.3. amount to be allowed is less than the (b) Policy. (1) Educational institu- construction or acquisition cost for the tions are to furnish the facilities nec- research facility; essary to perform Defense contracts. (vi) Generally, provide for allocation FAR 31.3 governs how much the Gov- of the special use allowance equitably ernment will reimburse the institution among the Government contracts using for the research programs. However, in the research facility; extraordinary situations, the Govern- (vii) Special use allowances apply ment may give special use allowances only in the years in which the Govern- to an educational institution when the ment has contracts in effect with the institution is unable to provide the institution. However, if in any given capital for new laboratories or ex- year there is a reduced level of Govern- panded facilities needed for Defense ment research effort which results in contracts. the special use allowance being exces- (2) Decisions to provide a special use sive compared to the Government re- allowance must be made on a case-by- search funding, a separate special use case basis, using the criteria in para- allowance may be negotiated for that graph (c) of this subsection. year; (c) Authorization for special use allow- (viii) Special use allowances may be ance. The head of a contracting activ- adjusted for the period before construc- ity may approve special use allowances tion is complete if the facility is par- only when all of the following condi- tially occupied and used for Govern- tions are met— ment research during that period. (1) The research facility is essential (2) A special use allowance may be to the performance of DoD contracts; based on either total or partial cost of (2) Existing facilities, either Govern- construction or acquisition of the re- ment or nongovernment, cannot meet search facility.
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(i) When based on total cost neither 235.017 Federally Funded Research the normal use allowance nor deprecia- and Development Centers. tion will apply— (a) Policy. (A) During the special use allowance (2) No DoD fiscal year 1992 or later period; and funds may be obligated or expended to (B) After the educational institution finance activities of a DoD Federally has recovered the total construction or Funded Research and Development acquisition cost from the Government Center (FFRDC) if a member of its or other users. board of directors or trustees simulta- (ii) When based on partial cost, nor- neously serves on the board of direc- mal use allowance and depreciation— tors or trustees of a profit-making (A) Apply to the balance of costs dur- company under contract to DoD, unless ing the special use allowance period to the FFRDC has a DoD-approved con- the extent negotiated in the special use flict of interest policy for its members allowance agreement; and (section 8107 of Pub. L. 102–172 and (B) Do not apply after the special use similar sections in subsequent Defense allowance period, except for normal appropriations acts). use allowance applied to the balance. [58 FR 28471, May 13, 1993] (3) During the special use allowance period, the research facility— 235.017–1 Sponsoring agreements. (i) Shall be available for Government (c)(4) DoD-sponsoring FFRDCs that research use on a priority basis over function primarily as research labora- nongovernment use; and tories (C3I Laboratory operated by the (ii) Cannot be put to any significant Institute for Defense Analysis, Lincoln use other than that which justified the Laboratory operated by Massachusetts special use allowance, unless the head Institute of Technology, and Software of the contracting activity, who ap- Engineering Institute) may respond to proved the special use allowance, con- solicitations and announcements for sents. programs which promote research, de- (4) The Government will pay only an velopment, demonstration, or transfer allocable share of the special use allow- of technology (Section 217, Public Law ance when the institution makes any 103–337). substantial use of the research facility [60 FR 61598, Nov. 30, 1995] for parties other than the Government during the period when the special use 235.070 Indemnification against un- allowance is in effect. usually hazardous risks. (5) In no event shall the institution be paid more than the acquisition 235.070–1 Indemnification under re- costs. search and development contracts. (a) Under 10 U.S.C. 2354, and if au- [56 FR 36416, July 31, 1991, as amended at 60 FR 29500, June 5, 1995] thorized by the Secretary concerned, contracts for research and/or develop- 235.016 Broad agency announcement. ment may provide for indemnification of the contractor or subcontractors To help achieve the goals of Section for— 1207 of Public Law 99–661 (see part 226), (1) Claims by third persons (including contracting officers shall— employees) for death, bodily injury, or (1) Whenever practicable, reserve dis- loss of or damage to property; and crete or severable areas of research in- (2) Loss of or damage to the contrac- terest contained in broad agency an- tor’s property to the extent that the li- nouncements for exclusive competition ability, loss, or damage— among historically black colleges and (i) Results from a risk that the con- universities and minority institutions; tract defines as ‘‘unusually haz- (2) Indicate such reservation— ardous;’’ (i) In the broad agency announce- (ii) Arises from the direct perform- ment; and ance of the contract; and (ii) In the announcement synopsis (iii) Is not compensated by insurance (see 205.207(d)(v)). or other means.
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(b) Clearly define the specific unusu- Subpart 235.70—Research and ally hazardous risks to be indemnified. Development Streamlined Submit this definition for approval Contracting Procedures with the request for authorization to grant indemnification. Include the ap- SOURCE: 63 FR 34605, June 25, 1998, unless proved definition in the contract. otherwise noted. [56 FR 36416, July 31, 1991, as amended at 64 FR 51076, Sept. 21, 1999] 235.7000 Scope. This subpart prescribes streamlined 235.070–2 Indemnification under con- procedures for acquiring research and tracts involving both research and development, using a standard solicita- development and other work. tion and contract format and the capa- These contracts may provide for in- bilities of the World Wide Web. demnification under the authority of both 10 U.S.C. 2354 and Public Law 85– 235.7001 Definitions. 804. Public Law 85–804 will apply only As used in this subpart— to work to which 10 U.S.C. 2354 does (a) Research and development stream- not apply. Actions under Public Law lined contract (RDSC) means— 85–804 must also comply with FAR sub- (1) A contract that results from use part 50.4. of the research and development streamline solicitation; or 235.070–3 Contract clauses. (2) Any other contract prepared in When the contractor is to be indem- the standard format published at the nified in accordance with 235.070–1, use RDSS/C website. either— (b) Research and development stream- (a) The clause at 252.235–7000, Indem- lined solicitation (RDSS) means a solici- nification Under 10 U.S.C. 2354—Fixed tation issued in accordance with Price; or 235.7003. (b) The clause at 252.235–7001, Indem- (c) RDSS/C website means the site on the World Wide Web at ‘‘http:// nification Under 10 U.S.C. 2354—Cost- www.rdss.osd.mil/’’ where research and Reimbursement, as appropriate. development streamlined solicitation 235.071 Additional contract clauses. and contracting information is pub- lished. (a) Use the clause at 252.235–7002, Ani- mal Welfare, or one substantially the 235.7002 Applicability. same, in solicitations and contracts (a) Except as provided in paragraph awarded in the United States, its pos- (b) of this section, consider using the sessions, and Puerto Rico involving re- procedures in this subpart for acquisi- search on live vertebrate animals. tions that— (b) Use the clause at 252.235–7003, Fre- (1) Will result in the award of a cost- quency Authorization, in solicitations reimbursement contract; and and contracts for developing, pro- (2) Meet the criteria for research and ducing, constructing, testing, or oper- development as defined in 235.001 and ating a device requiring a frequency FAR 35.001. authorization. (b) Do not use the procedures in this (c) Use the clause at 252.235–7010, Ac- subpart for— knowledgement of Support and Dis- (1) Contracts to be performed outside claimer, in solicitations and contracts the United States and Puerto Rico; for research and development. (2) Contracts denominated in other (d) Use the clause at 252.235–7011, than U.S. dollars; Final Scientific or Technical Report, (3) Acquisitions using simplified ac- in solicitations and contracts for re- quisition procedures; search and development. (4) Acquisition of engineering and manufacturing development, manage- [56 FR 36416, July 31, 1991, as amended at 60 ment support, or operational system FR 29500, June 5, 1995] development, as defined in 235.001; or
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(5) Acquisition of laboratory supplies (2) When an RDSC is awarded to an and equipment, base support services, educational or nonprofit institution— or other services identified in para- (i) Remove provisions and clauses graphs (a) through (h) of the definition that do not apply to educational or of ‘‘service contract’’ at FAR 37.101. nonprofit institutions; and (c) Regardless of whether the RDSS (ii) As necessary, insert appropriate is used, the RDSC may be used for any replacement provisions and clauses. acquisition that meets the criteria in paragraph (a) of this section. 235.7003–4 Additional provisions and clauses. 235.7003 Research and development Use of FAR and DFRAS provisions streamlined solicitation and con- tract. and clauses, and nonstandard provi- sions and clauses approved for agency 235.7003–1 General. use, that are not in the RDSS/C stand- The procedures and standard format ard format, shall be approved in ac- are published at the RDSS/C website. cordance with agency procedures. The RDSS/C Managing Committee is responsible for updating the website. PART 236—CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS 235.7003–2 RDSS process. (a) Synopisis. The Commerce Business Subpart 236.1—General Daily synopsis required by FAR 5.203 Sec. shall include— 236.102 Definitions. (1) The information required by FAR 5.207; and Subpart 236.2—Special Aspects of (2) Statements that— Contracting for Construction (i) A paper solicitation will not be issued; and 236.201 Evaluation of contractor perform- (ii) The solicitation will be published ance. at the RDSS/C website. 236.203 Government estimate of construc- (b) Solicitation. (1) The solicitation— tion costs. 236.204 Disclosure of the magnitude of con- (i) Shall be published in its entirety struction projects. at the RDSS/C website; 236.206 Liquidated damages. (ii) Shall include the applicable 236.213 Special procedures for sealed bidding version number of the RDSS standard in construction contracting. format; and 236.213–70 Additive or deductive items. (iii) Shall incorporate by reference 236.270 Expediting construction contracts. the appropriate terms and conditions 236.271 Cost-plus-fixed-fee contracts. of the RDSS standard format. 236.272 Prequalification of sources. (2) To encourage preparation of bet- 236.273 Network analysis systems. ter cost proposals, consider allowing a 236.274 Construction in foreign countries. delay between the due dates for tech- Subpart 236.5—Contract Clauses nical and cost proposals. (c) Amendments. Amendments shall be 236.570 Additional provisions and clauses. published at the RDSS/C website. Subpart 236.6—Architect-Engineer Services 235.7003–3 Proposal evaluation and contract award. 236.601 Policy. 236.602 Selection of firms for architect-engi- (a) Evaluate proposals in accordance neer contracts. with the evaluation factors set forth in 236.602–1 Selection criteria. the RDSS. 236.602–2 Evaluation boards. (b) RDSC. (1) The RDSC shall in- 236.602–4 Selection authority. clude— 236.602–70 Restriction on award of overseas (i) Standard Form (SF) 33, Solicita- architect-engineer contracts to foreign tion, Offer and Award, or SF 26, Award/ firms. 236.604 Performance evaluation. Contract; and 236.606 Negotiations. (ii) Sections B through J of the RDSS 236.606–70 Statutory fee limitation. or other solicitation, with applicable 236.609 Contract clauses. fill-in information inserted. 236.609–70 Additional provision and clause.
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Subpart 236.7—Standard and Optional (c) Distribution and use of performance Forms for Contracting for Construction, reports. (1) Send each contractor per- Architect-Engineer Services, and Dis- formance evaluation report to the cen- mantling, Demolition, or Removal of tral data base immediately upon its Improvements completion. (A) The central data base— 236.701 Standard and optional forms for use (1) Is operated by—U.S. Army Corps in contracting for construction or dis- mantling, demolition, or removal of im- of Engineers, Portland District, ATTN: provements. CENWP–CT–I, PO Box 2946, Portland, OR 97208–2946, Telephone: (503) 808–4590. AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- (2) Keeps reports on file for six years. ter 1. (B) For computer access to the files, SOURCE: 56 FR 36421, July 31, 1991, unless contact the Portland District for user otherwise noted. log-on and procedures. (2) Use performance records when Subpart 236.1—General making responsibility determinations under FAR 9.1. 236.102 Definitions. (A) For each contract expected to ex- (1) A–E means architect-engineer. ceed $1,000,000, retrieve all performance (2) Construction activity means an ac- records on file in the central data base tivity at any organizational level of for all prospective contractors that the DoD that— have a reasonable chance of being se- (i) Is responsible for the architec- lected for award. The central data base tural, engineering, and other related will provide— technical aspects of the planning, de- (1) Overall current performance rat- sign, and construction of facilities; and ings; (ii) Receives its technical guidance (2) Descriptions of contracts on from the Army Office of the Chief of which ratings are based (e.g., type of Engineers, Naval Facilities Engineer- facility, contract value, applicable per- ing Command, or Air Force Directorate formance elements); and of Civil Engineering. (3) A telephone number to obtain (3) Marshallese firm is defined in the transcripts and documentation of per- provision at 252.236–7012, Military Con- tinent evaluation details. struction on Kwajalein Atoll—Evalua- (B) Consider using the performance tion Preference. records in the data base for lower value (4) Network analysis system means rec- contracts and to assess a contractor’s ognized scheduling systems that show performance record for reasons other the duration, sequential relationship, than an award decision, such as sub- and interdependence of various work contractor approval and awards for ex- activities, e.g., critical path method. cellence. (5) United States firm is defined in the provisions at 252.236–7010, Overseas [56 FR 36421, July 31, 1991, as amended at 61 Military Construction-Preference for FR 7749, Feb. 29, 1996; 66 FR 49861, Oct. 1, United States Firms, and 252.236–7011, 2001] Overseas Architect-Engineer Services- 236.203 Government estimate of con- Restriction to United States firms. struction costs. [56 FR 36421, July 31, 1991, as amended at 62 (c)(i) Designate the Government esti- FR 2857, Jan. 17, 1997; 63 FR 11538, Mar. 9, mate as ‘‘For Official Use Only,’’ unless 1998] the information is classified. If it is, handle the estimate in accordance with Subpart 236.2—Special Aspects of security regulations. Contracting for Construction (ii) For sealed bid acquisitions— (A) File a sealed copy of the Govern- 236.201 Evaluation of contractor per- ment estimate with the bids. (In the formance. case of two-step acquisitions, this is (a) Preparation of performance evalua- done in the second step.) tion reports. Use DD Form 2626, Per- (B) After the bids are read and re- formance Evaluation (Construction), corded, remove the ‘‘For Official Use instead of SF 1420. Only’’ designation and read and record
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the estimate as if it were a bid, in the (2) Evaluate all bids on the basis of same detail as the bids. the same additive or deductive bid items. 236.204 Disclosure of the magnitude of (i) If adding another item from the construction projects. bid schedule list of priorities would Additional price ranges are— make the award exceed the available (i) Between $10,000,000 and $25,000,000; funds, skip that item and go to the (ii) Between $25,000,000 and next item from the list of priorities. $100,000,000; (ii) Add the next item if an award can (iii) Between $100,000,000 and be made that includes the item and is $250,000,000; still within the available funds. (iv) Between $250,000,000 and (3) Use the list of priorities only to $500,000,000; and determine the low bidder. After deter- (v) Over $500,000,000. mining the low bidder, an award may be made on any contribution if— [61 FR 7749, Feb. 29, 1996] (i) It is in the best interests of the Government; 236.206 Liquidated damages. (ii) Funds are available at time of See 211.503 for instructions on use of award; and liquidated damages. (iii) The low bidder’s price for the [56 FR 36421, July 31, 1991, as amended at 66 combination is less than the price of- FR 49861, Oct. 1, 2001] fered by any other responsive, respon- sible bidder. 236.213 Special procedures for sealed bidding in construction con- [65 FR 39706, June 27, 2000] tracting. 236.270 Expediting construction con- 236.213–70 Additive or deductive tracts. items. (a) 10 U.S.C. 2858 requires agency (a) If it appears that sufficient funds head approval to expedite the comple- may not be available for all the desired tion date of a contract funded by a construction features, consider using a Military Construction Appropriations bid schedule with— Act, if additional costs are involved. (1) A first or base bid item covering This approval authority may not be re- the work generally as specified; and delegated. The approval authority (2) A list of priorities that contains must— one or more additive or deductive bid (1) Certify that the additional ex- items that progressively add or omit penditures are necessary to protect the specified features of the work in a stat- National interest; and ed order of priority. (Normally, do not (2) Establish a reasonable completion mix additive and deductive bid items in date for the project. the same solicitation.) (b) The contracting officer may ap- (b) Before opening the bids, record in prove an expedited completion date if the contract file the amount of funds no additional costs are involved. available for the project. (c) Determine the low bidder and the 236.271 Cost-plus-fixed-fee contracts. bid items to be awarded as follows: Annual military construction appro- (1) Use the recorded amount of avail- priations acts restrict the use of cost- able funds to determine the low bidder, plus-fixed-fee contracts (see 216.306(c)). which will be the bidder that— (i) Is otherwise eligible for award; [61 FR 7749, Feb. 29, 1996] and (ii) Offers the lowest aggregate 236.272 Prequalification of sources. amount for the first or base bid item, (a) Prequalification procedures may plus or minus (in order of listed pri- be used when necessary to ensure time- ority), those additive or deductive bid ly and efficient performance of critical items that provide the most features construction projects. within the funds available. Prequalification—
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(1) Results in a list of sources deter- (2) The contract is for military con- mined to be qualified to perform a spe- struction on Kwajalein Atoll and the cific construction contract; and lowest responsive and responsible offer (2) Limits offerors to those with is submitted by a Marshallese firm. proven competence to perform in the (b)When a technical working agree- required manner. ment with a foreign government is re- (b) The head of the contracting activ- quired for a construction contract— ity must— (1) Consider inviting the Army Office (1) Authorize the use of of the Chief of Engineers, or the Naval prequalification by determining, in Facilities Engineering Command to writing, that a construction project is participate in the negotiations. of an urgency or complexity that re- (2) The agreement should, as feasible quires prequalification; and and where not otherwise provided for (2) Approve the prequalification pro- in other agreements, cover all ele- cedures. ments necessary for the construction (c) For small businesses, the that are required by laws, regulations, prequalification procedures must re- and customs of the United States and quire the qualifying authority to— the foreign government, including— (1) Request a preliminary rec- (i) Acquisition of all necessary ommendation from the appropriate rights; Small Business Administration re- (ii) Expeditious, duty-free importa- gional office, if the qualifying author- tion of labor, material, and equipment; ity believes a small business is not re- (iii) Payment of taxes applicable to sponsible; contractors, personnel, materials, and (2) Permit the small business to sub- equipment; mit a bid or proposal if the preliminary (iv) Applicability of workers’ com- recommendation is that the small busi- pensation and other labor laws to citi- ness is responsible; and zens of the U.S., the host country, and (3) Follow the procedures in FAR other countries; 19.6, if the small business is in line for (v) Provision of utility services; award and is found nonresponsible. (vi) Disposition of surplus materials 236.273 Network analysis systems. and equipment; (vii) Handling of claims and litiga- Use head of the contracting activity tion; and approved procedures for preparing and (viii) Resolution of any forseeable using network analysis systems, problems that can be appropriately in- whether contractor prepared, or Gov- cluded in the agreement. ernment prepared. [56 FR 36421, July 31, 1991, as amended at 62 236.274 Construction in foreign coun- FR 2856, Jan. 17, 1997; 62 FR 34127, June 24, tries. 1997; 63 FR 11538, Mar. 9, 1998; 66 FR 49861, (a) In accordance with Section 112 of Oct. 1, 2001] Pub. L. 105–45 and similar sections in subsequent military construction ap- Subpart 236.5—Contract Clauses propriations acts, military construc- tion contracts funded with military 236.570 Additional provisions and clauses. construction appropriations, that are estimated to exceed $1,000,000 and are (a) Use the following clauses in all to be performed in the United States fixed-price construction solicitations territories and possessions in the Pa- and contracts— cific and on Kwajalein Atoll, or in (1) 252.236–7000, Modification Pro- countries bordering the Arabian Gulf, posals-Price Breakdown; and shall be awarded only to United States (2) 252.236–7001, Contract Drawings firms, unless— and Specifications. (1) The lowest responsive and respon- (b) Use the following provisions and sible offer of a United States firm ex- clauses in fixed-price construction con- ceeds the lowest responsive and respon- tracts and solicitations as applicable— sible offer of a foreign firm by more (1) 252.236–7002, Obstruction of Navi- than 20 percent; or gable Waterways, when the contract
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will involve work near or on navigable (2) 252.236–7012, Military Construction waterways. on Kwajalein Atoll—Evaluation Pref- (2) When the head of the contracting erence, when contract performance will activity has approved use of a separate be on Kwajalein Atoll. bid item for mobilization and pre- (d) Also see 246.710(4) for an addi- paratory work, use either— tional clause applicable to construc- (i) 252.236–7003, Payment for Mobiliza- tion contracts to be performed in Ger- tion and Preparatory Work. Use this many. clause for major construction con- [56 FR 36421, July 31, 1991, as amended at 57 tracts that require— FR 42632, Sept. 15, 1992; 62 FR 2856, Jan. 17, (A) Major or special items of plant 1997; 62 FR 34127, June 24, 1997; 63 FR 11538, and equipment; or Mar. 9, 1998; 65 FR 63804, Oct. 25, 2000] (B) Large stockpiles of material which are in excess of the type, kind, Subpart 236.6—Architect-Engineer and quantity which would be normal Services for a contractor qualified to undertake the work; or 236.601 Policy. (ii) 252.236–7004, Payment for Mobili- (1) 10 U.S.C. 2807(b) requires notice to zation and Demobilization. Use this Congress 21 days before the initial obli- clause for contracts involving major gation of funds if a contract is for— mobilization expense, or plant equip- (i) A–E services or construction de- ment and material (other than the sit- sign for military construction, mili- uations covered in paragraph (b)(2)(i) of tary family housing, or restoration or this section) made necessary by the lo- replacement of damaged or destroyed cation or nature of the work. facilities; and (A) Generally, allocate 60 percent of (ii) An estimated total contract price the lump sum price in paragraph (a) of of $500,000 or more. the clause to the cost of mobilization. (2) During the 21 day period, synopsis (B) Vary this percentage to reflect of the proposed contract action and ad- the circumstances of the particular ministrative actions leading to the contract, but in no event should mobi- award may be started. lization exceed 80 percent of the pay- ment item. [56 FR 36421, July 31, 1991, as amended at 63 FR 69008, Dec. 15, 1998] (3) 252.236–7005, Airfield Safety Pre- cautions, when construction will be 236.602 Selection of firms for archi- performed on or near airfields. tect-engineer contracts. (4) 252.236–7006, Cost Limitation, if the solicitation’s bid schedule contains 236.602–1 Selection criteria. one or more items subject to statutory (a)(i) Establish the evaluation cri- cost limitations, and if a waiver has teria before making the public an- not been granted (FAR 36.205). nouncement required by FAR 5.205(c) (5) 252.236–7007, Additive or Deductive and include the criteria and their rel- Items, if the procedures in 236.303–70 ative order of importance in the an- are being used. nouncement. The evaluation criteria (6) 252.236–7008, Contract Prices—Bid- should be project specific. Use the in- ding Schedule, if the contract will con- formation in the DD Form 1391, FYll tain only unit prices for some items. Military Construction Project Data, (c) Use the following provisions in so- when available, and other pertinent licitations for military construction project data in preparing the evalua- contracts that are funded with mili- tion criteria. tary construction appropriations and (4) Use performance evaluation data are estimated to exceed $1,000,000: from the central data base identified in (1) 252.236–7010, Overseas Military 236.201. Construction—Preference for United (6) The primary factor in A–E selec- States Firms, when contract perform- tion is the determination of the most ance will be in a United States terri- highly qualified firm. Also consider tory or possession in the Pacific or in secondary factors such as geographic a country bordering the Arabian Gulf. proximity and equitable distribution of
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work, but do not attribute greater sig- university and minority institution nificance to the secondary factors than performance as subcontractors. to qualifications and past performance. [56 FR 36421, July 31, 1991, as amended at 59 Do not reject the overall most highly FR 27673, May 27, 1994; 63 FR 41974, Aug. 6, qualified firm solely in the interest of 1998; 63 FR 64430, Nov. 20, 1998; 65 FR 50149, equitable distribution of contracts. Aug. 17, 2000] (A) Consider the volume of work awarded by DoD during the previous 12 236.602–2 Evaluation boards. months. In considering equitable dis- (a) Preselection boards may be used tribution of work among A–E firms, in- to identify to the section board the clude small business concerns; histori- qualified firms that have a reasonable cally black colleges and universities chance of being considered as most and minority institutions; firms that highly qualified by the selection board. have not had prior DoD contracts; and [63 FR 11538, Mar. 9, 1998] small disadvantaged business concerns and joint ventures with small dis- 236.602–4 Selection authority. advantaged business participants if the (a) The selection authority shall be North American Industry Classifica- at a level appropriate for the dollar tion System (NAICS) Industry Sub- value and nature of the proposed con- sector of the acquisition is one in tract. which use of a price evaluation adjust- (c) A finding that some of the firms ment is currently authorized (see FAR on the selection report are unqualified 19.201(b)). does not preclude approval of the re- (1) Use data extracted from the De- port, provided that a minimum of three fense Contract Action Data System most highly qualified firms remains. (DCADS) compiled from DD Form 350, The reasons for finding a firm or firms Individual Contracting Action Report. unqualified must be recorded. DCADS data may be obtained from the [63 FR 11538, Mar. 9, 1998] central data base identified in 236.201(c)(1). 236.602–70 Restriction on award of (2) Do not consider awards to over- overseas architect-engineer con- seas offices for projects outside the tracts to foreign firms. United States, its territories and pos- In accordance with Section 111 of sessions. Do not consider awards to a Public Law 104–32 and similar sections subsidiary if the subsidiary is not nor- in subsequent military construction mally subject to management deci- appropriations acts, A–E contracts sions, bookkeeping, and policies of a funded by military construction appro- holding or parent company or an incor- priations that are estimated to exceed porated subsidiary that operates under $500,000 and are to be performed in a firm name different from the parent Japan, in any North Atlantic Treaty company. This allows greater competi- Organization member country, or in tion. countries bordering the Arabian Gulf, (B) Consider as appropriate superior shall be awarded only to United States performance evaluations on recently firms or to joint ventures of United completed DoD contracts. States and host nation firms. (C) Consider the extent to which po- [62 FR 2858, Jan. 17, 1997] tential contractors identify and com- mit to small business, to small dis- 236.604 Performance evaluation. advantaged business (SDB) if the (a) Preparation of performance reports. NAICS Industry Subsector of the sub- Use DD Form 2631, Performance Eval- contracted effort is one in which use of uation (Architect-Engineer), instead of an evaluation factor or subfactor for SF 1421. participation of SDB concerns is cur- (2) Prepare a separate performance rently authorized (see FAR 19.201(b)), evaluation after actual construction of and to historically black college or the project. Ordinarily, the evaluating
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official should be the person most fa- 236.609 Contract clauses. miliar with the A–E’s performance. (c) Distribution and use of perform- 236.609–70 Additional provision and ance reports. clause. (i) Forward each performance report (a)(1) Use the clause at 252.236–7009, to the central data base identified in Option for Supervision and Inspection 236.201(c) after completing the review. Services, in solicitations and contracts The procedures in 236.201 also apply to for A–E services when— A–E contracts. (i) The contract will be fixed price; and (ii) File and use the DD Form 2631, (ii) Supervision and inspection serv- Performance Evaluation (Architect- ices by the A–E may be required during Engineer), in a manner similar to the construction. SF 254, Architect-Engineer and Related (2) Include the scope of such services Services Questionnaire. in appendix A of the contract. [56 FR 36421, July 31, 1991, as amended at 61 (b) Use the provision at 252.236–7011, FR 7749, Feb. 29, 1996; 64 FR 51076, Sept. 21, Overseas Architect-Engineer Services— 1999] Restriction to United States Firms, in solicitations for A–E contracts that 236.606 Negotiations. are— (1) Funded with military construc- 236.606–70 Statutory fee limitation. tion appropriations; (a) 10 U.S.C. 4540, 7212, and 9540 limit (2) Estimated to exceed $500,000; and the contract price (or fee) for A–E serv- (3) To be performed in Japan, in any North Atlantic Treaty Organization ices for the preparation of designs, member country, or in countries bor- plans, drawings, and specifications to dering the Arabian Gulf. six percent of the project’s estimated construction cost. [56 FR 36421, July 31, 1991, as amended at 62 (b) The six percent limit also applies FR 2858, Jan. 17, 1997; 63 FR 11539, Mar. 9, 1998] to contract modifications, including modifications involving— (1) Work not initially included in the Subpart 236.7—Standard and Op- contract. Apply the six percent limit to tional Forms for Contracting the revised total estimated construc- for Construction, Architect-En- tion cost. gineer Services, and Disman- (2) Redesign. Apply the six percent tling, Demolition, or Removal limit as follows— of Improvements (i) Add the estimated construction 236.701 Standard and optional forms cost of the redesign features to the for use in contracting for construc- original estimated construction cost; tion or dismantling, demolition, or (ii) Add the contract cost for the removal of improvements. original design to the contract cost for (c) Do not use Optional Form 347, redesign; and Order for Supplies or Services (see (iii) Divide the total contract design 213.307). cost by the total estimated construc- [56 FR 36421, July 31, 1991, as amended at 65 tion cost. The resulting percentage FR 63804, Oct. 25, 2000] may not exceed the six percent statu- tory limitation. PART 237—SERVICE CONTRACTING (c) The six percent limit applies only to that portion of the contract (or Subpart 237.1—Service Contracts— modification) price attributable to the General preparation of designs, plans, drawings, and specifications. If a contract or Sec. modification also includes other serv- 237.102–70 Prohibition on contracting for firefighting or security-guard functions. ices, the part of the price attributable 237.104 Personal services contracts. to the other services is not subject to 237.106 Funding and term of service con- the six percent limit. tracts.
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237.109 Services of quasi-military armed Subpart 237.1—Service forces. Contracts—General Subpart 237.2—Advisory and Assistance 237.102–70 Prohibition on contracting Services for firefighting or security-guard 237.201 Definition. functions. 237.203 Policy. (a) Under 10 U.S.C. 2465, the DoD is 237.270 Acquisition of audit services. prohibited for entering into contracts 237.271 Management controls. for the performance of firefighting or 237.272 Requesting activity responsibilities. security-guard functions at any mili- tary installation or facility unless— Subpart 237.70—Mortuary Services (1) The contract is to be carried out at a location outside the United States 237.7000 Scope. (to include any U.S. commonwealth, 237.7001 Method of acquisition. territory, or possession) at which mem- 237.7002 Area of performance. 237.7003 Distribution of contracts. bers of the armed forces would have to 237.7004 Solicitation provisions and con- be used for the performance of fire- tract clauses. fighting or security-guard functions at the expense of unit readiness; Subpart 237.71—Laundry and Dry Cleaning (2) The contract will be carried out Services on a Government-owned but privately operated installation; or 237.7100 Scope. (3) The contract (or renewal of a con- 237.7101 General. tract) is for the performance of a func- 237.7102 Solicitation provisions and con- tion under contract on September 24, tract clauses. 1983. (b) Under Section 2907 of Public Law Subpart 237.72—Educational Service 103–160, this prohibition does not apply Agreements to services at installations being closed 237.7200 Scope. (see subpart 237.74). 237.7201 Educational service agreement. [60 FR 61599, Nov. 30, 1995] 237.7202 Limitations. 237.7203 Duration. 237.104 Personal services contracts. 237.7204 Format and clauses for educational (b)(i) Authorization to acquire the service agreements. personal services of experts and con- Subpart 237.73—Services of Students at sultants is included in Public Law 101– Research and Development Laboratories 165, section 9002. Personal service con- tracts for expert and consultant serv- 237.7300 Scope. ices must also be authorized by a deter- 237.7301 Definitions. mination and findings (D&F) in accord- 237.7302 General. ance with department/agency regula- 237.7303 Contract clauses. tions. (A) Generally, the D&F should au- Subpart 237.74—Services at Installations thorize one contract at a time; how- Being Closed ever, an authorizing official may issue 237.7400 Scope. a blanket D&F for classes of contracts. 237.7401 Policy. (B) Prepare each D&F in accordance 237.7402 Contract clause. with FAR 1.7 and include a determina- tion that— AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- (1) The duties are of a temporary or ter 1. intermittent nature; SOURCE: 56 FR 36424, July 31, 1991, unless (2) Acquisition of the services is ad- otherwise noted. vantageous to the national defense;
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(3) DoD personnel with necessary (2) Services of clinical counselors, skills are not available; family advocacy program staff, and (4) Excepted appointment cannot be victim’s services representatives (see obtained; 237.104(b)(ii)(A)(2)), shall be in accord- (5) A nonpersonal services contract is ance with agency procedures. not practicable; (D) The contracting officer must en- (6) Statutory authority, 5 U.S.C. 3109 sure that the requiring activity pro- and other legislation, apply; and vides a copy of the approval with the (7) Any other determination required purchase request. by statues has been made. (E) The contracting officer must pro- (ii) Personal services contracts for vide adequate advance notice of con- health care are authorized by 10 U.S.C. tracting opportunities to individuals 1091. residing in the area of the facility. The (A) This authority may be used to ac- notice must include the qualification quire— criteria against which individuals re- (1) Direct health care services pro- sponding will be evaluated. The con- vided in medical treatment facilities; tracting officer shall solicit applicants and through at least one local publication (2) Services of clinical counselors, which serves the area of the facility. family advocacy program staff, and Acquisitions under this section for per- victim’s services representatives to sonal service contracts are exempt members of the Armed Forces and cov- from the posting and synopsis require- ered beneficiaries who require such ments of FAR part 5. services, provided in medical treat- (F) The contracting officer shall pro- ment facilities or elsewhere. Persons vide the qualifications of individuals with whom a personal services contract responding to the notice to the com- may be entered into under this author- mander of the facility for evaluation ity include clinical social workers, psy- and ranking in accordance with agency chologists, psychiatrists, and other procedures. Individuals must be consid- comparable professionals who have ad- ered solely on the basis of the profes- vanced degrees in counseling or related sional qualifications established for academic disciplines and who meet all the particular personal services being requirements for State licensure and acquired and the Government’s esti- board certification requirements, if mate of reasonable rates, fees, or other any, within their fields of specializa- costs. The commander of the facility tion. shall provide the contracting officer (B) Sources for personal services con- with rationale for the ranking of indi- tracts with individuals under the au- viduals, consistent with the required thority of 10 U.S.C. 1091 shall be se- qualifications. lected through the procedures in this (G) Upon receipt from the facility of section. These procedures do not apply the ranked listing of applicants, the to contracts awarded to business enti- contracting officer shall either— ties other than individuals. Selections (1) Enter into negotiations with the made using the procedures in this sec- highest ranked applicant. If a mutually tion are exempt by statute from FAR satisfactory contract cannot be nego- part 6 competition requirements (see tiated, the contracting officer shall 206.001(b)). terminate negotiations with the high- (C) Approval requirements for— est ranked applicant and enter into ne- (1) Direct health care personal serv- gotiations with the next highest. ice contracts (see 237.104(b)(ii)(A)(1)) (2) Enter into negotiations with all and a pay cap are in DoDI 6025.5, Per- qualified applicants and select on the sonal Services Contracting Authority basis of qualifications and rates, fees, for Direct Health Care Providers. Re- or other costs. quests to enter into a personal service (H) In the event only one individual contract for direct health care services responds to an advertised requirement, must be approved by the commander of the contracting officer is authorized to the medical/dental treatment facility negotiate the contract award. In this where the services will be performed. case, the individual must still meet the
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minimum qualifications of the require- § 237.109 Services of quasi-military ment and the contracting officer must armed forces. be able to make a determination that See 237.102–70b for prohibition on con- the price is fair and reasonable. tracting for firefighting or security- (I) If a fair and reasonable price can- guard functions. not be obtained from a qualified indi- [60 FR 61599, Nov. 30, 1995] vidual, the requirement should be can- celed and acquired using procedures other than those set forth in this sec- Subpart 237.2—Advisory and tion. Assistance Services (f)(i) Payment to each expert or con- § 237.201 Definition. sultant for personal services under 5 U.S.C. 3109 shall not exceed the highest ‘‘Advisory and assistance services,’’ rate fixed by the Classification Act as used in this subpart, means services Schedules for grade GS–15 (see 5 CFR in the following three major categories when provided by nongovernmental 304.105(a)). sources (10 U.S.C. 2212): (ii) The contract may provide for the (1) Management and professional sup- same per diem and travel expenses au- port services. This category consists of thorized for a Government employee, services that— including actual transportation and (i) Provide engineering or technical per diem in lieu of subsistence for trav- support, assistance, advice, or training el between home or place of business for the efficient and effective manage- and official duty station. ment and operation of organizations, (iii) Coordinate with the civilian per- activities, or systems; sonnel office on benefits, taxes, per- (ii) Are closely related to the basic sonnel ceilings, and maintenance of responsibilities and mission of the records. using organization; and (iii) Include efforts that support or [56 FR 36424, July 31, 1991, as amended at 60 contribute to improved organization or FR 2888, Jan. 12, 1995; 60 FR 61599, Nov. 30, program management, logistics man- 1995; 63 FR 11539, Mar. 9, 1998] agement, project monitoring and re- 237.106 Funding and term of service porting, data collection, budgeting, ac- contracts. counting, auditing, and administrative or technical support for conferences (1) Personal service contracts for ex- and training programs. pert or consultant services shall not (2) Studies, analyses, and evaluations. exceed 1 year. The nature of the duties This category consists of services must be— that— (i) Temporary (not more than 1 year); (i) Provide organized, analytic assess- or ments to understand or evaluate com- (ii) Intermittent (not cumulatively plex issues to improve policy develop- more than 130 days in 1 year). ment, decision-making, management, (2) The contracting officer may enter or administration; into a contract, exercise an option, or (ii) Result in documents containing place an order under a contract for sev- data or leading to conclusions or rec- erable services for a period that begins ommendations; and in one fiscal year and ends in the next (iii) May include databases, models, fiscal year if the period of the contract methodologies, and related software awarded, option exercised, or order created in support of a study, analysis, placed does not exceed 1 year (10 U.S.C. or evaluation. (3) Engineering and technical services. 2410a). This category consists of services that [64 FR 28110, May 25, 1999] take the form of advice, assistance,
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training, or hands-on training nec- services unless the requiring activity essary to maintain and operate fielded provides evidence that the cognizant weapon systems, equipment, and com- DoD audit organization has approved ponents (including software when ap- the statement of work. The requiring plicable) at design or required levels of agency shall obtain the same evidence effectiveness. of approval for subsequent material changes to the statement of work. [64 FR 39430, July 22, 1999, as amended at 66 (d) Solicitation provisions and contract FR 49861, Oct. 1, 2001] clauses. (1) Use the provision of 252.237– 237.203 Policy. 7000, Notice of Special Standards of Re- sponsibility, in solicitations for audit (1) Every contract for engineering services. and technical services, alone or as part (2) Use the clause at 252.237–7001, of an end item, shall— Compliance with Audit Standards, in (i) Show those services as a sepa- solicitations and contracts for audit rately priced line item; services. (ii) Contain definitive specifications for the services; and [56 FR 36424, July 31, 1991, as amended at 57 (iii) Show the work-months involved. FR 42632, Sept. 15, 1992. Redesignated and (2) Agency heads may authorize per- amended at 63 FR 11539, Mar. 9, 1998] sonal service contracts for engineering § 237.271 Management controls. and technical services provided on site at Defense locations to meet an un- DoD procedures are in DoDD 4205.2, usual essential mission need. The au- Acquiring and Managing Contracted thorization will be for an interim pe- Advisory and Assistance Services riod only. (CAAS). [64 FR 39431, July 22, 1999] [63 FR 11539, Mar. 9, 1998, as amended at 64 FR 39431, July 22, 1999] 237.272 Requesting activity respon- 237.270 Acquisition of audit services. sibilities. (b) On acquisitions for studies, the (a) General policy. (1) Departments purchase request package must contain and agencies shall not contract for a signed statement from the technical audit services unless the cognizant officer responsible for the study stating DoD audit organization determines that the Defense Technical Informa- that expertise required to perform the tion Center (DTIC) and other informa- audit is not available within the DoD tion sources have been queried, that audit organization, or temporary audit evidence of those queries are on file, assistance is required to meet audit re- and no existing scientific or technical porting requirements mandated by law report could fulfill the requirement. or DoD regulation. (c) The authority, without redelega- (2) DoDD 7600.2, Audit Policies, pro- tion authority (see DoDD 4205.2), to ap- vides DoD audit policies. prove the use of advisory and assist- (3) DoDI 7600.6, Audit of Non- ance services in contracts over $50,000 appropriated Fund Instrumentalities is— and Related Activities, provides guid- (i) An SES manager; ance to audit organizations for audits (ii) A general or flag officer; of nonappropriated fund organizations. (iii) An officer in O–6 grade filling a (4) DoD 7600.7–M, Internal Audit Man- general or flag officer level position; or ual, chapter 20, provides policy and (iv) An officer in O–6 grade who has guidance to DoD audit organizations subordinate SES personnel. for the monitoring of audit services provided by non-Federal auditors. [56 FR 36424, July 31, 1991. Redesignated at 63 (b) Contract period. Except in unusual FR 11539, Mar. 9, 1998] circumstances, contracts for recurring audit services shall be awarded for a 1– Subpart 237.70—Mortuary Services year period with at least 2 option years. 237.7000 Scope. (c) Approvals. Contracting officers This subpart contains acquisition shall not issue a solicitation for audit procedures for contracts for mortuary
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services (the care of remains) for mili- 237.7004 Solicitation provisions and tary personnel within the U.S. Depart- contract clauses. ments/agencies may use these proce- (a) Use the provision at 252.237–7002, dures as guidance in areas outside the Award to Single Offeror, in all sealed U.S. for both deceased military and ci- bid solicitations for mortuary services. vilian personnel. Use the basic provision with its Alter- nate I in all negotiated solicitations 237.7001 Method of acquisition. for mortuary services. (a) Requirements type contract. By (b) Use the following clauses in all agreement among the military activi- mortuary service solicitations and con- ties, one activity in each geographical tracts, except do not use the clauses at area will contract for the estimated re- 252.237–7004, Area of Performance, and quirements for the care of remains for 252.237–7010, Facility Requirements, in all military activities in the area. Use solicitations or contracts that include a requirements type contract (see FAR port of entry requirements— 16.503) when the estimated annual re- (1) 252.237–7003, Requirements, (insert quirements for the activities in the activities authorized to place orders in area are ten or more. paragraph (e) of the clause); (b) Purchase order. Where no contract (2) 252.237–7004, Area of Performance; exists, use DD Form 1155, Order for (3) 252.237–7005, Performance and De- Supplies and Services/Request for livery; Quotations, to obtain mortuary serv- (4) 252.237–7006, Subcontracting; ices. (5) 252.237–7007, Termination for De- fault; 237.7002 Area of performance. (6) 252.237–7008, Group Interment; Determine and define the geo- (7) 252.237–7009, Permits; graphical area to be covered by the (8) 252.237–7010, Facility Require- contract using the following general ments; and guidelines— (9) 252.237–7011, Preparation History. (a) Use political boundaries, streets, (c) Use the clause at FAR 52.245–4, or other features as demarcation lines. Government-Furnished Property (b) The size should be roughly equiva- (Short Form), in solicitations and con- lent to the contiguous metropolitan or tracts that include port of entry re- municipal area enlarged to include the quirements. activities served. (c) If the area of performance best Subpart 237.71—Laundry and Dry suited to the needs of a particular con- Cleaning Services tract is not large enough to include a carrier terminal commonly used by 237.7100 Scope. people within such area, the contract This subpart contains acquisition area of performance shall specifically procedures for laundry and dry clean- state that it includes such terminal as ing services within the United States. a pickup or delivery point. It may be used as guidance in all other locations. 237.7003 Distribution of contracts. In addition to normal contract dis- 237.7101 General. tribution, send three copies of each (a) Except for hospital requirements, contract to each activity authorized to acquire laundry and dry cleaning serv- use the contract, and two copies to ices on a count-of-articles basis. each of the following— (b) Laundry services in support of (a) HQDA (TAPC–PEC–D), Alexan- hospitals may be acquired on the basis dria, VA 22331. of a count-of-articles or by bulk (b) Commander, Naval Medical Com- weight. mand, Department of the Navy (MED (1) Acquisitions by weight may be on 3141), 23rd and E Streets, NW, Wash- either a presorted (bag type) or ington, DC 20372. unsorted (simple bulk weight) basis. (c) Headquarters, AFMPC–MPCCM, (2) In selecting the basis, consider Randolph AFB, TX 78150. such factors as price, administrative
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costs, aseptic requirements, risk of (g) Use the clause at 252.237–7018, Spe- contamination or cross-contamination, cial Definitions of Government Prop- and volume and nature of articles to be erty, in all solicitations and contracts serviced. for laundry and dry cleaning services.
237.7102 Solicitation provisions and [56 FR 36424, July 31, 1991, as amended at 62 contract clauses. FR 34127, June 24, 1997] (a) Use the provision at 252.237–7012, Subpart 237.72—Educational Instruction to Offerors (Count-of-Arti- cles), in solicitations for laundry and Service Agreements dry cleaning services to be provided on 237.7200 Scope. a count-of-articles basis. (b) Use the provision at 252.237–7013, (a) This subpart prescribes acquisi- Instruction to Offerors (Bulk Weight), tion procedures for educational serv- in solicitations for laundry services to ices from schools, colleges, univer- be provided on a bulk weight basis. sities, or other educational institu- tions. This subpart does not include (c) Use the clause at 252.237–7014, Loss tuition assistance agreements, i.e., or Damage (Count-of-Articles), in so- payment by the Government of partial licitations and contracts for laundry tuition under the off-duty educational and dry cleaning services to be pro- program. vided on a count-of-articles basis. (b) As used in the subpart— (d) Use the clause at 252.237–7015, Loss (1) ‘‘Facilities’’ do not include the in- or Damage (Weight of Articles), in so- stitution’s dining rooms or dor- licitations and contracts for laundry mitories; and and dry cleaning services to be pro- (2) ‘‘Fees’’ does not include charges vided on a bulk weight basis. for meals or lodging. (1) Insert a reasonable per pound price in paragraph (b) of the clause, 237.7201 Educational service agree- based on the average per pound value. ment. When the contract requires laundry (a) An educational service agreement services on a bag type basis, insert rea- is not a contract, but is an ordering sonable per pound prices by bag type. agreement under which the Govern- (2) Insert an appropriate percentage ment may order educational services. in paragraph (e) of the clause, not to (b) Educational service agreements exceed eight percent. provide for ordering educational serv- (e) Use the clause at 252.237–7016, De- ices when— livery Tickets, in all solicitations and (1) The Government pays normal tui- contracts for laundry and dry cleaning tion and fees for educational services services. provided to a student by the institu- (1) Use the clause with its Alternate tion under its normal schedule of tui- I when services are for bag type laun- tion and fees applicable to all students dry to be provided on a bulk weight generally; and basis. (2) Enrollment is at the institution (2) Use the clause with its Alternate under the institution’s normal rules II when services are unsorted laundry and in courses and curricula which the to be provided on a bulk weight basis. institution offers to all students meet- (f) Use the clause at 252.237–7017, Indi- ing admission requirements. vidual Laundry, in solicitations and contracts for laundry and dry cleaning 237.7202 Limitations. services to be provided to individual (a) Make no agreement under this personnel. subpart which will result in payment of (1) Insert the number of pieces of Government funds for tuition or other outer garments in paragraphs (d) (1) expenses for training in any legal pro- and (2) of the clause. fession, except in connection with the (2) The number of pieces and com- detailing of commissioned officers to position of a bundle in paragraphs (d) law schools under 10 U.S.C. 2004. (1) and (2) of the clause may be modi- (b) Educational service agreements fied to meet local conditions. are not used to provide special courses
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or special fees for Government stu- made by modification to this agreement or dents. by issuance of a superseding agreement. If mutual agreement on the changes cannot be 237.7203 Duration. reached, the Government will terminate this agreement. (a) Educational service agreements 5. The parties may amend this agreement are for an indefinite duration and re- only by mutual consent. main in effect until terminated. 6. This agreement shall start on the date in (b) The issuing activity must estab- paragraph 1 and shall continue until termi- lish procedures to review each edu- nated. cational service agreement at least 7. The estimated annual cost of this agree- once each year. Review dates should ment is $lllll. This estimate is for ad- ministrative purposes only and does not im- consider the institution’s academic pose any obligation on the Government to calendar and occur at least 30 days be- request any services or make any payment. fore the beginning of a term. The pur- 8. Advance payments are authorized by 10 pose of the review is to incorporate U.S.C. 2396(a)(3). changes to reflect requirements of any 9. Submit invoices to: llllll (name statute, Executive Order, FAR, or and address of activity). DFARS. SCHEDULE PROVISIONS (c) If the contracting officer and the institution do not agree on required 1. Ordering procedures and services to be pro- changes, terminate the agreement. vided. (a) The Contractor shall promptly de- liver to the Contracting Officer one copy of 237.7204 Format and clauses for edu- each catalog applicable to this agreement, cational service agreements. and one copy of any subsequent revision. (b) The Government will request edu- Educational service agreements cational services under this agreement by a under this subpart shall be in the fol- (insert type of request, such as, delivery lowing format. Add to the schedule any order, official Government order, or other other provisions necessary to describe written communication). The (insert type of the requirements, if they are con- request, such as, delivery order, official Gov- sistent with the following provisions ernment order, or other written communica- tion) will contain the number of this agree- and the policy of acquiring educational ment and will designate as students at the services in the form of standard course Contractor’s institution one or more Govern- offerings at the prevailing rates of the ment-selected persons who have already been institution. accepted for admission under the Contrac- tor’s usual admission standards. EDUCATIONAL SERVICE AGREEMENT (c) All students under this agreement shall register in the same manner, be subject to Agreement No. llllll the same academic regulations, and have the 1. This agreement entered into on the same privileges, including the use of all fa- llll day of lllll 19ll, is between cilities and equipment as any other students the Government, represented by the Con- enrolled in the institution. tracting Officer, and the Contractor, (name (d) Upon enrolling each student under this of institution), an educational institution lo- agreement, the Contractor shall, where the cated in llll (city), llll (state). resident or nonresident status involves a dif- 2. This agreement is for educational serv- ference in tuition or fees— ices to be provided by the Contractor to Gov- (i) Determine the resident or nonresident ernment personnel at the Contractor’s insti- status of the student; tution. The Contractor shall provide instruc- (ii) Notify the student and the Contracting tion with standard offerings of courses avail- Officer of the determination. If there is an able to the public. appeal of the determination; 3. The Government shall pay for services (iii) If there is an appeal of the determina- under the Contractor’s normal schedule of tion, process the appeal under the Contrac- tuition and fees applicable to the public and tor’s standard procedures; in effect at the time the services are per- (iv) Notify the student and Contracting Of- formed. ficer of the result; and 4. The Government will review this agree- (v) Make the determination a part of the ment annually before the anniversary of its student’s permanent record. effective date for the purpose of incor- (e) The Contractor shall not furnish any porating changes required by statutes, exec- instruction or other services to any student utive orders, the Federal Acquisition Regula- under this agreement before the effective tion, or the Defense Federal Acquisition Reg- date of a request for services in the form ulation Supplement. Changes required to be specified in paragraph (b) of this schedule.
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2. Change in curriculum. The Contracting rately. The Contractor shall submit invoices Officer may vary the curriculum for any stu- within llll days after the start of the dent enrolled under this agreement but shall term and shall include— not require or make any change in any (i) Agreement number and inclusive dates course without the Contractor’s consent. of the term; 3. Payment. (a) The Government shall pay (ii) Name of each student; the Contractor the normal tuition and fees (iii) A list showing each course for each which the Contractor charges any students student if the school charges by credit hour; pursuing the same or similar curricula, ex- (iv) The resident or nonresident status of cept for any tuition and fees which this each student (if applicable to the Contrac- agreement excludes. The Contractor may tor’s school); and change any tuition and fees, provided— (v) A breakdown of charges for each stu- (1) The Contractor publishes the revisions dent, including credit hours, tuition, applica- in a catalog or otherwise publicly announces tion fee, and other fees. Provide a total for the revisions; each student and a grand total for all stu- (2) Applies the revisions uniformly to all dents listed on the invoice. students studying the same or similar cur- (h) If unforeseen events require additional ricula; charges that are otherwise payable under the (3) Provides the Contracting Officer notice Contractor’s normal tuition and fee sched- of changes before their effective date. ule, the Contractor may submit a supple- (b) The Contractor shall not establish any mental invoice or make the adjustment on tuition or fees which apply solely to students the next regular invoice under this agree- under this agreement. ment. The Contractor shall clearly identify (c) If the Contractor regularly charges and explain the supplemental invoice or the higher tuition and fees for nonresident stu- adjustment. dents, the Contractor may charge the Gov- (i) The Contractor shall apply any credits ernment the normal nonresident tuition and resulting from withdrawal of students, or fees for students under this agreement who from any other cause under its standard pro- are nonresidents. The Government shall not cedures, to subsequent invoices submitted claim resident tuition and fees for any stu- under this agreement. Credits should appear dent solely on the basis of the student resid- on the first invoice submitted after the ac- ing in the State as a consequence of enroll- tion resulting in the credits. If no subse- ment under this agreement. quent invoice is submitted, the Contractor (d) The Contractor shall charge the Gov- shall deliver to the Contracting Officer a ernment only the tuition and fees which re- check drawn to the order of the office des- late directly to enrollment as a student. Tui- ignated for contract administration. The tion and fees may include— Contractor shall identify the reason for the (i) Penalty fees for late registration or credit and the applicable term dates in all change of course caused by the Government; cases. (ii) Mandatory health fees and health in- 4. Withdrawal of students. (a) The Govern- surance charges; and ment may, at its option and at any time, (iii) Any flat rate charge applicable to all withdraw financial support for any student students registered for research that appears by issuing official orders. The Government in the Contractor’s publicly announced fee will furnish llll copies of the orders to schedule. the Contractor within a reasonable time (e) The Contractor shall not charge the after publication. Government for— (b) The Contractor may request with- (i) Permit charges, such as vehicle reg- drawal by the Government of any student for istration or parking fees, unless specifically academic or disciplinary reasons. authorized in the request for service; and (c) If withdrawal occurs before the end of a (ii) Any equipment, refundable deposits, or term, the Government will pay any tuition any items or services (such as computer and fees due for the current term. The Con- time) related to student research. tractor shall credit the Government with (f) Normally, the Contractor shall not di- any charges eligible for refund under the rectly charge individual students for applica- Contractor’s standard procedures for any tion fees or any other fee chargeable to this students in effect on the date of withdrawal. agreement. However, if the Contractor’s (d) Withdrawal of students by the Govern- standard procedures require payment of any ment will not be the basis for any special fee before the student is enrolled under this charge or claim by the Contractor other agreement, the Contractor may charge the than charges under the Contractor’s stand- student. When the Contractor receives pay- ard procedures. ment from the Government, the Contractor 5. Transcripts. Within a reasonable time shall fully reimburse the student. after withdrawal of a student for any reason, (g) For each term the Contractor enrolls or after graduation, the Contractor shall students under this agreement, the Con- send to the Contracting Officer (or to an ad- tractor shall submit llll copies of an in- dress supplied by the Contracting Officer) voice listing charges for each student sepa- one copy of an official transcript showing all
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work by the student at the institution until elective courses within established criteria. such withdrawal or graduation. Examples include Business Administration, 6. Student teaching. The Government does Civil Engineering, Fine and Applied Arts, not anticipate the Contractor awarding fel- and Physics. A curriculum normally covers lowships and assistantships to students at- more than one term and leads to a degree or tending school under this agreement. How- diploma upon successful completion. ever, for graduate students, should both the (k) ‘‘Catalog’’ means any medium by which student and the Contractor decide it to be in the Contractor publicly announces terms and the student’s best interests to assist in the conditions for enrollment in the Contractor’s institution’s teaching program, the Con- institution, including tuition and fees to be tractor may provide nominal compensation charged. This includes ‘‘bulletin,’’ ‘‘an- for part-time service. Base the compensation nouncement,’’ or any other similar word the on the Contractor’s practices and procedures Contractor may use. for other students of similar accomplish- (l) ‘‘Tuition’’ means the amount of money ment in that department or field. The Con- charged by an educational institution for in- tractor shall apply the compensation as a struction, not including fees. credit against any invoices presented for (m) ‘‘Fees’’ means those applicable charges payment for any period in which the student directly related to enrollment in the Con- performed the part-time teaching service. tractor’s institution. Unless specifically al- 7. Termination of agreement. (a) Either party lowed in the request for services, fees shall may terminate this agreement by giving 30 not include— days advance written notice of the effective (1) Any permit charge, such as parking and date of termination. In the event of termi- vehicle registration; or nation, the Government shall have the right, (2) Charges for services of a personal na- at its option, to continue to receive edu- ture, such as food, housing, and laundry. cational services for those students already 2. FAR 52.203–3, Gratuities. enrolled in the contractor’s institution 3. FAR 52.203–5, Covenant Against Contin- under this agreement until such time that gent Fees. the students complete their courses or cur- 4. FAR 52.204–1, Approval of Contract, if re- ricula or the Government withdraws them quired by department/agency procedures. from the Contractor’s institution. The terms 5. FAR 52.215–2, Audit and Records—Nego- and conditions of this agreement in effect on tiation. the effective date of the termination shall 6. FAR 52.215–8, Order of Precedence—Uni- continue to apply to such students remain- form Contract Format. ing in the Contractor’s institution. 7. Conflicts Between Agreement and Cata- (b) Withdrawal of students under Schedule log. Insert the following clause: provision 4 shall not be considered a termi- nation within the meaning of this provision CONFLICTS BETWEEN AGREEMENT AND 7. CATALOG (c) Termination by either party shall not If there is any inconsistency between this be the basis for any special charge or claim agreement and any catalog or other docu- by the Contractor, other than as provided by ment incorporated in this agreement by ref- the Contractor’s standard procedures. erence or any of the Contractor’s rules and GENERAL PROVISIONS regulations, the provisions of this agreement shall govern. Use the following clauses in educational 8. FAR 52.222–3, Convict Labor. service agreements: 9. Under FAR 22.802, FAR 22.807, and FAR 1. FAR 52.202–1, Definitions, and add the 22.810, use the appropriate clause from FAR following paragraphs (h) through (m). 52.222–26, Equal Opportunity. (h) ‘‘Term’’ means the period of time into 10. FAR 52.233–1, Disputes. which the Contractor divides the academic 11. Assignment of Claims. Insert the fol- year for purposes of instruction. This in- lowing clause: cludes ‘‘semester,’’ ‘‘trimester,’’ ‘‘quarter,’’ or any similar word the Contractor may use. ASSIGNMENT OF CLAIMS (i) ‘‘Course’’ means a series of lectures or No claim under this agreement shall be as- instructions, and laboratory periods, relat- ing to one specific representation of subject signed. 12. FAR 52.252–4, Alterations in Contract, if matter, such as Elementary College Algebra, German 401, or Surveying. Normally, a stu- required by department/agency procedures. dent completes a course in one term and re- SIGNATURE PAGE ceives a certain number of semester hours credit (or equivalent) upon successful com- Agreement No. lllllllllllllll pletion. Date lllllllllllllllllllll (j) ‘‘Curriculum’’ means a series of courses The United States of America having a unified purpose and belonging pri- By: lllllllllllllllllllll marily to one major academic field. It will (Contracting Officer) usually include certain required courses and Activity lllllllllllllllllll
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Location llllllllllllllllll er learning by contract between a non- (Name of Contractor) profit organization employing the stu- By: lllllllllllllllllllll dent and the Government. When it is in (Title) llllllllllllllllllll the best interest of the Government, [56 FR 36424, July 31, 1991, as amended at 60 contracts may be made directly with FR 61599, Nov. 30, 1995; 63 FR 55052, Oct. 14, students. These services are not sub- 1998; 64 FR 49684, Sept. 14, 1999; 64 FR 53447, ject to the requirements of FAR part Oct. 1, 1999] 19, FAR 13.003(b)(1), or DFARS part 219. Award authority for these contracts is Subpart 237.73—Services of Stu- 10 U.S.C. 2304(a)(1) and 10 U.S.C. 2360. dents at Research and Devel- opment Laboratories [56 FR 36424, July 31, 1991, as amended at 60 FR 29500, June 5, 1995; 64 FR 2598, Jan. 15, 237.7300 Scope. 1999] This subpart prescribes procedures 237.7303 Contract clauses. for acquisition of temporary or inter- Contracts made directly with stu- mittent services of students at institu- dents are nonpersonal service contracts tions of higher learning for the purpose but shall include the clauses at FAR of providing technical support at De- 52.232–3, Payments Under Personal fense research and development labora- Services Contracts, and FAR 52.249–12, tories (10 U.S.C. 2360). Termination (Personal Services). 237.7301 Definitions. As used in this subpart— Subpart 237.74—Services at (a) Institution of higher learning means Installations Being Closed any public or private post-secondary school, junior college, college, univer- SOURCE: 59 FR 36089, July 15, 1994, unless sity, or other degree granting edu- otherwise noted. cational institution that— (1) Is located in the United States, its 237.7400 Scope. possessions, and Puerto Rico; This subpart prescribes procedures (2) Has an accredited education pro- for contracting, through use of other gram approved by an appropriate ac- than full and open competition, with crediting body; and local governments for police, fire pro- (3) Offers a program of study at any tection, airfield operation, or other level beyond high school. community services at military instal- (b) Nonprofit organization means any lations to be closed under the Defense organization described by section Authorization Amendments and Base 501(c)(3) of title 26 of the U.S.C. which Closure and Realignment Act (Pub. L. is exempt from taxation under section 100–526), as amended, and the Defense 501(a) of title 26. Base Closure and Realignment Act of (c) Student means an individual en- 1990 (Pub. L. 101–510), as amended. rolled (or accepted for enrollment) at an institution of higher learning before [59 FR 36089, July 15, 1994, as amended at 60 the term of the student technical sup- FR 29500, June 5, 1995] port contract. The individual shall re- main in good standing in a curriculum 237.7401 Policy. designed to lead to the granting of a The authority in 206.302–5(b)(ii) to recognized degree, during the term of contract with local governments— the contract. (a) May be exercised without regard (d) Technical support means any sci- to the provisions of 10 U.S.C. Chapter entific or engineering work in support 146, Contracting for Performance of Ci- of the mission of the DoD laboratory vilian Commercial or Industrial Type involved. It does not include adminis- Functions; trative or clerical services. (b) May not be exercised earlier than 180 days before the date the installa- 237.7302 General. tion is scheduled to be closed; Generally, agencies will acquire serv- (c) Requires a determination by the ices of students at institutions of high- head of the contracting activity that
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the services being acquired under con- 239.7401 Definitions. tract with the local government are in 239.7402 Policy. the best interests of the Department of 239.7403 Regulatory bodies. Defense. 239.7404 Foreign carriers. (d) Includes the requirement of sub- 239.7405 Multiyear contracting authority for telecommunications resources. part 222.71, Right of First Refusal of 239.7406 Cost or pricing data and informa- Employment, unless it conflicts with tion other than cost or pricing data. the local government’s civil service se- 239.7407–1 General. lection procedures. 239.7407–2 Communication service author- izations (CSAs). [59 FR 36089, July 15, 1994, as amended at 60 FR 29500, June 5, 1995] 239.7408 Special construction. 239.7408–1 General. 237.7402 Contract clause. 239.7408–2 Applicability of construction labor standards for special construction. Use the clause at 252.237–7022, Serv- 239.7409 Special assembly. ices at Installations Being Closed, in 239.7410 Cancellation and termination. solicitations and contracts based upon 239.7411 Contract clauses. the authority of this subpart. Subpart 239.75—Appropriations Act [59 FR 36089, July 15, 1994, as amended at 60 Restrictions FR 29500, June 5, 1995] 239.7500 Scope of subpart. PART 239—ACQUISITION OF 239.7501 Major automated information sys- INFORMATION TECHNOLOGY tems restriction. AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- Subpart 239.70—Exchange or Sale of ter 1. Information Technology (IT) SOURCE: 56 FR 36429, July 31, 1991, unless otherwise noted. Sec. 239.7000 Scope of subpart. 239.7001 Policy. Subpart 239.70 Exchange or Sale 239.7002 Conditions for using exchange/sale. of Information Technology (IT) 239.7003 Procedures.
Subpart 239.71—Security and Privacy for SOURCE: 62 FR 1059, Jan. 8, 1997, unless oth- Computer Systems erwise noted. 239.7100 Scope of subpart. 239.7000 Scope of subpart. 239.7101 General. 239.7102 Security against compromising This subpart contains unique DoD emanations. procedures for the exchange or sale of 239.7102–1 General. information technology using the ex- 239.7102–2 Validation of TEMPEST compli- change authority of the General Serv- ance. ices Administration (GSA). This sub- 239.7102–3 Contract clause. part only applies to items with an original acquisition cost of $1,000,000 or Subpart 239.72—Standards more. 239.7200 Scope of subpart. 239.7201 [Reserved] 239.7001 Policy. 239.7202 Waivers. Agencies should consider exchange/ sale when replacing Government-owned Subpart 239.73—Acquisition of Automatic information technology. Exchange/sale Data Processing Equipment by DoD is a method of— Contractors (a) Transferring the equipment to be 239.7300 Scope of subpart. replaced to— 239.7301 Applicability. (1) Another Government agency, with 239.7302 Approvals and screening. reimbursement (sale); or 239.7303 Contractor documentation. (2) The supplier of the replacement information technology for a trade-in Subpart 239.74—Telecommunications allowance (exchange). Services (b) Applying the proceeds of sale or 239.7400 Scope. the exchange allowance toward the
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purchase of replacement information sion, Attn: D03D, 701 South Courthouse technology. Road, Arlington, VA 22204–2199. Promi- nently display the following note on 239.7002 Conditions for using ex- the original and five copies of the SF change/sale. 120: (a) The requiring activity must make a written determination that— Exchange/‘‘Sale’’ Property (1) The trade-in allowance of the ex- change or the proceeds of the sale will A written administrative determina- be applied to acquire the replacement tion has been (will be) made to apply information technology; and the exchange allowance or proceeds of (2) The exchange/sale transaction will ‘‘sale’’ to the acquisition of similar foster the economic and efficient ac- items. complishment of a continuing require- (2) Include the following additional ment. information with the SF 120: (b) The replacement equipment must be information technology— (i) The identity of the offeror of the (1) Similar to the resource being sold exchange; or exchanged; (ii) The type of replacement equip- (2) Which will satisfy the continuing ment; requirement currently met by the re- (iii) The acquisition method for the source being replaced. replacement equipment; (iv) The anticipated purchase price 239.7003 Procedures. for the replacement equipment; and (a) Comply with— (v) The name and telephone number (1) This subpart; of the contracting officer. (2) Subpart 217.70; and (g) Evaluate offers using the solicita- (3) The Defense Automation Re- tion criteria, including consideration sources Management Manual. of any exchange allowance offers. (b) Solicit offers both on an exchange Award can be made whether or not the (trade-in for allowance) or no exchange replaced information technology is ex- (no trade-in) basis. changed. (c) Retain the option to exercise any (h) Before a contract is awarded, con- exchange offer at the time of award. sider the results of the screening. Do (d) List and describe the information technology to be exchanged in the so- not make an exchange if another Gov- licitation. At a minimum include— ernment agency wants to acquire the (1) A brief description of each item; replaced equipment. (2) Name of manufacturer; (1) If another agency is going to ac- (3) Equipment type; quire the replaced equipment, do not (4) Model number; and include the exchange allowance in the (5) The condition code and expla- contract price. nation of the code. (2) The actual sale price to the agen- (e) Allow sufficient time in the con- cy acquiring the replaced equipment tracting schedule to permit screening will be the exchange allowance (if any) within the Government of the informa- of the successful offeror. tion technology to be exchanged prior (i) If no Government agency wants to to contract award. acquire the replaced equipment, the (f) Immediately upon receipt of of- contract price shall include the ex- fers, determine the highest exchange change allowance, if any. offer (if any) and use it to initiate (j) If no exchange allowance was of- screening under the Defense Automa- fered by the successful contractor, see tion Resources Management Manual. the Defense Automation Resources (1) Send an SF 120, Report of Excess Management Manual for disposal in- Personal Property, to the Defense In- structions. formation Systems Agency, Chief In- formation Officer, Defense Automation [62 FR 1059, Jan. 8, 1997, as amended at 62 FR Resources Management Program Divi- 34127, June 24, 1997; 62 FR 49305, Sept. 19, 1997]
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Subpart 239.71—Security and 239.7102–2 Validation of TEMPEST Privacy for Computer Systems compliance. Include requirements for validation 239.7100 Scope of subpart. of TEMPEST compliance in section E This subpart applies to all acquisi- (Inspection and Acceptance) of the con- tions for computer systems. It covers tract. both security and Privacy Act consid- erations. 239.7102–3 Contract clause. When contracting for computer 239.7101 General. equipment or systems that are to be Security requirements are in addi- used to process classified information, tion to provisions concerning protec- use the clause at 252.239–7000, Protec- tion of privacy of individuals (see FAR tion Against Compromising Ema- subpart 24.1). nations.
239.7102 Security against compro- [62 FR 34127, June 24, 1997] mising emanations. Subpart 239.72—Standards 239.7102–1 General. (a) The National Security or Atomic 239.7200 Scope of subpart. Energy Acts, as amended, may require This subpart contains guidance for protection of information that is— implementing— (1) Processed; (a) Federal Information Processing (2) Transmitted; Standards (FIPS); and (3) Stored; (b) Federal Telecommunications (4) Retrieved; or Standards (FED-STD). (5) Displayed. (b) When acquiring computer equip- 239.7201 [Reserved] ment to be used to process classified information, the contracting officer 239.7202 Waivers. shall obtain from the requiring activ- (a) The Secretary of Commerce has ity— delegated to the Secretary of Defense (1) A determination as to whether the the authority to waive FIP standards, equipment must provide protection in accordance with procedures estab- against compromising emanations; and lished by the Secretary of Commerce. (2) Identification of an established The Secretary of Defense redelegated National TEMPEST standard (e.g., that waiver authority to the Assistant NACSEM 5100, NACSIM 5100A) or a Secretary of Defense for Command, standard used by other authority. Control, Communications, and Intel- (c) When contracts will require the ligence (ASD(C3I)). The ASD(C3I) has use of FIP resources involving classi- redelegated to the senior information fied data, programs, etc., the con- technology official of each military de- tracting officer shall obtain from the partment the authority to approve requiring activity— waivers to FIP standards that are ap- (1) Advice to whether to require con- plicable to military department re- tractors performing these services to quirements. Waivers to FIP standards use equipment meeting the require- that are applicable to the requirements ments in paragraph (a) of this sub- of DoD components outside the mili- section (as prescribed in the clause at tary departments must be approved by 252.239–7000, Protection Against Com- the ASD(C3I). promising Emanations; (b) Contracting officers shall ensure (2) Information concerning any re- that all applicable FIP standards are quirement for marking of TEMPEST— incorporated into solicitations, except certified equipment (especially if to be for those FIP standards for which the reused); and requiring activity has obtained a waiv- (3) Information on how to validate er from the appropriate military de- TEMPEST equipment compliance with partment or DoD senior information required standards. technology official.
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(c) As part of the Commerce Business satisfy the contractor’s needs. The re- Daily synopsis of a solicitation, con- quest should include the contractor’s tracting officers shall publish a notice supporting documentation. The request of any determinations to waive any is sent to— FIP standards that are applicable to Defense Information Systems Agency, Chief the solicitation. If the waiver deter- Information Officer, Defense Automation mination is made after the notice of Resources Management Program Division, the solicitation is published, the con- Attn: D03D, 701 South Courthouse Road, tracting officer shall amend the notice Arlington, VA 22204–2199; or to announce the waiver determination. (ii) Uses the Automation Resources [56 FR 36429, July 31, 1991, as amended at 62 Management System (ARMS) to screen FR 1060, Jan. 8, 1997] on-line. System access may be re- quested from the Defense Information Subpart 239.73—Acquisition of Systems Agency, Chief Information Of- ficer, Defense Automation Resources Automatic Data Processing Management Program (DARMP) Divi- Equipment by DoD Contrac- sion. Customers may apply for an tors ARMS Account Number by calling the DARMP Help Desk at (703) 696–1904; 239.7300 Scope of subpart. DSN 426–1904, FAX (703) 696–1908; E- This subpart prescribes approval re- mail [email protected]. quirements for automatic data proc- (iii) Documents the result of the Sys- essing equipment (ADPE) purchased by tem query. contractors for use in performing DoD (iv) Upon receipt of and based on contracts. screening results from DARMP, advises [62 FR 9376, Mar. 3, 1997] the contractor that excess ADPE— (A) Is available pursuant to the De- 239.7301 Applicability. fense Automation Resources Manage- (a) This subpart applies when the ment Manual; or contractor purchases ADPE and title (B) Is not available and the con- will pass to the Government. tractor may proceed with acquisition (b) This subpart does not apply to of the equipment. ADPE acquired as a component of an (3) The contracting officer— end item. (i) Reviews the contractor’s docu- mentation; [56 FR 36429, July 31, 1991, as amended at 62 (ii) Decides whether to authorize the FR 9376, Mar. 3, 1997] acquisition; and 239.7302 Approvals and screening. (iii) Advises— (A) The contractor if authorization is (a) The requirements of this section not granted; and highlight the redistribution require- (B) The administrative contracting ments of the Defense Automation Re- officer if authorization is granted. sources Management Manual, and are in addition to those at FAR 45.302. [56 FR 36429, July 31, 1991, as amended at 62 (b) If the contractor proposes acquir- FR 1060, Jan. 8, 1997; 62 FR 9376, Mar. 3, 1997; ing ADPE subject to 239.7301, and the 62 FR 34127, June 24, 1997] unit acquisition cost is $50,000 or more— 239.7303 Contractor documentation. (1) The contracting officer shall re- Contracting officers may tailor the quire the contractor to submit, documentation requirements in para- through the administrative con- graphs (a) through (d) of this section. tracting officer, the documentation in (a) List of existing ADPE and an anal- 239.7303. ysis of its use. (1) List of each compo- (2) The administrative contracting nent identified by manufacturer, type, officer— model number, location, date of instal- (i) Submits a request for screening lation, and how acquired (lease, pur- the requirement against the pool of chase, Government-furnished). Identify Government-owned ADPE to determine those acquired specifically to perform if available excess equipment could a Government contract.
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(2) Reliability and usage data on each telecommunications services outside component for the past 12 months. the territorial limits of the United (3) Identification of users supported States. by each component, including how (c) Governmental regulatory body much time each user requires the com- means the Federal Communications ponent and the related contract or task Commission, any statewide regulatory involved. body, or any body with less than state- (b) List of new ADPE needed and rea- wide jurisdiction when operating under sons why it is needed. (1) Estimates of the State authority. The following are the new equipment’s useful life. not ‘‘governmental regulatory bod- (2) List of tasks the new equipment is ies’’— needed for and why, including esti- (1) Regulatory bodies whose decisions mated monthly usage for each major are not subject to judicial appeal; and task or project. (2) Regulatory bodies which regulate (3) Anticipated software and tele- a company owned by the same entity communications requirements. which creates the regulatory body. (c) Selection of computer equipment. (1) (d) Noncommon carrier means any en- If the acquisition is competitive— tity other than a common carrier offer- (i) List sources solicited and pro- ing telecommunications facilities, posals received; services, or equipment for lease. (ii) Show how the evaluation was per- (e) Security, sensitive information, and formed; and telecommunications systems have the (iii) Provide an explanation if the se- meaning given in the clause at 252.239– lected offer is not the lowest evaluated 7016, Telecommunications Security offer. Equipment, Devices, Techniques, and (2) If the acquisition is not competi- Services. tive, state why. (f) Telecommunications means the (d) Cost. State the ADPE cost. transmission, emission, or reception of [62 FR 9376, Mar. 3, 1997] signals, signs, writing, images, sounds, or intelligence of any nature, by wire, Subpart 239.74— cable, satellite, fiber optics, laser, radio, or any other electronic, electric, Telecommunications Services electromagnetic, or acoustically cou- 239.7400 Scope. pled means. (g) Telecommunications services means This subpart prescribes policy and the services acquired, whether by lease procedures for acquisition of tele- or contract, to meet the Government’s communications services and mainte- telecommunications needs. The term nance of telecommunications security. includes the telecommunications fa- Telecommunications services may also cilities and equipment necessary to meet the definition of information provide such services. technology. [62 FR 1060, Jan. 8, 1997] 239.7402 Policy. (a) Acquisition. (1) DoD policy is to 239.7401 Definitions. acquire telecommunications services As used in this subpart— from common and noncommon tele- (a) Common carrier means any entity communications carriers— engaged in the business of providing (i) On a competitive basis, except telecommunications services which are when acquisition using other than full regulated by the Federal Communica- and open competition is justified. tions Commission or other govern- (ii) Recognizing the regulations, mental body. practices, and decisions of the Federal (b) Foreign carrier means any person, Communications Commission (FCC) partnership, association, joint-stock and other governmental regulatory company, trust, governmental body, or bodies on rates, cost principles, and ac- corporation not subject to regulation counting practices; by a U.S. governmental regulatory (iii) Making provision in tele- body and not doing business as a cit- communications services contracts for izen of the United States, providing adoption of—
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(A) FCC approved practices; or quired for performance of Government (B) The generally accepted practices contracts. of the industry on those issues con- (3) Except as provided in paragraph cerning common carrier services (b)(4) of this subsection, contractors where— and subcontractors shall normally pro- (1) The governmental regulatory vide all required telecommunications body has not expressed itself; security equipment or devices as plant (2) The governmental regulatory equipment in accordance with FAR body has declined jurisdiction; or part 45. In some cases, such as for com- (3) There is no governmental regu- munications security (COMSEC) equip- latory body to decide. ment designated as controlled cryp- (2) DoD’s unique consumer needs in tographic item (CCI), contractors or both volume and technology require subcontractors must also meet owner- DoD to participate actively in the rule ship eligibility conditions. making process of cognizant govern- (4) When the contractor or subcon- mental regulatory bodies. DoD also tractor does not meet ownership eligi- must work with the government regu- bility conditions, the head of the agen- latory bodies and common carriers to cy may authorize provision of the nec- be sure that in those areas in which the essary facilities as Government-fur- FCC cannot or will not rule, sound reg- nished property or acquisition as con- ulatory practices are followed. DoD tractor-acquired property, as long as should make every effort to avoid the conditions of FAR 45.303 are met. time and expense of litigation by full [56 FR 36429, July 31, 1991, as amended at 56 and fair disclosure of both the carrier’s FR 67220, Dec. 30, 1991; 62 FR 1060, Jan. 8, and the DoD’s position in advance. 1997] (3) If actions do not produce reason- able or lawful rates, or when there is a 239.7403 Regulatory bodies. refusal to provide required services or The FCC and other governmental file appropriate tariffs, DoD should regulatory bodies publish rules and litigate. All contracts with the regu- regulations on the operations of com- latory bodies should be through coun- mon carriers and prescribe accounting sel under department/agency and De- principles to use to establish rates. fense Information Systems Agency pro- cedures. 239.7404 Foreign carriers. (b) Security. (1) The contracting offi- (a) Frequently, foreign carriers are cer shall ensure, in accordance with owned by the government of the coun- agency procedures, that purchase re- try in which they operate. The foreign quests identify— governments often prescribe the meth- (i) The nature and extent of informa- ods of doing business. In many coun- tion requiring security during tele- tries, an international agreement with communications; the host country sets guidelines for ac- (ii) The requirement for the con- quiring communication services. In tractor to secure telecommunications some countries, a corporate subsidiary systems; of a carrier not indigenous to the coun- (iii) The telecommunications secu- try (often a U.S. parent) is the sole rity equipment, devices, techniques, or source for telecommunications serv- services with which the contractor’s ices. telecommunications security equip- (b) Contracts for telecommunications ment, devices, techniques, or services services in foreign countries should de- must be interoperable; and scribe rates and practices in as much (iv) The approved telecommuni- detail as possible. It is DoD policy not cations security equipment, devices, to pay discriminatory rates. DoD techniques, or services, such as found should pay a reasonable rate for tele- in the National Security Agency’s In- communications services or the rate formation Systems Security Products charged the military of that country, and Services Catalogue. whichever is less. (2) Contractors and subcontractors (c) Refer special problems with tele- shall provide all telecommunications communications acquisition in foreign security techniques or services re- countries to higher headquarters for
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resolution with appropriate State De- (2) Special rates and charges not in- partment representatives. cluded in a tariff, whether filed or to be filed; 239.7405 Multiyear contracting au- (3) Special assembly rates and thority for telecommunications re- charges; sources. (4) Special construction and equip- (a) The General Services Administra- ment charges; tion (GSA) has exclusive multiyear (5) Contingent liabilities that are contracting authority for tele- fixed at the outset of the service; communications resources. However, (6) Proposed cancellation and termi- GSA may delegate this authority in nation charges under the clause at certain instances (see Federal Property 252.239–7007, Cancellation or Termi- Management Regulations (FPMR) 101– nation of Orders—Common Carriers, 35.6). and reuse arrangements under the (b) In accordance with FPMR 101– clause at 252.239–7008, Reuse Arrange- 35.6, executive agencies may enter into ments; multiyear contracts for telecommuni- (7) Rates contained in voluntary tar- cations resources if— iffs filed by nondominant common car- (1) The agency notifies GSA prior to riers; or using GSA’s multiyear contracting au- (8) A tariff, whether filed or to be thority; filed, for new services installed or de- (2) The contract life, including op- veloped primarily for Government use. tions, does not exceed 10 years; and [62 FR 40473, July 29, 1997, as amended at 63 (3) The agency complies with OMB FR 11539, Mar. 9, 1998] budget and accounting procedures re- lating to appropriated funds. 239.7407–1 General. In addition to acquisition methods [63 FR 11539, Mar. 9, 1998] described in the FAR, the method de- scribed in this section may be used to 239.7406 Cost or pricing data and in- formation other than cost or pric- acquire telecommunications services. ing data. 239.7407–2 Communication service au- (a) Common carriers are not required thorizations (CSAs). to submit cost or pricing data before Basic agreements (see FAR 16.702) are award of contracts for tariffed services. used widely in conjunction with com- Rates or preliminary estimates quoted munication service authorizations to by a common carrier for tariffed tele- facilitate award of telecommunications communications services are consid- services. ered to be prices set by regulation (a) Use DD Form 428, Communication within the provisions of 10 U.S.C. 2306a. Service Authorization (CSA), or an This is true even if the tariff is set electronic data processing substitute after execution of the contract. to award, modify, cancel, or terminate (b) Rates or preliminary estimates telecommunications services. The CSA quoted by a common carrier for shall— nontariffed telecommunications serv- (1) Refer to the basic agreement; ices or by a noncommon carrier for any (2) Specify the types and quantities telecommunications service are not and equipment to be provided as well considered prices set by law or regula- as the tariff (or other price if a tariff is tion. not available) of those services and (c) Contracting officers shall obtain equipment; sufficient information to determine (3) Specify the premises involved; that the prices are reasonable. For ex- (4) Cite the address for billing; ample, cost or pricing data, if required (5) Identify the disbursing office; and in accordance with FAR 15.403–4, or in- (6) Provide funding information. formation other than cost or pricing (b) Before awarding a CSA, comply data, if required in accordance with with the requirements in FAR and FAR 15.403–3, may be necessary to sup- DFARS, e.g., for competition, reviews, port the reasonableness of— approvals, and determinations and (1) Nontariffed services; findings.
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(c) Include an expiration date in each to proceed, if prior approval is not pos- CSA. sible. Do not make final payment for (d) Modify CSAs to reflect any price special construction charges unless the increases. charges are approved by the con- tracting officer. 239.7408 Special construction. 239.7408–2 Applicability of construc- 239.7408–1 General. tion labor standards for special con- (a) Special construction normally in- struction. volves a common carrier giving a spe- (a) The construction labor standards cial service or facility related to the in FAR 22.4 ordinarily do not apply to performance of the basic telecommuni- special construction. However, if the cations service requirements. special construction includes construc- This may include— tion (as defined in FAR 36.102) of a pub- (1) Moving or relocating equipment; (2) Providing temporary facilities; lic building or public work, the con- (3) Expediting provision of facilities; struction labor standards may apply. or Determine applicability under FAR (4) Providing specially constructed 22.402. channel facilities to meet Government (b) Each CSA or other type contract requirements. which is subject to construction labor (b) Use this subpart instead of FAR standards under FAR 22.402 shall cite part 36 for acquisition of ‘‘special con- that fact. struction.’’ (c) Special construction costs may 239.7409 Special assembly. be— (a) Special assembly is the designing, (1) A contingent liability for using manufacturing, arranging, assembling, telecommunications services for a or wiring of equipment to provide tele- shorter time than the minimum to re- communications services that cannot imburse the contractor for be provided with general use equip- unamortized nonrecoverable costs. ment. These costs are usually expressed in (b) Special assembly rates and terms of a termination liability, as charges shall be based on estimated provided in the contract or by tariff; (2) A onetime special construction costs. The contracting officer shall ne- charge; gotiate special assembly rates and (3) Recurring charges for constructed charges before starting service when- facilities; ever possible. When it is not possible to (4) A minimum service charge; negotiate in advance, use provisional (5) An expediting charge; or rates and charges subject to adjust- (6) A move or relocation charge. ment, until final rates and charges are (d) When a common carrier submits a negotiated. The CSAs authorizing the proposal or quotation which has special special assembly shall be modified to construction requirements, the con- reflect negotiated final rates and tracting officer shall require a detailed charges. special construction proposal. Analyze all special construction proposals to— 239.7410 Cancellation and termi- (1) Determine the adequacy of the nation. proposed construction; (a)(1) Cancellation is stopping a re- (2) Disclose excessive or duplicative quirement after placing of an order but construction; and before service starts. (3) When different forms of charge are (2) Termination is stopping a require- possible, provide for the form of charge ment after placing an order and after most advantageous to the Government. service starts. (e) When possible, analyze and ap- prove special construction charges be- (b) Determine cancellation or termi- fore receiving the service. Impose a nation charges under the provisions of ceiling on the special construction the applicable tariff or agreement/con- costs before authorizing the contractor tract.
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239.7411 Contract clauses. Subpart 239.75—Appropriations (a) In addition to other appropriate Act Restrictions FAR and DFARS clauses, use the fol- lowing clauses in solicitations, con- SOURCE: 57 FR 14995, Apr. 23, 1992, unless tracts, and basic agreements for tele- otherwise noted. communications services. Modify the 239.7500 Scope of subpart. clauses only if necessary to meet the requirements of a governmental regu- This subpart contains restrictions on latory agency— the acquisition of information tech- nology, imposed by Defense appropria- (1) 252.239–7002, Access; tions acts. (2) 252.239–7003, Facilities and Services to be Furnished—Common Carriers; [57 FR 14995, Apr. 23, 1992, as amended at 62 (3) 252.239–7004, Orders for Facilities and FR 34127, June 24, 1997] Services—Common Carriers; 239.7501 Major automated information (4) 252.239–7005, Rates, Charges, and Serv- systems restriction. ices—Common Carriers; (5) 252.239–7006, Tariff Information; Section 8028 of the FY 1992 Defense (6) 252.239–7007, Cancellation or Termination Appropriations Act (Pub. L. 102–172) of Orders—Common Carriers; and similar sections of the FY 1993, FY (7) 252.239–7008, Reuse Arrangements. 1994, and FY 1995 Defense appropria- tions acts prohibit use of DoD appro- (b) Use the following clauses in so- priations for acquisition of major auto- licitations, contracts, and basic agree- mated information systems, unless the ments for telecommunications services systems have successfully completed when the acquisition includes or may oversight reviews required by DoD reg- include special construction. Modify ulations. the clauses only if necessary to meet the requirements of a governmental [62 FR 1060, Jan. 8, 1997] regulatory agency— PART 241—ACQUISITION OF UTILITY (1) 252.239–7011, Special Construction and SERVICES Equipment Charges; and (2) 252.239–7012, Title to Telecommunication Facilities and Equipment. Subpart 241.1—General (c) Use the following clauses in basic Sec. 241.101 Definitions. agreements for telecommunications 241.102 Applicability. services— 241.103 Statutory and delegated authority.
(1) 252.239–7013, Obligation of the Govern- Subpart 241.2—Acquiring Utility Services ment; (2) 252.239–7014, Term of Agreement, and in- 241.201 Policy. sert the effective date of the agreement in 241.202 Procedures. paragraph (a) of the clause; and 241.203 GSA assistance. (3) 252.239–7015, Continuation of Communica- 241.205 Separate contracts. tion Service Authorizations, as appro- 241.270 Preaward contract review. priate, and insert in paragraph (a) of the clause, the name of the contracting office Subpart 241.5—Solicitation Provision and and the basic agreement or contract num- Contract Clauses ber which is being superseded. 241.501–70 Additional clauses.
(d) Use the clause at 252.239–7016, AUTHORITY: 48 U.S.C. 421 and 48 CFR Chap- Telecommunications Security Equip- ter 1. ment, Devices, Techniques, and Serv- SOURCE: 63 FR 11539, Mar. 9, 1998, unless ices, in solicitations and contracts otherwise noted. when performance of a contract re- quires a securing telecommunications. Subpart 241.1—General [56 FR 36429, July 31, 1991, as amended at 57 FR 42632, Sept. 15, 1992; 62 FR 40473, July 29, 241.101 Definitions. 1997] As used in this part—
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Definite term contract means a con- (D) 10 U.S.C. 2809 for potable and tract for utility services for a definite waste water treatment plants for peri- period of not less than one nor more ods not to exceed 32 years; and than ten years. (E) 10 U.S.C. 2812 for lease/purchase of Dual service area means a geo- energy production facilities for periods graphical area in which two or more not to exceed 32 years. utility suppliers are authorized under State law to provide services. 241.103 Statutory and delegated au- Indefinite term contract means a thority. month-to-month contract for utility The contracting officer may enter services which may be terminated by into a utility service contract related the Government upon proper notice. to the conveyance of a utility system Independent regulatory body means for a period not to exceed 50 years (10 the Federal Energy Regulatory Com- U.S.C. 2688(c)(3)). mission, a state-wide agency, or an agency with less than state-wide juris- [65 FR 2059, Jan. 13, 2000; 65 FR 19818, Apr. 12, diction when operating pursuant to 2000] state authority. The body has the power to fix, establish, or control the Subpart 241.2—Acquiring Utility rates and services of utility suppliers. Services Nonindependent regulatory body means a body that regulates a utility supplier 241.201 Policy. which is owned or operated by the (1) Except as provided in FAR 41.201, same entity that created the regu- DoD, as a matter of comity, will com- latory body, e.g., a municipal utility. ply with the current regulations, prac- Regulated utility supplier means a util- tices and decisions of independent reg- ity supplier regulated by an inde- ulatory bodies which are subject to ju- pendent regulatory body. dicial appeal. This policy does not ex- Service power procurement officer tend to regulatory bodies whose deci- means for the— sions are not subject to appeal nor does Army, the Chief of Engineers; it extend to nonindependent regulatory Navy, the Commander, Naval Facili- bodies. ties Engineering Command; (2) Purchases of utility services out- Air Force, the head of a contracting side the United States may use— activity; and (i) Formats and technical provisions Defense Logistics Agency, the Execu- consistent with local practice; and tive Director of Contracting. (ii) Dual language forms and con- 241.102 Applicability. tracts. (3) Rates established by an inde- (a) This part applies to purchase of pendent regulatory body are considered utility services from nonregulated and ‘‘prices set by law or regulation’’ and regulated utility suppliers. It includes do not require submission of cost or the acquisition of liquefied petroleum pricing data (see FAR Subpart 15.4). gas as a utility service when purchased from regulated utility suppliers. 241.202 Procedures. (b)(7) This part does not apply to third party financed projects. However, (a)(i) Competitive proposals. When a it may be used for any purchased util- new major utility service load develops ity services directly resulting from or a new military installation is estab- such projects, including those author- lished, the contracting officer shall— ized by— (A) Determine whether more than (A) 10 U.S.C. 2394 for energy, fuels, one supplier can provide the required and energy production facilities for pe- utility services. riods not to exceed 30 years; (1) Competition may be possible (B) 10 U.S.C. 2394a for renewable en- where dual franchises exist or where no ergy for periods not to exceed 25 years; franchise exists. (C) 10 U.S.C. 2689 for geothermal re- (2) Competition should also be con- sources that result in energy produc- sidered when an installation is served tion facilities; by one supplier and other potential
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suppliers exist even though one sup- recurring charges including service ini- plier has entered into a General Serv- tiation charges, a contribution in aid ices Administration area-wide con- of construction, membership fees, and tract. charges required by the supplier’s rules (B) Where competition exists, solicit and regulations to be paid by the cus- competitive proposals from all poten- tomer. If possible, consider sharing tial suppliers. with other than Government users the (ii) Periodic reviews for competition. use of (and costs for) facilities when Conduct periodic review of ongoing large nonrefundable charges are re- contracts to determine the availability quired. of competition. If available, evaluate (iv) Construction and labor require- the need to rewrite the contract con- ments. (A) Do not use the connection sidering— charge provisions for the installation (A) The possible loss of rights vested of Government-owned distribution in the Government under the existing lines and facilities. The acquisition of contract; such facilities must be authorized by (B) The age and quality of the con- legislation and accomplished in accord- tract; and ance with FAR Part 36. Also, do not (C) The number of contract modifica- use the connection charge provisions tions and the ease of administration for the installation of new facilities re- with the existing contract documents. lated to the supplier’s production and (iii) Connection and service charges. general ‘‘backbone’’ system unless au- The Government may pay a connection thorized by legislation. charge when required to cover the cost of the necessary connecting facilities. (B) Construction labor standards or- A connection charge based on the esti- dinarily do not apply to construction mated labor cost of installing and re- accomplished under the connection moving the facility shall not include charge provisions of this part. How- salvage cost. A lump-sum connection ever, if installation includes construc- charge shall be no more than the tion of a public building or public work agreed cost of the connecting facilities as defined in FAR 36.102, construction less net salvage. The order of prece- labor standards may apply. dence for contractual treatment of con- nection and service charges is— 241.203 GSA assistance. (A) No connection charge. The General Services Administration (B) Termination liability. Use when an (GSA) has delegated to DoD the au- obligation is necessary to secure the thority to enter into utility service required services. The obligation must contracts (see FAR 41.103); therefore, be not more than the agreed connec- contracting officers need not seek as- tion charge, less any net salvage mate- sistance or approval from GSA. rial costs. Use of a termination liabil- ity instead of a connection charge re- 241.205 Separate contracts. quires the approval of the service (a)(i) Requests for proposals shall power procurement officer or designee. state the anticipated service period in (C) Connection charge, refundable. Use terms of months or years. Where the a refundable connection charge when period extends beyond the current fis- the supplier refuses to provide the fa- cilities based on lack of capital or pub- cal year, evaluate offers of incentives lished rules which prohibit providing for a definite term contract. up-front funding. The contract should (ii) The solicitation may permit provide for refund of the connection offerors the choice of proposing on the charge within five years unless a basis of— longer period or omission of the refund (A) A definite term not to exceed the requirement is authorized by the serv- anticipated service period; or ice power procurement officer or des- (B) An indefinite term contract. ignee. (iii) Where the expected service pe- (D) Connection and service charges, riod is less than the current fiscal year, nonrefundable. The Government may the solicitation shall be on the basis of pay certain nonrefundable, non- an indefinite term contract.
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(iv) Contracts for utility services for 241.270 Preaward contract review. leased premises shall identify the lease Departments/agencies shall conduct document on the face of the contract. their owned preaward contract reviews. (d) Use an indefinite term utility service contract when it is considered to be in the Government’s best interest Subpart 241.5—Solicitation to— Provision and Contract Clauses (i) Have the right to terminate on a 30-day (or longer) notice. A notice of up 241.501–70 Additional clauses. to one year may be granted by an in- (a) If the Government must execute a stallation if needed to obtain a more superseding contract and capital cred- favorable rate, more advantageous con- its, connection charge credits, or ter- ditions, or for other valid reasons; or mination liability exist, use the clause (ii) Grant the supplier the right to at 252.241–7000, Superseding Contract. terminate the contract when of benefit (b) Use the clause at 252.241–70001, to the Government in the form of lower Government Access, when the clause at rates, larger discounts or more favor- FAR 52.241–5, Contractor’s Facilities, is able terms and conditions. used.
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PART 242—CONTRACT ADMINIS- 242.1107–70 Solicitation provision and con- TRATION AND AUDIT SERVICES tract clause. Subpart 242.12—Novation and Change-of- Sec. Name Agreements 242.002 Interagency agreements. 242.101 Policy. 242.1202 Responsibility for executing agree- 242.102 Procedures. ments. 242.1203 Processing agreements. Subpart 242.2—Contract Administration 242.1204 Agreement to recognize a successor Services in interest (novation agreement).
242.200–70 Scope of subpart. Subpart 242.14—Traffic and Transportation 242.202 Assignment of contract administra- tion. Management 242.1402 Volume movements within the con- Subpart 242.3—Contract Administration tinental United States. Office Functions 242.1403 Shipping documents covering f.o.b. origin shipments. 242.301 General. 242.302 Contract administration functions. 242.1404 Shipments by parcel post or other classes of mail. Subpart 242.4—Correspondence and Visits 242.1404–1 Parcel post eligible shipments. 242.1404–2 Contract clauses. 242.402 Visits to contractors’ facilities. 242.1404–2–70 Additional clause. 242.1405 Discrepancies incident to shipment Subpart 242.5—Postaward Orientation of supplies. 242.1470 Demurrage and detention charges. 242.503 Postaward conferences. 242.503–2 Postaward conference procedure. Subpart 242.15—Contractor Performance 242.503–3 Postaward conference report. 242.570 Contract clause. Information 242.1503 Procedures. Subpart 242.6—Corporate Administrative Contracting Officer Subpart 242.70 [Reserved] 242.602 Assignment and location. Subpart 242.71—Voluntary Refunds Subpart 242.7—Indirect Cost Rates 242.7100 General. 242.704 Billing rates. 242.7101 Solicited refunds. 242.705 Final indirect cost rates. 242.7102 Disposition of voluntary refunds. 242.705–1 Contracting officer determination procedure. Subpart 242.72—Contractor Material 242.705–2 Auditor determination procedure. Management and Accounting System 242.705–3 Educational institutions. 242.771 Independent research and develop- 242.7200 Scope of subpart. ment and bid and proposal costs. 242.7201 Definitions. 242.771–1 Scope. 242.7202 Policy. 242.771–2 Policy. 242.7203 Review procedures. 242.771–3 Responsibilities. 242.7204 Contract clause.
Subpart 242.8—Disallowance of Costs Subpart 242.73—Contractor Insurance/ Pension Review 242.801 Notice of intent to disallow costs. 242.803 Disallowing costs after incurrence. 242.7300 Scope of subpart. 242.7301 General. Subpart 242.11—Production Surveillance 242.7302 Requirements. and Reporting 242.7303 Responsibilities. 242.1104 Surveillance requirements. Subpart 242.74—Technical Representation 242.1105 Assignment of criticality desig- at Contractor Facilities nator. 242.1106 Reporting requirements. 242.7400 General. 242.1107 Contract clause. 242.7401 Procedures.
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Subpart 242.75—Contractor Accounting zations other than SSC) and inter- Systems and Related Controls national organizations send their re- quests for contract administration 242.7500 Scope of subpart. 242.7501 Definition. services to the DoD Central Control 242.7502 Policy. Point (CCP) at the Headquarters, De- 242.7503 Procedures. fense Contract Management Agency, AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- International and Federal Business ter 1. Team. Contract administration offices SOURCE: 56 FR 36437, July 31, 1991, unless provide services only upon request otherwise noted. from the CCP. The CCP shall— (A) Determine whether the request is 242.002 Interagency agreements. from a friendly foreign government or (b)(i) DoD requires reimbursement, at an international agency in which the a rate set by the Under Secretary of United States is a participant; Defense (Comptroller/Chief Financial (B) Determine whether the services Officer), from non-DoD organizations, are consistent with the DoD mutual se- except for— curity program policies (the Assistant (A) Quality assurance, contract ad- Secretary of Defense (International Se- ministration, and audit services pro- curity Affairs) is the source of informa- vided under a no-charge reciprocal tion for questions as to the eligibility agreement; of foreign governments to receive serv- (B) Services performed under sub- ices); contracts awarded by the Small Busi- ness Administration under FAR sub- (C) Ensure that the reimbursement part 19.8; and arrangements are consistent with para- (C) Quality assurance and pricing graph (b) of this section; services performed for the Supply and (D) Coordinate with appropriate con- Services Canada. tract administration offices to deter- (ii) Departments and agencies may mine whether DoD can provide the request an exception from the reim- services; bursement policy in paragraph (b)(i) of (E) Notify the requestor that the re- this section from the Under Secretary quest is accepted, or provide reasons of Defense (Comptroller/Chief Finan- why it cannot be accepted; cial Officer). A request must show that (F) Distribute the acquisition docu- an exception is in the best interest of ments and related materials to con- the Government. tract administration offices; and (iii) Departments and agencies must (G) Receive statements of costs in- pay for services performed by non-DoD curred by contract administration of- activities, foreign governments, or fices for reimbursable services and for- international organizations, unless ward them for billing to the Security otherwise provided by reciprocal agree- Assistance Accounting Center. ments. (S–70)(i) Foreign governments and [64 FR 61029, Nov. 9, 1999, as amended at 65 international organizations may re- FR 52952, Aug. 31, 2000; 65 FR 63804, Oct. 25, quest contract administration services 2000] on their direct purchases from U.S. producers. Direct purchase is the pur- Subpart 242.2—Contract chase of defense supplies in the United Administration Services States through commercial channels for use by the foreign government or international organization. SOURCE: 64 FR 61029, Nov. 9, 1999, unless (ii) Supply and Services Canada otherwise noted. (SSC) is permitted to submit its re- 242.200–70 Scope of subpart. quests for contract administration services directly to the cognizant con- This subpart does not address the tract administration office. contract administration role of a con- (iii) Other foreign governments (in- tracting officer’s representative (see cluding Canadian government organi- 201.602).
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242.202 Assignment of contract admin- quest of the military department, and istration. subject to prior agreement, perform (a)(i) DoD activities shall not retain contract administration services on a any contract for administration that military installation. requires performance of any contract (iii) DCMA shall provide preaward administration function at or near con- survey assistance for post, camp, and tractor facilities, except contracts station work performed on a military for— installation. The contracting office and (A) The National Security Agency; the DCMA preaward survey monitor (B) Research and development with should jointly determine the scope of universities; the survey and individual responsibil- (C) Flight training; ities. (D) Consultant support services; (iv) To avoid duplication, contracting (E) Mapping, charting, and geodesy offices shall not locate their personnel services; at contractor facilities, except— (F) Base, post, camp, and station pur- (A) In support of contracts retained chases; for administration in accordance with (G) Operation or maintenance of, or paragraph (a)(i) of this section; or installation of equipment at, radar or (B) As permitted under subpart 242.74. communication network sites; (e)(1)(A) In special circumstances, a (H) Communications services; contract administration office may re- (I) Installation, operation, and main- quest support from a component not tenance of space-track sensors and re- listed in the Federal Directory of Con- lays; tract Administration Services Compo- (J) Dependents Medicare program nents (available via the Internet at contracts; http://www.dcma.mil/casbook/ (K) Stevedoring contracts; casbook.htm). An example is a situa- (L) Construction and maintenance of tion where the contractor’s work site military and civil public works, includ- is on a military base and a base organi- zation is asked to provide support. Be- ing harbors, docks, port facilities, mili- fore formally sending the request, co- tary housing, development of rec- ordinate with the office concerned to reational facilities, water resources, ensure that resources are available for, flood control, and public utilities; and capable of, providing the support. (M) Architect-engineer services; (B) When requesting support on a (N) Airlift and sealift services (Air subcontract that includes foreign con- Mobility Command and Military Sea- tract military sale (FMS) require- lift Command may perform contract ments, the contract administration of- administration services at contractor fice shall— locations involved solely in perform- (1) Mark ‘‘FMS Requirement’’ on the ance of airlift or sealift contracts); face of the documents; and (O) Subsistence supplies; (2) For each FMS case involved, pro- (P) Ballistic missile sites (contract vide the FMS case identifier, associ- administration offices may perform ated item quantities, DoD prime con- supporting administration of these tract number, and prime contract line/ contracts at missile activation sites subline item number. during the installation, test, and checkout of the missiles and associated [64 FR 61029, Nov. 9, 1999, as amended at 65 equipment); and FR 52953, Aug. 31, 2000; 66 FR 49861, Oct. 1, (Q) Operation and maintenance of, or 2001] installation of equipment at, military test ranges, facilities, and installa- Subpart 242.3—Contract tions. Administration Office Functions (ii) Contract administration func- tions for base, post, camp, and station 242.301 General. contracts on a military installation are Contract administration services per- normally the responsibility of the in- formed outside the U.S. should be per- stallation or tenant commander. How- formed in accordance with FAR 42.301 ever, the Defense Contract Manage- unless there are no policies and proce- ment Agency (DCMA) shall, upon re- dures covering a given situation. In
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this case, coordinate proposed actions (33) Also perform industrial readiness with the appropriate U.S. country and mobilization production planning teams or commanders of unified and field surveys and negotiate schedules. specified commands. (39) See 223.370 for safety require- ments on contracts for ammunition 242.302 Contract administration func- and explosives. tions. (41) DCMA has responsibility for re- (a)(4) Also, review and evaluate— viewing earned value management sys- (A) Contractor estimating systems tem (EVMS) plans and verifying initial (see FAR 15.407–5); and and continuing contractor compliance (B) Contractor material management with DoD EVMS criteria. and accounting systems under subpart 242.72. (67) Also support program offices and (7) See 242.7503 for ACO responsibil- buying activities in precontractual ef- ities with regard to receipt of an audit forts leading to a solicitation or award. report identifying significant account- (S–70) Serve as the single point of ing system or related internal control contact for all Single Process Initia- deficiencies. tive (SPI) Management Council activi- (9) For additional contract adminis- ties. The ACO shall negotiate and exe- tration functions related to IR&D/B&P cute facilitywide class modifications projects performed by major contrac- and agreements for SPI processes, tors, see 242.771–3(a). when authorized by the affected com- (13)(A) Do not delegate the responsi- ponents. bility to make payments to the De- (b)(S–70) Issue, negotiate and execute fense Contract Management Agency orders under basic ordering agreements (DCMA). for overhaul, maintenance and repair. (B) For contracts assigned to DCMA for contract administration, designate [56 FR 36437, July 31, 1991, as amended at 57 as the payment office— FR 53601, Nov. 12, 1992; 60 FR 29500, June 5, (1) The cognizant Defense Finance 1995; 61 FR 50454, Sept. 26, 1996; 62 FR 9991, and Accounting Service (DFAS) pay- Mar. 5, 1997; 62 FR 44224, Aug. 20, 1997; 63 FR ment office as specified in the Federal 11541, Mar. 9, 1998; 64 FR 61030, Nov. 9, 1999; 65 FR 19857, Apr. 13, 2000; 65 FR 52953, Aug. 31, Directory of Contract Administration 2000; 65 FR 58607, Sept. 29, 2000; 66 FR 49861, Services Components (available via the Oct. 1, 2001] Internet at http://www.dcma.mil/ casbook/casbook.htm), for contracts funded with DoD funds; Subpart 242.4—Correspondence (2) The department or agency pay- and Visits ment office, if authorized by defense fi- nancial management regulations or if 242.402 Visits to contractors’ facilities. the contract is funded with non-DoD (a) If a visit to a contractor facility funds; or will require access to classified infor- (3) Multiple payment offices under mation, the visitors must give the con- paragraphs (a)(13)(B) (1) and (2) of this tractor advance written notice (DoD section, if the contract is funded with 5220.22–R, Industrial Security Regula- both DoD and non-DoD funds. tion). (C) For contracts not assigned to DCMA, select a payment office or of- fices under department/agency proce- Subpart 242.5—Postaward dures. DoD personnel may use the Orientation DFAS Reference Tool, available via the Internet at http:// 242.503 Postaward conferences. referencetool.dfas.mil, to identify cog- nizant DFAS payment offices. 242.503–2 Postaward conference pro- cedure. (19) Also negotiate and issue contract modifications reducing contract prices Use the conference program outlined in connection with the provisions of on the DD Form 1484, Post-Award Con- paragraph (c) of the clause at FAR ference Record, in conducting the con- 52.225–8, Duty-Free Entry. ference.
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242.503–3 Postaward conference re- tails the items of exception and advises port. the contractor that requests for recon- The DD Form 1484, Post-Award Con- sideration should be submitted in writ- ference Record, may be used for this re- ing to the administrative contracting port. officer. [56 FR 36437, July 31, 1991, as amended at 60 242.570 Contract clause. FR 61599, Nov. 30, 1995; 64 FR 61030, Nov. 9, Use the clause at 252.242–7000, 1999] Postaward Conference, in solicitations and contracts. 242.705–3 Educational institutions. (b) Predetermined final indirect cost Subpart 242.6—Corporate rates. (4)(i) Predetermined indirect cost Administrative Contracting Officer rate proposals may cover a period of two to four years when the cognizant 242.602 Assignment and location. Contracting Officer determines that (c)(2) If the agencies cannot agree, the educational institution’s cost expe- refer the matter to the Director of De- rience and other pertinent facts avail- fense Procurement. able are sufficient to enable the parties to reach an informed judgment on the probable levels of indirect costs and al- Subpart 242.7—Indirect Cost Rates location base costs for the applicable 242.704 Billing rates. future accounting periods. Predeter- mined rates covering two to four year (c) The administrative contracting periods are expected to be the norm in officer or auditor shall periodically re- those situations. view billing rates for continued appli- (6) Predetermined indirect cost rates cability. Billing rates should be estab- may be established to cover up to four lished on a year-to-year basis. years. 242.705 Final indirect cost rates. [59 FR 53116, Oct. 21, 1994]
242.705–1 Contracting officer deter- 242.771 Independent research and de- mination procedure. velopment and bid and proposal (a) Applicability and responsibility. (1) costs. The corporate administrative con- tracting officer (CACO) and individual 242.771–1 Scope. administrative contracting officers This section implements 10 U.S.C. (ACOs) shall jointly decide whether ne- 2372, Independent research and develop- gotiations will be conducted on a co- ment and bid and proposal costs: Pay- ordinated or centralized basis. When ments to contractors. they are conducted on a coordinated [64 FR 8730, Feb. 23, 1999] basis, individual ACOs are responsible for coordinating with the CACO to en- 242.771–2 Policy. sure consistency of cost determina- Defense contractors are encouraged tions. to engage in independent research and [56 FR 36437, July 31, 1991, as amended at 60 development and bid and proposal FR 61599, Nov. 30, 1995; 64 FR 61030, Nov. 9, (IR&D/B&P) activities of potential in- 1999] terest to DoD, including activities cited in 231.205–18(c)(iii)(B). 242.705–2 Auditor determination pro- cedure. [64 FR 8730, Feb. 23, 1999] (b) Procedures. (2)(iii) When agreement cannot be 242.771–3 Responsibilities. reached with the contractor, the audi- (a) The cognizant administrative con- tor will issue a DCAA Form 1, Notice of tracting officer (ACO) or corporate Contract Costs Suspended and/or Dis- ACO shall— approved, in addition to the advisory (1) Determine cost allowability of report to the administrative con- IR&D/B&P costs as set forth in 231.205– tracting officer. The DCAA Form 1 de- 18 and FAR 31.205–18.
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(2) Determine whether IR&D/B&P dian Commercial Corporation. See projects performed by major contrac- 225.870–5(b) for invoice procedures. tors (see 231.205–18(a)) are of potential (b) Auditor receipt of voucher. interest to DoD; and (i) The contract auditor is the au- (3) Notify the contractor promptly of thorized representative of the con- any IR&D/B&P activities that are not tracting officer for— of potential interest to DoD. (A) Receiving vouchers from contrac- (b) The Defense Contract Manage- tors; ment Agency or the military depart- (B) Approving interim vouchers for ment responsible for performing con- provisional payment (this includes ap- tract administration functions is re- proving the fee portion of vouchers in sponsible for providing the Defense accordance with the contract schedule Contract Audit Agency (DCAA) with and administrative contracting officer IR&D/B&P statistical information, as instructions) and sending them to the necessary, to assist DCAA in the an- disbursing office; nual report required by paragraph (c) (C) Authorizing direct submission of of this subsection. interim vouchers for provisional pay- (c) DCAA is responsible for submit- ment to the disbursing office for con- ting an annual report to the Director tractors with approved billing systems; of Defense Procurement, Office of the (D) Reviewing completion/final Under Secretary of Defense (Acquisi- vouchers and sending them to the ad- tion, Technology, and Logistics (OUSD ministrative contracting officer; and (AT&L))) setting forth required statis- (E) Issuing DCAA Forms 1, Notice of tical information relating to the DoD- Contract Costs Suspended and/or Dis- wide IR&D/B&P program. approved, to deduct costs where allow- (d) The Director, Defense Research ability is questionable. and Engineering (ii) The administrative contracting (OUSD(AT&L)DDR&E), is responsible officer— for establishing a regular method for (A) Approves all completion/final communication— vouchers and sends them to the dis- (1) From DoD to contractors, of time- bursing officer; and ly and comprehensive information re- garding planned or expected DoD fu- (B) May issue or direct the issuance ture needs; and of DCAA Form 1 on any cost when there is reason to believe it should be (2) From contractors to DoD, of brief suspended or disallowed. technical descriptions of contractor IR&D projects. [61 FR 25409, May 21, 1996, as amended at 61 FR 25409, May 21, 1996; 61 FR 50454, Sept. 26, [64 FR 8730, Feb. 23, 1999, as amended at 65 1996] FR 39706, June 27, 2000; 65 FR 52953, Aug. 31, 2000] Subpart 242.11—Production Subpart 242.8—Disallowance of Surveillance and Reporting Costs 242.1104 Surveillance requirements. 242.801 Notice of intent to disallow (a) The cognizant contract adminis- costs. tration office (CAO) must— (e) A corporate administrative con- (i) Conduct a periodic risk assess- tracting officer need not obtain the ap- ment of each contractor to determine proval of the individual administrative the degree of production surveillance contracting officers to disallow items needed for contracts awarded to that of corporate expense. contractor. The risk assessment must consider information provided by the 242.803 Disallowing costs after incur- contractor and the contracting officer; rence. (ii) Develop a production surveillance (a) Contracting officer receipt of vouch- plan based on the risk level determined ers. Contracting officer receipt of during the risk assessment; vouchers is applicable only for cost-re- (iii) Modify the production surveil- imbursement contracts with the Cana- lance plan to incorporate any special
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surveillance requirements for indi- include the contracting office and con- vidual contracts, including any re- tract administration office); and quirements identified by the con- (iv) The following requirements for tracting officer; and report content— (iv) Monitor contract progress and (A) The problem, actual or potential, identify potential contract delin- and its cause; quencies in accordance with the pro- (B) Items and quantities affected; duction surveillance plan. (C) When the delinquency started or [65 FR 39723, June 27, 2000] will start; (D) Actions taken to overcome the 242.1105 Assignment of criticality des- delinquency; ignator. (E) Estimated recovery date; and/or (1) Contracting officers shall— (F) Proposed schedule revision. (i) Assign criticality designator A to items with a priority 01, 02, 03, or 06 (if 242.1107–70 Solicitation provision and emergency supply of clothing) under contract clause. DoD Directive 4410.6, Uniform Materiel (a) Use the clause at 252.242–7005, Movement and Issue Priority System; Cost/Schedule Status Report, in solici- and tations and contracts for other than (ii) Ordinarily assign criticality des- major systems that require cost/sched- ignator C to unilateral purchase or- ule status reports (i.e., when the Con- ders. tract Data Requirements List includes (2) Only the contracting officer shall DI–MGMT–81467 in accordance with change the assigned designator. DoD 5000.2–R). (b) Use the provision at 252.242–7006, 242.1106 Reporting requirements. Cost/Schedule Status Report Plans, in (a) See DoD 5000.2–R, Mandatory Pro- solicitation for other than major sys- cedures for Major Defense Acquisition tems that require cost/schedule status Programs (MDAPs) and Major Auto- reports. mated Information System (MAIS) Ac- quisition Programs. [63 FR 11541, Mar. 9, 1998] (b)(i) Within four working days after receipt of the contractor’s report, the Subpart 242.12—Novation and CAO must provide the report and any Change-of-Name Agreements required comments to the contracting officer and, unless otherwise specified 242.1202 Responsibility for executing in the contract, the inventory control agreements. manager. The contracting officer responsible (ii) If the contractor’s report indi- for processing and executing novation cates that the contract is on schedule and change-of-name agreements shall and the CAO agrees, the CAO does not ensure agreements are executed need to add further comments. In all promptly. other cases, the CAO must add com- ments and recommend a course of ac- [60 FR 1749, Jan. 5, 1995] tion. 242.1203 Processing agreements. [65 FR 39723, June 27, 2000] (b)(2)(A) For contracts awarded by the Military Departments, provide no- 242.1107 Contract clause. tices to the following addressees in- (b) When using the clause at FAR stead of individual contracting or con- 52.242–2, include the following instruc- tract administration offices— tions in the contract schedule— (i) Frequency and timing of reporting Army ...... HQ, U.S. Army Material Command, ATTN: AMCCC-P, 5001 Eisenhower Avenue, Alex- (normally 5 working days after each re- andria, VA 22333–0001. porting period); Navy ...... Office of the Assistant Secretary of the Navy (ii) Contract line items, exhibits, or (RDA) Procurement Policy, Washington, DC exhibit line items requiring reports; 20350–1000. Air Force ... HQ, Air Force Materiel Command, Attn: HQ (iii) Offices (with addressees/codes) AFMC/PKP, 4375 Chidlaw Road, suite 6, where reports should be sent (always Wright Patterson AFB, OH 45443-5006.
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National National Aeronautics and Space Administration, (g)(ii) of this section. They will issue Aero- Associate Administrator for Procurement, their own modifications. nautics ATTN: HS, Washington, DC 20546–0001. and [56 FR 36437, July 31, 1991, as amended at 59 Space Adminis- FR 27674, May 27, 1994; 64 FR 51076, Sept. 21, tration. 1999; 65 FR 39706, June 27, 2000; 65 FR 63805, Oct. 25, 2000] (2)(B) Lists for notices of a successor in interest should include the informa- 242.1204 Agreement to recognize a tion at FAR 42.1204(e)(2). successor in interest (novation agreement). (C) Lists for notices of a name change should include the information at FAR (i) When a novation agreement is re- 42.1205(a)(3). quired and the transferee intends to (D) On notices sent to the addressees incur restructuring costs as defined at in paragraph (b)(2)(A) of this section, 213.205–70, the cognizant contracting of- include a consolidated list for all sub- ficer shall include the following provi- ordinate contracting offices of the ad- sion as paragraph (b)(7) of the novation dressee. agreement instead of the paragraph (f)(i) Before making any substantial (b)(7) provided in the sample format at alterations or additions to the nova- FAR 42.1204(i): tion agreement format at FAR ‘‘(7)(i) Except as set forth in subparagraph 42.1204(i), coordinate with those ad- (7)(ii) below, the Transferor and the Trans- dressees in paragraph (b)(2)(A) of this feree agree that the Government is not obli- section that have contracts with the gated to pay or reimburse either of them for, contractor. Resolve any objections be- or otherwise give effect to, any costs, taxes, fore executing the agreement. or other expenses, or any related increases, (ii) If the National Aeronautics and directly or indirectly arising out of or result- Space Administration (NASA) wants a ing from the transfer or this Agreement, other than those that the Government in the separate agreement with the con- absence of this transfer or Agreement would tractor, continue to process the agree- have been obligated to pay or reimburse ment only for DoD. under the terms of the contracts. (g) Also, make distribution to— (ii) The Government recognizes that re- (i) The addressees in paragraph structuring by the Transferee incidental to (b)(2)(A) of this section—two copies; the acquisition/merger may be in the best in- and terests of the Government. Restructuring (ii) The appropriate Military Traffic costs that are allowable under Part 31 of the Federal Acquisition Regulation (FAR) or Management Command (MTMC) area Part 231 of the Defense Federal Acquisition command for agreements affecting con- Regulation Supplement (DFARS) may be re- tracts and basic agreements for storage imbursed under flexibily-priced novated con- and related services for personal prop- tracts, provided the Transferee demonstrates erty of military and civilian per- that the restructuring will reduce overall sonnel—two copies— costs to the Department of Defense (DoD) (and to the National Aeronautics and Space Commander ...... Commander. Administration (NASA), where there is a mix Eastern Area ...... Western Area. of DoD and NASA contracts), and the re- Military Traffic Man- Military Traffic Management Command. quirements included in DFARS 231.205–70 are agement Com- mand. met. Restructuring costs shall not be al- ATTN: MTE–LO ..... Oakland Army Base. lowed on novated contracts unless there is Bayonne, NJ 07002 ATTN: MTW–LO, Oakland, CA 94626. an audit of the restructuring proposal; a de- termination by the contracting officer of (h)(4) Additional distribution instruc- overall reduced costs to DoD/NASA; and an tions— Advance Agreement setting forth a cumu- lative cost ceiling for restructuring projects (A) Send two copies to the address in and the period to which such costs shall be paragraph (b)(2)(A) of this section. The assigned.’’ list of contracts may be confined to those issued by that department. [60 FR 1749, Jan. 5, 1995, as amended at 61 FR (B) Do not send copies to NASA or 16882, Apr. 18, 1996; 65 FR 63805, Oct. 25, 2000] the MTMC commands in paragraph
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Subpart 242.14—Traffic and 242.1404–2 Contract clauses. Transportation Management When using FAR 52.213–1, Fast Pay- ment Procedures, do not use FAR 242.1402 Volume movements within clauses 52.242–10, F.o.b. Origin—Gov- the continental United States. ernment Bills of Lading or Prepaid (a)(2) In reporting planned and actual Postage, or 52.242–11, F.o.b. Origin— volume movements— Government Bills of Lading or Indicia (A) The contracting officer— Mail. (1) Provides production schedules and planned destinations to the servicing 242.1404–2–70 Additional clause. transportation office as soon as the in- Use the clause at 252.242–7003, Appli- formation is available to permit the cation for U.S. Government Shipping transportation office to determine if Documentation/Instructions, when volume movements will occur. If a vol- using the clause at FAR 52.242–10, ume movement appears likely, the F.o.b. Origin—Government Bills of transportation office reports a planned Lading or Prepaid Postage, or FAR volume movement in accordance with 52.242–11, F.o.b. Origin—Government DoD 4500.9–R, Defense Transportation Bills of Lading or Indicia Mail. Regulation, Part II, Chapter 201. (2) Sends a copy of the volume move- [62 FR 34127, June 24, 1997] ment report to the contract adminis- 242.1405 Discrepancies incident to tration office. shipment of supplies. (B) The contract administration of- fice submits a volume movement re- (a) See also DoD 4500.9–R, Defense port when— Transportation Regulation, Part II, (1) Significant changes are made to Chapter 210, for discrepancy proce- the movement requirements; or dures. (2) The contracting office did not sub- [65 FR 50144, Aug. 17, 2000] mit a report. (C) Include the destination country, 242.1470 Demurrage and detention freight forwarder, and, if known, port charges. of embarkation on volume movement (a) Carrier demurrage rules usually reports for foreign military sale ship- allow for a ‘‘free time’’ for loading or ments. unloading cars or for any other pur- [56 FR 36437, July 31, 1991, as amended at 65 pose, and impose charges for cars held FR 50143, Aug. 17, 2000] beyond this period. If a contractor de- tains railroad cars beyond the ‘‘free 242.1403 Shipping documents covering time,’’ the contractor has to pay the f.o.b. origin shipments. carrier’s published tariff charges for (a)(i) Procedures for the contractor demurrage. to obtain Government bills of lading (b) Detention results when a shipper are in the clause at 252.242–7003, Appli- or consignee holds motor carrier equip- cation for U.S. Government Shipping ment beyond a reasonable period for Documentation/Instructions. loading, unloading, forwarding direc- (ii) The term ‘‘commercial bills of tions, or any other reason. Detention lading’’ includes the use of any com- rules and charges are not uniform; they mercial form or procedure. are published in individual carrier or agency tenders. [56 FR 36437, July 31, 1991, as amended at 65 FR 50144, Aug. 17, 2000] [56 FR 36437, July 31, 1991, as amended at 65 FR 50144, Aug. 17, 2000] 242.1404 Shipments by parcel post or other classes of mail. Subpart 242.15—Contractor 242.1404–1 Parcel post eligible ship- Performance Information ments. 242.1503 Procedures. (b)(1) See DoD 4525.8–M, DoD Official Evaluations should consider any no- Mail Manual. tifications submitted under paragraph [56 FR 67220, Dec. 30, 1991] (g) of the clause at 252.219–7003, Small,
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Small Disadvantaged and Women- (c) Voluntary refunds may be re- Owned Small Business Subcontracting quested during or after contract per- Plan (DoD Contracts). formance.
[61 FR 18688, Apr. 29, 1996] 242.7102 Disposition of voluntary re- funds. Subpart 242.70 [Reserved] A contract modification, rather than a check, is the preferred means of ef- Subpart 242.71—Voluntary fecting a solicited or unsolicited refund Refunds transacted before final payment. (a) For modifications, adjust the 242.7100 General. price for the refund and credit the re- (a) A voluntary refund is a payment fund to the applicable appropriation or credit (adjustment under one or cited in the contract. more contracts or subcontracts) to the (b) For checks— Government from a contractor or sub- (1) Advise the contractor to— contractor which is not required by (i) Make the check payable to the any contractual or other legal obliga- agency which awarded the contract; tion. (ii) Forward the check to the con- (b) A voluntary refund may be solic- tracting officer or when the contract is ited (requested by the Government) or assigned to another office for adminis- unsolicited. tration, to that office; and (1) Generally, request voluntary re- (iii) Include a letter with the check— funds only after determining that no (A) Identifying it as a voluntary re- contractual remedy is readily available fund; to recover the amount sought. (B) Giving the contract number in- (2) Acceptance of unsolicited refunds volved; and does not prejudice remedies otherwise (C) Where possible, giving the appro- available to the Government. priation and account number to be (c) Before soliciting a voluntary re- credited. fund or accepting an unsolicited one, (2) Forward the check to the office the contracting officer should have responsible for control of funds. legal counsel review the contract and related data to— Subpart 242.72—Contractor Mate- (1) Confirm that there are no readily rial Management and Ac- available contractual remedies; and counting System (2) Advise whether the proposed ac- tion would jeopardize or impair the SOURCE: 65 FR 77833, Dec. 13, 2000, unless Government’s rights. otherwise noted.
242.7101 Solicited refunds. 242.7200 Scope of subpart. (a) Request voluntary refunds only (a) This subpart provides policies, when— procedures, and standards for use in (1) The contracting officer concludes the evaluation of a contractor’s mate- that the contractor overcharged under rial management and accounting sys- a contract, or inadequately com- tem (MMAS). pensated the Government for the use of (b) The policies, procedures, and Government-owned property, or inad- standards in this subpart— equately compensated the Government (1) Apply only when the contractor in the disposition of contractor inven- has contracts exceeding the simplified tory; and acquisition threshold that are not for (2) Retention of the amount in ques- the acquisition of commercial items tion by the contractor or subcon- and are either— tractor would be contrary to good con- (i) Cost-reimbursement contracts; or science and equity. (ii) Fixed-price contracts with (b) Do not solicit voluntary refunds progress payments made on the basis of without approval of the head of the costs incurred by the contractor as contracting activity, or as provided in work progresses under the contract; department/agency regulations. and
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(2) Do not apply to small businesses, (A) Appoints a team leader; and educational institutions, or nonprofit (B) Ensures that the team includes organizations. appropriate functional specialists (e.g., industrial specialist, engineer, prop- 242.7201 Definitions. erty administrator, auditor). Material management and accounting (ii) The team leader— system and valid time-phased require- (A) Advises the ACO and the con- ments are defined in the clause at tractor of findings during the review 252.242–7004, Material Management and and at the exit conference; and Accounting System. (B) Makes every effort to resolve dif- 242.7202 Policy. ferences regarding questions of fact during the review. DoD policy is for its contractors to (iii) The contract auditor— have an MMAS that conforms to the standards in paragraph (e) of the clause (A) Participates as a member of the at 252.242–7004, so that the system— MMAS team or serves as the team (a) Reasonably forecasts material re- leader (see paragraph (c)(1)(i) of this quirements; section); and (b) Ensures the costs of purchased (B) Issues an audit report for incorpo- and fabricated material charged or al- ration into the MMAS report based on located to a contract are based on valid an analysis of the contractor’s books, time-phased requirements; and accounting records, and other related (c) Maintains a consistent, equitable, data. and unbiased logic for costing of mate- (2) Tailor reviews to take full advan- rial transactions. tage of the day-to-day work done by both organizations. 242.7203 Review procedures. (3) Prepare the MMAS report. (a) Criteria for conducting reviews. (d) Disposition of evaluation team find- Conduct an MMAS review when— ings. The team leader must document (1) A contractor has $40 million of the evaluation team findings and rec- qualifying sales to the Government ommendations in the MMAS report to during the contractor’s preceding fiscal the ACO. If there are any significant year; and MMAS deficiencies, the report must (2) The administrative contracting provide an estimate of the adverse im- officer (ACO), with advice from the pact on the Government resulting from auditor, determines an MMAS review is those deficiencies. needed based on a risk assessment of (1) Initial notification to the contractor. the contractor’s past experience and The ACO must provide a copy of the re- current vulnerability. port to the contractor immediately (b) Qualifying sales. Qualifying sales upon receipt from the team leader. are sales for which cost or pricing data were required under 10 U.S.C. 2306a, as (i) The ACO must notify the con- implemented in FAR 15.403, or that are tractor in a timely manner if there are contracts priced on other than a firm- no deficiencies. fixed-price or fixed-price with eco- (ii) If there are any deficiencies, the nomic price adjustment basis. Sales in- ACO must request the contractor to clude prime contracts, subcontracts, provide a written response within 30 and modifications to such contracts days (or such other date as may be mu- and subcontracts. tually agreed to by the ACO and the (c) System evaluation. Cognizant con- contractor) from the date of initial no- tract administration and audit activi- tification. ties must jointly establish and manage (iii) If the contractor agrees with the programs for evaluating the MMAS report, the contractor has 60 days (or systems of contractors and must annu- such other date as may be mutually ally establish a schedule of contractors agreed to by the ACO and the con- to be reviewed. In addition, they tractor) to correct any identified defi- must— ciencies or submit a corrective action (1) Conduct reviews as a team effort. plan showing milestones and actions to (i) the ACO— eliminate the deficiencies.
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(iv) If the contractor disagrees with (B) The amount of the impact is im- the report, the contractor must provide material. rationale in the written response. (ii) The maximum payment adjust- (2) Evaluation of the contractor’s re- ment is the adverse material impact to sponse. The ACO, in consultation with the Government as specified in the the auditor, evaluates the contractor’s MMAS report. The ACO should use the response and determines whether— maximum adjustment when the con- (i) The MMAS contains any defi- tractor did not submit a corrective ac- ciencies and, if so, any corrective ac- tion plan with its response, or when the tion is needed; plan is unacceptable. In other cases, (ii) The deficiencies are significant the ACO should consider the quality of enough to result in the reduction of the contractor’s corrective action plan progress payments or disallowance of in determining the appropriate per- costs on vouchers; and centage. (iii) Proposed corrective actions (if (iii) As the contractor implements its the contractor submitted them) are accepted corrective action plan, the adequate to correct the deficiencies. ACO should reinstate a portion of with- (3) Notification of ACO determination. held amounts commensurate with the (i) The ACO must notify the contractor contractor’s progress in making correc- in writing (copy to auditor and func- tions. However, the ACO must not fully tional specialists) of— reinstate withheld amounts until the (A) Any deficiencies and the nec- contractor corrects the deficiencies, or essary corrective action; until the impact of the deficiencies be- (B) Acceptability of the contractor’s come immaterial. corrective action plan (if one was sub- (5) Monitoring contractor’s corrective mitted) or the need for a corrective ac- action. The ACO and the auditor must tion plan; and monitor the contractor’s progress in (C) Any decision to reduce progress correcting deficiencies. When the ACO payments or disallow costs on vouch- determines the deficiencies have been ers. corrected, the ACO must notify the (ii) The Government does not approve contractor in writing. If the contractor or disapprove the contractor’s MMAS. fails to make adequate progress, the ACO notifications should avoid any ACO must take further action. The such implications. ACO may— (iii) From the time the ACO deter- (i) Elevate the issue to higher level mines that there are any significant management; MMAS deficiencies until the time the (ii) Further reduce progress pay- deficiencies are corrected, all field ments and/or disallow costs on vouch- pricing reports for that contractor ers; must contain a recommendation relat- (iii) Notify the contractor of the in- ing to proposed adjustments necessary adequacy of the contractor’s cost esti- to protect the Government’s interests. mating system and/or cost accounting (iv) The ACO should consider the ef- system; and fect of any significant MMAS defi- (iv) Issue cautions to contracting ac- ciencies in reviews of the contractor’s tivities regarding the award of future estimating system (see 215.407–5). contracts. (4) Reductions or disallowances. (i) When the ACO determines the MMAS 242.7204 Contract clause. deficiencies have a material impact on Use the clause at 252.242–7004, Mate- Government contract costs, the ACO rial Management and Accounting Sys- must reduce progress payments by an tem, in all solicitations and contracts appropriate percentage based on af- exceeding the simplified acquisition fected costs (in accordance with FAR threshold that are not for the acquisi- 32.503–6) and/or disallow costs on tion of commercial items and— vouchers (in accordance with FAR (a) Are not awarded to small busi- 42.803). The reductions or disallowances nesses, educational institutions, or must remain in effect until the ACO nonprofit organizations; and determines that— (b) Are either— (A) The deficiencies are corrected; or (1) Cost-reimbursement contracts; or
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(2) Fixed-price contracts with quired under 10 U.S.C. 2306a, as imple- progress payments made on the basis of mented in FAR 15.403, or that are con- costs incurred by the contractor as tracts priced on other than a firm- work progresses under the contract. fixed-price or fixed-price with eco- nomic price adjustment basis. Sales in- Subpart 242.73—Contractor clude prime contracts, subcontracts, Insurance/Pension Review and modifications to such contracts and subcontracts. 242.7300 Scope of subpart. (b) A special CIPR shall be performed This subpart provides the require- for a contractor (including, but not ments for conducting a Contractor In- limited to, a contractor meeting the surance/Pension Review (CIPR). requirements in paragraph (a) of this section) when any of the following cir- 242.7301 General. cumstances exists, but only if the cir- cumstance(s) may result in a material (a) The administrative contracting impact on Government contract costs: officer (ACO) is responsible for deter- (1) Information reveals a deficiency mining the allowability of insurance/ in the contractor’s insurance/pension pension costs in Government contracts. program. Defense Contract Management Agency (DCMA) insurance/pension specialists (2) The contractor proposes or imple- and Defense Contract Audit Agency ments changes in its insurance, pen- (DCAA) auditors assist ACOs in mak- sion, or deferred compensation plans. ing these determinations by con- (3) The contractor is involved in a ducting CIPRs. merger, acquisition, or divestiture. (1) A CIPR is an in-depth evaluation (4) The Government needs to follow of a contractor’s— up on contractor implementation of (i) Insurance program; prior CIPR recommendations. (ii) Pension plans; (c) The DCAA auditor shall use rel- (iii) Other deferred compensation evant findings and recommendations of plans; and previously performed CIPRs in deter- (iv) Related policies, procedures, mining the scope of any audits of in- practices, and costs. surance and pension costs. (2) A special CIPR is a joint DCMA/ (d) When a Government organization DCAA review that concentrates on spe- believes that a review of the contrac- cific areas of the contractor’s insur- tor’s insurance/pension program should ance program, pension plan, or other be performed, that organization should deferred compensation plan. provide a recommendation for a review (b) DCMA is the DoD Executive to the ACO. If the ACO concurs, the re- Agency for the performance of all view should be performed as part of an CIPRs conducted under 242.7302. ACO-initiated special CIPR or as part of a CIPR already scheduled for the [63 FR 40374, July 29, 1998, as amended at 65 near future. FR 52953, Aug. 31, 2000] [63 FR 40374, July 29, 1998, as amended at 65 242.7302 Requirements. FR 52953, Aug. 31, 2000] (a)(1) A CIPR shall be conducted only when— 242.7303 Responsibilities. (i) A contractor has $40 million of (a) The ACO is responsible for— qualifying sales to the Government (1) Determining the need for a CIPR during the contractor’s preceding fiscal under 242.7302; year; and (2) Requesting and scheduling the re- (ii) The ACO, with advice from DCMA views with the appropriate DCMA ac- insurance/pension specialists and tivity; DCAA auditors, determines a CIPR is (3) Notifying the contractor of the needed based on a risk assessment of proposed date and purpose of the re- the contractor’s past experience and view, and obtaining any preliminary current vulnerability. data needed by the DCMA insurance/ (2) Qualifying sales are sales for pension specialist or the DCAA audi- which cost or pricing data were re- tor;
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(4) Reviewing the CIPR report, advis- (1) Participating as a member of the ing the contractor of the recommenda- CIPR team or serving as the team lead- tions contained therein, considering er (see paragraph (b)(3) of this section); contractor comments, and rendering a (2) Issuing an audit report for incor- decision on those recommendations; poration into the final CIPR report (5) Providing other interested con- based on an analysis of the contrac- tracting officers copies of documents tor’s books, accounting records, and related to the CIPR; other related data; and (6) Ensuring adequate follow-up on (3) Performing contract audit respon- all CIPR recommendations; and sibilities related to Cost Accounting (7) Performing contract administra- Standards administration as described tion responsibilities related to Cost Ac- in FAR Subparts 30.2 and 30.6. counting Standards administration as [63 FR 40375, July 29, 1998, as amended at 65 described in FAR Subparts 30.2 and FR 52953, Aug. 31, 2000] 30.6. (b) The DCMA insurance/pension spe- Subpart 242.74—Technical Rep- cialist is responsible for— resentation at Contractor Fa- (1) Preparing and maintaining the cilities schedule of CIPRs to be performed dur- ing the next 12 months and providing 242.7400 General. the military departments and DCAA a (a) Contract administration offices copy of the schedule; (CAOs) are the designated representa- (2) Issuing a technical report on the tives of DoD for the administration of contractor’s insurance/pension plans contracts (see FAR 42.202 and 42.302). for incorporation into the final CIPR DoD activities shall use CAOs to per- report based on an analysis of the con- form contract administration service tractor’s pension program, insurance functions at or near contractor facili- program, and other related data; ties (see 242.202(a)). (3) Leading the team that conducts (b) Program managers may conclude the review. Another individual may that they need technical representa- serve as the team leader when both the tion in contractor facilities to perform insurance/pension specialist and the in- non-contract administration service dividual agree. The team leader is re- (CAS) technical duties and to provide sponsible for— liaison, guidance, and assistance on (i) Maintaining complete documenta- systems and programs. In these cases, tion for CIPR reports; the program manager may assign tech- (ii) To the extent possible, resolving nical representatives under the proce- discrepancies between audit reports dures in 242.7401. and CIPR draft reports prior to releas- (c) Program managers should care- ing the final CIPR report; fully assess the number of technical (iii) Preparing and distributing the representatives required to perform the final CIPR report; non-CAS technical functions so as to (iv) Providing the final audit report keep the total assigned in-plant to the and/or the insurance/pension special- minimum necessary. ist’s report as an attachment to the (d) A technical representative is a CIPR report; and representative of a DoD program, (v) Preparing a draft letter for the project, or system office performing administrative contracting officer’s non-CAS technical duties at or near a use in notifying the contractor of CIPR contractor facility. A technical rep- results; and resentative is not— (4) When requested, advising adminis- (1) A representative of a contract ad- trative contracting officers and other ministration or contract audit compo- Government representatives con- nent; or cerning contractor insurance/pension (2) A contracting officer’s representa- matters. tive (COR) (see 201.602). (c) The DCAA auditor is responsible [56 FR 36437, July 31, 1999, as amended at 64 for— FR 61030, Nov. 9, 1999]
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242.7401 Procedures. informed of contractor discussions (a) When the program, project, or which relate to technical matters with- system manager determines that a in the purview of the technical rep- technical representative is required, resentative’s assigned duties. the manager shall issue a letter of in- tent to the contract administration of- Subpart 242.75—Contractor Ac- fice commander listing the assignment counting Systems and Related location, starting and ending assign- Controls ment dates, technical duties assigned, delegated authority, and support re- SOURCE: 60 FR 29500, June 5, 1995, unless quired from the contract administra- otherwise noted. tion office. Any issues regarding the assignment of a technical representa- 242.7500 Scope of subpart. tive should be resolved promptly. How- This subpart provides policies and ever, final decision on the assignment procedures applicable to contractor ac- remains with the program manager. counting systems and related internal Issues regarding the assignment of controls. technical duties which cannot be re- solved between the program office and 242.7501 Definition. the defense plant representative office will be escalated. Internal controls means those policies (b) The program, project, or system and procedures established by con- manager shall furnish the designated tractor management to provide reason- technical representative a letter of as- able assurance that applicable laws and signment of delegated technical duties, regulations are complied with and that with copies to the contract administra- actual and estimated costs are equi- tion office, the contracting officer, and tably allocated within the accounting contractor, at least 30 days before the system. assignment date (or termination date). 242.7502 Policy. Any changes to the requirements of the assignment letter will be made by a Contractors receiving cost-reim- new letter of intent and processed in bursement or incentive type contracts, accordance with paragraph (a) of this or contracts which provide for progress section. payments based on costs or on a per- (c) The contract administration of- centage or stage of completion, shall fice normally provides the technical maintain an accounting system and re- representative with office space, equip- lated internal controls throughout con- ment, supplies, and part-time clerical tract performance which provide rea- support. The program, project, or sys- sonable assurance that— tem manager provides supervision, (a) Applicable laws and regulations technical direction, administrative are complied with; services (e.g., pay, travel, maintenance (b) The accounting system and cost of personnel records), and, when re- data are reliable; quired, full-time clerical support. (c) Risk of misallocations and (d) The program manager or designee mischarges are minimized; and and the contract administration office, (d) Contract allocations and charges at the local level, shall negotiate a are consistent with invoice procedures. memorandum of agreement (MOA) de- lineating their functional administra- 242.7503 Procedures. tive interrelationships, with annual up- (a) Upon receipt of an audit report dates as necessary. The agreements identifying significant accounting sys- may be included in an existing MOA, if tem or related internal control defi- one exists, or as a separate MOA. ciencies, the ACO will— (e) The technical representative shall (1) Provide a copy of the report to the keep the contract administration office contractor and allow 30 days, or a rea- commander fully informed of matters sonable extension, for the contractor discussed with the contractor. The con- to respond; tract administration office shall also (2) If the contractor agrees with the keep the technical representative fully report, the contractor has 60 days from
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the date of initial notification to cor- 243.105 Availability of funds. rect any identified deficiencies or sub- (a)(i) 10 U.S.C. 2405 prohibits adjust- mit a corrective action plan showing milestones and actions to eliminate ments in price under a shipbuilding the deficiencies. contract entered into after December 7, (3) If the contractor disagrees, the 1983, for a claim, request for equitable contractor should provide rationale in adjustment, or demand for payment its written response. under the contract, arising out of (4) The ACO will consider whether it events occurring more than 18 months is appropriate to suspend a percentage before submission of the claim, re- of progress payments or reimburse- quest, or demand. ment of costs proportionate to the esti- (ii) In accordance with 10 U.S.C. 983, mated cost risk to the Government, do not provide funds by contract or considering audit reports or other rel- contract modification, or make con- evant input, until the contractor sub- tract payments, to an institution of mits a corrective action plan accept- higher education that has a policy or able to the ACO and corrects the defi- practice of hindering Senior Reserve ciencies. (See FAR 32.503–6 (a) and (b) Officer Training Corps units or mili- and FAR 42.302(a)(7)). tary recruiting on campus as described at 209.470. PART 243—CONTRACT [61 FR 25408, May 21, 1996, as amended at 65 MODIFICATIONS FR 2057, Jan. 13, 2000]
Subpart 243.1—General 243.107 Contract clause. Sec. For DoD, the specifically authorized 243.102 Policy. representative (SAR) referred to in the 243.105 Availability of funds. clause at FAR 52.243–7, Notification of 243.107 Contract clause. Changes, is a contracting officer’s rep- 243.107–70 Notification of substantial impact resentative as defined in 202.101 and as on employment. discussed in subpart 201.6. 243.170 Identification of foreign military sale (FMS) requirements. 243.171 Obligation or deobligation of funds. 243.107–70 Notification of substantial impact on employment. Subpart 243.2—Change Orders The Secretary of Defense is required to notify the Secretary of Labor if a 243.204 Administration. 243.204–70 Certification of requests for equi- modification of a major defense con- table adjustment. tract or subcontract will have a sub- 243.204–71 Engineering change proposals. stantial impact on employment. The 243.205 Contract clauses. clause prescribed at 249.7002(c) requires 243.205–70 Pricing of contract modifications. that the contractor notify the con- 243.205–71 Requests for equitable adjust- tracting officer when a contract modi- ment. fication will have a substantial impact AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- on employment. ter 1. [56 FR 67220, Dec. 30, 1991] SOURCE: 56 FR 36446, July 31, 1991, unless otherwise noted. 243.170 Identification of foreign mili- tary sale (FMS) requirements. Subpart 243.1—General Identify contract modifications that 243.102 Policy. add FMS requirements by clearly marking ‘‘FMS Requirement’’ on the (b)(i) See subpart 217.74 for limita- front. Within the modification, cite tions on issuing undefinitized contract each FMS case identifier code by line/ actions. subline item number, e.g., FMS Case (ii) Modifications of letter contracts Identifier GY–D–DCA. are subject to the same policies and procedures as modifications of defini- [56 FR 36446, July 31, 1991. Redesignated at 56 tive contracts. FR 67220, Dec. 30, 1991]
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243.171 Obligation or deobligation of may not be paid unless the contract funds. certifies the request in accordance with For each contract modification, the the clause at 252.243–7002. contracting officer shall identify, in (b) The aggregate amount of both the Section G, Contract Administration increased and decreased costs shall be Data (Uniform Contract Format), or used in determining when the dollar the contract schedule (Simplified Con- threshold requiring certification is met tract Format), under the heading (see example in FAR 15.403–4(a)(1)(iii)). ‘‘Summary for the Payment Office,’’ (c) The certification required by 10 information sufficient to permit the U.S.C. 2410(a), as implemented in the paying office to readily identify the clause at 252.243–7002, is different from changes for each contract line and the certification required by the Con- subline item as follows— tract Disputes Act of 1978 (41 U.S.C. (a) The amount of funds obligated by 605(c)). If the contractor has certified a prior contract actions, to include the request for equitable adjustment in ac- total cost and fee if a cost-type con- cordance with 10 U.S.C. 2410(a), and de- tract; the target fee at time of contract sires to convert the request to a claim award if a cost-plus-incentive-fee con- under the Contract Disputes Act, the tract; the base fee if a cost-plus-award- fee contract; or the target price and contractor shall certify the claim in target profit if a fixed-price incentive accordance with FAR Subpart 33.2. contract; [62 FR 37147, July 11, 1997, as amended at 63 (b) The amount of funds obligated or FR 11541, Mar. 9, 1998] deobligated by the instant modifica- tion, categorized by the types of con- 243.204–71 Engineering change pro- tracts specified in paragraph (a) of this posals. section; and Engineering changes can originate (c) The total cumulative amount of with either the contractor or the Gov- obligated or deobligated funds, cat- ernment. In either case, the Govern- egorized by the types of contracts spec- ment will need detailed information ified in paragraph (a) of this section. from the contractor for evaluation of [60 FR 34470, July 3, 1995] the technical, cost, and schedule ef- fects of implementing the change. Subpart 243.2—Change Orders [66 FR 49865, Oct. 1, 2001] 243.204 Administration. 243.205 Contract clauses. (b) Definitization. The administrative contracting officer (ACO) must review 243.205–70 Pricing of contract modi- change orders issued by the con- fications. tracting officer to ensure compatibility Use the clause at 252.243–7001, Pricing with the status of performance. If the of Contract Modifications, in solicita- contractor has progressed beyond the effective point specified in the change tions and contracts when anticipating order, the ACO must determine the and using a fixed price type contract. earliest practical point at which the [56 FR 36446, July 31, 1991. Redesignated at 66 change order could be made effective FR 49865, Oct. 1, 2001] and advise the contracting officer. The contracting officer must issue another 243.205–71 Requests for equitable ad- change order to correct, revise, or su- justment. persede the first change order, then de- Use the clause at 252.243–7002, Re- finitize by supplemental agreement cit- quests for Equitable Adjustment, in so- ing both change orders. licitations and contracts estimated to 243.204–70 Certification of requests for exceed the simplified acquisition equitable adjustment. threshold. (a) A request for equitable adjust- [63 FR 17124, Apr. 8, 1998. Redesignated at 66 ment to contract terms that exceeds FR 49865, Oct. 1, 2001] the simplified acquisition threshold
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PART 244—SUBCONTRACTING 244.304 Surveillance. POLICIES AND PROCEDURES (b) The ACO, or the purchasing sys- tem analyst (PSA) with the concur- Subpart 244.2—Consent to Subcontracts rence of the ACO, may initiate a spe- cial review of specific weaknesses in Sec. the contractor’s purchasing system. 244.202 Contracting officer’s evaluation. The weaknesses, for example— 244.202–2 Considerations. (i) May arise because of— (A) Major changes in the contractor’s Subpart 244.3—Contractors’ Purchasing purchasing policies, procedures, or key Systems Reviews personnel; or 244.301 Objective. (B) Changes in plant workload or 244.304 Surveillance. type of work. 244.305 Granting, withholding, or with- (ii) May be discovered— drawing approval. (A) During reviews of subcontracts 244.305–70 Granting, withholding, or with- submitted under advance notification drawing approval. and consent (FAR subpart 44.2); or (B) From information provided by Subpart 244.4—Subcontracts for Commer- Government personnel. cial Items and Commercial Compo- [56 FR 36447, July 31, 1991, as amended at 61 nents FR 50455, Sept. 26, 1996] 244.403 Contract clause. 244.305 Granting, withholding, or AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- withdrawing approval. ter 1. 244.305–70 Granting, withholding, or SOURCE: 56 FR 36447, July 31, 1991, unless withdrawing approval. otherwise noted. Use this subsection instead of FAR 44.305–2(c) and 44.305–3(b). Subpart 244.2—Consent to (a) At the completion of the in-plant Subcontracts portion of the review, the ACO shall hold an exit conference with the con- 244.202 Contracting officer’s evalua- tractor. At the conference, the ACO tion. should— 244.202–2 Considerations. (1) Present the review team’s rec- ommendations, signed by the ACO; (a) Where other than lowest price is (2) Request the contractor submit its the basis for subcontractor selection, plan for correcting deficiencies or mak- has the contractor adequately substan- ing improvements within 15 days; and tiated the selection as offering the (3) Not comment on the pending or greatest value to the Government? planned decision to grant or withhold [60 FR 29501, June 5, 1995] approval of the contractor’s purchasing system. (b) The PSA should submit the com- Subpart 244.3—Contractors’ plete report to the ACO, or any depart- Purchasing Systems Reviews ment or agency established review board, within ten days after receipt of 244.301 Objective. the contractor’s response under para- The administrative contracting offi- graph (a)(2) of this subsection. cer (ACO) is responsible for reviewing (c) The ACO should completely re- the contractor’s purchasing systems. view the report and consider the con- Members of other organizations such as tractor’s response before making a de- audit or program management activi- cision on granting, withholding, or ties should not conduct separate re- withdrawing purchasing system ap- views of a contractor’s purchasing sys- proval. The ACO shall notify the con- tem, but may participate in a review tractor of the decision within ten days conducted for the ACO. These organiza- after receipt of the report with a copy tions may, if they suspect a problem, of the decision to the PSA and the con- recommend that the ACO initiate a tracting office, when requested. special review. 329
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(d) When a contractor advises that it 245.403 Rental—Use and charges clause. has corrected deficiencies that led the 245.405 Contracts with foreign governments ACO to withhold or withdraw the pur- or international organizations. chasing system approval, the ACO— 245.407 Non-Government use of plant equip- (1) Shall request the PSA to verify ment. that the contractor has— (i) Corrected the deficiencies; and Subpart 245.5—Management of Govern- (ii) Implemented any other ACO rec- ment Property in the Possession of ommendations. Contractors (2) Should ask for a review of pur- 245.505 Records and reports of Government chasing policies and procedures issued property. since the last review. 245.505–3 Records of material. 245.505–5 Records of plant equipment. Subpart 244.4—Subcontracts for 245.505–6 Special reports of plant equip- Commercial Items and Com- ment. mercial Components 245.505–14 Reports of Government property. 244.403 Contract clause. Subpart 245.6—Reporting, Redistribution, and Disposal of Contractor Inventory Use the clause at 252.244–7000, Sub- contracts for Commercial Items and 245.601 Definitions. Commercial Components (DoD con- 245.603 Disposal methods. tracts), in solicitations and contracts 245.603–70 Contractor performance of plant for supplies or services other than com- clearance duties. mercial items, that contain any of the 245.603–71 Disposal of contractor inventory following clauses: 252.225–7014 Pref- for NATO cooperative projects. erence for Domestic Specialty Metals, 245.604 Restrictions on purchase or reten- Alternate I, 252.247–7023 Transportation tion of contractor inventory. of Supplies by Sea, and 252.247–7024 No- 245.606 Inventory schedules. tification of Transportation of Supplies 245.606–3 Acceptance. by Sea. 245.606–5 Instructions for preparing and sub- mitting schedules of contractor inven- [65 FR 14401, Mar. 16, 2000] tory. 245.606–70 Instructions for completing DD PART 245—GOVERNMENT Form 1342, DoD Property Record. PROPERTY 245.607 Scrap. 245.607–1 General. Subpart 245.1—General 245.607–2 Recovering precious metals. 245.607–70 Scrap warranty. Sec. 245.608 Screening of contractor inventory. 245.104 Review and correction of contrac- 245.608–1 General. tor’s property control systems. 245.608–2 Standard screening. 245.608–5 Special items screening. Subpart 245.3—Providing Government 245.608–7 Reimbursement of cost for transfer Property to Contractors of contractor inventory. 245.301 Definitions. 245.608–70 Contractor inventory redistribu- 245.302 Providing facilities. tion system (CIRS). 245.302–1 Policy. 245.608–71 Screening industrial plant equip- 245.302–2 Facilities contracts. ment. 245.302–7 Optional property–related clauses 245.608–72 Screening excess automatic data for facilities contracts. processing equipment (ADPE). 245.303 Providing material. 245.609 Donations. 245.303–2 Procedures. 245.610 Sale of surplus contractor inventory. 245.307 Providing special test equipment. 245.610–1 Responsibility. 245.307–2 Acquiring special test equipment. 245.610–3 Proceeds of sale. 245.310 Providing agency-peculiar property. 245.610–4 Contractor inventory in foreign 245.310–70 Contract clause. countries. Subpart 245.4—Use and Rental of 245.612 Removal and storage. Government Property 245.612–3 Special storage at the Govern- ment’s expense. 245.401 Policy. 245.613 Property disposal determinations.
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Subpart 245.70—Appointment of Property 245.7309–11 Liability. Administrators and Plant Clearance 245.7309–12 Oral statements. Officers 245.7309–13 Eligibility of bidders. 245.7309–14 Claims liability. 245.7001 Selection, appointment, and termi- 245.7310 Special term and conditions. nation. 245.7310–1 Demilitarization. 245.7002 Duties and responsibilities of plant 245.7310–2 Performance bond. clearance officers. 245.7310–3 Liability and insurance. Subpart 245.71—Plant Clearance Forms 245.7310–4 Dangerous property. 245.7310–5 Controlled substances. 245.7101 Forms. 245.7310–6 Radioactive material. 245.7101–1 Standard Form 97, Certificate of 245.7310–7 Scrap warranty. Release of a Motor Vehicle (Agency 245.7310–8 Antitrust clearance. Record Copy). 245.7311 Optional conditions. 245.7101–2 DD Form 1149, Requisition and In- 245.7311–1 Sales and use tax liability. voice Shipping Document. 245.7311–2 Safety, security, and fire regula- 245.7101–3 DD Form 1348–1, DoD Single Line tions. Item Release/Receipt Document. 245.7311–3 Bid deposits. 245.7101–4 DD Form 1640, Request for Plant 245.7311–4 Other special conditions. Clearance. AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- Subpart 245.72—Special Instructions ter 1. 245.7201 Performing inventory verification SOURCE: 56 FR 36448, July 31, 1991, unless and determination of allocability. otherwise noted. 245.7202 Establishing a plant clearance case. 245.7203 Assigning plant clearance case Subpart 245.1—General numbers. 245.7204 Preparing inventory disposal re- 245.104 Review and correction of con- port. tractor’s property control systems. 245.7205 Reporting excess and surplus con- tractor inventory. (a) The property administrator shall 245.7206 Transmitting DD Form 1342, DoD perform property administration in ac- Property Record. cordance with DoD 4161.2–M, Manual for the Performance of Contract Prop- Subpart 245.73—Sale of Surplus Contractor erty Administration. Inventory [56 FR 36448, July 31, 1991, as amended at 56 245.7301 Policy. FR 67220, Dec. 30, 1991] 245.7302 Competitive sales. 245.7302–1 Property descriptions. 245.7302–2 Lotting. Subpart 245.3—Providing Govern- 245.7302–3 Alternate bids. ment Property to Contractors 245.7302–4 Basis for sale. 245.7302–5 Mailing lists. 245.301 Definitions. 245.7303 Formal bid procedures. 245.7304 Informal bid procedures. Agency-peculiar property, as used in 245.7305 Sale approval and award. DoD, means military property and in- 245.7306 Sales services. cludes end items and integral compo- 245.7307 Non-competitive sales. nents of military weapons systems, 245.7307–1 General. along with the related peculiar support 245.7307–2 Justification. equipment which is not readily avail- 245.7308 Antitrust notification. able as a commercial item. 245.7309 Mandatory terms and conditions— formal invitations. Facilities project means a Government 245.7309–1 Inspection. project to provide, modernize or re- 245.7309–2 Condition and location of prop- place facilities for use by a contractor erty. in performing a Government contract 245.7309–3 Consideration of bids. or subcontract. 245.7309–4 Payment. Industrial plant equipment (IPE) 245.7309–5 Title. means plant equipment in Federal 245.7309–6 Delivery and removal of property. 245.7309–7 Default. stock group 34 with an acquisition cost 245.7309–8 Variations in quantity or weight. of $15,000 or more used for cutting, ab- 245.7309–9 Weighing. rading, grinding, shaping, forming, 245.7309–10 Risk of loss. joining, heating, treating, or otherwise
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altering the physical properties of ma- (B) The contracting officer shall co- terials, components or end items en- ordinate the Determination and Find- tailed in manufacturing, maintenance, ing with the program or project man- supply, processing, assembly, or re- ager. search and development operations. (C) Departments and agencies must IPE is further identified in AR 700–43/ submit reports of facilities projects to NAVSUP PUB 5009/AFM 78–9/DLAM the House and Senate Armed Services 4215.1, Management of Defense-Owned Committees— Industrial Plant Equipment. (1) At least 30 days before starting fa- Mapping, charting, and geodesy cilities projects involving real property (MC&G) property is defined in the (10 U.S.C. 2662); and clause at 252.245–7000, Government Fur- (2) In advance of starting construc- nished Mapping, Charting and Geodesy tion for a facilities project regardless Property. of cost. Use DD Form 1391, FY ll, Other plant equipment (OPE) means Military Construction Project Data, to plant equipment regardless of dollar notify congressional committees of value, used in or in conjunction with projects that are not included in the the manufacture of components or end annual budget. items relative to maintenance, supply, (b)(1)(A) Industrial plant equipment. processing, assembly or research and Before acquiring industrial plant development operations. OPE excludes equipment— equipment categorized as IPE. (1) Submit a DD Form 1419, DoD In- Provide means either to furnish, as in dustrial Plant Equipment Requisition, Government-furnished property, or to to the Defense Supply Center, Rich- acquire, as in contractor-acquired mond (DSCR), Attn: DSCR–JH, 8000 property. Jefferson Davis Highway, Richmond, Va 23297–5100, in accordance with AR 245.302 Providing facilities. 700–43/NAVSUP PUB 5009/AFM 78–9/ DLAM 4215.1, Management of Defense- 245.302–1 Policy. Owned Industrial Plant Equipment, to (a)(4)(A) Comply with DoD Directive determine whether existing, reallo- 4275.5, Acquisition and Management of cable Government-owned facilities can Industrial Resources, in processing a be used. request for facilities. Submit requests (2) Do not acquire any item listed on for approval of facilities projects— the DD Form 1419 until a certificate of (1) To the Secretaries of the Military nonavailability is received from DSCR. Departments and the directors of de- (B) Automatic data processing equip- fense agencies for Government-owned ment. The administrative contracting facilities projects if the project— officer submits contractor requests to (i) Is a research and development- acquire automatic data processing funded effort not exceeding $3 million equipment to the Defense Information per fiscal year; or Systems Agency, Chief Information Of- (ii) Is funded from procurement ap- ficer, Defense Automation Resources propriations, approved on a location Management Program Division, Attn: basis, and does not exceed $5 million D03D, 701 South Courthouse Road, Ar- for all property efforts during one fis- lington, VA 22204–2199, in accordance cal year; or with the Defense Automation Re- sources Management Manual. (iii) Is in support of a major system or subsystem (including ammunition- [56 FR 36448, July 31, 1991, as amended at 62 related projects) and the total invest- FR 34127, June 24, 1997; 64 FR 51076, Sept. 21, ment will not exceed $25 million during 1999; 66 FR 49861, Oct. 1, 2001] the projected acquisition or mainte- nance effort. 245.302–2 Facilities contracts. (2) To the Office of the Deputy Under Terminate facilities contracts when Secretary of Defense (Industrial Affairs Government production and research and Installations) for projects exceed- property is no longer required for the ing the limitations in paragraph performance of Government contracts (a)(4)(A)(1) of this subsection. or subcontracts, unless termination is
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not in the best interest of the Govern- (C) Specify the destination and ment. The contractor is not allowed to means of shipment for material to be extend the time for use of property pro- returned to the Government. vided under the facilities contract [56 FR 36448, July 31, 1991, as amended at 59 without Government authorization. FR 27674, May 27, 1994; 64 FR 51076, Sept. 21, 1999] 245.302–7 Optional property-related clauses for facilities contracts. 245.310–70 Contract clause. Use the clause at 252.225–7030, Re- Use the clause at 252.245–7000, Gov- striction on Acquisition of Carbon, ernment-Furnished Mapping, Charting, Alloy, and Armor Steel Plate, as pre- and Geodesy Property, in solicitations scribed in 225.7017–4. and contracts when mapping, charting, [57 FR 14995, Apr. 23, 1992] and geodesy property is to be fur- nished. 245.303 Providing material. [57 FR 42632, Sept. 15, 1992] 245.303–2 Procedures. Subpart 245.4—Use and Rental of When a contractor will be responsible Government Property for preparing requisitioning docu- mentation, include in the contract the 245.401 Policy. requirement to prepare the documenta- tion in accordance with DoD 4000.25–1– Government use includes use on con- M, Military Standard Requisitioning tracts for foreign military sales. Use on and Issue Procedures (MILSTRIP). contracts for foreign military sales Copies are available from the address shall be on a rent-free basis. cited at 251.102(e)2.b(2). 245.403 Rental—Use and charges clause. 245.307 Providing special test equip- ment. (1) The DoD normally recovers a fair share of nonrecurring costs of special 245.307–2 Acquiring special test equip- tooling and special test equipment by ment. including these costs in its calculation (b) Notice and approval. (1) The review of the nonrecurring cost recoupment requires a written evaluation from the charge when major defense equipment appropriate technical specialist. is sold by foreign military sales or di- rect commercial sales to foreign gov- 245.310 Providing agency-peculiar ernments or international organiza- property. tions. Major defense equipment is de- fined in DODD 2140.2, Recoupment of (c) All Government-furnished map- Nonrecurring Costs on Sales of U.S. ping, charting, and geodesy (MC&G) Products and Technology, as any item property is under the control of the Di- of significant combat equipment on the rector, National Imagery and Mapping United States Munitions List having a Agency (NIMA). nonrecurring RDT&E cost of more than (i) MC&G property shall not be dupli- $50 million or a total production cost of cated, copied, or otherwise reproduced more than $200 million. for purposes other than those nec- (2) When these cost thresholds are essary for contract performance. not met, the contracting officer shall (ii) Upon completion of contract per- assess rental charges for use of special formance, the contracting officer tooling and special test equipment pur- shall— suant to the Use and Charges clause (A) Contact the Director, NIMA(PP), when administratively practicable. 8613 Lee Highway, Fairfax, VA 22031– 2137, for disposition instructions; 245.405 Contracts with foreign govern- (B) Direct the contractor to destroy ments or international organiza- or return all Government-furnished tions. MC&G property not consumed during (1) Approval. A contractor may use contract performance; and Government production and research
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property on work for foreign govern- (A) Assistant Secretary of the Army ments and international organizations (RD&A); only when approved in writing by the (B) Assistant Secretary of the Navy contracting officer having cognizance (RD&A); of the property. The contracting officer (C) Assistant Secretary of the Air shall grant approval only if— Force (Acquisition); or (i) The use will not interfere with (D) Director, Defense Logistics Agen- foreseeable requirements of the United cy. States; (ii) The authority in paragraph (a)(i) (ii) The work is undertaken as a DoD of this section may be delegated to the foreign military sale; or head of a contracting activity. Any re- (iii) For a direct commercial sale, the delegation requires the approval of the foreign country or international orga- Office of the Deputy Under Secretary nization would be authorized to con- of Defense (Industrial Affairs and In- tract with the department concerned stallations). under the Arms Export Control Act. (iii) To determine percentage— (2) Use charges. (i) The Use and (A) Compute the percentage of non- Charges clause is applicable on direct Government use on time available for commercial sales to foreign govern- use. Use contractor’s normal work ments or international organizations. schedule as represented by the sched- (ii) When a particular foreign govern- uled production shift hours. ment or international organization has (B) Use a base time period which is funded the acquisition of specific pro- neither less than three months nor duction and research property, do not more than one year. assess the foreign government or inter- (C) Use may be averaged at a single national organization rental charges or plant for all items costing less than nonrecurring recoupments for the use $25,000. of such property. (iv) Contractors should submit re- (3) Waivers. (i) Rental charges for use quests for non-Government use of IPE of U.S. production and research prop- to the contract administration office erty on commercial sales transactions at least six weeks before the projected to the Government of Canada are use. The requests shall include: waived for all commercial contracts. (A) Total number and acquisition This waiver is based on an under- cost of IPE items; and standing wherein the Government of (B) For each unit of IPE with an ac- Canada has agreed to waive its rental quisition cost of $25,000 or more, an charges. itemized list including nomenclature, (ii) Requests for waivers or reduction plant equipment code, year of manu- of charges for the use of Government facture and acquisition cost. facilities on work for foreign govern- (v) Approving officials shall retain ments or international organizations for periodic review, documentation of shall be submitted to the contracting the circumstances justifying non-Gov- officer who shall refer the matter ernment use of IPE. through contracting channels. In re- [56 FR 36448, July 31, 1991, as amended at 62 sponse to these requests, approvals FR 34127, June 24, 1997] may be granted only by the Director, Defense Security Cooperation Agency Subpart 245.5—Management of for particular sales that are consistent with paragraph (1)(iii) of this section. Government Property in the Possession of Contractors [56 FR 36448, July 31, 1991, as amended at 64 FR 51077, Sept. 21, 1999] 245.505 Records and reports of Gov- ernment property. 245.407 Non-Government use of plant equipment. 245.505–3 Records of material. (a)(i) Non-Government use of indus- If adequate controls are in place to trial plant equipment (IPE) exceeding meet the requirements of the clause at 25 percent requires prior approval of 252.242–7004, Material Management and the— Accounting System, the contractor’s
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material control system may phys- (5) FAR Section 52.245–11, Govern- ically commingle inventories that may ment Property (Facilities Use). include materials for which costs are [59 FR 27674, May 27, 1994] charged or allocated to fixed-price, cost-reimbursement, and commercial contracts. Government-furnished mate- Subpart 245.6—Reporting, Redis- rial (GFM) may not be physically com- tribution, and Disposal of Con- mingled with other material, nor may tractor Inventory GFM be used on contractor’s commer- cial work. 245.601 Definitions. (1) Controlled substances means— 245.505–5 Records of plant equipment. (i) Narcotic, depressant, stimulant, (a) The contractor may use DD Form or hallucinogenic drug or substance; 1342, DoD Property Record, as a source (ii) Any other drug or substance con- document for setting up prescribed trolled under Title II of the Com- records. prehensive Drug Abuse Prevention and Control Act of 1970; or 245.505–6 Special reports of plant (iii) A drug or substance required to equipment. be controlled by international treaty, The contractor shall prepare a DD convention or protocol. Form 1342 in accordance with instruc- (2) Demilitarization means the act of tions contained in AR 700–43/NAVSUP destroying the offensive or defensive PUB 5009/AFM 78–9/DLAM 4215.1, Man- characteristics of equipment or mate- agement of Defense-Owned Industrial rial to prevent its further military or Plant Equipment (IPE)— lethal use. (1) Upon receipt and acceptance of (3) Production scrap means material each item of IPE including items left over from the normal production which, though part of a manufacturing process that has only remelting or re- system, would otherwise qualify as processing value, e.g., textile and IPE; metal clippings, borings, and faulty (2) Whenever major changes occur in castings and forgings. the data initially submitted to Defense (4) Serviceable or usable property Supply Center Richmond (DSCR) (as means property that has a potential for specified by DLAM 4215.1); use or sale value ‘‘as is’’ or with minor (3) When IPE, including general pur- repairs or alterations; only property in pose components of special test equip- Federal Condition Codes A1, A2, A4, A5, ment which otherwise qualify as IPE, B1, B2, B4, B5, F7, or F8. is no longer required for the purpose 245.603 Disposal methods. authorized or provided; or (4) When disposal is completed. 245.603–70 Contractor performance of [56 FR 36448, July 31, 1991, as amended at 62 plant clearance duties. FR 34127, June 24, 1997] (a) Authorization. (1) Contract admin- istration offices (CAOs) may, with head 245.505–14 Reports of Government of the contracting activity approval property. and contractor concurrence, authorize (a) Use the clause at 252.245–7001, Re- selected contractors to perform certain ports of Government Property, in all plant clearance functions if the volume solicitations and contracts containing of plant clearance warrants perform- one of the following clauses— ance by the contractor. (1) FAR Section 52.245–2, Government (2) The written authorization shall, Property (Fixed-Price Contracts); as a minimum— (2) FAR Section 52.245–5, Government (i) Designate the contractor as an Property (Cost Reimbursement, Time- ‘‘accredited contractor’’; and-Material, or Labor-Hour Contracts; (ii) Identify the plant clearance ac- (3) FAR Section 52.245–7, Government tions to be performed; Property (Consolidated Facilities); (iii) State that the Government may (4) FAR Section 52.245–10, Govern- cancel part of or all of the authoriza- ment Property (Facilities Acquisition); tion to perform plant clearance ac- or tions; and
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(iv) Provide for plant clearance offi- drawal of Government furnished prop- cer participation when required. erty from inventory schedules (FAR (b) Government oversight and assist- 45.606–4); ance. (1) The contract administration (4) Determine method of disposal office will ensure regular evaluation of under established priorities and docu- the contractor’s performance of the ment disposal decisions and actions; plant clearance function and any cor- (5) Assign the automatic release date rective action required. and the surplus release date; (2) The plant clearance officer shall— (6) Initiate prescribed screening and (i) Evaluate the adequacy and ensure effect resulting transfers and dona- compliance with contractor proce- tions; dures; (7) Account for disposal of all con- (ii) Ensure discrepancies are prompt- tractor inventory and application of ly resolved; proceeds and submit to the plant clear- (iii) Advise the contractor of screen- ance officer a Standard Form 1424, In- ing and inventory schedule require- ventory Disposal Report, or equivalent; ments; (8) Maintain the donable file and re- (iv) Respond to contractor requests lease property to eligible donees (FAR to withdraw Government-furnished 45.609); property from inventory schedules; (9) Prepare, approve, sign, and main- (v) Evaluate physical, quantitative, tain official plant clearance files and and technical allocability of contractor required forms (245.7101); inventory prior to disposal using (10) Not conduct noncompetitive Standard Form 1423, Inventory sales of surplus contractor inventory; Verification Survey, as a guide; and (vi) Direct contractor to delay dis- (11) Notify the plant clearance officer position of nonallocable inventory in advance when bidding on property. pending a contracting officer decision; (vii) With the contractor’s assist- [56 FR 36448, July 31, 1991, as amended at 56 ance, establish criteria for review and FR 67220, Dec. 30, 1991] approval of selected contractor dis- posal decisions; 245.603–71 Disposal of contractor in- (viii) Complete first endorsement sec- ventory for NATO cooperative projects. tion of DD Form 1640, Request for Plant Clearance, on referrals from (a) North Atlantic Treaty Organiza- plant clearance officers at prime con- tion (NATO) cooperative project agree- tract administration offices for the dis- ments may include disposal provisions posal of subcontractor inventory; for- of jointly acquired property without ward inventory schedules to the con- regard to any applicable disposal laws tractor for processing; and forward of the United States. completed case file to the referring ac- (b) Disposal of such property may in- tivity; and clude a transfer of the U.S. interest in (ix) Work with the contractor, the property to one of the other gov- screeners, and buyers to ensure that ernments participating in the agree- the Government receives maximum re- ment, or the sale of the property. utilization and disposal proceeds. (c) Payment for the transfer or sale (c) Accredited contractor plant clear- of any U.S. interest shall be made in ance duties. The accredited contractor accordance with the terms of the shall— project agreement. (1) Ensure inventory schedule accept- ability. Use DD Form 1637, Notice of 245.604 Restrictions on purchase or Acceptance of Inventory, if desired; retention of contractor inventory. (2) Suspend disposition of property (1) Contractors authorized to sell in- when assets are determined non- ventory may not knowingly sell the in- allocable (FAR 45.606–3); ventory to any person or that person’s (3) Withdraw property from inven- agent, employee, or household member tory schedules and notify the affected if that person— screening activities. Obtain plant (i) Is a civilian employee of the DoD clearance officer approval for with- or the U.S. Coast Guard; or
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(ii) Is a member of the armed forces (b) To assist in verifying inventory of the United States, including the allocability, the plant clearance officer Coast Guard; and shall follow the instructions in 245.7201. (iii) Has any functional or super- visory responsibilities for or within the 245.606–5 Instructions for preparing Defense Reutilization and Marketing and submitting schedules of con- tractor inventory. Program, or for the disposal of con- tractor inventory. (d) General instructions for completing (2)(i) A contractor’s authority to ap- forms. prove a subcontractor’s sale, purchase, (4) The contractor shall use the fol- or retention at less than cost, and the lowing codes together with the disposal subcontractor’s authority to sell, pur- codes 1 through 9, X, and S (e.g., A1, chase, or retain at less than cost if ap- F7, SS) to indicate the condition of the proved by a higher-tier contractor, property— does not include authority to approve— A—New, used, repaired, or recondi- (A) A sale by a subcontractor to the tioned property; serviceable and next-higher tier contractor or to an af- issuable to all customers without limi- filiate of such contractor or of the sub- tations or restrictions; includes mate- contractor; or rial with remaining shelf life of more (B) A sale, purchase, or retention at than six months. less than cost, by a subcontractor af- B—New, used, repaired, or recondi- filiated with the next higher-tier con- tioned property; serviceable and issuable or for its intended purpose but tractor. restricted from issue to specific units, (ii) The written approval of the plant activities, or geographical areas be- clearance officer is required for each cause of its limited usefulness or short excluded sale, purchase, or retention at service-life expectancy; includes mate- less than cost. rial and remaining shelf life of three to (3) Demilitarization. The contractor six months. shall demilitarize contractor inventory F—Economically reparable property possessing offensive or defense charac- which requires repair, overhaul or re- teristics, and not required within the conditioning; includes reparable items DoD, in accordance with Defense De- which are radioactively contaminated. militarization Manual, DoD 4160.21–M– H—Property which has been deter- 1. In unusual cases the plant clearance mined to be unserviceable and does not officer may authorize the purchaser to meet repair criteria. perform the demilitarization; however, S—Property that has no value except the purchaser shall not be granted such for its basic material content. authorization if the inventory is dan- (e) Instructions for completing specific gerous. forms. (4) Classified inventory. Classified con- (4) Inventory Schedule D (Special Tool- tractor inventory shall be disposed of ing and Special Test Equipment) (SF in accordance with applicable security 1432). regulations or as directed by the con- (ii) Description. tracting officer. For termination inventory included (5) Dangerous inventory. Contractor in a settlement proposal, include cost inventory dangerous to public health of inventory acquired for performance or safety shall not be donated or other- of the entire contract in column F1 and wise disposed of unless rendered innoc- cost of inventory acquired solely for uous or until adequate safeguards have the terminated portion of the contract been provided. in column F2. Cost of inventory ac- quired for the entire contract must be 245.606 Inventory schedules. prorated between the terminated and nonterminated portions. 245.606–3 Acceptance. (a) If the schedules are acceptable, 245.606–70 Instructions for completing the plant clearance officer shall, with- DD Form 1342, DoD Property in 15 days, complete and send the con- Record. tractor a DD Form 1637, Notice of Ac- (a) The contractor shall list excess ceptance of Inventory. industrial plant equipment (IPE) on
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DD Form 1342, DoD Property Record, 245.607–2 Recovering precious metals. and submit it to the Government prop- (b) Precious metals are silver, gold, erty administrator for review and platinum, palladium, rhodium, iridium, transmittal to the plant clearance offi- osmium, and ruthenium. cer. For numerically controlled IPE, (i) At the beginning of every fiscal the contractor shall prepare and sub- year, the Defense Reutilization and mit DD Form 1342, section VI, (page 2), Marketing Service (DRMS) will provide Numerically Controlled Machine Data. each contract administration office (b) Upon receipt of the DD Form 1342, with disposition instructions for cer- the plant clearance officer will— tain categories of precious metals- (1) Designate the 75th day from the bearing property, including scrap and date of receipt as the automatic re- usable items containing recoverable lease date (ARD) and the 90th day as quantities of these metals. The disposi- the screening completion date (SCD); tion instructions— and (A) Will remain in effect for the en- (2) Enter the ARD in Block 24 of the tire fiscal year, unless modified by DD Form 1342. DRMS; and (B) Will contain a fund citation to be 245.607 Scrap. used when disposition requires ship- ment of precious metals-bearing prop- 245.607–1 General. erty for recovery. (a)(i) The contractor may request a (ii) Plant clearance officers shall ob- pre-inventory scrap determination, tain disposition instructions for pre- cious metals-bearing property not cov- made by the plant clearance officer ered by the annual disposition instruc- after an on-site survey, if inventory is tions from the Defense Reutilization considered without value except for and Marketing Service, Attn: DRMS– scrap. If approved, the contractor may OC, 74 N. Washington Avenue, Battle make a single descriptive entry on an Creek, MI 49017–3092. inventory schedule, generally describ- ing the property and indicating its ap- [59 FR 27674, May 27, 1994] proximate total cost. The plant clear- 245.607–70 Scrap warranty. ance officer will establish a plant clearance case and perform limited (a) If the contractor sells its inven- screening. tory as scrap to anyone, including a (ii) If the contractor has an approved holding contractor, the contractor scrap procedure, routine disposal of shall include in the sales contract a production scrap and spoilage is au- signed copy of DD Form 1639, Scrap Warranty. thorized, and a plant clearance case is (b) The contracting officer may re- unnecessary. The contractor may simi- lease the contractor from the terms of larly dispose of worn, broken, muti- the scrap warranty in return for con- lated, or otherwise rejected parts from sideration paid to the Government. The overhaul and repair contracts with the consideration will represent the dif- approval of the plant clearance officer. ference between— (iii) In addition to segregating scrap (1) The sale price of the scrap; and to maximize proceeds, the contractor (2) A fair and reasonable price for the may also consolidate sales of Govern- material if it had been sold for pur- ment and contractor scrap if approved poses other than scrap. by the plant clearance officer. When a (c) The contractor shall pay the con- consolidated sale is approved, the plant sideration to the Government and the clearance officer shall waive the scrap Government may execute the release warranty required at 245.607–70. even though the contract containing (iv) When a contractor’s approved the warranty was not made directly scrap procedure does not require phys- with the Government. ical segregation of Government and (d) If the scrap is resold to a second contractor scrap, the plant clearance buyer, the first buyer shall obtain a officer shall ensure the proceeds of scrap warranty from the second buyer. scrap sale are equitably distributed. Upon receipt of the second buyer’s
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scrap warranty, the Government will fense Automation Resources Manage- release the first buyer from liability ment Program Division—ADPE compo- under the original warranty. nents.
245.608 Screening of contractor inven- [56 FR 36448, July 31, 1991, as amended at 62 tory. FR 34128, June 24, 1997] 245.608–1 General. 245.608–7 Reimbursement of cost for transfer of contractor inventory. (a) The plant clearance officer shall arrange for inspection of property at The Defense Logistics Agency will the contractor’s plant if requested by a pay for the movement of industrial prospective transferee, in such a man- plant equipment under the direction ner as to avoid interruption of the con- and control of the Defense Industrial tractor’s operations. Plant Equipment Center.
245.608–2 Standard screening. 245.608–70 Contractor inventory redis- (b)(1) For the first 30 days, property tribution system (CIRS). screening will be limited to the con- (a) Screen serviceable and usable tracting agency and the requiring contractor inventory through CIRS agency, when they are not the same. when it— The requiring agency shall have pri- (1) Is listed on SF 1428, Inventory ority for retention of listed items. Schedule B, or SF 1434, Inventory Schedule E; and 245.608–5 Special items screening. (2) Has a national stock number, and (a) Special test equipment with stand- line item acquisition value in excess of ard components. (1) The contractor shall $50; or report any excess special test equip- (3) Has a line item acquisition value ment (STE) using SF 1432, Inventory in excess of $1,000 ($500 for furniture) Schedule D (Special Tooling and Spe- but no national stock number. cial Test Equipment). The contractor (b) Using Standard Form 120, Report shall list and describe on the inventory of Excess Personal Property, the plant schedule all general-purpose compo- clearance officer will send two copies nents which, if economically severable from the STE, would otherwise be clas- of SF 1428 or SF 1434 (or authorized sified as industrial plant equipment substitutes) to the Defense Reutiliza- (IPE), other plant equipment (OPE), or tion and Marketing Service (DRMS). automatic data processing equipment DRMS will notify the plant clearance (ADPE). officer of items processed, not accept- (2) The plant clearance officer will ed, or available for local area screen- perform the initial screening of the ing. composite STE unit. (c) Property subject to CIRS proc- (A) If the contracting department/ essing will be screened within DoD for agency and the requiring department/ 30 days. On the 31st day, unless other- agency decline the STE or the standard wise specified on SF Form 120, appro- components or do not approve their priate items not requisitioned by DoD transfer to another contract; then, will be reported to the General Serv- (B) The plant clearance officer will ices Administration (GSA) for standard screen the STE and any severable com- Federal agency and donation screening. ponents with the— Examples of items which are not re- (1) General Services Administra- portable to GSA include usable haz- tion—STE unit, less any standard com- ardous cleaners and solvents. ponents, and nonreportable standard (d) For requisitioned items, DRMS components; will issue shipping instructions to the (2) Defense Supply Center Rich- plant clearance officer. During the first mond—IPE components; 45 days of the screening period, the (3) Contractor Inventory Redistribu- plant clearance officer forwards any tion System—OPE components; and requisitions received to DRMS. After 45 (4) Defense Information Systems days, the plant clearance officer for- Agency, Chief Information Officer, De- wards the requisition directly to GSA.
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(e) The contractor sends one copy of is transferred use-to-use or use-to-stor- the shipping document to DRMS when age within DoD. shipment has been made. (d) When GSA sells IPE that is excess (f) Unless directed by the contracting to ownership but not to DoD require- officer, motor vehicles excess to Army ments, report the sale to DSCR in ac- and Navy contracts shall not be cordance with department/agency pro- screened through CIRS. cedures. [56 FR 36448, July 31, 1991, as amended at 60 [56 FR 36448, July 31, 1991, as amended at 62 FR 29501, June 5, 1995] FR 34128, June 24, 1997]
245.608–71 Screening industrial plant 245.608–72 Screening excess automatic equipment. data processing equipment (ADPE). (a) Reporting. Within 15 days of re- Report ADPE that is Government- ceipt, the plant clearance officer will owned or leased by the contractor forward two copies of the DD Form (with Government purchase option or 1342, DoD Property Record, to the De- other interests, including use rights) to fense Supply Center Richmond (DSCR), the Defense Information Systems ATTN: JH, 8000 Jefferson Davis High- Agency, Defense Automation Re- way, Richmond, VA 23297–5100, for all sources Management Program Division IPE not condition coded ‘‘X’’ or ‘‘S.’’ (DARMP). DARMP does all required Process IPE condition coded ‘‘X’’ or screening, including General Services ‘‘S’’ in accordance with department or Administration screening, for ADPE. agency procedures. (See the Defense Automation Re- (b) Screening—(1) First 30 days. DSCR sources Management Manual.) will— (i) Screen excess IPE against all DoD [62 FR 34128, June 24, 1997] requirements with priority given to re- quirements of the owning department/ 245.609 Donations. agency through the 30th day. Agencies may donate, with GSA ap- (ii) For items selected, issue shipping proval and without expense to the instructions containing accounting, United States, certain material not funding, transportation, routing rec- needed by DoD to certain organizations ommendations, and preservation in- such as veterans’ organizations, sol- structions. diers’ monument associations, State (2) 31st through 75th day. (i) DSCR will museums, and incorporated edu- report excess IPE to GSA on 31st day. cational, not for profit museums. For (ii) GSA will— further guidance, see DoD 4160 .21–M, (A) Approve department/agency re- Defense Reutilization and Disposal quests on first come-first served basis; Manual. (B) Approve and forward transfer or- ders to the contract administration of- 245.610 Sale of surplus contractor in- fice; and ventory. (C) Forward copies of approved trans- fer orders to DSCR. 245.610–1 Responsibility. (3) 76th through 90th day. GSA will— (a) See Subpart 245.73 for sales of con- (i) Provide for screening for donation; tractor inventory under the control of (ii) Receive, approve and forward do- DoD. nation applications to the contract ad- ministration office; and 245.610–3 Proceeds of sale. (iii) Send copies of approved applica- tions to DSCR. (1) Unless otherwise provided in the (4) After 90th day. If DoD requirement contract, the proceeds of any sale, pur- is identified, and item is available, ship chase, or retention shall be— item against the requirement unless (i) Credited to the Government as compelling reasons exist for not ship- part of the settlement agreement; ping item. (ii) Credited to the price or cost of (c) The plant clearance officer shall the contract; ensure that a copy of the shipping doc- (iii) Applied as otherwise directed by ument is submitted to DSCR when IPE the contracting officer; or
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(iv) Forwarded to the plant clearance subpurchasers to communist areas officer. The plant clearance officer— (FAR 25.702) or other prohibited des- (A) Within two days after receipt will tinations. send the proceeds and a DD Form 1131, Cash Collection Voucher, to the des- 245.612 Removal and storage. ignated disbursing officer. Identify on the DD Form 1131 the contractor name 245.612–3 Special storage at the Gov- and contract number; or ernment’s expense. (B) For contractors with an approved (a) Before authorizing storage, the scrap procedure, will ensure the pro- contracting officer shall ensure funds ceeds are appropriately applied to an are available to pay for the storage and overhead account. The plant clearance related tasks. In addition, the con- officer may assign a representative tracting officer shall ensure an annual who, with the assistance of the con- review of the need for continued stor- tract auditor, shall periodically vali- age at Government expense. date that proceeds from sales of pro- (b) All storage contracts or agree- duction generated scrap are collected ments shall be fully funded and sepa- and applied to the appropriate account. rately priced and shall include all allo- (2) Except as prescribed in paragraph cable costs. (1)(iv)(B) of this subsection, the plant clearance officer will not close the 245.613 Property disposal determina- plant clearance case until verification tions. is received that the credit has, in fact, The plant clearance officer shall— been properly applied. (1) Record the reason for disposing of the property— 245.610–4 Contractor inventory in for- (i) As scrap and salvage; eign countries. (ii) By abandonment or destruction; (1) Normally, DRMS disposal activi- and ties shall be used to dispose of surplus (iii) By noncompetitive sale; contractor inventory located outside (2) Use DD Form 1641, Disposal Deter- the United States or Canada. However, mination/Approval, to record disposal if authorized by the contracting offi- determinations; and cer, a contractor may sell or make (3) File the completed form in the other disposition of inventory in for- plant clearance case file. eign countries. (2) Sale or other disposition of for- eign inventory by the contractor, in- Subpart 245.70—Appointment of cluding sale to foreign governments, Property Administrators and requires that— Plant Clearance Officers (i) The sales contract or other docu- ment transferring title include the fol- 245.7001 Selection, appointment, and lowing certificate: termination. (a) The head of a contracting activity The Purchaser certifies that the property for the Defense Logistics Agency, or covered by this contract will be used in (name of country). In the event of resale or the head of the contract administra- export by the Purchaser of any of the prop- tion office for other departments and erty acquired at a price in excess of $1,000 agencies shall select, appoint, or termi- United States dollars or equivalent in other nate (in writing) property administra- currency at the official exchange rate, the tors and plant clearance officers. Purchaser agrees to obtain the approval of (b) In selecting qualified property ad- (name and address of Contracting Officer); and ministrators and plant clearance offi- (ii) The contracting officer approve cers, the appointment authority shall sales contracts, resales, or exports. Ap- consider experience, training, edu- proval is permitted only if— cation, business acumen, judgment, (A) The proposed purchaser’s name is character, and ethics. not on the list of Parties Excluded from Procurement Programs; and 245.7002 Duties and responsibilities of (B) The sales contract or other docu- plant clearance officers. ment forbids exports by purchasers and The plant clearance officer shall—
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(a) Instruct the contractor on the tractor and prepare prescribed plant preparation of inventory schedules; clearance reports; and (b) Make pre-inventory scrap deter- (p) Advise and assist the contractor, minations; contracting officer, inventory man- (c) Determine the acceptability of in- ager, Federal agencies, and eligible ventory schedules and DD Forms 1342, donees in actions related to the proper DoD Property Record; and timely disposal of contractor in- (d) Prepare and maintain plant clear- ventory. ance cases and disposal documents; [57 FR 42632, Sept. 15, 1992] (e) Initiate screening and provide technical support to screeners in the selection of assets; Subpart 245.71—Plant Clearance (f) Conduct or arrange for Forms verification of the following— (1) Quantity, condition, description, 245.7101 Forms. and special processing requirements of Use the forms listed below in per- property listed on inventory schedules; formance of plant clearance actions. (2) Technical and quantitative allocability of property; 245.7101–1 Standard Form 97, Certifi- (g) Ensure the timely shipment or re- cate of Release of a Motor Vehicle lease by the contractor of property se- (Agency Record Copy). lected for transfer and donation; Use for transfers, donations, and (h) Determine the appropriate meth- sales of motor vehicles. The con- od of disposal for items not selected for tracting officer shall execute the SF 97 Federal agency use or donation and en- and furnish it to the purchaser. sure final plant clearance is accom- plished; 245.7101–2 DD Form 1149, Requisition (i) Evaluate and monitor the contrac- and Invoice Shipping Document. tor’s surplus property sales program; Use for transfer and donation of con- (j) For individual surplus property tractor inventory. Donations of indus- sales— trial plant equipment may be shipped (1) Approve method of sale; via DD Form 1149. This form may also (2) Ensure the sales offerings meet be used to consolidate contractor in- prescribed requirements; ventory redistribution system-directed (3) Witness bid openings; shipments going to the same destina- (4) Evaluate bids; tion. (5) Approve sale awards; (6) Secure anti-trust clearances, as 245.7101–3 DD Form 1348–1, DoD Sin- gle Line Item Release/Receipt Docu- required; ment. (7) Recommend the reasonableness of selling expenses; and Use for shipments of excess indus- (8) Ensure that sales proceeds are col- trial plant equipment and contractor lected and property credited; inventory redistribution system (CIRS) (k) Monitor ongoing plant clearance inventory. actions to ensure delays are minimized 245.7101–4 DD Form 1640, Request for and, when necessary, work with the Plant Clearance. contractor and property administrator to implement improvements; Use to request plant clearance assist- (l) Evaluate the adequacy of the con- ance or transfer plant clearance. tractor’s property disposal procedures; (m) Support the property adminis- Subpart 245.72—Special trator during the compliance analysis Instructions of the disposition portion of the con- tractor’s property control procedures; 245.7201 Performing inventory (n) Report all disposal deficiencies to verification and determination of the property administrator; allocability. (o) Account for all contractor inven- Use the following guidance for tory reported for disposal by the con- verifying inventory schedules—
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(a) Allocability. (1) Review contract (4) Shipping documents transferring requirements, delivery schedules, bills inventory; of material, and other pertinent mate- (5) Inventory verification survey or rial. Determine whether schedules in- other documents showing completion clude material which— of allocability review; (i) Is more than required or reason- (6) Forms authorizing donation or ably expected to be required for com- sale; pletion of the contract; or (7) Document showing disposition of (ii) Might be usable on the current proceeds from plant clearance actions; contract, or diverted to other commer- and cial work or Government use. (8) Any other documents pertinent to (2) Review the contractor’s— disposal actions, including review (i) Recent purchases of similar mate- board cases, antitrust clearances, and rial; inventory disposal reports. (ii) Plans for current and scheduled production; 245.7203 Assigning plant clearance (iii) Stock record entries; and case numbers. (iv) Bills of material for similar (a) Use a three-part, 11-character items. number constructed as follows: (b) Quantity. Ensure available inven- (1) Part 1: DoD Activity Address tory is in accordance with quantities Number (6-character alphanumeric listed on the inventory schedules. code) assigned to the contract admin- While a complete physical count of istering activity. each item is not required, perform suf- (2) Part 2: Locally assigned 4-char- ficient checks to ensure accurate quan- acter consecutive alphanumeric code, tities. beginning each calendar year with 001 (c) Condition. Ensure the inventory continuing as necessary through ZZZ. condition matches that shown on the The fourth digit is the last number of inventory schedules. the calendar year. (3) Part 3: The 11th character is a sin- 245.7202 Establishing a plant clear- gle letter identifying the department/ ance case. agency: (a) Upon receipt of an acceptable in- ventory schedule or a DD Form 1342, C—Army DoD Property Record, the plant clear- Q—Navy ance officer shall establish a plant E—Air Force L—Marine Corps clearance case file. The case folder U—Defense Logistics Agency will— N—Defense Nuclear Agency (1) Identify the case number (see M—National Imagery and Mapping Agency 245.7203); S—NASA (2) Indicate the contractor’s name D—Other DoD Activities and contract number; O—Non-DoD Activities (3) Note the word ‘‘Termination’’ if applicable; and (b) Record the plant clearance num- (4) Consolidate all inventory sched- ber on DD Form 1635, Plant Clearance ules applicable to one contract at the Case Register, or mechanized equiva- same location, if possible. lent. (b) As a minimum, include in the [56 FR 36448, July 31, 1991, as amended at 64 plant clearance case file— FR 51077, Sept. 21, 1999] (1) Inventory schedules or DD Form 1342, DoD Property Record, annotated 245.7204 Preparing inventory disposal to show all disposal actions; report. (2) Copies of documents forwarding (a) Prepare Standard Form 1424, In- inventory schedules to the appropriate ventory Disposal Report, for each com- screening activity; pleted plant clearance case. For termi- (3) Shipping or other instructions and nated contracts, prepare a consolidated correspondence directing disposition of Inventory Disposal Report for each ter- contractor inventory; mination docket.
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(b) Distribute the report to the con- (2) Prepare quarterly reports for peri- tracting officer and to any other ac- ods ending March 31, June 30, Sep- tivities having an interest in the inven- tember 30, and December 31. Activities tory disposal. preparing manual reports will submit (c) Items on the form are self-explan- duplicate reports to the headquarters atory except: of the administering activity within (1) Item 12—Insert net change due to ten working days after the close of the shortages, overages, errors, pricing, or report period. (Report Control Symbol withdrawals, etc. Explain in item 16, DD(I&L)(Q)1430). Remarks. (b) Items on the report are self-ex- (2) Item 14—Insert amount con- planatory except: tractor is retaining or purchasing at (1) Line 1—Insert totals from line 7 of full acquisition cost (see FAR 45.605–1). the preceding report. (3) Item 15—Insert acquisition cost (2) Line 2—Insert net changes due to and net credit (full credit less approved shortages, overages, errors, or with- handling, transportation, and re- drawals (other than purchases or reten- stocking charges for items returned to tion at cost). supplier). (3) Line 3—Insert total excess inven- (4) Item 16—Insert the acquisition tory reported by contractors during cost for all transfers accomplished. For the report period. lines 16A and 16B, insert subtotals as (4) Line 5—Insert total plant clear- indicated. ance cases completed during the report (5) Item 18—Insert acquisition cost period. Do not report cases as com- and gross proceeds. When approved sale pleted until all property is disposed. costs are reimbursed from proceeds, Acquisition cost must equal line 19. show net proceeds in Item 26, Remarks. (5) Line 8—Insert amount retained or (6) Items 20 and 21—Use to identify withdrawn at full cost. and report transactions not otherwise (6) Line 9—Insert acquisition cost in identified, such as assets shipped to a the ‘‘Acquisition Cost’’ column and in- Government precious metals reclama- sert acquisition cost less handling, tion activity, etc. Further explanation transportation, or restocking charges, may be provided in Item 26, Remarks, in the ‘‘Proceeds’’ column. if necessary. (7) Line 10—Insert acquisition cost of (7) Item 25—Totals dispositions must all transfers completed during the re- equal amounts on line 13 and must re- port period. On lines 10A through 10H, flect all disposal actions within the insert subtotals representing transfers case. to the agency indicated. Exclude (8) Item 26—Show the specific dis- amounts on lines 10A through 10H when position of proceeds reported in Items computing line 19 totals. 14, 15, and 18. Also indicate amounts (8) Line 12—Insert the acquisition deleted for specific contractor claims, cost and gross proceeds. When sale or applied as a credit to the claim. Ex- costs are reimbursed from proceeds, plain any entry requiring explanation. show net proceeds in remarks. (9) Lines 14 and 15—Used to identify 245.7205 Reporting excess and surplus and report other transactions. contractor inventory. (10) Line 18—Insert Section II totals. (a) Contract administration offices Line 18 acquisition cost must equal ac- with plant clearance responsibilities quisition cost on line 5. will— (1) Use DD Form 1638, Report of Ex- 245.7206 Transmitting DD Form 1342, cess and Surplus Contractor Inventory, DoD Property Record. or mechanized equivalent, to report the As a minimum, the plant clearance disposition of contractor inventory. Do officer will provide the following infor- not include disposition actions trans- mation in a letter forwarding DD ferred to other offices. Unless head- Forms 1342 to DSCR— quarters of the administering activity (a) Number of DD Forms 1342 in- directs otherwise, complete only the cluded; column total for each line of this re- (b) Automatic release date; port. (c) Screening complete date;
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(d) Contractor’s name and address; terminology and original manufacturer (e) Contract number; and brand name, if applicable. (f) Contracting activity that awarded the contract under which the con- 245.7302–2 Lotting. tractor acquired the equipment; (a) Consider combining property into (g) Location of the industrial plant lots when the quantities, value, or na- equipment; ture of the property makes it uneco- (h) Total acquisition cost; nomical to sell separately. (i) A statement advising that the (b) When lotting is appropriate and automatic release date will not be ex- economically practical— tended; (1) Size the lots to encourage bidding (j) A note stating that— by small businesses or individuals; (1) Request for transfer or shipment (2) Lot unused items by make or must include appropriate fund cita- manufacturer, except when quantities tions for packing, crating, and han- or dollar values are small; dling charges; and (3) Lot commercially similar items (2) Government bills of lading (GBLs) when practicable; should be furnished or, if shipment will (4) Lot used and unused items sepa- be accomplished by other than GBL, rately unless quantities, value, or na- DSCR must cite transportation funds; ture of property makes it uneco- and nomical to sell separately; (5) Size lots large enough to ensure (k) The plant clearance officer’s sig- the selling costs are not dispropor- nature block. tionate to the anticipated proceeds. [56 FR 36448, July 31, 1991, as amended at 62 FR 34128, June 24, 1997] 245.7302–3 Alternate bids. Offerors may be solicited to bid for Subpart 245.73—Sale of Surplus groups or for the entire offering by use Contractor Inventory of the following: Item lllll (Alternate Bid) 245.7301 Policy. This item consists of all property listed (a) Screening must be completed be- and described in Items llll to llll, fore any surplus contractor inventory inclusive. Award under this item will be sale. made only if the highest acceptable bid on this item is equal to, or greater than, the (b) Except as provided in 245.7307, total of the highest acceptable bids on Items sales of surplus contractor inventory llll to llll, inclusive. shall be competitive. (c) The commander of the contract 245.7302–4 Basis for sale. administration office must approve the (a) Unit price basis—requires the offer- use of auctions, spot bids, or retail or to state the bid price in terms of the sales. quantity or weight generally applied in [56 FR 36448, July 31, 1991, as amended at 63 commercial sales of similar items. FR 31938, June 11, 1998] (b) Lot price basis—requires the offer- or to submit a bid for the entire lot. 245.7302 Competitive sales. Use the lot price basis of sale only when property cannot be sold by unit 245.7302–1 Property descriptions. measure or the potential sales return is (a) Describe the property as ‘‘used’’ small. or ‘‘unused.’’ Indicate if unused prop- erty is still in the manufacturer’s 245.7302–5 Mailing lists. original containers. Qualifying state- (a) The plant clearance officer will ments such as ‘‘well-preserved’’ or ‘‘re- ensure the contractor solicits a suffi- pairs required’’ are authorized. Do not cient number of bidders to obtain ade- use condition codes or the terms ‘‘new’’ quate competition. or ‘‘salvage.’’ (b) When large quantities of property, (b) Property descriptions must be ac- special commodities, or unusual geo- curate and adequate for identification graphic locations are involved, the by prospective bidders. Use commercial plant clearance officer is encouraged to
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obtain additional listings from: De- (E) The date of the sale or bid open- fense Reutilization and Marketing ing; Service, Attn: DRMS–OCR, 74 North (F) The type of sale, i.e., sealed bid, Washington Avenue, Battle Creek, MI spot bid, auction; and 49017–3092. (G) The location of the property. (f) The plant clearance officer or rep- 245.7303 Formal bid procedures. resentative will witness the bid open- (a) The contractor will use formal in- ing. Within two working days after bid vitations for bid unless the plant clear- opening, the contractor will submit to ance officer approves use of informal the plant clearance officer two copies bid procedures. of an abstract of all bids, signed by the (b) The contractor shall solicit bids witnessing Government representative. at least 15 calendar days before bid opening to allow adequate opportunity 245.7304 Informal bid procedures. to inspect property and prepare bids. (a) Upon approval of the plant clear- (c) For large sales, the contractor ance officer, the contractor may issue may use summary lists of items offered informal invitations to bid (orally, as bid sheets with detailed descriptions telephonically, or by other informal attached. media), provided— (d) In addition to mailing or deliv- (1) Maximum practical competition ering notice of the proposed sale to is maintained; prospective bidders, the contractor (2) Sources solicited are recorded; may, when the results are expected to and justify the additional expense— (3) Informal bids are confirmed in (1) Display a notice of the proposed writing. sale in appropriate public places. (b) Bids by the contractor or its em- (2) Publish a sales notice in appro- ployees shall be submitted to the plant priate trade journals or magazines and clearance officer prior to soliciting local newspapers. bids from other prospective bidders. (e) When the acquisition cost of the property to be sold at one time, in one 245.7305 Sale approval and award. place, is $250,000 or more, the con- The plant clearance officer will— tractor shall send a notice of the pro- (1) Evaluate bids to establish that posed sale to: U.S. Department of Com- the sale price is fair and reasonable, merce, Commerce Business Daily, taking into consideration— Sales Section, P.O. Box 5999, Chicago, (i) Knowledge or tests of the market; IL 60680. (ii) Current published prices for the (1) The contractor shall send the CBD property; notice at least 20 days before bid open- (iii) The nature, condition, quantity, ing, or date of sale. and location of the property; and (2) CBD notices shall be— (iv) Information from the Defense (i) Double spaced and in synopsis Reutilization and Marketing Service. form suitable for printing; (2) Approve award to the responsible (ii) Transmitted by fastest mail bidder whose bid is most advantageous available; and to the Government, price and other (iii) Contain the following informa- factors considered. Award shall not be tion in the order listed: approved to any bidder who is not eligi- (A) Name and address of contractor ble to enter into a contract with the issuing the invitation for bids; DoD due to inclusion on the list of Par- (B) Name or title, address, and tele- ties Excluded from Procurement Pro- phone number of the official from grams. If a compelling reason exists to whom copies of the sales offering and award to a bidder on the excluded list, other information can be obtained; the plant clearance officer shall re- (C) Description of the property to be quest approval from the headquarters sold including, when desired, the total of the administering activity. estimated acquisition cost; (3) Notify the contractor within five (D) The number of the invitation or working days of the bidder to whom an sale; award shall be made. The contractor
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shall make the award, collect the pro- tax-supported agencies therein, and the ceeds of the sale, and release the prop- estimated fair market value of the erty to the purchaser. The contractor property and other satisfactory terms shall provide the plant clearance offi- of disposal are obtained; cer with evidence of delivery reflecting (5) Specialized nature of the property actual quantities released to the pur- would not create bidder interest; chaser. (6) Removal of the property would re- duce its value or result in dispropor- 245.7306 Sales services. tionate handling expenses; or When sale services are needed, the (7) Such action is essential to the plant clearance officer will document Government’s interests. the reasons in the case file and make (b) The contracting department/agen- arrangements directly with the De- cy will provide the contract adminis- fense Reutilization and Marketing tration office the sales justification Service (DRMS) or General Services and any special sales provisions when Administration (GSA). The arrange- the department/agency decides to sell ments will include a requirement to re- production equipment to the con- turn all proceeds to the plant clearance tractor by non-competitive sale. officer for crediting in compliance with FAR 45.610–3. 245.7308 Antitrust notification. (a) When contractor inventory with 245.7307 Non-competitive sales. an estimated fair market value of $3 245.7307–1 General. million or more or any patents, proc- esses, techniques, or inventions, re- (a) Non-competitive sales include gardless of cost, are sold or otherwise purchases or retention at less than cost disposed of to private interests notify by the contractor. the Attorney General and the General (b) Non-competitive sales may be Services Administration (GSA) of the made when— proposed terms and conditions of dis- (1) The contracting department/agen- posal. Submit the following informa- cy or the plant clearance officer deter- tion to the Department of Justice and mines that this method is essential to the GSA through the contract adminis- expeditious plant clearance; tration agency channels. Report Con- (2) The sale is otherwise justified on trol Symbol DD-ACQ(AR) 1492 applies. the basis of circumstances listed in 245.7307–2; (1) Location and description of prop- (3) The Government’s interests are erty (specify tonnage if scrap); adequately protected; and (2) Proposed sale price (explain if the (4) FAR subpart 1.7 requirements are proposed purchaser was not highest met. bidder); (c) Non-competitive sales shall be at (3) Acquisition cost of property; fair and reasonable prices not less than (4) Manner of sale, indicating wheth- those reasonably expected under com- er by— petitive sale. (i) Sealed bid (specify number of bid- ders solicited and bids received); 245.7307–2 Justification. (ii) Auction or spot bid (state how (a) Conditions justifying non-com- sale was advertised); or petitive sales are— (iii) Negotiation (explain why prop- (1) Scientific equipment allocated to erty was not sold competitively); terminated research and development (5) Proposed purchaser’s name, ad- contracts with educational institu- dress, and trade name (if any) under tions; which proposed purchaser is doing busi- (2) No acceptable bids received under ness; an advertised competitive sale; (6) If a corporation, provide state and (3) Property value so small that an- date of incorporation, and name and ticipated proceeds would not warrant address of— formal competitive sale; (i) Each holder of 25 percent or more (4) Sale to States, territories, posses- of the corporate stock; sions, political subdivisions thereof, or (ii) Each subsidiary; and
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(iii) Each company under common offered for sale ‘‘as is’’ and ‘‘where is.’’ control with proposed purchaser; If the Invitation provides that the Con- (7) If a partnership, provide— tractor will load, then ‘‘where is’’ (i) Name and address of each partner; means f.o.b. conveyance at the point and specified in the Invitation. (ii) Other business connections of (b) The description is based on the each partner; best available information. However, (8) Nature of proposed purchaser’s the Contractor makes no warranty, ex- business (indicate whether its scope is press or implied, as to quantity, kind, local, statewide, regional, or national); character, quality, weight, size, or de- (9) Estimated dollar volume of sales scription of the property or its fitness of proposed purchaser (as of latest cal- for any use or purpose. endar or fiscal year); (c) Except as provided in Conditions (10) Estimated net worth of proposed 245.7306–8, Variations in Quantity or purchaser; and Weight, and 245.7306–10, Risk of Loss, (11) Intended use of property. no request for adjustment in price or (b) Do not dispose of property until for rescission of the sale will be consid- the Attorney General determines ered. This is not a sale by sample. whether the proposed disposal action would tend to create or maintain a sit- 245.7309–3 Consideration of bids. uation inconsistent with the antitrust (a) Bidder agrees that this bid is firm laws. (c) If the Attorney General advises and irrevocable within the acceptance that the proposed disposition is incon- period specified in the Invitation (or, if sistent with the antitrust laws, do not not specified, not less than ten or more continue with the proposed disposition. than 60 days). (d) Under non-competitive sales, the (b) The right is reserved to reject any prospective purchaser shall be in- or all bids, to waive any technical de- formed that final consummation of the fects in bids, and, unless otherwise sale is subject to determination by the specified in the offering or by the Bid- Attorney General. der, to accept any one item or group of (e) Under competitive or non-com- items in the bid. Unless the invitation petitive sales, the purchaser is required provides otherwise, bids— to provide the information required in (1) May be on any or all items; paragraph (a) of this subsection. (2) Must be submitted on the unit basis specified for that item; [56 FR 36448, July 31, 1991, as amended at 57 (3) Must cover the total number of FR 42633, Sept. 15, 1992; 57 FR 53601, Nov. 12, 1992] units designated for that item; and (4) Unit prices govern. 245.7309 Mandatory terms and condi- tions—formal invitations. 245.7309–4 Payment. Sale by formal invitation shall in- (a) Purchaser agrees to pay the full clude, as a minimum, the terms and purchase price for awarded property at conditions in this section. the prices quoted in the bid. Unless an adjustment is required pursuant to 245.7309–1 Inspection. Condition 245.7306–8, Variations in The Bidder is invited to inspect the Quantity or Weight, payment must be property prior to submitting a bid. made within the time specified for re- Property will be available for inspec- moval and prior to delivery of any of tion at the places and times specified the property. In the event that any ad- in the Invitation. Failure to inspect justment is made, payment must be property does not constitute grounds made immediately after such adjust- for the withdrawal of a bid after open- ment. ing. (b) The full purchase price, or bal- ance if a bid deposit was required, shall 245.7309–2 Condition and location of be paid to the Contractor in cash or by property. certified check, cashier’s check, trav- (a) Unless otherwise specifically pro- eler’s check, bank draft, or postal or vided in the Invitation, all property is express money order. The Contractor is
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not required to extend credit to any dental expenses to the defaulting Bid- purchaser. der. Bid deposits received (if required (c) The Contractor reserves the right in the Invitation) shall be applied to apply any bid deposits made under against such losses and expenses. this Invitation by a bidder against any amounts due under a contract awarded 245.7309–8 Variations in quantity or by the Contractor under this Invita- weight. tion. If the total sum due to the con- When property is sold on a ‘‘unit tractor is less than the amount depos- price’’ basis, the Contractor reserves ited with the bid, the difference shall the right to vary by up to 15 percent be promptly refunded. Deposits accom- the quantity or weight listed in the In- panying bids which are not accepted vitation and the Purchaser agrees to shall be promptly returned. accept delivery of any quantity or weight within these limits. The pur- 245.7309–5 Title. chase price shall be adjusted in accord- (a) Unless otherwise specified in the ance with the unit price and on the Invitation, title to property sold under basis of the quantity or weight deliv- this Invitation shall vest in the Pur- ered. chaser when full payment is made. If the Invitation provides for loading by 245.7309–9 Weighing. the Contractor, title shall not vest until payment and loading are com- (a) When weighing is necessary to de- pleted. termine the exact purchase price, the (b) A Standard Form 97, Certificate Purchaser shall arrange for and pay all of Release of a Motor Vehicle, (or a weighing expenses. When removal is by State certificate of title) shall be fur- truck, weighing shall be subject to su- nished for motor vehicles and motor- pervision and accomplished on— propelled or motor-drawn equipment (1) Contractor scales; requiring licensing. (2) Certified scales; or (3) Other scales acceptable to both 245.7309–6 Delivery and removal of parties. property. (b) When removal is by rail, weighing (a) Unless otherwise specified in the shall be on railroad scales or by other Invitation, the Purchaser shall be enti- means acceptable to the railroad for tled to obtain the property upon vest- freight purposes. The Purchaser shall ing of title in the Purchaser. Delivery pay switching charges. shall be made at the designated loca- tion, and removal will be at the Pur- 245.7309–10 Risk of loss. chaser’s expense within the time frame The Contractor is responsible for rea- specified in the Invitation or any addi- sonable care and protection of the tional time allowed by the Contractor. property until the date specified for re- (b) The Purchaser shall reimburse moval. All risk of loss, damage, or de- the Contractor for any damage to the struction from any cause whatsoever Contractor’s property caused by Pur- shall be borne by the Purchaser after chaser’s removal operations. If addi- passage of title. tional time is required to remove the property, the Contractor, without lim- 245.7309–11 Liability. iting any other rights, may require the Purchaser to pay reasonable storage Contractor and Government liability, charges. when liability has been established, shall not exceed the refund of any por- 245.7309–7 Default. tion of the purchase price already re- If the successful Bidder fails to make ceived by the Contractor. full payment, remove property by the specified date, or comply with any 245.7309–12 Oral statements. other terms and conditions of sale, the Any oral statement by the Con- Contractor reserves the right to sell or tractor changing or supplementing the otherwise dispose of any or all such contract or any condition thereof is property and to charge losses and inci- unauthorized.
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245.7309–13 Eligibility of bidders. militarization requirements for item(s) shown in Attachment 1, Part 2 of Defense, The Bidder shall certify that the Bid- Demilitarization Manual; der is not— (2) For property located outside the United (a) A civilian employee of the De- States, insert item number(s) and specific partment of Defense or the United demilitarization requirements for item(s) States Coast Guard whose duties in- shown in Attachment 1, Part 3 of DoD clude any functional or supervisory re- 4160.21–M–1, Defense Demilitarization Man- sponsibility for disposal of contractor ual. (b) Demilitarization on Government Premises. inventory; Property requiring demilitarization shall (b) A member of the United States not be removed, and title shall not pass to Armed Forces, including the Coast the Purchaser, until demilitarization has Guard, whose duties include any func- been completed and approved by an author- tional or supervisory responsibility for ized Contractor and Government representa- disposal of contractor inventory; tive. Demilitarization will be accomplished (c) An agent, employee or immediate as specified in the contract. Component member of the household of personnel parts vital to the military or lethal purpose of the property shall be rendered unusable. in paragraphs (a) and (b). The Purchaser agrees to assume all cost inci- dent to the demilitarization and to restore 245.7309–14 Claims liability. the working area to its present condition The Purchaser or Bidder agrees to after removing the demilitarized property. save the Contractor and Government (c) Demilitarization on Non-Government harmless from any and all claims, de- Premises. Property requiring demilitarization mands, actions, debts, liabilities, judg- shall be demilitarized by the Purchaser under supervision of qualified Department of ments, costs, and attorney’s fees aris- Defense personnel. Title shall not pass to the ing out of, claimed on account of, or in Purchaser until demilitarization has been any manner predicated upon loss of or completed by the Purchaser and approved by damage to property of, and injuries to an authorized Contractor and Government or the death of any and all persons representative. Demilitarization will be ac- whatsoever, in any manner caused or complished as specified in the contract. contributed to by the Purchaser or Bid- Component parts vital to the military or le- thal purpose of the property shall be ren- der, their agents, servants or employ- dered unusable. The Purchaser agrees to as- ees, while in, upon, or about the sale sume all costs incident to the demilitariza- site on which the property sold or of- tion. fered for sale is located, or while going (d) Failure to Demilitarize. If the Purchaser to or departing from such areas; and to fails to demilitarize the property as specified save the Contractor and Government in the contract, the Contractor may, upon harmless from and on account of dam- giving ten days written notice from date of ages of any kind which the Contractor mailing to the Purchaser— may suffer as the result of the acts of (1) Repossess, demilitarize, and return the property to the Purchaser. The Purchaser any of the Purchaser’s agents, serv- hereby agrees to pay to the Contractor, prior ants, or employees while in or about to the return of the property, all costs in- the said sites. curred by the Contractor in repossessing, de- militarizing, and returning the property to 245.7310 Special term and conditions. the Purchaser. When necessary, include the special (2) Repossess, demilitarize, and resell the conditions of this section in formal in- property, and charge the defaulting Pur- chaser will all excess costs incurred by the vitations. Contractor. The Contractor shall deduct these costs from the purchase price and re- 245.7310–1 Demilitarization. fund the balance of the purchase price, if When demilitarization of property is any, to the Purchaser. In the event the ex- required, whether on or off contractor cess costs exceed the purchase price, the de- or Government premises, the invita- faulting Purchaser hereby agrees to pay tion must include the following clause: these excess costs to the Contractor. (3) Repossess and resell the property under (a) Demilitarization. similar terms and conditions. In the event Item(s) llll require demilitarization by this option is exercised, the Contractor shall the Purchaser in the manner and to the de- charge the defaulting Purchaser with all ex- gree set forth below: cess costs incurred by the Contractor. The (1) For property located in the United Contractor shall deduct these excess costs States insert item number(s) and specific de- from the original purchase price and refund
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the balance of the purchase price, if any, to DANGEROUS PROPERTY the defaulting Purchaser. Should the excess Purchasers are warned that the property costs to the Contractor exceed the purchase purchased may contain items of an explo- price, the defaulting Purchaser hereby sive, toxic, or inflammable nature, notwith- agrees to pay these excess costs to the Con- standing reasonable care exercised by the tractor. Contractor to render the property harmless. The Contractor and the Government assume 245.7310–2 Performance bond. no liability for damage to the property of the Performance bonds are required when Purchaser, or for personal injuries or disabil- work, other than loading, is to be per- ities to the Purchaser or the Purchaser’s em- ployees, or to any other person, arising from formed by the purchaser and a bond is or incident to the purchase of the property, considered necessary to ensure per- or its use or disposition by the Purchaser. formance. Generally, performance The Purchaser shall save the Contractor and bonds shall be 100 percent of the esti- the Government harmless from any and all mated cost of the work to be per- such claims. formed. If a 100 percent performance bond would be disadvantageous to the 245.7310–5 Controlled substances. Contractor or to the Government, the The sale of controlled substances, amount may be reduced to not less e.g., narcotics, stimulants, depressants, than 50 percent of the estimated cost of or hallucinogenic drugs, shall be sub- the work. Include the following condi- ject to the following special conditions: tion when performance bonds are re- (a) Controlled Substances. Bids will be quired: rejected unless the Bidder submits the following certification with its bid: PERFORMANCE BOND The undersigned represents and warrants Within ten days after notice of award, the that it is registered under The Comprehen- Purchaser shall furnish a performance bond sive Drug Abuse Prevention and Control Act in the sum of $llll to cover the Pur- of 1970, and is authorized under the law and chaser’s obligations. Such bond shall remain by the Attorney General, U.S. Department of in full force and effect during the term of the Justice (Bureau of Narcotics and Dangerous contract and any extensions as may be Drugs) to buy controlled substances as a agreed upon. The Purchaser shall not be per- medical practitioner, dealer or manufacturer mitted to begin performance until the bond of controlled substances. has been received. (b) Narcotic Drugs and Chemicals. Bids 245.7310–3 Liability and insurance. will be rejected unless the Bidder sub- mits the following certification with When the work to be performed by its bid: the purchaser warrants, use the fol- lowing: The undersigned represents and warrants that it is registered under Federal narcotics LIABILITY AND INSURANCE laws and is authorized by law and by the Bu- reau of Narcotics, United States Treasury The Purchaser shall at the Purchaser’s Department, as a manufacturer of narcotics. own expense purchase and maintain during the term of the contract insurance as fol- 245.7310–6 Radioactive material. lows: (a) Standard workers’ compensation and The following shall be used whenever employer’s liability insurance required the property offered for sale is capable under State and Federal statutes. However, of emitting ionized radiation: the Contractor may waive this requirement upon receipt of satisfactory evidence that RADIOACTIVE MATERIAL the Purchaser is qualified as a self-insurer Purchasers are warned that the property under applicable provisions of law. may be capable of emitting ionized radi- (b) Bodily injury liability insurance in an ation. The Contractor and the Government amount not less than $300,000 for any one oc- assume no liability for damage to the prop- currence; and erty of the Purchaser, or for personal inju- (c) Property damage liability insurance. ries or disabilities to the Purchaser or the Purchaser’s employees, or to any other per- 245.7310–4 Dangerous property. son arising from or incident to the purchase of the property or its use or disposition by The following warning shall be in- the Purchaser. The Purchaser shall hold the cluded when it cannot be certified that Contractor and the Government harmless the property is completely harmless: from all such claims. The Purchase should
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warn possessors or users of the property that tered or affected and the interest of the it may be capable of emitting ionized radi- Government is not adversely affected. ation.
245.7310–7 Scrap warranty. PART 246—QUALITY ASSURANCE The following condition shall be used Subpart 246.1—General whenever property, other than produc- tion scrap, is offered for sale as scrap: Sec. 246.101 Definitions. SCRAP WARRANTY 246.102 Policy. The Purchaser represents and warrants 246.103 Contracting office responsibilities. that the property will be used only as scrap, 246.104 Contract administration office re- and will not be resold until— sponsibilities. (a) Scrapping has been accomplished; or (b) The Purchaser obtains an identical war- Subpart 246.2—Contract Quality ranty from any subsequent purchaser. Requirements
245.7310–8 Antitrust clearance. 246.202 Types of contract quality require- ments. When property with an acquisition 246.202–4 Higher-level contract quality re- cost of $3 million or more is to be sold, quirements. include the following in the invitation: 246.203 Criteria for use of contract quality requirements. ANTITRUST When the property offered for sale has an Subpart 246.3—Contract Clauses acquisition cost of $3 million or more, or 246.370 Material inspection and receiving re- consists of patents, processes, techniques, or port. inventions, irrespective of cost, the success- ful Bidder shall be required to furnish addi- Subpart 246.4—Government Contract tional information and shall allow up to 60 days for acceptance of its bid. Award shall be Quality Assurance made only upon advice from the Department 246.406 Foreign governments. of Justice that the proposed sale would not 246.407 Nonconforming supplies or services. create or maintain a situation inconsistent 246.408 Single-agency assignments of Gov- with the antitrust laws. ernment contract quality assurance. 246.408–70 Subsistence. 245.7311 Optional conditions. 246.408–71 Aircraft. The following special conditions of 246.408–72 Construction projects. sale may be added at the option of the 246.470 Government contract quality assur- contractor: ance actions. 246.470–1 Planning. 245.7311–1 Sales and use tax liability. 246.470–2 Evidence of conformance. 246.470–3 Assessment of additional costs. For purchases of property subject to 246.470–4 Maintenance of Government a state sales or use tax, a special condi- records. tion of sale may stipulate that the Pur- 246.470–5 Quality evaluation data. chaser shall pay and the Contractor 246.471 Authorizing shipment of supplies. shall collect the amount of the tax, 246.472 Inspection stamping. which shall be itemized separately on Subpart 246.6—Material Inspection and the billing document. Receiving Reports 245.7311–2 Safety, security, and fire 246.670 General. regulations. 246.671 Procedures.
245.7311–3 Bid deposits. Subpart 246.7—Warranties 245.7311–4 Other special conditions. 246.701 Definitions. Other special conditions considered 246.702 General. 246.703 Criteria for use of warranties. necessary by the Contractor are sub- 246.704 Authority for use of warranties. ject to the prior approval of the plant 246.705 Limitations. clearance officer. Approval will nor- 246.706 Warranty terms and conditions. mally be granted provided the pre- 246.708 Warranties of data. scribed conditions of sale are not al- 246.710 Contract clauses.
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AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- (2) Conduct quality audits to ensure ter 1. the quality of products and services SOURCE: 56 FR 36460, July 31, 1991, unless meet contractual requirements. otherwise noted. (3) Base the type and extent of Gov- ernment contract quality assurance ac- Subpart 246.1—General tions on the particular acquisition. (4) Provide contractors the maximum 246.101 Definitions. flexibility in establishing efficient and effective quality programs to meet Metrology is the science of weights contractual requirements. Contractor and measures used to determine con- quality programs may be modeled on formance to technical requirements in- military, commercial, national, or cluding the development of standards international quality standards. and systems for absolute and relative measurements. [56 FR 36460, July 31, 1991, as amended at 60 Quality means the composite of mate- FR 33145, June 27, 1995] rial attributes including performance features and characteristics of a prod- 246.103 Contracting office responsibil- ities. uct or service to satisfy a given need. Quality assurance is a planned and The contracting office may conduct systematic pattern of all actions nec- product-oriented surveys and evalua- essary to provide adequate confidence tions to determine— that adequate technical requirements (1) The adequacy of the technical re- are established; products and services quirements relating to quality; and conform to established technical re- (2) Product conformance to design in- quirements; and satisfactory perform- tent. Consider conducting the surveys ance is achieved. and evaluations in conjunction with Quality audit is a systematic exam- the activity responsible for technical ination of the acts and decisions with requirements. respect to quality in order to independ- (a) Contracting offices are also re- ently verify or evaluate the oper- sponsible for— ational requirements of the quality (i) Assisting the technical activity in program or the specification or con- improving the quality requirements for tract requirements of the product or contracts when first identified for com- service. petitive acquisition; and Quality program is a program which is (ii) Assisting in determining the developed, planned, and managed to cause of problems noted in user experi- carry out cost-effectively all efforts to ence reports. effect the quality of materials and (b) The contracting office must co- services from concept exploration and ordinate with the quality assurance ac- definition through demonstration and tivity before changing any quality re- validation, engineering and manufac- quirement. turing development, production and de- (c) The activity responsible for tech- ployment, and operations and support. nical requirements may prepare in- structions covering the type and extent [56 FR 36460, July 31, 1991, as amended at 60 of Government inspections for acquisi- FR 33145, June 27, 1995] tions that are complex, have critical applications, or have unusual require- 246.102 Policy. ments. Departments and agencies shall (i) In preparing the instructions, the also— technical activity shall consider, as ap- (1) Develop and manage a cost effec- plicable— tive quality program to ensure that (A) The past quality history of the contract performance conforms to contractor; specified requirements. Apply the qual- (B) The criticality of the material ity program to all contracts for serv- procured in relation to its intended ices and products designed, developed, use, considering such factors as— purchased, produced, stored, distrib- (1) Reliability; uted, operated, maintained, or disposed (2) Safety; of by contractors. (3) Interchangeability; and
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(4) Maintainability; Subpart 246.2—Contract Quality (C) Problems encountered in the de- Requirements velopment of the material; (D) Problems encountered in other 246.202 Types of contract quality re- procurements of the same or similar quirements. material; 246.202–4 Higher-level contract quality (E) Available feed-back data from requirements. contract administration, receiving, (1) Higher-level contract quality re- testing, or using activities; and quirements are used in addition to a (F) The experience of other contrac- standard inspection requirement. tors in overcoming manufacturing (2) Higher-level contract quality re- problems. quirements, including nongovernment (ii) The instructions shall— quality system standards adopted to (A) Be kept to a minimum; meet DoD needs, are listed in the DoD (B) Comply with 246.470–2; and Index of Specifications and Standards. (C) Be prepared on a contract-by-con- [60 FR 33145, June 27, 1995. Redesignated and tract basis. amended at 60 FR 61599, Nov. 30, 1995] (iii) The instructions shall not— (A) Serve as a substitute for incom- 246.203 Criteria for use of contract plete contract quality requirements; quality requirements. (B) Impose greater inspection re- (c) Criticality. Acquisitions of critical quirements than are in the contract; items, whether peculiar or common, (C) Use broad or general designations shall have contract quality require- such as— ments. (1) All requirements; (2) All characteristics; or Subpart 246.3—Contract Clauses (3) All characteristics in the classi- 246.370 Material inspection and re- fication of defects; ceiving report. (D) Be used for routine administra- (a) Use the clause at 252.246–7000, Ma- tive procedures; or terial Inspection and Receiving Report, (E) Specify continued inspection re- in solicitations and contracts when quirements when statistically sound there will be separate and distinct sampling will provide an adequate de- deliverables, even if the deliverables gree of protection. are not separately priced. (iv) After issuing the instructions, (b) When contract administration is the technical activity— retained by the contracting office, the (A) Must provide the contract admin- clause at 252.246–7000, Material Inspec- istration office available information tion and Receiving Report, is not re- regarding those factors which resulted quired for— in the requirement for Government in- (1) Contracts awarded using sim- spection; plified acquisition procedures; (B) Must periodically analyze the (2) Negotiated subsistence contracts; need to continue, change, or dis- (3) Contracts for fresh milk and re- lated fresh dairy products; continue the instructions; and (4) Contracts for which the deliver- (C) Must advise the contract adminis- able is a scientific or technical report; tration office of the results of the peri- (5) Research and development con- odic analyses. tracts not requiring the delivery of sep- arately priced end items; 246.104 Contract administration office (6) Base, post, camp, or station con- responsibilities. tracts; (f) The contract administration office (7) Contracts in overseas areas when shall continue to follow any specific the preparation and distribution of the written instructions received from the DD Form 250, Material Inspection and contracting office until the con- Receiving Report, by the contractor tracting office acts on a recommenda- would not be practicable. In these tion. cases, arrange for the contractor to
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provide the information necessary for (iv) Specify appropriate quality re- the contracting office to prepare the quirements in contracts awarded to DD Form 250; other countries; and (8) Contracts for services when hard- (v) Delegate quality assurance to the ware is not acquired as an item in the host government when satisfactory contract; and services are available. (9) Indefinite delivery type contracts (3) Reciprocal quality assurance agree- placed by central contracting offices ments. A Memorandum of Under- which authorize only base, post, camp, standing (MOU) with a foreign country or station activities to issue orders. may contain an annex that provides for the reciprocal performance of quality [56 FR 36460, July 31, 1991, as amended at 64 assurance services. MOUs should be FR 2598, Jan. 15, 1999] checked to determine whether such an annex exists for the country where a Subpart 246.4—Government defense contract will be performed. Contract Quality Assurance (See subpart 225.8 for more information about MOUs.) 246.406 Foreign governments. [56 FR 36460, July 31, 1991, as amended at 63 (1) Quality assurance among North At- FR 43890, Aug. 17, 1998; 63 FR 47439, Sept. 8, lantic Treaty Organization (NATO) coun- 1998] tries. (i) NATO Standardization Agree- ment (STANAG) 4107, Mutual Accept- 246.407 Nonconforming supplies or ance of Government Quality Assurance services. and Usage of the Allied Quality Assur- (1) Contracting officers shall use the ance Publications— following MIL–STD–109 definitions in (A) Contains the processes, proce- determining conformance with con- dures, terms, and conditions under tract requirements— which one NATO member nation will (i) Critical nonconformance is a non- perform quality assurance for another conformance that judgment and experi- NATO member nation or NATO organi- ence indicate— zation; (A) Is likely to result in hazardous or (B) Standardizes the development, unsafe conditions for individuals using, updating, and application of the Allied maintaining, or depending upon the Quality Assurance Publications; and supplies or services; or (C) Has been ratified by the United (B) Is likely to prevent performance States and other nations in NATO with of a vital agency mission. certain reservations identified in (ii) Major nonconformance is a non- STANAG 4107. conformance, other than critical, that is likely to result in failure, or to ma- (ii) Departments and agencies shall terially reduce the usability of the sup- follow STANAG 4107 when— plies or services for their intended pur- (A) Asking a NATO member nation pose. to perform quality assurance; or (iii) Minor nonconformance is a non- (B) Performing quality assurance conformance that is not likely to ma- when requested by a NATO member na- terially reduce the usability of the sup- tion or NATO organization. plies or services for their intended pur- (2) International military sales (non- pose, or is a departure from established NATO). Departments and agencies standards having little bearing on the shall— effective use or operation of the sup- (i) Perform quality assurance serv- plies or services. ices on international military sales (2) Contracting officers shall ensure contracts or in accordance with exist- that— ing agreements; (i) Nonconformances are identified; (ii) Ensure conformance to the tech- and nical and quality requirements of (ii) The significance of a nonconform- international military sales contracts; ance is established when considering (iii) Inform host or U.S. Government the acceptability of supplies or services personnel and contractors on the use of which do not meet contract require- quality assurance publications; ments.
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(f) If nonconforming material or serv- (2) The contractor possesses any re- ices are discovered after acceptance, quired FAA certificates and approvals the defect appears to be the fault of the prior to acceptance. contractor, any warranty has expired, and there are no other contractual 246.408–72 Construction projects. remedies, the contracting officer— (a) The department or agency respon- (i) Shall notify the contractor in sible for the construction of a building writing of the nonconforming material or other structure is normally respon- or service; sible for on-site inspection. (ii) Shall request that the contractor (b) The contract administration of- repair or replace the material, or per- fice performs quality assurance for form the service, at no cost to the Gov- construction materials and supplies ac- ernment; and quired for military and civil works (iii) May accept consideration if of- projects. fered. For guidance on solicitation of a (c) The offices responsible for on-site refund, see subpart 242.71. inspection and for quality assurance of materials and supplies must coordinate 246.408 Single-agency assignments of their efforts to ensure the compat- Government contract quality assur- ibility of buildings and structures and ance. installed equipment.
246.408–70 Subsistence. 246.470 Government contract quality (a) The Surgeons General of the mili- assurance actions. tary departments are responsible for— 246.470–1 Planning. (1) Acceptance criteria; (2) Technical requirements; and In systematically planning Govern- ment contract quality assurance ac- (3) Inspection procedures needed to tions used to determine a contractor’s assure wholesomeness of foods. compliance with contract quality re- (b) The contracting office may des- quirements, consider— ignate any Federal activity, capable of (a) The relative importance of the assuring wholesomeness and quality in product; and food, to perform quality assurance for (b) The variety of tasks required of subsistence contract items. The des- the available resources. ignation may— (1) Include medical service personnel 246.470–2 Evidence of conformance. of the military departments; and Use objective evidence of quality to (2) Be on a reimbursable basis. determine conformance to contract quality requirements. 246.408–71 Aircraft. (a) The Federal Aviation Administra- 246.470–3 Assessment of additional tion (FAA) has certain responsibilities costs. and prerogatives in connection with (a) Under the clause at FAR 52.246–2, some commercial aircraft and of air- Inspection of Supplies—Fixed-Price, craft equipment and accessories (Pub. the Government may charge the con- L. 85–726 (72 Stat 776, 49 U.S.C. 1423)). tractor for additional costs incurred by This includes the issuance of various the Government due to delays in tests certificates applicable to design, manu- or inspections caused by the con- facture, and airworthiness. tractor, or due to the necessity for re- (b) FAA evaluations are not a sub- inspection or retest. This action may stitute for normal DoD evaluations of be necessary when— the contractor’s quality assurance (1) Supplies are not ready at the time measures. Actual records of FAA eval- such inspection and test are requested uations may be of use to the contract by the contractor; or administration office (CAO) and should (2) Reinspection or retest is neces- be used to their maximum advantage. sitated by prior rejection. (c) The CAO shall ensure that— (b) After considering the factors in (1) The supplies and services conform paragraph (d) of this subsection, the to the terms of the contract; and quality assurance representative (QAR)
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may believe that the assessment of ad- them for shipment. This is done for ditional costs is warranted. If so, the both prime and subcontracts. representative shall recommend that (2) An alternative procedure (see the contracting officer take the nec- paragraph (b) of this section) permits essary action and provide a rec- the contractor to assume the responsi- ommendation as to the amount of addi- bility for releasing the supplies for tional costs. Costs are based on the ap- shipment. plicable Federal agency, foreign mili- (3) The alternative procedure may in- tary sale, or public rate in effect at the clude prime contractor release of sup- time of the delay, reinspection, or plies inspected at a subcontractor’s fa- retest. cility. (c) If the contracting officer agrees (4) The use of the alternative proce- with the QAR, the contracting officer dure releases DoD manpower to per- shall— form technical functions by elimi- (1) Notify the contractor, in writing, nating routine signing or stamping of of the determination to exercise the the papers accompanying each ship- Government’s right under the clause at ment. FAR 52.246–2, Inspection of Supplies— (b) Alternative Procedures—Contract Fixed Price; and Release for Shipment. (1) The contract (2) Demand payment of the costs in administration office may authorize, in accordance with the collection proce- writing, the contractor to release sup- dures contained in FAR subpart 32.6. plies for shipment when— (d) In making a determination to as- (i) The stamping or signing of the sess additional costs, the contracting shipping papers by a representative of officer shall consider— the contract administration office (1) The frequency of delays, reinspec- interferes with the operation of the tion, or retest under both current and Government contract quality assur- prior contracts; ance program or takes too much of the (2) The cause of such delay, reinspec- Government representative’s time; tion, or retest; and (ii) There is sufficient continuity of (3) The expense of recovering the ad- production to permit the Government ditional costs. to establish a systematic and con- tinuing evaluation of the contractor’s 246.470–4 Maintenance of Government records. control of quality; and (iii) The contractor has a record of The contract administration office satisfactory quality, including that shall maintain suitable records of the pertaining to preparation for shipment. quality assurance performance of con- (2) The contract administration of- tractors. fice shall withdraw, in writing, the au- 246.470–5 Quality evaluation data. thorization when there is an indication that the conditions in paragraph (b)(1) The contract administration office of this subsection no longer exist. shall establish a system that provides, (3) When the alternative procedure is as a minimum, for the collection, eval- used, require the contractor to— uation, and use of— (i) Type or stamp, and sign, the fol- (a) Quality data developed by the lowing statement on the required copy contractor during performance; or copies of the shipping paper(s), or on (b) Data developed by the Govern- an attachment— ment through contract quality assur- ance actions; and The supplies in this shipment— (c) Reports by users and customers. 1. Have been subjected to and have passed all examinations and tests required by the 246.471 Authorizing shipment of sup- contract; plies. 2. Were shipped in accordance with author- ized shipping instructions; (a) General. (1) Ordinarily, a rep- 3. Conform to the quality, identity, and resentative of the contract administra- condition called for by the contract; and tion office signs or stamps the shipping 4. Are of the quantity shown on this docu- papers that accompany Government ment. source-inspected supplies to release This shipment was—
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1. Released in accordance with section (d) Stamping material does not mean 246.471 of the Defense FAR Supplement; and that it has been accepted by the Gov- 2. Authorized by (name and title of the au- ernment. Evidence of acceptance is or- thorized representative of the contract ad- dinarily a signed acceptance certificate ministration office) in a letter dated (date of authorizing letter). (Signature and title of on the DD Form 250, Material Inspec- contractor’s designated official.) tion and Receiving Report. (e) Policies and procedures regarding (ii) Release and process, in accord- the use of National Aeronautics and ance with established instructions, the Space Administration (NASA) quality DD Form 250, Material Inspection and status stamps are contained in NASA Receiving Report, or other authorized publications. When requested by NASA receiving report. centers, the DoD inspector shall use NASA quality status stamps in accord- 246.472 Inspection stamping. ance with current NASA requirements. (a) There are two DoD quality inspec- tion approval marking designs Subpart 246.6—Material (stamps). Both stamps are used— Inspection and Receiving Reports (1) Only by, or under the direct super- vision of, the Government representa- 246.670 General. tive; and (2) For both prime and subcontracts. (a) Material Inspection and Receiving (b) The designs of the two stamps and Reports (MIRRs) are used to docu- the differences in their uses are— ment— (1) Partial (Circle) Inspection Approval (1) Contract quality assurance; Stamp. (i) This circular stamp is used (2) Acceptance of supplies and serv- to identify material inspected for con- ices; and formance to only a portion of the con- (3) Shipments. tract quality requirements. (b) MIRRs are used by activities re- (ii) Further inspection is to be per- sponsible for— formed at another time and/or place. (1) Receiving; (iii) Material not inspected is so list- (2) Status control; ed on the associated DD Form 250 (Ma- (3) Technical requirements; terial Inspection and Receiving Re- (4) Contracting; port), packing list, or comparable doc- (5) Inventory control; ument. (6) Requisitioning; and (2) Complete (Square) Inspection Ap- (7) Payment. proval Stamp. (i) This square stamp is 246.671 Procedures. used to identify material completely inspected for all contract quality re- See Appendix F, Material Inspection quirements at source. and Receiving Report, for procedures (ii) The material satisfies all con- and instructions for the use, prepara- tract quality requirements and is in tion, and distribution of— complete conformance with all con- (a) The Material Inspection and Re- tract quality requirements applicable ceiving Report (DD Form 250 series) at the time and place of inspection. and; (iii) Complete inspection approval es- (b) Supplier’s commercial shipping/ tablishes that material which once was packing lists used to evidence Govern- partially approved has subsequently ment contract quality assurance. been completely approved. (iv) One imprint of the square stamp Subpart 246.7—Warranties voids multiple imprints of the circle stamp. 246.701 Definitions. (c) The marking of each item is nei- Acceptance, as defined in FAR 46.701 ther required nor prohibited. Ordi- and as used in this subpart and in the narily, the stamping of shipping con- warranty clauses at FAR 52.246–17, tainers, packing lists, or routing tick- Warranty of Supplies of a Noncomplex ets serves to adequately indicate the Nature; FAR 52.246–18, Warranty of status of the material and to control or Supplies of a Complex Nature; FAR facilitate its movement. 52.246–19, Warranty of Systems and
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Equipment Under Performance Speci- 246.706 Warranty terms and condi- fications or Design Criteria; and FAR tions. 52.246–20, Warranty of Services, in- (b)(5) Markings. Use MIL Standard cludes the execution of an official doc- 129, Marking for Shipments and Stor- ument (e.g., DD Form 250, Material In- age, and MIL Standard 130, Identifica- spection and Receiving Report) by an tion Marking of U.S. Military Prop- authorized representative of the Gov- erty, when marking warranty items. ernment. Defect, as used in this subpart, means 246.708 Warranties of data. any condition or characteristic in any Obtain warranties on technical data supply or service furnished by the con- when practicable and cost effective. tractor under the contract that is not Consider the factors in FAR 46.703 in in compliance with the requirements of deciding whether to obtain warranties the contract. of technical data. Consider the fol- lowing in deciding whether to use ex- 246.702 General. tended liability provisions— (c) Departments and agencies shall (1) The likelihood that correction or establish procedures to track and accu- replacement of the nonconforming mulate data on warranty costs. data, or a price adjustment, will not give adequate protection to the Gov- 246.703 Criteria for use of warranties. ernment; and (b) Cost. Contracting officers may in- (2) The effectiveness of the additional clude the cost of a warranty as part of remedy as a deterrent against fur- an item’s price or as a separate con- nishing nonconforming data. tract line item. 246.710 Contract clauses. [63 FR 6109, Feb. 6, 1998] (1) Use a clause substantially the same as the clause at 252.246–7001, War- 246.704 Authority for use of warran- ranty of Data, in solicitations and con- ties. tracts that include the clause at The chief of the contracting office 252.227–7013, Rights in Technical Data must approve use of a warranty, except and Computer Software, and there is a in acquisitions for— need for greater protection or period of (1) Commercial items (see FAR liability than provided by other con- 46.709); tract clauses, such as the clauses at— (2) Technical data, unless the war- (i) FAR 52.246–3, Inspection of Sup- ranty provides for extended liability plies—Cost-Reimbursement; (see 246.708); (ii) FAR 52.246–6, Inspection—Time- (3) Supplies and services in fixed- and-Material and Labor-Hour; price type contracts containing quality (iii) FAR 52.246–8, Inspection of Re- assurance provisions that reference search and Development—Cost-Reim- higher-level contract quality require- bursement; and ments (see 246.202–4); or (iv) FAR 52.246–19, Warranty of Sys- (4) Supplies and services in construc- tems and Equipment Under Perform- tion contracts when using the warran- ance Specifications or Design Criteria. ties that are contained in Federal, military, or construction guide speci- (2) Use the clause at 252.246–7001, War- fications. ranty of Data, with its Alternate I when extended liability is desired and a [56 FR 36460, July 31, 1991, as amended at 60 fixed price incentive contract is con- FR 33145, June 27, 1995; 60 FR 61599, Nov. 30, templated. 1995; 63 FR 6109, Feb. 6, 1998] (3) Use the clause at 252.246–7001, War- ranty of Data, with its Alternate II 246.705 Limitations. when extended liability is desired and a (a) Warranties in the clause at firm fixed price contract is con- 252.246–7001, Warranty of Data, are also templated. an exception to the prohibition on use (4) Use the clause at 252.246–7002, War- of warranties in cost-reimbursement ranty of Construction (Germany), in- contracts. stead of the clause at FAR 52.246–21,
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Warranty of Construction, in solicita- Subpart 247.5—Ocean Transportation by tions and contracts for construction U.S.-Flag Vessels when a fixed-price contract will be awarded and contract performance will 247.570 Scope. be in Germany. 247.571 Policy. 247.572 Procedures. [56 FR 36460, July 31, 1991, as amended at 62 247.572–1 Ocean transportation incidental to FR 34128, June 24, 1997; 64 FR 51077, Sept. 21, a contract for supplies, services, or con- 1999] struction. 247.572–2 Direct purchase of ocean transpor- PART 247—TRANSPORTATION tation services. 247.573 Solicitation provision and contract clauses. Sec. 247.001 Definitions. AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- ter 1. Subpart 247.1—General SOURCE: 56 FR 36466, July 31, 1991, unless 247.104 Government rate tenders under sec- otherwise noted. tion 10721 of the Interstate Commerce Act. 247.001 Definitions. 247.104–5 Citation of Government rate tenders. For definitions of ‘‘Civil Reserve Air 247.105 Transportation assistance. Fleet’’ and ‘‘Voluntary Intermodal Sealift Agreement,’’ see Joint Pub. 1– Subpart 247.2—Contracts for Transportation 02, DoD Dictionary of Military and As- or for Transportation-Related Services sociated Terms. 247.200 Scope of subpart. [65 FR 50144, Aug. 17, 2000] 247.206 Preparation of solicitations and con- tracts. Subpart 247.1—General 247.270 Stevedoring contracts. 247.270–1 Scope of section. 247.104 Government rate tenders 247.270–2 Definitions. under section 10721 of the Inter- 247.270–3 Technical provisions. state Commerce Act. 247.270–4 Evaluation of bids and proposals. 247.270–5 Award of contract. 247.104–5 Citation of Government rate 247.270–6 Contract clauses. tenders. 247.271 Contracts for the preparation of per- sonal property for shipment or storage. (a) See DoD 4500.9–R, Defense Trans- 247.271–1 Scope of section. portation Regulation, Part II, Chapter 247.271–2 Policy. 206, for instructions on converting 247.271–3 Procedures. commercial bills of lading to Govern- 247.271–4 Solicitation provisions, schedule ment bills of lading within CONUS. formats, and contract clauses. [65 FR 50144, Aug. 17, 2000] Subpart 247.3—Transportation in Supply Contracts 247.105 Transportation assistance. 247.301 General. (b)(i) Transportation assistance in- 247.301–70 Definition. cludes all transportation factors, such 247.301–71 Evaluation factor or subfactor. as— 247.305 Solicitation provisions, contract (A) Rates and prices (for evaluation clauses, and transportation factors. of bids or routing purposes); 247.305–10 Packing, marking, and consign- ment instructions. (B) Other transportation costs; 247.305–70 Returnable containers other than (C) Transit agreements; cylinders. (D) Time in transit; 247.370 Use of Standard Form 30 for consign- (E) Port handling charges; and ment instructions. (F) Port capabilities. 247.371 DD Form 1384, Transportation Con- trol and Movement Document. (ii) Within CONUS, the Military Traf- 247.372 DD Form 1653, Transportation Data fic Management Command (MTMC) is for Solicitations. responsible for the performance of traf- 247.373 DD Form 1654, Evaluation of Trans- fic management functions. These func- portation Cost Factors. tions include the direction, control,
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and supervision of all functions inci- bareboat chartered by, the Govern- dent to the acquisition and use of com- ment. mercial freight and passenger transpor- [65 FR 50144, Aug. 17, 2000] tation services. (iii) For assistance with inter- 247.206 Preparation of solicitations national shipments— and contracts. (A) Originating in CONUS, request (1) Consistent with FAR 15.304 and assistance from the appropriate mili- 215.304, consider using the following as tary activity; i.e., the Air Mobility evaluation factors or subfactors: Command (AMC), Military Sealift (i) Record of claims involving loss or Command (MSC), MTMC, or the mili- damage; tary service sponsoring the cargo; (ii) Provider availability; and (B) For all modes of transportation (iii) Commitment of transportation originating overseas, request assist- assets to readiness support (e.g., Civil ance from the overseas Theater Com- Reserve Air Fleet and Voluntary Inter- mander assigned responsibility for modal Sealift Agreement). common-user, military-operated land (2) To the maximum extent prac- transportation; ticable, structure contracts and agree- (C) Of bulk petroleum via ocean ments to allow for their use by DoD tanker, request assistance, rates, or contractors. other costs from the MSC; [65 FR 50144, Aug. 17, 2000] (D) Of supplies between points out- side CONUS, including Alaska and Ha- 247.270 Stevedoring contracts. waii, request assistance, rates, or other costs from the military service spon- 247.270–1 Scope of section. soring the cargo. Direct the requests This section contains procedures to: unique to stevedoring. Other portions Army: Deputy Chief of Staff for Logistics, of the FAR and DFARS dealing with ATTN: DALO–TSP, Washington, DC 20310– service contracting also apply to steve- 0500 doring contracts. Navy: Naval Supply Systems Command, [56 FR 36466, July 31, 1991, as amended at 65 Code 4D, 5450 Carlisle Pike, PO Box 2050, FR 50144, Aug. 17, 2000] Mechanicsburg, PA 17055–0791 Air Force: Applicable Overseas Air Force 247.270–2 Definitions. Command: HQ PACAF/LGT, 25 East Street, Commodity rate is— Suite I–305, Hickam AFB, HI 96853– (1) The price quoted for handling a 5427 ton (weight or measurement) of a spec- ified commodity; and HQ USAFE/LGT, Unit 305, Box 105, (2) Computed by dividing the hourly APO AE 09094–0105 stevedoring gang cost by the estimated HQ AFSPACECOM/LGT, 150 Vanden- number of tons of the specified com- berg Street, Suite 1105, Peterson modity that can be handled in 1 hour. AFB, CO 80914–4540 Gang cost is— Marine Corps: HQ, U.S. Marine Corps, Traffic (1) The total hourly wages paid to the Management Branch (LFT1), 2 Navy workers in the gang, in accordance Annex, Washington, DC 20380–1775 with the collective bargaining agree- [56 FR 36466, July 31, 1991, as amended at 59 ment between the maritime industry FR 27674, May 27, 1994; 65 FR 50144, Aug. 17, and the unions at a specific port; and 2000] (2) Payments for workmen’s com- pensation, social security taxes, unem- Subpart 247.2—Contracts for ployment insurance, taxes, liability and property damage insurance, gen- Transportation or for Transpor- eral and administrative expenses, and tation-Related Services profit. Stevedoring is the— 247.200 Scope of subpart. (1) Loading of cargo from an agreed This subpart does not apply to the point of rest on a pier or lighter and its operation of vessels owned by, or storage aboard a vessel; or
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(2) Breaking out and discharging of (c) 252.247–7002, Revision of Prices, cargo from any space in the vessel to when using negotiation. an agreed point of rest dockside or in a (d) 252.247–7004, Indefinite Quan- lighter. tities—Fixed Charges, when the con- tract is an indefinite-quantity type and [56 FR 36466, July 31, 1991, as amended at 65 FR 50144, Aug. 17, 2000] will provide for the payment of fixed charges. 247.270–3 Technical provisions. (e) 252.247–7005, Indefinite Quan- (a) Because conditions vary at dif- tities—No Fixed Charges, when the ferent ports, and sometimes within the contract is an indefinite-quantity type same port, it is not practical to develop and will not provide for the payment of standard technical provisions covering fixed charges. all phases of stevedoring operations. (f) 252.247–7006, Removal of Contrac- (b) When including rail car, truck, or tor’s Employees, in all solicitations intermodal equipment loading and un- and contracts. loading, or other dock and terminal (g) 252.247–7007, Liability and Insur- work under a stevedoring contract, in- ance, in all solicitations and contracts. clude these requirements as separate [65 FR 50144, Aug. 17, 2000] items of work. 247.271 Contracts for the preparation [65 FR 50144, Aug. 17, 2000] of personal property for shipment or storage. 247.270–4 Evaluation of bids and pro- posals. 247.271–1 Scope of section. As a minimum, require that offers in- This section contains procedures clude— unique to the preparation of personal (a) Tonnage or commodity rates that property for shipment or storage, and apply to the bulk of the cargo worked for the performance of intra-area or under normal conditions; intra-city movement. Other portions of (b) Labor-hour rates that apply to the FAR and DFARS dealing with serv- services not covered by commodity ice contracting also apply to these rates, or to work performed under services. hardship conditions; and (c) Rates for equipment rental. [56 FR 36466, July 31, 1991, as amended at 65 FR 50145, Aug. 17, 2000] [65 FR 50144, Aug. 17, 2000] 247.271–2 Policy. 247.270–5 Award of contract. (a) Annual contracts. Normally— Make the award to the offeror sub- (1) Use requirements contracts to ac- mitting the offer most advantageous to quire services for the— the Government, considering cost or (i) Preparation of personal property price and other factors specified in the for shipment or storage; and solicitation. Evaluation will include, (ii) Performance of intra-area move- but is not limited to— ment. (a) Total estimated cost of tonnage (2) Award contracts on a calendar to be moved at commodity rates; year basis. (b) Estimated cost at labor-hour (3) Provide for option years. rates; and (4) Award contracts, or exercise op- (c) Cost of equipment rental. tion years, before November 1 of each [65 FR 50144, Aug. 17, 2000] year, if possible. (b) Areas of performance. Define clear- 247.270–6 Contract clauses. ly in the solicitation each area of per- Use the following clauses in solicita- formance. tions and contracts for stevedoring (1) Establish one or more areas; how- services as indicated: ever, hold the number to a minimum (a) 252.247–7000, Hardship Conditions, consistent with local conditions. in all solicitations and contracts. (2) Each schedule may provide for the (b) 252.247–7001, Price Adjustment, same or different areas of performance. when using sealed bidding. Determine the areas as follows—
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(i) Use political boundaries, streets, (D) Stuffing or unstuffing of sea van or any other features as lines of demar- containers. cation. Consider such matters as— (ii) Consider contracting for local (A) Total volume; moves that do not require drayage by (B) Size of overall area; and using hourly rate or constructive (C) The need to service isolated areas weight methods. The rate will include of high population density. those services necessary for completion (ii) Specifically identify frequently of the movement, including— used terminals, and consider them as (A) Packing and unpacking; being included in each area of perform- (B) Movement; ance described in the solicitation. (c) Maximum requirements-minimum ca- (C) Inventorying; and pability. The contracting officer must— (D) Removal of debris. (1) Establish realistic quantities on (iii) Each personal property shipping the Estimated Quantities Report in activity must determine if local re- DoD 4500.9–R, Defense Transportation quirements exist for any additional Regulation, Part IV; services. (2) Ensure that the Government’s (iv) The contracting officer may ob- minimum acceptable daily capability— tain additional services by— (i) Will at least equal the maximum (A) Including them as items within authorized individual weight allowance the contract; provided, they are not as prescribed by the Joint Federal used in the evaluation of bids (see Travel Regulations; and 252.247–7008, Evaluation of Bids); or (ii) Will encourage maximum partici- (B) Using simplified acquisition pro- pation of small business concerns as cedures. offerors. (v) Either predetermine prices for ad- [56 FR 36466, July 31, 1991, as amended at 65 ditional services with the contractor, FR 50145, Aug. 17, 2000] or negotiate them on a case-by-case basis. 247.271–3 Procedures. (vi) The contracting officer must au- (a) CONUS military activities assigned thorize the contractor to perform any multi-service personal property areas of additional services, other than at- responsibility. (1) When two or more tempted pick up or delivery, regardless military installations or activities of the contracting method. have personal property responsibilities (vii) To the maximum extent pos- in a given area, one activity must con- sible, identify additional services re- tract for the estimated requirements of quired that are incidental to an order all activities in the area. The installa- before placing the order; or, when ap- tion commanders concerned must des- plicable, during the premove survey. ignate the activity by mutual agree- (c) Contract distribution. In addition ment. to the distribution requirements of (2) The Commander, Military Traffic FAR subpart 4.2, furnish one copy of Management Command (MTMC), must each contract as follows: designate the contracting activity (1) CONUS personal property ship- when local commanders are unable to ping activities must send the copy to reach agreement. (b) Additional services and excess re- the Commander, Military Traffic Man- quirements. agement Command, Attn: MTPP-CI, (1) Excess requirements are those Room 408, 5611 Columbia Pike, Falls services that exceed contractor capa- Church, VA 22041–5050. bilities available under contracts. Use (2) In the European and Pacific areas, simplified acquisition procedures to personal property shipping activities satisfy excess requirements. must send the copy to either the Prop- (2) Additional services are those not erty Directorate, MTMC Europe, or the specified in the bid items. MTMC Field Office-Pacific. (i) Additional services may include— (3) Other overseas personal property (A) Hoisting or lowering of articles; shipping activities must send the copy (B) Waiting time; to the Commander, Military Traffic (C) Special packaging; and Management Command, Attn: MTPP-
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Q, 5611 Columbia Pike, Falls Church, single schedule. However, items must VA 22041–5050. follow the same sequential order as in [56 FR 36466, July 31, 1991, as amended at 64 the basic format. FR 2598, Jan. 15, 1999; 65 FR 50145, Aug. 17, (6) Process any modification of 2000] schedule format, other than those au- thorized in paragraphs (c)(1) through 247.271–4 Solicitation provisions, (5) of this subsection, as a request for schedule formats, and contract clauses. deviation to the Commander, MTMC. (d) The clause at 252.247–7010, Scope When acquiring services for the prep- of Contract. aration of personal property for move- ment or storage, and for performance (e) The clause at 252.247–7011, Period of intra-city or intra-area movement, of Contract. When the period of per- use the following provisions, clauses, formance is less than a calendar year, and schedules. Revise solicitation pro- modify the clause to indicate the be- visions and schedules, as appropriate, if ginning and ending dates. However, the using negotiation rather than sealed contract period must not end later bidding. Overseas commands, except than December 31 of the year in which those in Alaska and Hawaii, may mod- the contract is awarded. ify these clauses to conform to local (f) In addition to designating each or- practices, laws, and regulations. dering activity, as required by the (a) The provision at 252.247–7008, clause at FAR 52.216–18, Ordering, iden- Evaluation of Bids. When adding ‘‘addi- tify by name or position title the indi- tional services’’ items to any schedule, viduals authorized to place orders for use the basic clause with Alternate I. each activity. When provisions are (b) The provision at 252.247–7009, made for placing oral orders in accord- Award. ance with FAR 16.505(a)(4), document (c) In solicitations and resulting con- tracts, the schedules contained in DoD the oral orders in accordance with de- 4500.9–R, Defense Transportation Regu- partment or agency instructions. lation, Part IV, as provided by the in- (g) The clause at 252.247–7012, Order- stallation personal property shipping ing Limitation. office. (h) The clause at 252.247–7013, Con- (1) When there is no requirement for tract Areas of Performance. an item or subitem in a schedule, indi- (i) The clause at 252.247–7014, Demur- cate that item or subitem number, in rage. its proper numerical sequence, and add (j) When using the clause at FAR the statement ‘‘No Requirement.’’ 52.216–21, Requirements, see 216.506(d), (2) Within Schedules I (Outbound) which prescribes an alternate to the and II (Inbound), item numbers are re- clause. served to permit inclusion of addi- (k) The clause at 252.247–7016, Con- tional items as required by local condi- tractor Liability for Loss and Damage. tions. (l) The clause at 252.247–7017, Erro- (3) Overseas activities, except those in Alaska and Hawaii, may modify the neous Shipments. schedules when necessary to conform (m) The clause at 252.247–7018, Sub- with local trade practices, laws, and contracting. regulations. (n) The clause at 252.247–7019, (4) All generic terminology, schedule, Drayage. and item numbers in proper sequence (o) The clause at 252.247–7020, Addi- must follow those contained in the tional Services. basic format. (p) The clauses at FAR 52.247–8, Esti- (5) When it is in the Government’s mated Weight or Quantities Not Guar- best interest to have both outbound anteed, and FAR 52.247–13, Accessorial and inbound services within a given Services—Moving Contracts. area of performance furnished by the same contractor, modify the schedule [56 FR 36466, July 31, 1991, as amended at 65 format to combine both services in a FR 50145, Aug. 17, 2000]
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Subpart 247.3—Transportation in (D) Required delivery date. Supply Contracts (ii) Non-MILSTRIP shipments must include data similar to that described 247.301 General. in paragraphs (b)(i)(A) through (D) of this subsection. 247.301–70 Definition. (iii) In amended shipping instruc- ‘‘Integrated logistics managers’’ or tions include, in addition to the data ‘‘third-party logistics providers’’ requirements of paragraphs (b)(i)(A) means providers of multiple logistics through (D) of this subsection, the fol- services. Some examples of logistics lowing, when appropriate: services are the management of trans- (A) Name of the activity originally portation, demand forecasting, infor- designated, from which the stated mation management, inventory main- quantities are to be deducted. tenance, warehousing, and distribu- (B) Any other features of the amend- tion. ed instructions not contained in the basic contract. [65 FR 50145, Aug. 17, 2000] (iv) When assigning contract admin- 247.301–71 Evaluation factor or sub- istration responsibility in accordance factor. with FAR 42.202, include in instruc- For contracts that will include a sig- tions the— nificant requirement for transpor- (A) Modification serial number; and tation of items outside CONUS, include (B) If a new line item is created by an evaluation factor or subfactor that the issuance of shipping instructions— favors suppliers, third-party logistics (1) New line item number; and providers, and integrated logistics (2) Existing line item number, if af- managers that commit to using car- fected. riers that participate in one of the (v) For petroleum, oil, and lubricant readiness programs (e.g., Civil Reserve products, instructions for diversions Air Force Fleet and Voluntary Inter- need not include the modification se- modal Sealift Agreement). rial number and new line item number, when the instructions are— [65 FR 50145, Aug. 17, 2000] (A) For diversions overseas to new 247.305 Solicitation provisions, con- destinations; tract clauses, and transportation (B) Issued by an office other than factors. that issuing the contract or delivery order; and 247.305–10 Packing, marking, and con- (C) Issued by telephone or electronic signment instructions. media. (b) Consignment instructions must [65 FR 50145, Aug. 17, 2000] include, as a minimum— (i) The clear text and coded 247.305–70 Returnable containers MILSTRIP data as follows: other than cylinders. (A) Consignee code and clear text Use the clause at 252.247–7021, Return- identification of consignee and destina- able Containers Other Than Cylinders, tion as published in— in solicitations and contracts for sup- (1) DoD 4000.25–6–M, Department of plies involving contractor-furnished re- Defense Activity Address Directory turnable reels, spools, drums, carboys, (DODAAD); liquid petroleum gas containers, or (2) DoD 4000.25–8–M, Military Assist- other returnable containers if the con- ance Program Address Directory tractor is to retain title to the con- (MAPAD) System; or tainers. (3) Transportation Control and Move- ment Document. Reporting procedures [60 FR 29501, June 5, 1995] and instructions must comply with DoD 4500.32–R, Military Standard 247.370 Use of Standard Form 30 for Transportation and Movement Proce- consignment instructions. dures (MILSTAMP). When complete consignment instruc- (B) Project code, when applicable. tions are not known initially, use the (C) Transportation priority. Standard Form (SF) 30, Amendment of
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Solicitation/Modification of Contract, 247.373 DD Form 1654, Evaluation of to issue or amend consignment instruc- Transportation Cost Factors. tions, and when necessary, to confirm Contracting personnel may use the consignment instructions issued by DD Form 1654 to furnish information to telephone or electronic media. the transportation office for develop- (a) When using the SF 30 to confirm ment of cost factors for use by the con- delivery instructions— tracting officer in the evaluation of (1) Stamp or mark ‘‘CONFIRMA- f.o.b. origin offers. TION’’ in block letters on the form, and specify in detail those instructions Subpart 247.5—Ocean being confirmed. Transportation by U.S.-Flag Vessels (2) Do not change the instructions being confirmed. 247.570 Scope. (b) Process the confirming SF 30 as This subpart— follows— (a) Implements the Cargo Preference (1) For contracts assigned for any Act of 1904 (‘‘the 1904 Act’’), 10 U.S.C. contract administration function listed 2631, which applies to the ocean trans- in FAR subpart 42.3 to any office listed portation of cargo owned by, or des- in the Federal Directory of Contract tined for use by, DoD; Administration Services Components, (b) Does not specifically implement within five working days; the Cargo Preference Act of 1954 (‘‘the (2) For diversions of petroleum, oil, 1954 Act’’), 46 U.S.C. 1241(b). The 1954 and lubricant products overseas to new Act is applicable to DoD, but DFARS destinations, within 30 days of instruc- coverage is not required because com- tions being confirmed; and pliance with the 1904 Act historically (3) For other contracts— has resulted in DoD exceeding the 1954 (i) Telephone—within 5 working days; Act’s requirements; and and (c) Does not apply to ocean transpor- (ii) Electronic media—consolidate on tation of the following products, in a monthly basis. which case FAR subpart 47.5 applies: (1) Products obtained for contribu- [56 FR 36466, July 31, 1991, as amended at 64 tions to foreign assistance programs. FR 61030, Nov. 9, 1999; 65 FR 50146, Aug. 17, (2) Products owned by agencies other 2000] than DoD, unless the products are clearly identifiable for eventual use by 247.371 DD Form 1384, Transportation DoD. Control and Movement Document. [65 FR 50146, Aug. 17, 2000] Reporting procedures and instruc- tions for this form will be in compli- 247.571 Policy. ance with DoD Regulation 4500.32–R, (a) DoD contractors must transport MILSTAMP. supplies, as defined in the clause at 247.372 DD Form 1653, Transportation 252.247–7023, Transportation of Supplies Data for Solicitations. by Sea, exclusively on U.S.-flag vessels unless— (a) The transportation specialist pre- (1) Those vessels are not available, pares the DD Form 1653 at the request and the procedures at 247.572–1(d)(1) or of the contracting officer. The com- 247.572–2(d)(1) are followed; pleted form will contain recommenda- (2) The proposed charges to the Gov- tions concerning f.o.b. terms best suit- ernment are higher than charges to ed for a particular acquisition, and private persons for the transportation other suggested transportation provi- of like goods, and the procedures at sions for inclusion in the solicitation. 247.572–1(d)(2) or 247.572–2(d)(2) are fol- (b) When appropriate, the DD Form lowed; or 1653 will also include information on (3) The Secretary of the Navy or the combined port handling and transpor- Secretary of the Army determines that tation charges for inclusion in the so- the proposed freight charges are exces- licitation in connection with export sive or unreasonable in accordance shipments. with 247.572–1(d)(3) or 247.572–2(d)(3).
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(b) Contracts must provide for the (1) Notify the Government that it use of Government-owned vessels when now intends to use ocean transpor- security classifications prohibit the tation; use of other than Government-owned (2) Use U.S.-flag vessels unless cer- vessels. tain conditions exist (see 247.571(a)); (c)(1) Any vessel used under a time and charter contract for the transportation (3) Comply with the other require- of supplies under this section must ments of the clause at 252.247–7023, have any reflagging or repair work, as Transportation of Supplies by Sea. defined in the clause at 252.247–7025, Re- (d) If the contractor notifies the con- flagging or Repair Work, performed in tracting officer that the contractor or the United States or its territories, if a subcontractor considers that— the reflagging or repair work is per- (1) No U.S.-flag vessels are available, formed— the contracting officer must request (i) On a vessel for which the con- confirmation of the nonavailability tractor submitted an offer in response from— to the solicitation for the contract; and (i) The Commander, Military Sealift (ii) Prior to the acceptance of the Command (MSC), through the Con- vessel by the Government. tracts and Business Management Di- (2) The Secretary of Defense may rectorate, MSC; or waive this requirement if the Secretary (ii) The Commander, Military Traffic determines that such waiver is critical Management Command (MTMC), to the national security of the United through the Principal Assistant Re- States. sponsible for Contracting, MTMC. (2) The proposed freight charges to [65 FR 50146, Aug. 17, 2000] the Government, the contractor, or any subcontractor are higher than 247.572–1 Ocean transportation inci- charges for transportation of like dental to a contract for supplies, services, or construction. goods to private persons, the con- tracting officer may approve a request (a) This subsection applies when for an exception to the requirement to ocean transportation is not the prin- ship on U.S.-flag vessels for a par- cipal purpose of the contract, and the ticular shipment. cargo to be transported is owned by (i) Prior to granting an exception, DoD or is clearly identifiable for even- the contracting officer must request tual use by DoD. advice, oral or written, from the Com- (b) The contracting officer must ob- mander, MSC, or the Commander, tain assistance from the congnizant MTMC. transportation activity (see 247.105) in (ii) In advising the contracting offi- developing— cer whether to grant the exception, the (1) The Government estimate for Commander, MSC, or the Commander, transportation costs, irrespective of MTMC, must consider, as appropriate, whether freight will be paid directly by evidence from— the Government; and (A) Published tariffs; (2) Shipping instructions and delivery (B) Industry publications; terms for inclusion in solicitations and (C) The Maritime Administration; contracts that may involve transpor- and tation of supplies by sea. (D) Any other available sources. (c) The contracting officer must ask (3) The freight charges proposed by each offeror whether it will transport U.S.-flag carriers are excessive or oth- supplies by sea if awarded the contract erwise unreasonable— (see 247.73(a)). Even if the successful of- (i) The contracting officer must pre- feror responds that it does not antici- pare a report in determination and pate sea transport of supplies, it may finding format, and must— discover during contract performance (A) Take into consideration that the that ocean transportation is required. 1904 Act is, in part, a subsidy of the In that event, the 1904 Act will apply to U.S.-flag commercial shipping industry the contract, and the contractor that recognizes that lower prices may must— be available from foreign-flag carriers.
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Therefore, a lower price for use of a 247.572–2 Direct purchase of ocean foreign-flag vessel is not a sufficient transportation services. basis, on its own, to determine that the (a) This subsection applies when freight rate proposed by the U.S.-flag ocean transportation is the principal carrier is excessive or otherwise unrea- purpose of the contract, including— sonable. However, such a price differen- (1) Time charters; tial may indicate a need for further re- (2) Voyage charters; view; (3) Contracts for charter vessel serv- (B) Consider, accordingly, not only ices; excessive profits to the carrier (to in- (4) Dedicated contractor contracts clude vessel owner or operator), if as- for charter vessel services; certainable, but also excessive costs to (5) Ocean bills of lading; and the Government (i.e., costs beyond the (6) Subcontracts under Government economic penalty normally incurred by contracts or agreements for ocean transportation services. excluding foreign competition) result- (b) Coordinate these acquisitions, as ing from the use of U.S.-flag vessels in appropriate, with the U.S. Transpor- extraordinarily inefficient cir- tation Command, the DoD single man- cumstances; and ager for commercial transportation (C) Include an analysis of whether and related services, other than Serv- the cost is excessive, taking into ac- ice-unique or theater-assigned trans- count factors such as— portation assets, in accordance with (1) The differential between the DoD 5158.4, United States Transpor- freight charges proposed by the U.S.- tation Command. flag carrier and an estimate of what (c) All solicitations within the scope foreign-flag carriers would charge of this subsection must provide— based upon a price analysis; (1) A preference for U.S.-flag vessels (2) A comparison of U.S.-flag rates in accordance with the 1904 Act; and charged on comparable routes; (2) An evaluation factor or subfactor (3) Efficiency of operation regardless for offeror participation in the Vol- of rate differential (e.g., suitability of untary Intermodal Sealift Agreement. (d) Do not award a contract of the the vessel for the required transpor- type described in paragraph (a) of this tation in terms of cargo requirements subsection for a foreign-flag vessel un- or vessel capacity, and the commercial less— reasonableness of vessel positioning re- (1) The Commander, MSC, or the quired); and Commander, MTMC, determines that (4) Any other relevant economic and no U.S.-flag vessels are available. financial considerations. (i) The Commander, MSC, and the (ii) The contracting officer must for- Commander, MTMC, are authorized to ward the report to— make any determinations as to the (A) The Commander, MSC, through availability of U.S.-flag vessels to en- the Contracts and Business Manage- sure the proper use of Government and ment Directorate, MSC; or private U.S. vessels. (B) The Commander, MTMC, through (ii) The contracting officer must re- the Principal Assistant Responsible for quest such determinations— Contracting, MTMC. (A) For voyage and time charters, (iii) If in agreement with the con- through the Contracts and Business Management Directorate, MSC; and tracting officer, the Commander, MSC, (B) For ocean and intermodal trans- or the Commander, MTMC, will for- portation of DoD and DoD-sponsored ward the report to the Secretary of the cargoes, as applicable under contracts Navy or the Secretary of the Army, re- awarded by MTMC, including contracts spectively, for a determination as to for shipment of military household whether the proposed freight charges goods, through the Chiefs of the MTMC are excessive or otherwise unreason- Ocean Cargo Clearance Authority. able. (iii) In the absence of regularly [65 FR 50146, Aug. 17, 2000] scheduled U.S.-flag service to fulfill stated DoD requirements under MTMC
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solicitations or rate requests, the Com- Navy or the Secretary of the Army, re- mander, MTMC, may grant, on a case- spectively, for a determination as to by-case basis, an on-going nonavail- whether the proposed freight charges ability determination for foreign-flag are excessive or otherwise unreason- service approval with pre-determined able. review date(s); (2) The contracting officer deter- [65 FR 50147, Aug. 17, 2000] mines that the U.S.-flag carrier has proposed to the Government freight 247.573 Solicitation provision and con- charges that are higher than charges to tract clauses. private persons for transportation of (a) Use the provision at 252.247–7022, like goods, and obtains the approval of Representation of Extent of Transpor- the Commander, MSC, or the Com- tation by Sea, in all solicitations ex- mander, MTMC; or cept— (3) The Secretary of the Navy or the (1) Those for direct purchase of ocean Secretary of the Army determines that transportation services; or the proposed freight charges for U.S.- (2) Those with an anticipated value flag vessels are excessive or otherwise at or below the simplified acquisition unreasonable. threshold. (i) After considering the factors in (b)(1) Use the clause at 252.247–7023, 247.572–1(d)(3)(i)(A) and (B), if the con- Transportation of Supplies by Sea, in tracting officer concludes that the all solicitations and resultant con- freight charges proposed by U.S.-flag carriers may be excessive or otherwise tracts, except— unreasonable, the contracting officer (i) Those for direct purchase of ocean must prepare a report in determination transportation services; or and finding format that includes, as ap- (ii) Those with an anticipated value propriate— at or below the simplified acquisition (A) An analysis of the carrier’s costs threshold. in accordance with FAR Subpart 15.4, (2) Use the clause with its Alternate or profit in accordance with 215.404–4. I in other than construction contracts, The costs or profit should not be so if any of the supplies to be transported high as to make it unreasonable to are commercial items that are shipped apply the preference for U.S.-flag ves- in direct support of U.S. military con- sels; tingency operations, exercises, or (B) A description of efforts taken forces deployed in humanitarian or pursuant to FAR 15.405, to negotiate a peacekeeping operations. reasonable price. For the purpose of (3) Use the clause with its Alternate FAR 15.405(d), this report is the refer- II in other than construction con- ral to a level above the contracting of- tracts, if any of the supplies to be ficer; and transported are commercial items that (C) An analysis of whether the costs are excessive (i.e., costs beyond the are commissary or exchange cargoes economic penalty normally incurred by transported outside of the Defense excluding foreign competition), taking Transportation System in accordance into consideration factors such as with 10 U.S.C. 2643. those listed at 247.572–1(d)(3)(i)(C). (c) Use the clause at 252.247–7024, No- (ii) The contracting officer must for- tification of Transportation of Supplies ward the report to— by Sea, in all contracts for which the (A) The commander, MSC, through offeror made a negative response to the the Contracts and Business Manage- inquiry in the provision at 252.247–7022, ment Directorate, MSC; or Representation of Extent of Transpor- (B) The Commander, MTMC, through tation by Sea. the Principal Assistant Responsible for (d) Use the clause at 252.247–7025, Re- Contracting, MTMC. flagging or Repair Work, in all time (iii) If an agreement with the con- charter solicitations and contracts for tracting officer, the Commander, MSC, the use of a vessel for the transpor- or the Commander, MTMC, will for- tation of supplies, unless a waiver has ward the report to the Secretary of the
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been granted in accordance with (ii) Within 30 days, send one copy to 247.571(c). the purchasing office and one copy to the headquarters office to which the [56 FR 36466, July 31, 1991, as amended at 59 FR 10580, Mar. 7, 1994; 60 FR 29501, June 5, contract administration office is di- 1995; 64 FR 2598, Jan. 15, 1999; 65 FR 14401. rectly responsible; Mar. 16, 2000] (iii) Continue reporting semiannually to cover the 6 month periods ending PART 249—TERMINATION OF March and September. The semiannual CONTRACTS reports must be submitted within 30 days after the end of the reporting pe- Subpart 249.1—General Principles riod; and (iv) Submit a final report within 30 Sec. days after closing the termination 249.105 Duties of termination contracting case. officer after issuance of notice of termi- nation. [56 FR 36471, July 31, 1991, as amended at 59 249.105–1 Termination status report. FR 27674, May 27, 1994; 64 FR 51077, Sept. 21, 249.105–2 Release of excess funds. 1999; 65 FR 39706, June 27, 2000] 249.106 Fraud or other criminal conduct. 249.108 Settlement of subcontract settle- 249.105–2 Release of excess funds. ment proposals. 249.108–4 Authorization for subcontract set- The DD Form 1598, Contract Termi- tlements without approval or ratifica- nation Status Report, may be used to tion. recommend the release of excess funds. 249.109 Settlement agreements. The final recommendation to release 249.109–7 Settlement by determination. excess funds should include the appro- 249.110 Negotiation memorandum. priations and allocated amounts. Subpart 249.5—Contract Termination 249.106 Fraud or other criminal con- Clauses duct. 249.501 General. If the TCO suspects fraud or other 249.501–70 Special termination costs. criminal conduct, the TCO must report Subpart 249.70—Special Termination the facts in accordance with the proce- Requirements dures at 209.406–3 or 209.407–3. [64 FR 62986, Nov. 18, 1999] 249.7000 Terminated contracts with Cana- dian Commercial Corporation. 249.7001 Congressional notification on sig- 249.108 Settlement of subcontract set- nificant contract terminations. tlement proposals. 249.7002 [Reserved] 249.7003 Notification of anticipated contract 249.108–4 Authorization for sub- terminations or reductions. contract settlements without ap- proval or ratification. AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- ter 1. (a)(1)(ii) Industrial plant equipment included in the inventory— SOURCE: 56 FR 36471, July 31, 1991, unless otherwise noted. (1) Is subject to the screening re- quirements in FAR 45.608. Subpart 249.1—General Principles (2) Shall not be disposed of until screening is completed when the cost of 249.105 Duties of termination con- that equipment is used in determining tracting officer after issuance of no- the amount of the claim. tice of termination. 249.109 Settlement agreements. 249.105–1 Termination status report. When the contract administration of- 249.109–7 Settlement by determina- fice receives a termination notice, it tion. will, under Report Control Symbol DD– (a)(i) Use a Standard Form 30 (SF 30), AT&L(AR)1411– Amendment of Solicitation/Modifica- (i) Prepare a DD Form 1598, Contract tion of Contract, to settle a conven- Termination Status Report; ience termination by determination—
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(A) When the contractor has lost its Memorandum-Fixed Price Contracts, right of appeal because it failed to sub- for the termination contracting offi- mit a timely settlement proposal; and cer’s settlement memorandum for fixed (B) To confirm the determination price contracts terminated for the con- when the contractor does not appeal venience of the Government. Encour- the termination contracting officer’s age contractors and subcontractors to decision. use this format, appropriately modi- (ii) The effective date of the SF 30 fied, for subcontract settlements sub- shall be the same as the date of the let- mitted for review and approval. ter of determination. Do not assign a supplementary procurement instru- (ii) Cost-reimbursement contracts. Use ment number to the letter of deter- Part I of the format in Table 49–1 and mination. Send a copy of the SF 30 to Part II of the format in Table 49–2, Set- the contractor by certified mail return tlement Memorandum for Cost-Reim- receipt requested. bursement Contracts, for the termi- nation contracting officer’s settlement 249.110 Negotiation memorandum. memorandum for cost-reimbursement (a)(i) Fixed price contracts. Use the contracts: format in Table 49–1, Settlement
TABLE 49–1—SETTLEMENT MEMORANDUM-FIXED PRICE CONTRACTS
Part I—General Information 1. Identification. (Identify memorandum as to its purpose and content.) a. Name and address of the contractor. Comment on any pertinent affiliation between prime and sub- contractors relative to the overall settlement. b. Names and titles of both contractor and Government personnel who participated in the negotiation. 2. Description of terminated contract. a. Date of contract and contract number. b. Type of contract (e.g., fixed price, fixed price incentive). c. General description of contract items. d. Total contract price. e. Furnish reference to the contract termination clauses (cite FAR/DFARS designation or other special pro- visions). 3. Termination notice. a. Reference termination notice and state effective date of termination. b. Scope and nature of termination (complete or partial), items terminated, unit price and total price of items terminated. c. State whether termination notice was amended, and explain any amendment. d. State whether contractor stopped work on effective termination date. If not, furnish details. e. State whether the contractor promptly terminated subcontracts. f. Statement as to the diversion of common items and return of goods to suppliers, if any. g. Furnish information as to contract performance and timeliness of deliveries by the contractor. 4. Contractor’s settlement proposal. a. Date and amount. Indicate date and location where claim was filed. State gross amount of claim. (If in- terim settlement proposals were filed, furnished information for each claim.) b. Basis of claim. State whether claim was filed on inventory, total cost or other basis. Explain rationale for approval when claim is filed on other than inventory basis. c. Examination of proposal. State type of reviews made and by whom (audit, engineering, legal, or other). Part II—Summary of Contractor’s Claim and Negotiated Settlement Prepare a summary substantially as follows:
Contrac- TCO nego- Item claimed tor’s pro- Dollars ac- Costs Unresolved tiated posal cepted questioned items amount
1. Contractor’s costs as set forth on settlement proposal. Metals, raw materials, etc.. Total. 2. Profit. 3. Settlement expenses. 4. Total. 5. Settlement with subs. 6. Acceptable finished product. 7. Gross Total. 8. Disposal and other credits.
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Contrac- TCO nego- Item claimed tor’s pro- Dollars ac- Costs Unresolved tiated posal cepted questioned items amount
9. Net settlement. 10. Partial, progress & advance payments. 11. Net payments requested.
Part III—Discussion of Settlement 1. Contractor’s cost. a. If the settlement was negotiated on the basis of individual items, specify the factors and consideration for each item. b. In the case of a lump sum settlement, comment on the general basis for and major factors concerning each element of cost and profit included. c. Comment on any important adjustments made to costs claimed or any significant amounts in relation to the total claim. d. If a partial termination is involved, state whether the contractor has requested an equitable adjustment in the price of the continued portion of the contract. e. Comment on any unadjusted contractual changes which are included in the settlement. f. Comment on whether or not a loss would have been incurred and explain adjustment for loss, if any. g. Furnish other information believed helpful to any reviewing authority in understanding the recommended settlement. 2. Profit. Explain the basis and factors considered in arriving at a fair profit. 3. Settlement expenses. Comment on and summarize those expenses not included in the audit review. 4. Subcontractor’s settlements. Include the number of no costs settlements, settlements concluded by the contractor under delegation of authority and those approved by the termination contracting officer, as well as the net amount of each. 5. Partial payments. Furnish the total amount of partial payments, if any. 6. Progress or advance payments. Furnish the total of unliquidated amounts, if any. 7. Claims of the Government against the contractor included in settlement agreement reservations. List all outstanding claims, if any, which the Government has against the contractor in connection with the termi- nated contract or terminated portion of the contract. 8. Assignments. List any assignments, giving name and address of assignee. 9. Disposal credits. Furnish information as to applicable disposal credits and give dollar amounts of all dis- posal credits. 10. Plant clearance. State whether plant clearance action has been completed and all inventory sold, re- tained, or otherwise properly disposed of in accordance with applicable plant clearance regulations. Com- ment on any unusual matters pertaining to plant clearances. Attach consolidated closing plant clearance report. 11. Government property. State whether all Government property has been accounted for. 12. Special tooling. If involved, furnish comment on disposition. 13. Summary of settlement. Summarize the settlement in tabular form substantially as follows:
Tabular Summary for Complete or Partial Termination
Amount claimed Amount allowed
Prime contractors charges (before disposal credits). Plus: Subcontractor charges (after disposal credits). Gross settlement: Less: disposal credits—Prime. Net settlement—Less: Prior payment credits (this settlement). Previous partial settlements. Other credits or deductions. Net payment: Total contract price (complete termination). Contract Price of Items Terminated (for partial termination)—Less: Total payments to date. Net payment from this settlement. Fund reserved for reservations. Reduction in contract price.
14. Exclusions. Describe any proposed reservation of rights to the Government or to the contractor. 15. Include statement that the settlement is fair and reasonable for the Government and the contractor. The contracting officer shall sign and date the memorandum. (End of memorandum)
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TABLE 49–2—SETTLEMENT MEMORANDUM FOR COST-REIMBURSEMENT CONTRACTS
Part II—Summary of Settlement 1. Summary. Summarize the proposed settlement in tabular form substantially as shown in Tables 49–3 and 49–4. Partial settlements may be summarized on Table 49–4. 2. Comments. Explain tabular summaries. a. Summary of final settlement (see Table 49–3). (1) Explain why the auditor’s final report was not available for consideration, if applicable. (2) Explain how the fixed fee was adjusted. Identify basis used such as percentage of completion. In- clude a description of factors considered and how they were considered. Include any tabular sum- maries and breakdowns deemed helpful to an understanding of the process. Factors which may be given consideration are outlined in FAR 49.305. (3) Briefly identify matters included in liability for property and other charges against the contractor aris- ing from the contract. (4) Identify reservations included in the settlement that are other than standard reservations required by regulations and which are concerned with pending claims and refunds. (5) Explain substantial or otherwise important adjustments made in cost figures submitted by the con- tractor in arriving at the proposed settlement. (6) If unreimbursed costs were settled on a lump sum basis, explain the general basis for and the major factors considered in arriving at this settlement. (7) Comment on any unusual items of cost included in the claim and on any phase of cost allocation re- quiring particular attention and not covered above. (8) If auditor’s recommendations for nonacceptance were not followed, explain briefly the main reasons why such recommendations were not followed. (9) On items recommended for further consideration by the auditor, explain, in general, the basis for the action taken. (10) If any cost previously disallowed by a contracting officer is included in the proposed settlement, identify and explain the reason for inclusion of such costs. (11) Show number and amounts of settlements with subcontractors. (12) Use the following summary where settlement includes costs and fixed fee in a complete termination:
Gross settlement ...... $llll Less: Disposal credits ...... llll Net settlement ...... llll Less: Prior payments ...... llll Other credits or deductions ...... llll Total ...... llll Net payment ...... $llll Total contract estimated cost plus fixed fee ...... llll Less: Net settlement ...... llll Estimated reserve for exclusions ...... llll Final contract price: (Consisting of $lll for reimbursement of costs and $llll for adjusted fixed fee) ...... llll llll Reduction in contract price (credit) ...... llll
(13) Plant clearance. Indicate dollar value of termination inventory and state whether plant clearance has been completed. Attach consolidated plant clearance report (SF 1424, Inventory Disposal Report). (14) Government property. State whether all Government property has been accounted for. (15) Include a statement that the settlement is fair and reasonable to the Government and the contractor. The contracting officer shall sign and date the memorandum. (End of memorandum)
TABLE 49–3—SUMMARY OF SETTLEMENT
Amount Amount al- claimed lowed
1. Previous reimbursed costs—Prime and Subs ...... $ $ 2. Previous unreimbursed costs ...... llll llll 3. Total cost settlement ...... $ $ 4. Previous fees paid—Prime ...... $ $ 5. Previous fees unpaid—Prime ...... llll llll 6. Total fee settlement ...... $ $ 7. Gross settlement ...... llll llll $llll $llll
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TABLE 49–3—SUMMARY OF SETTLEMENT—Continued
Amount Amount al- claimed lowed
llll llll Less: Deductions not reflected in Items 1–7. a. Disposal credits ...... $llll b. Other charges against contractor arising from contract ...... $llll 8. Net settlement ...... $ Less: Prior payment credits ...... llll 9. Net payment ...... $ 10. Recapitulation of previous settlements (insert number of previous partial settle- ments effected on account of this particular termination): Aggregate gross amount of previous settlements ...... $llll Aggregate net amount of previous partial settlements ...... $llll Aggregate net payment provided in previous partial settlements ...... $llll Aggregate amount allowed for prime contractor acquired property taken over $llll by the Government in connection with previous partial settlements.
TABLE 49–4—UNREIMBURSED COSTS SUBMITTED ON SF 1437 *
Amounts claimed Auditor’s recommendation Costs by contractor’s TCO’s computa- proposal Cost questioned Unresolved items tion
1. Direct material. 2. Direct labor. 3. Indirect factory expense. 4. Dies, jigs, fixtures and special tools. 5. Other costs. 6. General and administrative expenses. 7. Fee. 8. Settlement expense. 9. Settlement with subs. 10. Total costs (Items 1–9). * Expand the format to include recommendations of technical personnel as required.
[56 FR 36471, July 31, 1991, as amended at 62 amount that represents their best esti- FR 34128, June 24, 1997] mate of the total special termination costs to which the contractor would be Subpart 249.5—Contract entitled in the event of termination of Termination Clauses the contract. Insert this amount in paragraph (c) of the clause. 249.501 General. (d)(1) Consider substituting an alter- nate paragraph (c) for paragraph (c) of 249.501–70 Special termination costs. the basic clause when— (a) The clause at 252.249–7000, Special (i) The contract covers an unusually Termination Costs, may be used in an long performance period; or incrementally funded contract when its (ii) The contractor’s cost risk associ- use is approved by the agency head. ated with contingent special termi- (b) The clause is authorized when— nation costs is expected to fluctuate (1) The contract term is 2 years or extensively over the period of the con- more; tract. (2) The contract is estimated to re- (2) The alternate paragraph (c) quire— should provide for periodic negotiation (i) Total RDT&E financing in excess and adjustment of the amount reserved of $25 million; or for special termination costs. Occa- (ii) Total production investment in sions for periodic adjustment may in- excess of $100 million; and clude— (3) Adequate funds are available to (i) The Government’s incremental as- cover the contingent reserve liability signment of funds to the contract; for special termination costs. (ii) The time when certain perform- (c) The contractor and the con- ance milestones are accomplished by tracting officer must agree upon an the contractor; or
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(iii) Other specific time periods mercial Corporation for disposition of agreed upon by the contracting officer the contractor inventory. and the contractor. (3) Settlement of Canadian subcon- tractor claims are not subject to the Subpart 249.70—Special approval and ratification of the TCO. Termination Requirements However, when the proposed negotiated settlement exceeds the total contract 249.7000 Terminated contracts with price of the prime contract, the TCO Canadian Commercial Corporation. shall obtain from the U.S. contracting (a) Terminate contracts with the Ca- officer prior to final settlement— nadian Commercial Corporation in ac- (i) Ratification of the proposed set- cordance with— tlement; and (1) The Letter of Agreement (LOA) (ii) A contract modification increas- between the Department of Defence ing the contract price and obligating Production (Canada) and the U.S. DoD, the additional funds. ‘‘Canadian Agreement’’ (for a copy of (d) The Canadian Commercial Cor- the LOA or for questions on its cur- poration should send all termination rency, contact the Foreign Contracting settlement proposals submitted by U.S. Directorate, Office of the Director of subcontractors and suppliers to the Defense Procurement, (703) 697–9351, TCO of the cognizant contract adminis- DSN 227–9351)); tration office of the Defense Contract (2) Policies in the Canadian Agree- Management Agency for settlement. ment and part 249; and The TCO will inform the Canadian (3) The Procedures Manual on Termi- Commercial Corporation of the amount nation of Contracts, Public Works and of the net settlement of U.S. sub- Government Services Canada. contractors and suppliers so that this amount can be included in the Cana- (b) Contracting officers shall ensure dian Commercial Corporation termi- that the Canadian Commercial Cor- nation proposal. The Canadian Com- poration submits termination settle- mercial Corporation is responsible for ment proposals in the format pre- execution of the settlement agreement scribed in FAR 49.602 and that they with these subcontractors. contain the amount of settlements with subcontractors. The termination [56 FR 36471, July 31, 1991, as amended at 65 contracting officer (TCO) shall prepare FR 39706, June 27, 2000] an appropriate settlement agreement. (See FAR 49.603.) The letter transmit- 249.7001 Congressional notification on ting a settlement proposal must cer- significant contract terminations. tify— (a) Congressional notification is re- (1) That disposition of inventory has quired for any termination involving a been completed; and reduction in employment of 100 or (2) That the Contract Claims Resolu- more contractor employees. Proposed tion Board of the Public Works and terminations must be cleared through Government Services Canada has ap- department/agency liaison offices be- proved settlements with Canadian sub- fore release of the termination notice, contractors when the Procedures Man- or any information on the proposed ual on Termination of Contracts re- termination, to the contractor. quires such approval. (b) Department and agency liaison of- (c)(1) The Canadian Commercial Cor- fices will coordinate timing of the con- poration will— gressional notification and public re- (i) Settle all Canadian subcontractor lease of the information with release of termination claims under the Canadian the termination notice to the con- Agreement; and tractor. Department and agency liaison (ii) Submit schedules listing service- offices are— able and usable contractor inventory (1) Army—Chief, Legislative Liaison for screening to the TCO (see FAR (SALL–SPA) 45.6). (2) Navy—Chief of Legislative Affairs (2) After screening, the TCO must (OLA–N) provide guidance to the Canadian Com- (3) Air Force—SAF/AQC
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(4) Defense Advanced Research (f) This reporting requirement is as- Projects Agency—CMO signed Report Control Symbol DD– (5) Defense Information Systems AT&L(AR)1412. Agency—Contract Management Divi- [56 FR 36471, July 31, 1991, as amended at 56 sion (Code 260) FR 67220, Dec. 30, 1991; 59 FR 27674, May 27, (6) Defense Intelligence Agency—RSQ 1994; 61 FR 50455, Sept. 26, 1996; 64 FR 51077, (7) Defense Logistics Agency—DLSC– Sept. 21, 1999; 65 FR 39706, June 27, 2000] P (8) National Imagery and Mapping 249.7002 [Reserved] Agency—HQ NIMA (AQ) 249.7003 Notification of anticipated (9) Defense Threat Reduction Agen- contract terminations or reduc- cy—Acquisition Management Office tions. (AM) (a) Section 1372 of the National De- (10) National Security Agency/Cen- fense Authorization Act for Fiscal Year tral Security Service—Chief, Office of 1994 (Pub. L. 103–160) and Section 824 of Contracting the National Defense Authorization (11) Ballistic Missile Defense Organi- Act for Fiscal Year 1997 (Pub. L. 104– zation—Director of Contracts (BMDO– 201) are intended to help establish ben- DCT) efit eligibility under the Job Training (c) Request clearance to release in- Partnership Act (29 U.S.C. 1661 and formation in accordance with depart- 1662) for employees of DoD contractors mental procedures as soon as possible and subcontractors adversely affected after the decision to terminate is by termination or substantial reduc- made. Until clearance has been ob- tions in major defense programs. tained, treat this information as ‘‘For (b) Departments and agencies are re- Official Use Only’’ unless the informa- sponsible for establishing procedures tion is classified. to: (d) Include the following in the re- (1) Identify which contracts (if any) quest for clearance— under major defense programs will be (1) Contract number, date, and type terminated or substantially reduced as of contract; a result of the funding levels provided (2) Name of the company; in an appropriations act. (3) Nature of contract or end item; (2) Within 60 days of the enactment (4) The reason for the termination; of such an act, provide notice of the an- ticipated termination of or substantial (5) Contract price of the items termi- reduction in the funding of affected nated; contracts— (6) Total number of contractor em- (i) Directly to the Secretary of ployees involved, including the Govern- Labor; and ment’s estimate of the number who (ii) Through the contracting officer may be discharged; to each prime contractor. (7) Statement of anticipated impact (c) Use the clause at 252.249–7002, No- on the company and the community; tification of Anticipated Contract Ter- (8) The area labor category, whether mination or Reduction, in all contracts the contractor is a large or small busi- under a major defense program. ness, and any known impact on hard core disadvantaged employment pro- [61 FR 64637, Dec. 6, 1996; 61 FR 66077, Dec. 16, grams; 1996; 62 FR 49304, Sept. 19, 1997] (9) Total number of subcontractors involved and the impact in this area; PART 250—EXTRAORDINARY and CONTRACTUAL ACTIONS (10) An unclassified draft of a sug- gested press release. Sec. (e) To minimize termination costs, li- 250.001 Definitions. aison offices will act promptly on all Subpart 250.1—General requests for clearances and provide a response not later than two working 250.102–70 Limitations on payment. days after receipt of the request. 250.105 Records.
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Subpart 250.2—Delegation of and this part 250. Records shall be main- Limitations on Exercise of Authority tained by the contract adjustment boards of the Army, Navy, and Air 250.201 Delegation of authority. Force, respectively, and by the head- 250.201–70 Delegations. 250.202 Contract adjustment boards. quarters of the defense agencies. (2) A suggested format for the record Subpart 250.3—Contract Adjustments is in Table 50–1, Record of Request for Adjustment. This format permits the 250.303 Contractor requests. information required for the prelimi- 250.305 Processing cases. 250.305–70 Record of request. nary and final records to be combined 250.305–71 Processing cases to contract ad- on one form. justment boards. (3) The following instructions are 250.305–72 Processing by the board. provided for those items which are not 250.306 Disposition. self-explanatory: 250.306–70 Record of disposition. (i) Extent of performance as of date of request. State degree of completion of Subpart 250.4—Residual Powers contract; e.g., 50 percent completed or 250.403 Special procedures for unusually performance not yet begun. If work is hazardous or nuclear risks. completed, state date of completion 250.403–70 Indemnification under contracts and whether final payment has been involving both research and development made. and other work. (ii) Award procedure. State whether AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- contract was awarded under sealed bid- ter 1. ding or negotiated procedures. Cite spe- SOURCE: 56 FR 36475, July 31, 1991, unless cific authority for using other than full otherwise noted. and open competition, if applicable, e.g., 10 U.S.C. 2304(c)(1). 250.001 Definitions. (iii) Type of contract. State type of As used in this part, contract (see FAR part 16); e.g., FFP Secretarial level means— (firm fixed-price). (1) An official at or above the level of (iv) Category of case. State whether an Assistant Secretary (or Deputy) of the request involves a modification Defense or of the Army, Navy, or Air without consideration, a mistake, or Force; and an informal commitment. If the case (2) A contract adjustment board es- involves more than one category, iden- tablished by the Secretary concerned. tify both; list the most significant cat- egory first. Subpart 250.1—General (v) Amount or description of request. If the request is expressed in dollars, 250.102–70 Limitations on payment. state the amount and whether it is an See 10 U.S.C. 2410b for limitations on increase or decrease. If the request can- Congressionally directed payment of a not be expressed in monetary terms, request for equitable adjustment to provide a brief description; e.g., ‘‘Can- contract terms or a request for relief cellation’’ or ‘‘Modification.’’ Even if under Pub. L. 85–804. the adjustment is not easily expressed in terms of dollars, if the contractor [63 FR 11541, Mar. 9, 1998] has made an estimate in the request, that estimate should be stated. 250.105 Records. (vi) Action below Secretarial level. (1) Departments and agencies will— State the disposition of the case, the (i) Prepare a preliminary record when office that took the action and the date a request for a contract adjustment the action was taken. The disposition under FAR 50.3 is filed (see 250.305–70). should be stated as ‘‘Withdrawn,’’ ‘‘De- (ii) Prepare a final record stating the nied,’’ ‘‘Approved,’’ or ‘‘Forwarded.’’ If disposition of the request (see 250.306– the request was approved, in whole or 70). in part, state the dollar amount or na- (iii) Designate the offices or officials ture of the action (as explained in para- responsible for preparing, submitting, graph (v) of this section). The date and receiving all records required by should correspond with the date of the
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memorandum of decision or of the let- the contract adjustment board. Provide ter forwarding the request to the con- the same information as for paragraph tract adjustment board or other decid- (vi). ing body. (viii) Implementation and date. State (vii) Action by contract adjustment the appropriate action; e.g., ‘‘Modifica- board and date. State the disposition tion,’’ ‘‘New Contract,’’ or ‘‘Letter of and date of disposition of the case by Denial.’’
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Subpart 250.2—Delegation of and 250.202 Contract adjustment boards. Limitations on Exercise of Au- The Departments of the Army, Navy, thority and Air Force each have a contract ad- justment board. The board consists of a 250.201 Delegation of authority. Chair and not less than two nor more (b) Authority under FAR subpart 50.4 than six other members, one of whom to approve actions obligating $50,000 or may be designated the Vice-Chair. A less may not be delegated below the majority constitutes a quorum for any level of the head of the contracting ac- purpose and the concurring vote of a tivity. majority of the total board member- (d) In accordance with the acquisi- ship constitutes an action of the board. tion authority of the Under Secretary Alternates may be appointed to act in of Defense (Acquisition, Technology, the absence of any member. and Logistics (USD (AT&L)) under 10 U.S.C. 133, in addition to the Secretary Subpart 250.3—Contract of Defense and the Secretaries of the Adjustments military departments, the USD (AT&L) may exercise authority to indemnify 250.303 Contractor requests. against unusually hazardous or nuclear risks. Requests should be filed with the pro- curing contracting officer (PCO). If a [65 FR 77836, Dec. 13, 2000] request is filed with an administrative contracting officer (ACO), the ACO 250.201–70 Delegations. shall promptly forward it to the PCO (a) Military Departments. The Depart- for appropriate action. If filing with ments of the Army, Navy and Air the PCO is impracticable, requests may Force will specify delegations and lev- be filed with the following addresses els of authority for actions under the for forwarding to the cognizant PCO: Act and the Executive Order in depart- (1) Office of the Secretary of De- mental supplements. fense—Washington Headquarters Serv- (b) Defense Agencies. Subject to the ice, Attn: RE&F–AM. restrictions on delegations of authority (2) Army—Forward to the head of the in 250.201(b) and FAR 50.201, the direc- contracting activity listed in Part 202 tors of the defense agencies may exer- that appears to be the cognizant office cise and redelegate the authority con- for the contract or commitment in- tained in the Act and the Executive volved. Order. The agency supplements shall (3) Navy-Assistant Secretary of the specify the delegations and levels of Navy (RD&A), Attn: Deputy for Acqui- authority. sition and Business Management. (1) Requests to obligate the Govern- ment in excess of $50,000 must be sub- (4) Air Force—Deputy Assistant Sec- mitted to the USD (AT&L) for ap- retary (Contracting), Attn: SAF/AQCX. proval. (5) Defense Advanced Research (2) Requests for indemnification Projects Agency—Director, CMO. against unusually hazardous or nuclear (6) Defense Information Systems risks must be submitted to the Agency—Attn: Code PA. USD(AT&L) for approval before using (7) Defense Intelligence Agency—As- the indemnification clause at FAR sistant Deputy Director for Procure- 52.250–1, Indemnification Under Public ment, Attn: RSQ. Law 85–804. (8) Defense Logistics Agency—The (c) Approvals. The Secretary of the Commander of the Defense Supply Cen- military department or the agency di- ter involved. rector must approve any delegations in (9) National Imagery and Mapping writing. Agency-Director, NIMA, Attn: AQ. (10) Defense Threat Reduction Agen- [56 FR 36475, July 31, 1991, as amended at 56 FR 67221, Dec. 30, 1991; 60 FR 61600, Nov. 30, cy-Director, DTRA, Attn: AM. 1995; 65 FR 39706, June 27, 2000; 65 FR 77836, (11) National Security Agency—Di- Dec. 13, 2000] rector, NSA.
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(12) Ballistic Missile Defense Organi- contract and the importance of the zation—Director, BMDO. contractor to the national defense; [56 FR 36475, July 31, 1991, as amended at 56 (iii) The forecast of future contracts FR 67221, Dec. 30, 1991; 59 FR 27675, May 27, with the contractor; and 1994; 61 FR 50455, Sept. 26, 1996; 64 FR 51077, (iv) Other available sources of supply Sept. 21, 1999] for the supplies or services covered by the contract, and the time and cost of 250.305 Processing cases. having contract performance com- pleted by such other sources. 250.305–70 Record of request. At the time the request is filed, the 250.305–72 Processing by the board. activity will prepare the record de- Contract adjustment boards will scribed at 250.105(1)(i) and forward it to render decisions as expeditiously as the appropriate official within 30 days practicable. The Chair shall sign a after the close of the month in which memorandum of decision disposing of the record is prepared. the case. The decision shall be dated 250.305–71 Processing cases to con- and shall contain the information re- tract adjustment boards. quired by FAR 50.306. The memo- randum of decision shall not contain (a) The officer or official responsible any information classified ‘‘Confiden- for the case shall forward to the con- tial’’ or higher. The board’s decision tract adjustment board, through de- will be sent to the appropriate official partmental channels, two copies of the for implementation. following: (1) A letter stating— 250.306 Disposition. (i) The nature of the case; (ii) The basis for the board’s author- 250.306–70 Record of disposition. ity to act; (a) When the request for relief is de- (iii) The findings of fact essential to nied or approved below the Secretarial the case (see FAR 50.304). Arrange the level, submit the following documents findings chronologically with cross ref- to the appropriate office within 30 days erences to supporting enclosures; after the close of the month in which (iv) The conclusions drawn; the decision is executed: (v) The recommended disposition; (1) Two copies of the memorandum of and decision; (vi) If contractual action is rec- (2) Except for the Army, one copy of ommended, a statement by the signer the contractual document imple- that the action will facilitate the na- menting any decision approving con- tional defense. tractual action; and (2) The contractor’s request (3) One copy of a final record, as de- (3) All evidentiary materials scribed at 250.105. (4) All endorsements, reports and (b) When a contract adjustment comments of cognizant Government of- board decision is implemented, the ac- ficials tivity which forwarded the case to the (b) A letter to the Board recom- board shall prepare and submit to the mending an amendment without con- board the documents identified in para- sideration where essentiality is a fac- graphs (a) (2) and (3) of this subsection. tor (see FAR 50.302–1(a)) should also provide— (1) The information required by FAR Subpart 250.4—Residual Powers 50.304 (a) and (b), and 250.403 Special procedures for unusu- (2) Findings as to— ally hazardous or nuclear risks. (i) The contractor’s performance record, including the quality of prod- 250.403–70 Indemnification under con- uct, rate of production, and promptness tracts involving both research and of deliveries; development and other work. (ii) The importance to the Govern- When indemnification is to be pro- ment, particularly to the active duty vided on contracts requiring both re- military, of the performance of the search and development work and
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other work, the contracting officer debted to the DoD and has failed to pay shall insert an appropriate clause using proper invoices in a timely manner. the authority of both 10 U.S.C. 2354 and Public Law 85–804. TABLE 51–1—AUTHORIZATION TO PURCHASE (a) The use of Public Law 85–804 is FROM GOVERNMENT SUPPLY SOURCES limited to work which cannot be in- Subject: Authorization to Purchase from Govern- demnified under 10 U.S.C. 2354 and is ment Supply Sources subject to compliance with FAR sub- part 50.4. (Contractor’s Name) (b) Indemnification under 10 U.S.C. 2354 is covered by 235.070. (Contractor’s Address) 1. You are hereby authorized to use Government PART 251—USE OF GOVERNMENT sources in performing Contract No. llll for SOURCES BY CONTRACTORS the Department of llll, as follows: (Insert applicable purchasing authority given to the con- tractor.) Subpart 251.1—Contractor Use of 2.a. Purchase Orders Under Federal Supply Sched- Government Supply Sources ules or Personal Property Rehabilitation Price Schedules. Place orders in accordance with the Sec. terms and conditions of the attached Schedule(s) 251.102 Authorization to use Government and this authorization. Attach a copy of this au- supply sources. thorization to the order (unless a copy was pre- 251.105 Payment for shipments. viously furnished to the Federal Supply Schedule 251.107 Contract clause. or Personal Property Rehabilitation Price Sched- ule contractor). Insert the following statement in Subpart 251.2—Contractor Use of Inter- the order: agency Fleet Management System (IFMS) Vehicles This order is placed under written authorization from llll dated llll (1lll). 251.202 Authorization. In the event of any inconsistency between the 251.205 Contract clause. terms and conditions of this order and those of the Federal Supply Schedule or Personal Prop- AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- erty Rehabilitation Price Schedule contract, the ter 1. latter will govern. SOURCE: 56 FR 36479, July 31, 1991, unless b. Requisitioning from the General Services Admin- otherwise noted. istration (GSA) or the Department of Defense (DoD). Place orders in accordance with this au- Subpart 251.1—Contractor Use of thorization and, as appropriate, the following: (1) Federal Standard Requisitioning and Issues Government Supply Sources Procedures (FEDSTRIP) (GSA FEDSTRIP Op- erating Guide: FPMR 101–26.2 (41 CFR 101– 251.102 Authorization to use Govern- 26.2)). Copies are available from the Super- ment supply sources. intendent of Documents, Government Printing (e) Use the format in Table 51–1, Au- Office, Washington, DC 20402; telephone (202) thorization to Purchase from Govern- 512–1800; telefax (202) 512–2250. ment Supply Sources. Specify the (2) Military Standard Requisitioning and Issue terms of the purchase, including con- Procedures (MILSTRIP) (DoD 4000.25–1–M). Copies are available from the Defense Logis- tractor acceptance of any Government tics Agency, Administrative Support Center materiel, payment terms, and the ad- East, ATTN: ASCE–WS, 14 Dedication Drive, dresses required by paragraph (f) of the Suite 3, POD 43, New Cumberland, PA 17070– clause at 252.251–7000, Ordering from 5011; telephone 1–888–DLA–PUBS (352– Government Supply Sources. 7827), or (717) 770–6034; telefax (717) 770– (3)(ii) In addition to the procedure 4817. and form authorized by FAR 3. (3) 51.102(e)(3)(ii), contractors may use the 4. This authority is not transferable or assignable. 5. The DoD Activity Address Directory (DoDAAD) DD Form 1155 when requisitioning from (DoD 4000.25–6–M) Activity Address Code 2 to the Department of Veterans Affairs. which this Authorization applies is llll. (f) The authorizing agency shall also 6. This Authorization expires lllll. be responsible for promptly considering requests of the DoD supply source for (Contracting Officer) authority to refuse to honor req- 1 Insert ‘‘a copy of which is attached,’’ ‘‘a copy of which uisitions from a contractor which is in- you have on file,’’ or other suitable language, as appropriate.
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2 The sponsoring service assumes responsibility for moni- toring and controlling all activity address codes used in the Subpart 251.2—Contractor Use of letters of authority. Interagency Fleet Manage- 3 Insert other provisions, as necessary. ment System (IFMS) Vehicles [56 FR 36479, July 31, 1991, as amended at 60 251.202 Authorization. FR 29501, June 5, 1995; 64 FR 61031, Nov. 9, (a)(2)(A) See FAR 28.307–2(c) for pol- 1999] icy on contractor insurance. 251.105 Payment for shipments. (B) See FAR 28.308 for policy on self- insurance. Contractor payments for purchases (C) See FAR 31.205–19 for allowability from DoD supply sources are due with- of insurance costs. in 30 days of the date of a proper in- (5) Paragraph (d) of the clause at voice (see FAR 32.902 for definition of 252.251–7001 satisfies the requirement of ‘‘due date’’ and ‘‘payment date;’’ also FAR 51.202(a)(5) for a written state- see FAR 32.905(e)). ment.
[60 FR 29501, June 5, 1995] 251.205 Contract clause. 251.107 Contract clause. Use the clause at 252.251–7001, Use of Interagency Fleet Management System Use the clause at 252.251–7000, Order- (IFMS)Vehicles and Related Services, ing From Government Supply Sources, in solicitations and contracts which in- in solicitations and contracts which in- clude the clause at FAR 52.251–2, Inter- clude the clause at FAR 52.251–1, Gov- agency Fleet Management System ernment Supply Sources. (IFMS) Vehicles and Related Services.
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PART 252—SOLICITATION PROVI- 252.211–7004 Alternate preservation, pack- aging, and packing. SIONS AND CONTRACT CLAUSES 252.211–7005 Substitutions for military or Federal specifications and standards. Subpart 252.1—Instructions for Using 252.212–7000 Offeror representations and cer- Provisions and Clauses tifications—Commercial items. 252.212–7001 Contract terms and conditions Sec. required to implement statutes or Execu- 252.101 Using part 252. tive Orders applicable to Defense acquisi- tions of commercial items. Subpart 252.2—Text of Provisions and 252.215–7000 Pricing adjustments. Clauses 252.215–7001 [Reserved] 252.201–7000 Contracting officer’s represent- 252.215–7002 Cost estimating system require- ative. ments. 252.203–7000 [Reserved] 252.216–7000 Economic price adjustment— 252.203–7001 Prohibition on persons con- basic steel, aluminum, brass, bronze, or victed of fraud or other defense-contract- copper mill products. related felonies. 252.216–7001 Economic price adjustment— 252.203–7002 Display of DoD hotline poster. nonstandard steel items. 252.204–7000 Disclosure of Information. 252.216–7002 [Reserved] 252.204–7001 Commercial and Government 252.216–7003 Economic price adjustment— Entity (CAGE) code reporting. wage rates or material prices controlled 252.204–7002 Payment for subline items not by a foreign government. separately priced. 252.217–7000 Exercise of option to fulfill for- 252.204–7003 Control of government per- eign military sales commitments. sonnel work product. 252.217–7001 Surge option. 252.204–7004 Required central contractor 252.217–7002 Offering property for exchange. registration. 252.217–7003 Changes. 252.204–7005 Oral attestation of security re- 252.217–7004 Job orders and compensation. sponsibilities. 252.217–7005 Inspection and manner of doing 252.205–7000 Provision of information to co- work. operative agreement holders. 252.217–7006 Title. 252.206–7000 Domestic source restriction. 252.217–7007 Payments. 252.208–7000 Intent to furnish precious met- 252.217–7008 Bonds. als as Government-furnished material. 252.217–7009 Default. 252.209–7000 Acquisition from subcontrac- 252.217–7010 Performance. tors subject to on-site inspection under 252.217–7011 Access to vessel. the Intermediate-Range Nuclear Forces 252.217–7012 Liability and insurance. (INF) Treaty. 252.217–7013 Guarantees. 252.209–7001 Disclosure of ownership or con- 252.217–7014 Discharge of liens. trol by the government of a terrorist 252.217–7015 Safety and health. country. 252.217–7016 Plant protection. 252.209–7002 Disclosure of ownership or con- 252.217–7017 Time of delivery. trol by a foreign government. 252.217–7018 Change in plant location—bak- 252.209–7003 Compliance with veterans’ em- ery and dairy products. ployment reporting requirements. 252.209–7004 Subcontracting with firms that 252.217–7019 Sanitary conditions. are owned or controlled by the govern- 252.217–7020 Examination and testing. ment of a terrorist country. 252.217–7021 Deficiency adjustment. 252.209–7005 Reserve Officer Training Corps 252.217–7022 Code dating. and military recruiting on campus. 252.217–7023 Marking. 252.211–7000 Acquisition streamlining. 252.217–7024 Responsibility for containers 252.211–7001 Availability of specifications and equipment. and standards Not listed in DODISS, data 252.217–7025 Containers and equipment. item descriptions Not listed in DoD 252.217–7026 Identification of sources of sup- 5010.12–L, and plans, drawings, and other ply. pertinent documents. 252.217–7027 Contract definitization. 252.211–7002 Availability for examination of 252.217–7028 Over and above work. specifications, standards, plans, draw- 252.219–7000—252.219–7002 [Reserved] ings, data item descriptions, and 252.219–7003 Small, small disadvantaged and otherpertinent documents. women-owned small business subcon- 252.211–7003 [Reserved] tracting plan (DoD contracts).
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252.219–7004 Small, small disadvantaged and 252.225–7017 Prohibition on award to compa- women-owned small business subcon- nies owned by the People’s Republic of tracting plan (test program). China. 252.219–7005—252.219–7008 [Reserved] 252.225–7018 Notice of prohibition of certain 252.219–7009 Section 8(a) direct award. contracts with foreign entities for the 252.219–7010 Alternate A. conduct of Ballistic Missile Defense 252.219–7011 Notification to delay perform- RDT&E. ance. 252.225–7019 Restriction on acquisition of 252.222–7000 Restrictions on employment of foreign anchor and mooring chain. personnel. 252.225–7020 Trade agreements certificate. 252.222–7001 Right of first refusal of employ- 252.225–7021 Trade agreements. ment—Closure of military installations. 252.225–7022 Restriction on acquisition of 252.222–7002 Compliance with local labor polyacrylonitrile (PAN) carbon fiber. laws (overseas). 252.225–7023 Restriction on acquisition of 252.222–7003 Permit from Italian vessel propellers. Inspectorate of Labor. 252.225–7024 Restriction on acquisition of 252.222–7004 Compliance with Spanish social night vision image intensifier tubes and security laws and regulations. devices. 252.222–7005 Prohibition on use of non- 252.225–7025 Restriction on acquisition of immigrant aliens—Guam. forgings. 252.223–7000 [Reserved] 252.225–7026 Reporting of contract perform- 252.223–7001 Hazard warning labels. ance outside the United States. 252.223–7002 Safety precautions for ammuni- 252.225–7027 Restriction on contingent fees tion and explosives. for foreign military sales. 252.223–7003 Change in place of perform- 252.225–7028 Exclusionary policies and prac- ance—ammunition and explosives. tices of foreign governments. 252.223–7004 Drug-free work force. 252.225–7029 Preference for United States or 252.223–7005 [Reserved] Canadian air circuit breakers. 252.223–7006 Prohibition on storage and dis- 252.225–7030 Restriction on acquisition of posal of toxic and hazardous materials. carbon, alloy, and armor steel plate. 252.223–7007 Safeguarding sensitive conven- 252.225–7031 Secondary Arab boycott of tional arms, ammunition, and explosives. Israel. 252.225–7000 Buy American Act—Balance of 252.225–7032 Waiver of United Kingdom lev- Payments Program Certificate. ies. 252.225–7001 Buy American Act and Balance 252.225–7033 Restriction on acquisition of of Payments Program. four ton dolly jacks. 252.225–7002 Qualifying country sources as 252.225–7034 [Reserved] subcontractors. 252.225–7035 Buy American Act—North 252.225–7003 Information for duty-free entry American Free Trade Agreement Imple- evaluation. mentation Act—Balance of Payments 252.225–7004 [Reserved] Program Certificate. 252.225–7005 Identification of expenditures in 252.225–7036 Buy American Act—North the United States. American Free Trade Agreement Imple- 252.225–7006 Buy American Act—trade mentation Act—Balance of Payments agreements—Balance of Payments Pro- Program gram certificate. 252.225–7037 Duty-free entry—Eligible end 252.225–7007 Buy American Act—trade products. agreements—Balance of Payments Pro- 252.225–7038 Restriction on acquisition of gram. aircraft fuel cells. 252.225–7008 Supplies to be accorded duty- 252.225–7039 Restriction on acquisition of to- free entry. tally enclosed lifeboat survival systems. 252.225–7009 Duty-free entry—Qualifying 252.225–7040 [Reserved] country supplies (end products and com- 252.225–7041 Correspondence in English. ponents). 252.225–7042 Authorization to perform. 252.225–7010 Duty-free entry—additional 252.225–7043 Antiterrorism/force protection provisions. policy for defense contractors outside the 252.225–7011 Restriction on acquisition of United States. supercomputers. 252.226–7000 Notice of historically black col- 252.225–7012 Preference for certain domestic lege or university and minority institu- commodities. tion set-aside. 252.225–7013 [Reserved] 252.226–7001 Utilization of Indian Organiza- 252.225–7014 Preference for domestic spe- tions and Indian-Owned Economic Enter- cialty metals. prises-DoD Contracts. 252.225–7015 Preference for domestic hand or 252.227–7000 Non-estoppel. measuring tools. 252.227–7001 Release of past infringement. 252.225–7016 Restriction on acquisition of 252.227–7002 Readjustment of payments. ball and roller bearings. 252.227–7003 Termination.
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252.227–7004 License grant. 252.228–7004 Bonds or other security. 252.227–7005 License term. 252.228–7005 Accident reporting and inves- 252.227–7006 License grant—running royalty. tigation involving aircraft, missiles, and 252.227–7007 License term—running royalty. space launch vehicles. 252.227–7008 Computation of royalties. 252.228–7006 Compliance with Spanish laws 252.227–7009 Reporting and payment of roy- and insurance. alties. 252.229–7000 Invoices exclusive of taxes or 252.227–7010 License to other Government duties. agencies. 252.229–7001 Tax relief. 252.227–7011 Assignments. 252.229–7002 Customs exemptions (Ger- 252.227–7012 Patent license and release con- many). tract. 252.229–7003 Tax exemptions (Italy). 252.227–7013 Rights in technical data—Non- 252.229–7004 Status of contractors as a direct commercial items. contractor (Spain). 252.227–7014 Rights in noncommercial com- 252.229–7005 Tax exemptions (Spain). puter software and noncommercial com- 252.229–7006 Value added tax exclusion puter software documentation. (United Kingdom). 252.227–7015 Technical data—Commercial 252.229–7007 Verification of United States items. receipt of goods. 252.227–7016 Rights in bid or proposal infor- 252.229–7008 Relief from import duty (United mation. Kingdom). 252.227–7017 Identification and assertion of 252.229–7009 Relief from customs duty and use, release, or disclosure restrictions. value added tax on fuel (passenger vehi- 252.227–7018 Rights in noncommercial tech- cles) (United Kingdom). nical data and computer software—Small 252.229–7010 Relief from customs duty on Business Innovation Research (SBIR) fuel (United Kingdom). Program. 252.231–7000 Supplemental cost principles. 252.227–7019 Validation of asserted restric- 252.232–7000 Advance payment pool. tions—Computer software. 252.232–7001 Disposition of payments. 252.227–7020 Rights in special works. 252.227–7021 Rights in data—existing works. 252.232–7002 Progress payments for foreign 252.227–7022 Government rights (unlimited). military sales acquisitions. 252.227–7023 Drawings and other data to be- 252.232–7003 [Reserved] come property of Government. 252.232–7004 DoD progress payment rates. 252.227–7024 Notice and approval of re- 252.232–7005 Reimbursement of subcon- stricted designs. tractor advance payments—DoD pilot 252.227–7025 Limitations on the use or dis- mentor-protege program. closure of government-furnished infor- 252.232–7006 [Reserved] mation marked with restrictive legends. 252.232–7007 Limitation of Government’s ob- 252.227–7026 Deferred delivery of technical ligation. data or computer software. 252.232–7008 Assignment of claims (over- 252.227–7027 Deferred ordering of technical seas). data or computer software. 252.232–7009 Mandatory payment by Govern- 252.227–7028 Technical data or computer mentwide commercial purchase card. software previously delivered to the gov- 252.233–7000 [Reserved] ernment. 252.233–7001 Choice of law (overseas). 252.227–7029 [Reserved] 252.234–7000 Notice of earned value manage- 252.227–7030 Technical data—withholding of ment system. payment. 252.234–7001 Earned value management sys- 252.227–7031 [Reserved] tem. 252.227–7032 Rights in technical data and 252.235–7000 Indemnification under 10 U.S.C. computer software (foreign). 2354—fixed price. 252.227–7033 Rights in shop drawings. 252.235–7001 Indemnification under 10 U.S.C. 252.227–7034 Patents—subcontracts. 2354—cost reimbursement. 252.227–7035 [Reserved] 252.235–7002 Animal welfare. 252.227–7036 Declaration of Technical Data 252.235–7003 Frequency authorization. Conformity. 252.235–7004—252.235–7009 [Reserved] 252.227–7037 Validation of restrictive mark- 252.235–7010 Acknowledgement of support ings on technical data. and disclaimer. 252.227–7038 [Reserved] 252.235–7011 Final scientific or technical re- 252.227–7039 Patents—reporting of subject port. inventions. 252.236–7000 Modification proposals—price 252.228–7000 Reimbursement for war-hazard breakdown. losses. 252.236–7001 Contract drawings and speci- 252.228–7001 Ground and flight risk. fications. 252.228–7002 Aircraft flight risk. 252.236–7002 Obstruction of navigable water- 252.228–7003 Capture and detention. ways.
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252.236–7003 Payment for mobilization and 252.239–7014 Term of agreement. preparatory work. 252.239–7015 Continuation of communication 252.236–7004 Payment for mobilization and service authorizations. demobilization. 252.239–7016 Telecommunications security 252.236–7005 Airfield safety precautions. equipment, devices, techniques, and serv- 252.236–7006 Cost limitation. ices. 252.236–7007 Additive or deductive items. 252.241–7000 Superseding contract. 252.236–7008 Contract prices—bidding sched- 252.241–7001 Government access. ules. 252.242–7000 Postaward conference. 252.236–7009 Option for supervision and in- 252.242–7001—252.242–7002 [Reserved] spection services. 252.242–7003 Application for U.S. Govern- 252.236–7010 Overseas military construc- ment shipping documentation/instruc- tion—Preference for United States firms. tions. 252.236–7011 Overseas architect-engineer 252.242–7004 Material management and ac- services—Restriction to United States counting system. firms. 252.242–7005 Cost/Schedule Status Report. 252.236–7012 Military construction on Kwaj- 252.242–7006 Cost/Schedule Status Report alein Atoll—evaluation preference. Plans. 252.237–7000 Notice of special standards of 252.243–7000 [Reserved] responsibility. 252.243–7001 Pricing of contract modifica- 252.237–7001 Compliance with audit stand- tions. ards. 252.243–7002 Requests for equitable adjust- 252.237–7002 Award to single offeror. ment. 252.237–7003 Requirements. 252.244–7000 Subcontracts for commercial 252.237–7004 Area of performance. items and commercial components (DoD 252.237–7005 Performance and delivery. contracts). 252.237–7006 Subcontracting. 252.245–7000 Government-furnished mapping, 252.237–7007 Termination for default. charting, and geodesy property. 252.237–7008 Group interment. 252.245–7001 Reports of Government prop- 252.237–7009 Permits. erty. 252.237–7010 Facility requirements. 252.237–7011 Preparation history. 252.246–7000 Material inspection and receiv- 252.237–7012 Instruction to offerors (count- ing report. of-articles). 252.246–7001 Warranty of data. 252.237–7013 Instruction to offerors (bulk 252.246–7002 Warranty of construction (Ger- weight). many). 252.237–7014 Loss or damage (count-of-arti- 252.247–7000 Hardship conditions. cles). 252.247–7001 Price adjustment. 252.237–7015 Loss or damage (weight of arti- 252.247–7002 Revision of prices. cles). 252.247–7003 [Reserved] 252.237–7016 Delivery tickets. 252.247–7004 Indefinite quantities—fixed 252.237–7017 Individual laundry. charges. 252.237–7018 Special definitions of Govern- 252.247–7005 Indefinite quantities—no fixed ment property. charges. 252.237–7019—252.237–7021 [Reserved] 252.247–7006 Removal of contractor’s em- 252.237–7022 Services at installations being ployees. closed. 252.247–7007 Liability and insurance. 252.239–7000 Protection against compro- 252.247–7008 Evaluation of bids. mising emanations. 252.247–7009 Award. 252.239–7001 [Reserved] 252.247–7010 Scope of contract. 252.239–7002 Access. 252.247–7011 Period of contract. 252.239–7003 Facilities and services to be fur- 252.247–7012 Ordering limitation. nished—common carriers. 252.247–7013 Contract areas of performance. 252.239–7004 Orders for facilities and serv- 252.247–7014 Demurrage. ices—common carriers. 252.247–7015 Requirements. 252.239–7005 Rates, charges, and services— 252.247–7016 Contractor liability for loss or common carriers. damage. 252.239–7006 Tariff information. 252.247–7017 Erroneous shipments. 252.239–7007 Cancellation or termination of 252.247–7018 Subcontracting. orders—common carriers. 252.247–7019 Drayage. 252.239–7008 Reuse arrangements. 252.247–7020 Additional services. 252.239–7009—252.239–7010 [Reserved] 252.247–7021 Returnable containers other 252.239–7011 Special construction and equip- than cylinders. ment charges. 252.247–7022 Representation of extent of 252.239–7012 Title to telecommunication fa- transportation by sea. cilities and equipment. 252.247–7023 Transportation of supplies by 252.239–7013 Obligation of the Government. sea.
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252.247–7024 Notification of transportation (End of clause) of supplies by sea. 252.247–7025 Reflagging or repair work. [56 FR 36479, July 31, 1991, as amended at 57 252.249–7000 Special termination costs. FR 42633, Sept. 15, 1992] 252.249–7001 [Reserved] 252.249–7002 Notification of anticipated con- 252.203–7000 [Reserved] tract termination or reduction. 252.251–7000 Ordering from Government sup- 252.203–7001 Prohibition on persons ply sources. convicted of fraud or other defense- 252.251–7001 Use of Interagency Fleet Man- contract-related felonies. agement System (IFMS) vehicles and re- As prescribed in 203.570–5, use the fol- lated services. lowing clause: UTHORITY A : 41 U.S.C. 421 and 48 CFR chap- PROHIBITION ON PERSONS CONVICTED OF ter 1. FRAUD OR OTHER DEFENSE-CONTRACT-RE- SOURCE: 56 FR 36479, July 31, 1991, unless LATED FELONIES (MAR 1999) otherwise noted. (a) Definitions. As used in this clause— Subpart 252.1—Instructions for (1) Arising out of a contract with the DoD means any act in connection with— Using Provisions and Clauses (i) Attempting to obtain; (ii) Obtaining; or 252.101 Using part 252. (iii) Performing a contract or first-tier (b) Numbering. subcontract of any agency, department, or component of the Department of Defense (2) Provisions or clauses that supple- (DoD). ment the FAR. (2) Conviction of fraud or any other felony (ii)(B) DFARS provisions or clauses means any conviction for fraud or a felony in use a four digit sequential number in violation of state or Federal criminal stat- the 7000 series, e.g., –7000, –7001, –7002. utes, whether entered on a verdict or plea, Department or agency supplemental including a plea of nolo contendere, for which sentence has been imposed. provisions or clauses use four digit se- (3) Date of conviction means the date judg- quential numbers in the 9000 series. ment was entered against the individual. (b) Any individual who is convicted after September 29, 1988, of fraud or any other fel- Subpart 252.2—Text of Provisions ony arising out of a contract with the DoD is And Clauses prohibited from serving— (1) In a management or supervisory capac- 252.201–7000 Contracting officer’s rep- ity on any DoD contract or first-tier sub- resentative. contract; As prescribed in 201.602–70, use the (2) On the board of directors of any DoD contractor or first-tier subcontractor; following clause: (3) As a consultant, agent, or representa- tive for any DoD contractor or first-tier sub- CONTRACTING OFFICER’S REPRESENTATIVE contractor; or (DEC 1991) (4) In any other capacity with the author- (a) Definition. Contracting officer’s represent- ity to influence, advise, or control the deci- ative means an individual designated in ac- sions of any DoD contractor or subcon- cordance with subsection 201.602–2 of the De- tractor with regard to any DoD contract or fense Federal Acquisition Regulation Sup- first-tier subcontract. plement and authorized in writing by the (c) Unless waived, the prohibition in para- graph (b) of this clause applies for not less contracting officer to perform specific tech- than 5 years from the date of conviction. nical or administrative functions. (d) 10 U.S.C. 2408 provides that a defense (b) If the Contracting Officer designates a contractor or first-tier subcontractor shall contracting officer’s representative (COR), be subject to a criminal penalty of not more the Contractor will receive a copy of the than $500,000 if convicted of knowingly— written designation. It will specify the ex- (1) Employing a person under a prohibition tent of the COR’s authority to act on behalf specified in paragraph (b) of this clause; or of the contracting officer. The COR is not (2) Allowing such a person to serve on the authorized to make any commitments or board of directors of the contractor or first- changes that will affect price, quality, quan- tier subcontractor. tity, delivery, or any other term or condition (e) In addition to the criminal penalties of the contract. contained in 10 U.S.C. 2408, the Government
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may consider other available remedies, such (End of clause) as— (1) Suspension or debarment; 252.204–7000 Disclosure of informa- (2) Cancellation of the contract at no cost tion. to the Government; or (3) Termination of the contract for default. As prescribed in 204.404–70(a), use the (f) The Contractor may submit written re- following clause: quests for waiver of the prohibition in para- DISCLOSURE OF INFORMATION (DEC 1991) graph (b) of this clause to the Contracting Officer. Requests shall clearly identify— (a) The Contractor shall not release to (1) The person involved; anyone outside the Contractor’s organiza- (2) The nature of the conviction and result- tion any unclassified information, regardless ant sentence or punishment imposed; of medium (e.g., film, tape, document), per- (3) The reasons for the requested waiver; taining to any part of this contract or any and program related to this contract, unless— (4) An explanation of why a waiver is in (1) The Contracting Officer has given prior the interest of national security. written approval; or (g) The Contractor agrees to include the (2) The information is otherwise in the substance of this clause, appropriately modi- public domain before the date of release. fied to reflect the identity and relationship (b) Requests for approval shall identify the of the parties, in all first-tier subcontracts specific information to be released, the me- exceeding the simplified acquisition thresh- dium to be used, and the purpose for the re- old in part 2 of the Federal Acquisition Reg- lease. The Contractor shall submit its re- ulation, except those for commercial items quest to the Contracting Officer at least 45 or components. days before the proposed date for release. (h) Pursuant to 10 U.S.C. 2408(c), defense (c) The Contractor agrees to include a contractors and subcontractors may obtain similar requirement in each subcontract information as to whether a particular per- under this contract. Subcontractors shall son has been convicted of fraud or any other submit requests for authorization to release felony arising out of a contract with the DoD through the prime contractor to the Con- by contacting The Office of Justice Pro- tracting Officer. grams, The Denial of Federal Benefits Office, U.S. Department of Justice, telephone (202) (End of clause) 616–3507. [56 FR 36479, July 31, 1991, as amended at 57 (End of clause) FR 14996, Apr. 23, 1992]
[56 FR 36479, July 31, 1991, as amended at 58 § 252.204–7001 Commercial and Gov- FR 28471, May 13, 1993; 59 FR 27675, May 27, ernment Entity (CAGE) code report- 1994; 60 FR 61600, Nov. 30, 1995; 62 FR 34128, ing. June 24, 1997; 64 FR 14398, Mar. 25, 1999] As prescribed in 204.7207, use the fol- 252.203–7002 Display of DoD hotline lowing provision: poster. COMMERCIAL AND GOVERNMENT ENTITY As prescribed in 203.7002, use the fol- (CAGE) CODE REPORTING (AUG 1999) lowing clause: (a) The offeror is requested to enter its CAGE code on its offer in the block with its DISPLAY OF DOD HOTLINE POSTER (DEC 1991) name and address. The CAGE code entered (a) The Contractor shall display promi- must be for that name and address. Enter nently in common work areas within busi- ‘‘CAGE’’ before the number. ness segments performing work under De- (b) If the offeror does not have a CAGE partment of Defense (DoD) contracts, DoD code, it may ask the Contracting Officer to Hotline Posters prepared by the DoD Office request one from the Defense Logistics Infor- of the Inspector General. mation Service (DLIS). The Contracting Of- (b) DoD Hotline Posters may be obtained ficer will— from the DoD Inspector General, Attn: De- (1) Ask the Contractor to complete section fense Hotline, 400 Army Navy Drive, Wash- B of a DD Form 2051, Request for Assignment ington, DC 22202–2884. of a Commercial and Government Entity (c) The Contractor need not comply with (CAGE) Code; paragraph (a) of this clause if it has estab- (2) Complete section A and forward the lished a mechanism, such as a hotline, by form to DLIS; and which employees may report suspected in- (3) Notify the Contractor of its assigned stances of improper conduct, and instruc- CAGE code. tions that encourage employees to make (c) Do not delay submission of the offer such reports. pending receipt of a CAGE code.
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(End of provision) Dun and Bradstreet Information Services to identify unique business entities. [64 FR 43101, Aug. 9, 1999, as amended at 66 (3) Data Universal Numbering System +4 FR 47097, Sept. 11, 2001] (DUNS+4) number means the DUNS number assigned by Dun and Bradstreet plus a 4-digit 252.204–7002 Payment for subline suffix that may be assigned by a parent (con- items not separately priced. trolling) business concern. This 4-digit suffix may be assigned at the discretion of the par- As prescribed in 204.7104–1(b)(3)(iv), ent business concern for such purposes as use the following clause: identifying subunits or affiliates of the par- ent business concern. PAYMENT FOR SUBLINE ITEMS NOT (4) Registered in the CCR database means SEPARATELY PRICED (DEC 1991) that all mandatory information, including (a) If the schedule in this contract contains the DUNS number or the DUNS+4 number, if any contract subline items or exhibit subline applicable, and the corresponding Commer- items identified as not separately priced cial and Government Entity (CAGE) code, is (NSP), it means that the unit price for that in the CCR database; the DUNS number and subline item is included in the unit price of the CAGE code have been validated; and all another, related line or subline item. edits have been successfully completed. (b) The Contractor shall not invoice the (b)(1) By submission of an offer, the offeror Government for any portion of a contract acknowledges the requirement that a pro- line item or exhibit line item which contains spective awardee must be registered in the an NSP until— CCR database prior to award, during per- (1) The Contractor has delivered the total formance, and through final payment of any quantity of all related contract subline contract resulting from this solicitation, ex- items or exhibit subline items; and cept for awards to foreign vendors for work (2) The Government has accepted them. to be performed outside the United States. (c) This clause does not apply to technical (2) The offeror shall provide its DUNS or, if data. applicable, its DUNS+4 number with its offer, which will be used by the Contracting (End of clause) Officer to verify that the offeror is registered in the CCR database. 252.204–7003 Control of government (3) Lack of registration in the CCR data- personnel work product. base will make an offeror ineligible for award. As prescribed in 204.404–70(b), use the (4) DoD has established a goal of reg- following clause: istering an applicant in the CCR database within 48 hours after receipt of a complete CONTROL OF GOVERNMENT PERSONNEL WORK and accurate application via the Internet. PRODUCT (APR 1992) However, registration of an applicant sub- The Contractor’s procedures for protecting mitting an application through a method against unauthorized disclosure of informa- other than the Internet may take up to 30 tion shall not require Department of Defense days. Therefore, offerors that are not reg- employees or members of the Armed Forces istered should consider applying for registra- to relinquish control of their work products, tion immediately upon receipt of this solici- whether classified or not, to the contractor. tation. (c) The Contractor is responsible for the (End of clause) accuracy and completeness of the data with- in the CCR, and for any liability resulting [57 FR 14996, Apr. 23, 1992] from the Government’s reliance on inac- curate or incomplete data. To remain reg- 252.204–7004 Required central con- istered in the CCR database after the initial tractor registration. registration, the Contractor is required to confirm on an annual basis that its informa- As prescribed in 204.7304, use the fol- tion in the CCR database is accurate and lowing clause: complete. (d) Offerors and contractors may obtain in- REQUIRED CENTRAL CONTRACTOR formation on registration and annual con- REGISTRATION (MAR 2000) firmation requirements by calling 1–888–227– (a) Definitions. As used in this clause— 2423, or via the Internet at http:// (1) Central Contractor Registration (CCR www.ccr2000.com. database means the primary DoD repository for contractor information required for the (End of clause) conduct of business with DoD. (2) Data Universal Numbering System (DUNS) [63 FR 15317, Mar. 31, 1998, as amended at 65 number means the 9-digit number assigned by FR 14398, Mar. 16, 2000]
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252.204–7005 Oral attestation of secu- number, and area of responsibility of each rity responsibilities. employee or office. (c) The Contractor need not provide the As prescribed in 204.404–70(c), use the listing to a particular cooperative agreement following clause: holder more frequently than once a year.
ORAL ATTESTATION OF SECURITY (End of clause) RESPONSIBILITIES (AUG 1999) (a) Contractor employees cleared for access 252.206–7000 Domestic source restric- to Top Secret (TS), Special Access Program tion. (SAP), or Special Compartmented Informa- As prescribed at 206.302–3–70, use the tion (SCI) shall attest orally that they will conform to the conditions and responsibil- following provision: ities imposed by law or regulation on those DOMESTIC SOURCE RESTRICTION (DEC 1991) granted access. Reading aloud the first para- graph of Standard Form 312, Classified Infor- This solicitation is restricted to domestic mation Nondisclosure Agreement, in the sources under the authority of 10 U.S.C. presence of a person designated by the Con- 2304(c)(3). Foreign sources, except Canadian tractor for this purpose, and a witness, will sources, are not eligible for award. satisfy this requirement. Contractor employ- ees currently cleared for access to TS, SAP, (End of provision) or SCI may attest orally to their security re- sponsibilities when being briefed into a new 252.208–7000 Intent to furnish pre- program or during their annual refresher cious metals as Government-fur- briefing. There is no requirement to retain a nished material. separate record of the oral attestation. (b) If an employee refuses to attest orally As prescribed in 208.7305(a), use the to security responsibilities, the Contractor following clause: shall deny the employee access to classified INTENT TO FURNISH PRECIOUS METALS AS information and shall submit a report to the GOVERNMENT-FURNISHED MATERIAL (DEC Contractor’s security activity. 1991)
(End of clause) (a) The Government intends to furnish pre- cious metals required in the manufacture of items to be delivered under the contract if [64 FR 45197, Aug. 19, 1999] the Contracting Officer determines it to be in the Government’s best interest. The use of 252.205–7000 Provision of information Government-furnished silver is mandatory to cooperative agreement holders. when the quantity required is one hundred As prescribed in 205.470–2, use the fol- troy ounces or more. The precious metal(s) lowing clause: will be furnished pursuant to the Govern- ment Furnished Property clause of the con- PROVISION OF INFORMATION TO COOPERATIVE tract. AGREEMENT HOLDERS (DEC 1991) (b) The Offeror shall cite the type (silver, gold, platinum, palladium, iridium, rhodium, (a) Definition. and ruthenium) and quantity in whole troy Cooperative agreement holder means a State ounces of precious metals required in the or local government; a private, nonprofit or- performance of this contract (including pre- ganization; a tribal organization (as defined cious metals required for any first article or in section 4(c) of the Indian Self-Determina- production sample), and shall specify the na- tion and Education Assistance Act (Pub. L. tional stock number (NSN) and nomen- 93–268; 25 U.S.C. 450(c))); or an economic en- clature, if known, of the deliverable item re- terprise (as defined in section 3(e) of the In- quiring precious metals. dian Financing Act of 1974 (Pub. L. 93–362; 25 U.S.C. 1452(e))) whether such economic enter- Deliverable item prise is organized for profit or nonprofit pur- Precious metal* Quantity (NSN and nomen- poses; which has an agreement with the De- clature)!!rs fense Logistics Agency to furnish procure- ment technical assistance to business enti- ties. *If platinum or palladium, specify whether sponge or gran- ules are required. (b) The Contractor shall provide coopera- tive agreement holders, upon their request, (c) Offerors shall submit two prices for with a list of those appropriate employees or each deliverable item which contains pre- offices responsible for entering into sub- cious metals—one based on the Government contracts under defense contracts. The list furnishing precious metals, and one based on shall include the business address, telephone the Contractor furnishing precious metals.
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Award will be made on the basis which is in Iran, Iraq, Libya, North Korea, Sudan, and the best interest of the Government. Syria. (d) The Contractor agrees to insert this (3) Significant interest means— clause, including this paragraph (d), in so- (i) Ownership of or beneficial interest in 5 licitations for subcontracts and purchase or- percent or more of the firm’s or subsidiary’s ders issued in performance of this contract, securities. Beneficial interest includes hold- unless the Contractor knows that the item ing 5 percent or more of any class of the being purchased contains no precious metals. firm’s securities in ‘‘nominee shares,’’ ‘‘street names,’’ or some other method of (End of clause) holding securities that does not disclose the beneficial owner; 252.209–7000 Acquisition from sub- (ii) Holding a management position in the contractors subject to on-site in- firm, such as a director or officer; spection under the Intermediate- (iii) Ability to control or influence the Range Nuclear Forces (INF) Treaty. election, appointment, or tenure of directors As prescribed in 209.103–70, use the or officers in the firm; following clause: (iv) Ownership of 10 percent or more of the assets of a firm such as equipment, build- ACQUISITION FROM SUBCONTRACTORS SUBJECT ings, real estate, or other tangible assets of TO ON-SITE INSPECTION UNDER THE INTER- the firm; or MEDIATE-RANGE NUCLEAR FORCES (INF) (v) Holding 50 percent or more of the in- TREATY (NOV 1995) debtedness of a firm. (a) The Contractor shall not deny consider- (b) Prohibition on award. In accordance ation for a subcontract award under this with 10 U.S.C. 2327, no contract may be contract to a potential subcontractor subject awarded to a firm or a subsidiary of a firm if to on-site inspection under the INF Treaty, the government of a terrorist country has a or a similar treaty, solely or in part because significant interest in the firm or subsidiary of the actual or potential presence of Soviet or, in the case of a subsidiary, the firm that inspectors at the subcontractor’s facility, owns the subsidiary, unless a waiver is unless the decision is approved by the Con- granted by the Secretary of Defense. tracting Officer. (c) Disclosure. If the government of a ter- (b) The Contractor shall incorporate this rorist country has a significant interest in clause, including this paragraph (b), in all the Offeror or a subsidiary of the Offeror, the solicitations and contracts exceeding the Offeror shall disclose such interest in an at- simplified acquisition threshold in part 13 of tachment to its offer. If the Offeror is a sub- the Federal Acquisition Regulation, except sidiary, it shall also disclose any significant those for commercial items. interest the government of a terrorist coun- try has in any firm that owns or controls the (End of clause) subsidiary. The disclosure shall include— (1) Identification of each government hold- ing a significant interest; and [56 FR 36479, July 31, 1991, as amended at 60 (2) A description of the significant interest FR 61600, Nov. 30, 1995] held by each government.
252.209–7001 Disclosure of ownership (End of provision) or control by the government of a terrorist country. [59 FR 51131, Oct. 7, 1994, as amended at 63 FR As prescribed in 209.104–70(a), use the 14837, Mar. 27, 1998] following provision: 252.209–7002 Disclosure of ownership DISCLOSURE OF OWNERSHIP OR CONTROL BY or control by a foreign government. THE GOVERNMENT OF A TERRORIST COUNTRY (MAR 1998) As prescribed in 209.104–70(b), use the (a) Definitions. As used in this provision— following provision: (1) Government of a terrorist country includes DISCLOSURE OF OWNERSHIP OR CONTROL BY A the state and the government of a terrorist FOREIGN GOVERNMENT (SEP 1994) country, as well as any political subdivision, agency, or instrumentality thereof. (a) Definitions. As used in this provision— (2) Terrorist country means a country deter- (1) Effectively owned or controlled means mined by the Secretary of State, under sec- that a foreign government or any entity con- tion 6(j)(1)(A) of the Export Administration trolled by a foreign government has the Act of 1979 (50 U.S.C. App. 2405(j)(i)(A)), to be power, either directly or indirectly, whether a country the government of which has re- exercised or exercisable, to control the elec- peatedly provided support for acts of inter- tion, appointment, or tenure of the Offeror’s national terrorism. As of the date of this officers or a majority of the Offeror’s board provision, terrorist countries include: Cuba, of directors by any means, e.g., ownership,
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contract, or operation of law (or equivalent (End of provision) power for unincorporated organizations). (2) Entity controlled by a foreign govern- [58 FR 28471, May 13, 1993, as amended at 59 ment— FR 51133, Oct. 7, 1994] (i) Means— (A) Any domestic or foreign organization or corporation that is effectively owned or § 252.209–7003 Compliance with vet- controlled by a foreign government; or erans’ employment reporting re- (B) Any individual acting on behalf of a quirements. foreign government. As prescribed in 209.104–70(c) use the (ii) Does not include an organization or following provision: corporation that is owned, but is not con- trolled, either directly or indirectly, by a COMPLIANCE WITH VETERANS’ EMPLOYMENT foreign government if the ownership of that REPORTING REQUIREMENTS (MAR 1998) organization or corporation by that foreign government was effective before October 23, By submission of its offer, the offeror rep- 1992. resents that, if it is subject to the reporting (3) Foreign government includes the state requirements of 37 U.S.C. 4212(d) (i.e., the and the government of any country (other VETS–100 report required by Federal Acqui- than the United States and its possessions sition Regulation clause 52.222–37, Employ- and trust territories) as well as any political ment Reports on Disabled Veterans and Vet- subdivision, agency, or instrumentality erans of the Vietnam Era), it has submitted thereof. the most recent report required by 38 U.S.C. (4) Proscribed information means— 4212(d). (i) Top Secret information; (ii) Communications Security (COMSEC) (End of provision) information, except classified keys used to operate secure telephone units (STU IIIs); [63 FR 11852, Mar. 11, 1998; 63 FR 16871, Apr. (iii) Restricted Data as defined in the U.S. 6, 1998; 63 FR 17124, Apr. 8, 1998] Atomic Energy Act of 1954, as amended; (iv) Special Access Program (SAP) infor- mation; or 252.209–7004 Subcontracting with (v) Sensitive Compartmented Information firms that are owned or controlled (SCI). by the government of a terrorist (b) Prohibition on award. No contract under country. a national security program may be awarded As prescribed in 209.409, use the fol- to an entity controlled by a foreign govern- lowing clause: ment if that entity requires access to pro- scribed information to perform the contract, SUBCONTRACTING WITH FIRMS THAT ARE unless the Secretary of Defense or a designee OWNED OR CONTROLLED BY THE GOVERNMENT has waived application of 10 U.S.C. 2536(a). OF A TERRORIST COUNTY (MAR 1998) (c) Disclosure. The Offeror shall disclose any interest a foreign government has in the (a) Unless the Government determines that Offeror when that interest constitutes con- there is a compelling reason to do so, the trol by a foreign government as defined in Contractor shall not enter into any sub- this provision. If the Offeror is a subsidiary, contract in excess of $25,000 with a firm, or a it shall also disclose any reportable interest subsidiary of a firm, that is identified, on the a foreign government has in any entity that List of Parties Excluded from Federal Pro- owns or controls the subsidiary, including curement and Nonprocurement Programs, as reportable interest concerning the Offeror’s being ineligible for the award of Defense con- immediate parent, intermediate parents, and tracts or subcontracts because it is owned or the ultimate parent. Use separate paper as controlled by the government of a terrorist needed, and provide the information in the country. following format: Offeror’s Point of Contact (b) A corporate officer or a designee of the for Questions about Disclosure (Name and Contractor shall notify the Contracting Offi- Phone Number with Country Code, City Code cer, in writing, before entering into a sub- and Area Code, as applicable) contract with a party that is identified, on the List of Parties Excluded from Federal Procurement and Nonprocurement Pro- grams, as being ineligible for the award of Name and Address of Defense contracts or subcontracts because it Offeror. is owned or controlled by the government of Name and Address of Description of Inter- a terrorist country. The notice must include Entity Controlled est, Ownership Per- the name of the proposed subcontractor and by a Foreign Gov- centage, and Iden- the compelling reason(s) for doing business ernment. tification of For- with the subcontractor notwithstanding its eign Government inclusion on the List of Parties Excluded
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From Federal Procurement and Nonprocure- (2) The institution has a long-standing pol- ment Programs. icy of pacifism based on historical religious affiliation. (End of clause) (d) Agreement. The Contractor represents that it does not now have, and agrees that [63 FR 14837, Mar. 27, 1998] during performance of this contract it will not adopt, any policy or practice described in 252.209–7005 Reserve Officer Training paragraph (b) of this clause, unless the Sec- Corps and military recruiting on retary of Defense has granted an exception campus. in accordance with paragraph (c)(2) of this As prescribed in 209.470–4, use the fol- clause. lowing clause: (e) Notwithstanding any other clause of this contract, if the Secretary of Defense de- RESERVE OFFICER TRAINING CORPS AND termines that the Contractor misrepresented MILITARY RECRUITING ON CAMPUS (JAN 2000) its policies and practices at the time of con- tract award or has violated the agreement in (a) Definition. ‘‘Institution of higher edu- paragraph (d) of this clause— cation,’’ as used in this clause, means an in- (1) The Contractor will be ineligible for stitution that meets the requirements of 20 further payments under this and other con- U.S.C. 1001 and includes all subelements of such an institution. tracts with the Department of Defense; and (b) Limitation on contract award. Except as (2) The Government will terminate this provided in paragraph (c) of this clause, an contract for default for the Contractor’s ma- institution of higher education is ineligible terial failure to comply with the terms and for contract award if the Secretary of De- conditions of award. fense determines that the institution has a policy or practice (regardless of when imple- (End of clause) mented) that prohibits or in effect pre- vents— [65 FR 2057, Jan. 13, 2000] (1) The Secretary of a military department from maintaining, establishing, or operating 252.211–7000 Acquisition streamlining. a unit of the Senior Reserve Officer Training Corps (ROTC) (in accordance with 10 U.S.C. As prescribed in 211.002–70, use the 654 and other applicable Federal laws) at following clause: that institution; (2) A student at that institution from en- ACQUISITION STREAMLINING (DEC 1991) rolling in a unit of the Senior ROTC at an- (a) The Government’s acquisition stream- other institution of higher education; lining objectives are to— (3) The Secretary of a military department (1) Acquire systems that meet stated per- or the Secretary of Transportation from gaining entry to campuses, or access to stu- formance requirements; dents (who are 17 years of age or older) on (2) Avoid over-specification; and campuses, for purposes of military recruit- (3) Ensure that cost effective requirements ing; or are included in future acquisitions. Military recruiters from accessing, for pur- (b) The Contractor shall— poses of military recruiting, the following (1) Prepare and submit acquisition stream- information pertaining to students (who are lining recommendations in accordance with 17 years of age or older) enrolled at that in- the statement of work of this contract; and stitution: (2) Format and submit the recommenda- (i) Name. tions as prescribed by data requirements on (ii) Address. the contract data requirements list of this (iii) Telephone number. contract. (iv) Date and place of birth. (c) The Government has the right to ac- (v) Educational level. cept, modify, or reject the Contractor’s rec- (vi) Academic major. ommendations. (vii) Degrees received. (d) The Contractor shall insert this clause, (viii) Most recent educational institution including this paragraph (d), in all sub- enrollment. contracts over $1 million, awarded in the (c) Exception. The limitation in paragraph performance of this contract. (b) of this clause does not apply to an insti- tution of higher education if the Secretary of (End of clause) Defense determines that— (1) The institution has ceased the policy or practice described in paragraph (b) of this [56 FR 36479, July 31, 1991. Redesignated and clause; or amended at 60 FR 61600, Nov. 30, 1995]
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252.211–7001 Availability of specifica- ALTERNATE PRESERVATION, PACKAGING, AND tions and standards Not listed in PACKING (DEC 1991) DODISS, data item descriptions Not (a) The Offeror may submit two unit prices listed in DoD 5010.12–L, and plans, for each item—one based on use of the mili- drawings, and other pertinent doc- tary preservation, packaging, or packing re- uments. quirements of the solicitation; and an alter- As prescribed in 211.204(c), use the nate based on use of commercial or indus- following provision: trial preservation, packaging, or packing of equal or better protection than the military. AVAILABILITY OF SPECIFICATIONS AND STAND- (b) If the Offeror submits two unit prices, ARDS NOT LISTED IN DODISS, DATA ITEM the following information, as a minimum, DESCRIPTIONS NOT LISTED IN DOD 5010.12–L, shall be submitted with the offer to allow AND PLANS, DRAWINGS, AND OTHER PERTI- evaluation of the alternate— NENT DOCUMENTS (DEC 1991) (1) The per unit/item cost of commercial or industrial preservation, packaging, and Offerors may obtain the specifications, packing; standards, plans, drawings, data item de- (2) The per unit/item cost of military pres- scriptions, and other pertinent documents ervation, packaging, and packing; cited in this solicitation by submitting a re- (3) The description of commercial or indus- quest to: trial preservation, packaging, and packing (Activity) llllllllllllllllll procedures, including material specifica- (Complete Address) lllllllllllll tions, when applicable, to include— (i) Method of preservation; Include the number of the solicitation and (ii) Quantity per unit package; the title and number of the specification, (iii) Cleaning/drying treatment; standard, plan, drawing, or other pertinent (iv) Preservation treatment; document. (v) Wrapping materials; (End of provision) (vi) Cushioning/dunnage material; (vii) Thickness of cushioning; (viii) Unit container; [56 FR 36479, July 31, 1991. Redesignated and (ix) Unit package gross weight and dimen- amended at 60 FR 61600, Nov. 30, 1995] sions; (x) Packing; and 252.211–7002 Availability for examina- (xi) Packing gross weight and dimensions; tion of specifications, standards, and plans, drawings, data item descrip- (4) Item characteristics, to include— tions, and other pertinent docu- (i) Material and finish; ments. (ii) Net weight; As prescribed in 211.204(c), use the (iii) Net dimensions; and following provision: (iv) Fragility. (c) If the Contracting Officer does not AVAILABILITY FOR EXAMINATION OF SPECIFICA- evaluate or accept the Offeror’s proposed al- TIONS, STANDARDS, PLANS, DRAWINGS, DATA ternate commercial or industrial preserva- ITEM DESCRIPTIONS, AND OTHER PERTINENT tion, packaging, or packing, the Offeror DOCUMENTS (DEC 1991) agrees to preserve, package, or pack in ac- cordance with the specified military require- The specifications, standards, plans, draw- ments. ings, data item descriptions, and other perti- nent documents cited in this solicitation are (End of provision) not available for distribution but may be ex- amined at the following location: [56 FR 36479, July 31, 1991. Redesignated and llllllllllllllllllllll amended at 60 FR 61600, Nov. 30, 1995] (Insert complete address) 252.211–7005 Substitutions for military (End of provision) or Federal specifications and stand- ards. [56 FR 36479, July 31, 1991. Redesignated and As prescribed in 211.273–4, use the fol- amended at 60 FR 61600, Nov. 30, 1995] lowing clause:
252.211–7003 [Reserved] SUBSTITUTIONS FOR MILITARY OR FEDERAL SPECIFICATIONS AND STANDARDS (OCT 2001) 252.211–7004 Alternate preservation, packaging, and packing. (a) Definition. ‘‘SPI process,’’ as used in this clause, means a management or manu- As prescribed in 211.272, use the fol- facturing process that has been accepted pre- lowing provision: viously by the Department of Defense under
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the Single Process Initiative (SPI) for use in (End of clause) lieu of a specific military or Federal speci- fication or standard at specific facilities. [64 FR 14399, Mar. 25, 1999; 64 FR 28875, May Under SPI, these processes are reviewed and 27, 1999, as amended at 65 FR 52953, Aug. 31, accepted by a Management Council, which 2000; 66 FR 49861, Oct. 1, 2001] includes representatives of the Contractor, the Defense Contract Management Agency, 252.212–7000 Offeror representations the Defense Contract Audit Agency, and the and certifications—Commercial military departments. items. (b) Offerors are encouraged to propose SPI As prescribed in 212.301(f)(ii), use the processes in lieu of military or Federal speci- fications and standards cited in the solicita- following provision: tion. A listing of SPI processes accepted at OFFEROR REPRESENTATIONS AND CERTIFI- specific facilities is available via the Inter- CATIONS—COMMERCIAL ITEMS (NOV 1995) net in Excel format at http://www.dcma.mil/ onebook/0.0/0.2/reports/modified/xls. (a) Definitions. (c) An offeror proposing to use an SPI proc- As used in this clause— ess in lieu of military or Federal specifica- (1) Foreign person means any person other tions or standards cited in the solicitation than a United States person as defined in shall— Section 16(2) of the Export Administration Act of 1979 (50 U.S.C. App. Sec. 2415). (1) Identify the specific military or Federal (2) United States person is defined in Section specification or standard for which the SPI 16(2) of the Export Administration Act of process has been accepted; 1979 and means any United States resident or (2) Identify each facility at which the of- national (other than an individual resident feror proposes to use the specific SPI process outside the United States and employed by in lieu of military or Federal specifications other than a United States person), any do- or standards cited in the solicitation; mestic concern (including any permanent do- (3) Identify the contract line items, subline mestic establishment of any foreign con- items, components, or elements affected by cern), and any foreign subsidiary or affiliate the SPI process; and (including any permanent foreign establish- (4) If the proposed SPI process has been ac- ment) of any domestic concern which is con- cepted at the facility at which it is proposed trolled in fact by such domestic concern, as for use, but is not yet listed at the Internet determined under regulations of the Presi- site specified in paragraph (b) of this clause, dent. submit documentation of Department of De- (b) Certification. fense acceptance of the SPI process. By submitting this offer, the Offeror, if a (d) Absent a determination that an SPI foreign person, company or entity, certifies process is not acceptable for this procure- that it— ment, the Contractor shall use the following (1) Does not comply with the Secondary SPI processes in lieu of military or Federal Arab Boycott of Israel; and specifications or standards: (2) Is not taking or knowingly agreeing to take any action, with respect to the Sec- (Offeror insert information for each SPI process) ondary Boycott of Israel by Arab countries, SPI Process: lllllllllllllllll which 50 U.S.C. App. Sec. 2407(a) prohibits a United States person from taking. Facility: lllllllllllllllllll (c) Representation of Extent of Transpor- Military or Federal Specification or Stand- tation by Sea. (This representation does not ard: llllllllllllllllllll apply to solicitations for the direct purchase Affected Contract Line Item Number, of ocean transportation services). Subline Item Number, Component, or Ele- (1) The Offeror shall indicate by checking ment: lllllllllllllllllll the appropriate blank in paragraph (c)(2) of this provision whether transportation of sup- (e) If a prospective offeror wishes to ob- plies by sea is anticipated under the result- tain, prior to the time specified for receipt of ant contract. The term ‘‘supplies’’ is defined offers, verification that an SPI process is an in the Transportation of Supplies by Sea acceptable replacement for military or Fed- clause of this solicitation. eral specifications or standards required by (2) Representation. the solicitation, the prospective offeror— The Offeror represents that it— (1) May submit the information required lll Does anticipate that supplies will be by paragraph (d) of this clause to the Con- transported by sea in the performance of any tracting Officer prior to submission of an contract or subcontract resulting from this offer; but solicitation. (2) Must submit the information to the lll Does not anticipate that supplies Contracting Officer at least 10 working days will be transported by sea in the perform- prior to the date specified for receipt of of- ance of any contract or subcontract result- fers. ing from this solicitation.
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(3) Any contract resulting from this solici- lll 252.225–7027 Restriction on Contin- tation will include the Transportation of gent Fees for Foreign Military Sales (22 Supplies by Sea clause. If the Offeror rep- U.S.C. 2779). resents that it will not use ocean transpor- lll 252.225–7028 Exclusionary Policies and tation, the resulting contract will also in- Practices of Foreign Governments (22 clude the Defense Federal Acquisition Regu- U.S.C. 2755). lation Supplement clause at 252.247–7024, No- lll 252.225–7029 Preference for United tification of Transportation of Supplies by States or Canadian Air Circuit Breakers Sea. (10 U.S.C. 2534(a)(3)). lll 252.225–7036 North American Free (End of provision) Trade Agreement Implementation Act. lll 252.225–7036 Buy American Act— North American Free Trade Agreement [60 FR 61600, Nov. 30, 1995, as amended at 61 Implementation Act—Balance of Pay- FR 50455, Sept. 26, 1996] ment Program (l Alternate I) (41 U.S.C. 10a–10d and 19 U.S.C. 3301 note). 252.212–7001 Contract terms and con- lll 252.227–7015 Technical Data—Com- ditions required to implement stat- mercial Items (10 U.S.C. 2320). utes or Executive Orders applicable lll 252.227–7037 Validation of Restrictive to Defense acquisitions of commer- Markings on Technical Data (10 U.S.C. cial items. 2321). As prescribed in 212.301(f)(iii), use the lll 252.243–7002 Requests for Equitable Adjustment (10 U.S.C. 2410). following clause: lll252.247–7023 Transportation of Sup- plies by Sea (lllAlternate I) CONTRACT TERMS AND CONDITIONS REQUIRED (lllAlternate II) (10 U.S.C. 2631). TO IMPLEMENT STATUTES OR EXECUTIVE OR- lll 252.247–7024 Notification of Transpor- DERS APPLICABLE TO DEFENSE ACQUISITIONS tation of Supplies by Sea (10 U.S.C. 2631). OF COMMERCIAL ITEMS (DEC 2000) (b) In addition to the clauses listed in para- (a) The Contractor agrees to comply with graph (e) of the Contract Terms and Condi- any clause that is checked on the following tions Required to Implement Statutes or Ex- list of DFARS clauses which, if checked, is ecutive Orders—Commercial Items clause of included in this contract by reference to im- this contract (Federal Acquisition Regula- plement provisions of law or Executive or- tion 52.212–5), the Contractor shall include ders applicable to acquisitions of commercial the terms of the following clauses, if applica- items or components. ble, in subcontracts for commercial items or commercial components, awarded at any tier lll 252.205–7000 Provision of Information under this contract: to Cooperative Agreement Holders (10 U.S.C. 2416). 252.225–7014 Preference for Domestic Spe- lll 252.206–7000 Domestic Source Restric- cialty Metals, Alternate I (10 U.S.C. 2241 tion (10 U.S.C. 2304). note). lll 252.219–7003 Small, Small Disadvan- 252.247–7023 Transportation of Supplies by taged and Women–Owned Small Business Sea (10 U.S.C. 2631). Subcontracting Plan (DoD Contracts) (15 252.247–7024 Notification of Transpor- U.S.C. 637). tation of Supplies by Sea (10 U.S.C. 2631). lll 252.225–7001 Buy American Act and Balance of Payments Program (41 U.S.C. (End of clause) 10a–10d, E.O. 10582). lll 252.225–7007 Buy American Act— [60 FR 61601, Nov. 30, 1995, as amended at 61 Trade Agreements—Balance of Payments FR 50455, Sept. 26, 1996; 61 FR 58489, Nov. 15, Program (41 U.S.C. 10a–10d, 19 U.S.C. 1996; 62 FR 2614, 2617, Jan. 17, 1997; 62 FR 5780, 2501–2518, and 19 U.S.C. 3301 note). Feb. 7, 1997; 62 FR 37147, July 11, 1997; 63 FR 11541, Mar. 9, 1998; 63 FR 41975, Aug. 6, 1998; 63 lll 252.225–7012 Preference for Certain Domestic Commodities. FR 64430, Nov. 20, 1998; 64 FR 51077, Sept. 21, 1999; 65 FR 14401, Mar. 16, 2000; 65 FR 77828, lll 252.225–7014 Preference for Domestic Dec. 13, 2000] Speciality Metals (10 U.S.C. 2241 note). lll 252.225–7015 Preference for Domestic 252.215–7000 Pricing adjustments. Hand or Measuring Tools (10 U.S.C. 2241 note). As prescribed in 215.408(1), use the lll252.225–7016 Restriction on Acquisition following clause: of Ball and Roller Bearings (lllAlternate I) (Section 8064 of Pub. PRICING ADJUSTMENTS (DEC 1991) L. 106–259). The term ‘‘pricing adjustment,’’ as used in lll 252.225–7021 Trade Agreements (19 paragraph (a) of the clauses entitled ‘‘Price U.S.C. 2501–2518 and 19 U.S.C. 3301 note). Reduction for Defective Cost or Pricing
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Data—Modifications,’’ ‘‘Subcontractor Cost (ii) Was notified in writing by the Con- or Pricing Data,’’ and ‘‘Subcontractor Cost tracting Officer that paragraphs (d) and (e) or Pricing Data—Modifications,’’ means the of this clause apply. aggregate increases and/or decreases in cost (d) System requirements. (1) The Contractor plus applicable profits. shall disclose its estimating system to the Administrative Contracting Officer (ACO) in (End of clause) writing. If the Contractor wishes the Govern- ment to protect the information as privi- [56 FR 36479, July 31, 1991, as amended at 62 leged or confidential, the Contractor must FR 40473, July 29, 1997; 63 FR 55052, Oct. 14, mark the documents with the appropriate 1998] legends before submission. (2) An estimating system disclosure is ac- 252.215–7001 [Reserved] ceptable when the Contractor has provided the ACO with documentation that— 252.215–7002 Cost estimating system requirements. (i) Accurately describes those policies, pro- cedures, and practices that the Contractor As prescribed in 215.408(2), use the currently uses in preparing cost proposals; following clause: and (ii) Provides sufficient detail for the Gov- COST ESTIMATING SYSTEM REQUIREMENTS ernment to reasonably make an informed (OCT 1998) judgment regarding the acceptability of the (a) Definition. Contractor’s estimating practices. Estimating system means the Contractor’s (3) The Contractor shall— policies, procedures, and practices for gener- (i) Comply with its disclosed estimating ating estimates of costs and other data in- system; and cluded in proposals submitted to customers (ii) Disclose significant changes to the cost in the expectation of receiving contract estimating system to the ACO on a timely awards. Estimating system includes the Con- basis. tractor’s— (1) Organizational structure; (e) Estimating system deficiencies. (1) The (2) Established lines of authority, duties, Contractor shall respond to a written report and responsibilities; from the Government that identifies defi- (3) Internal controls and managerial re- ciencies in the Contractor’s estimating sys- views; tem as follows: (4) Flow of work, coordination, and com- (i) If the Contractor agrees with the report munication; and findings and recommendations, the Con- (5) Estimating methods, techniques, accu- tractor shall— mulation of historical costs, and other anal- (A) Within 30 days, state its agreement in yses used to generate cost estimates. writing; and (b) General. (1) The Contractor shall estab- (B) Within 60 days, correct the deficiencies lish, maintain, and comply with an esti- or submit a corrective action plan showing mating system that is consistently applied proposed milestones and actions leading to and produces reliable, verifiable, support- elimination of the deficiencies. able, and documented cost estimates that (ii) If the Contractor disagrees with the re- are an acceptable basis for negotiation of port, the Contractor shall, within 30 days, fair and reasonable prices. state its rationale for disagreeing. (2) The system should be— (2) The ACO will evaluate the Contractor’s (i) Consistent and integrated with the Con- response and notify the Contractor of the de- tractor’s related management systems; and termination concerning remaining defi- (ii) Subject to applicable financial control ciencies and/or the adequacy of any proposed systems. or completed corrective action. (c) Applicability. Paragraphs (d) and (e) of this clause apply if the Contractor is a large business and either— (End of clause) (1) In its fiscal year preceding award of this contract, received Department of Defense [56 FR 36479, July 31, 1991, as amended at 62 (DoD) prime contracts or subcontracts, to- FR 40473, July 29, 1997; 63 FR 55052, Oct. 14, taling $50 million or more for which cost or 1998] pricing data were required; or (2) In its fiscal year preceding award of this 252.216–7000 Economic price adjust- contract— ment—basic steel, aluminum, brass, (i) Received DoD prime contracts or sub- bronze, or copper mill products. contracts totaling $10 million or more (but less than $50 million) for which cost or pric- As prescribed in 216.203–4–70(a), use ing data were required; and the following clause:
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ECONOMIC PRICE ADJUSTMENT—BASIC STEEL, within the meaning of the Default clause of ALUMINUM, BRASS, BRONZE, OR COPPER this contract. MILL PRODUCTS (JUL 1997) (4) The Contracting Officer shall not exe- cute a modification incorporating an in- (a) Definitions. crease in a contract unit price under this As used in this clause— clause until the increase is verified. Established price means a price which is an (e) Within 30 days after receipt of the Con- established catalog or market price for a tractor’s written request, the Contracting commercial item sold in substantial quan- Officer may cancel, without liability to ei- tities to the general public. ther party, any portion of the contract af- Unit price excludes any part of the price fected by the requested increase and not de- which reflects requirements for preservation, livered at the time of such cancellation, ex- packaging, and packing beyond standard cept as follows— commercial practice. (1) The Contractor may, after that time, (b) The Contractor warrants that the unit deliver any items that were completed or in price stated for (Identify the item) is not in the process of manufacture at the time of re- excess of the Contractor’s established price ceipt of the cancellation notice, provided the in effect on the date set for opening of bids Contractor notifies the Contracting Officer (or the contract date if this is a negotiated of such items within 10 days after the Con- contract) for like quantities of the same tractor receives the cancellation notice. item. This price is the net price after apply- (2) The Government shall pay for those ing any applicable standard trade discounts items at the contract unit price increased to offered by the Contractor from its catalog, the extent provided by paragraph (d) of this list, or schedule price. clause. (c) The Contractor shall promptly notify (3) Any standard steel supply item shall be the Contracting Officer of the amount and deemed to be in the process of manufacture effective date of each decrease in any estab- when the steel for that item is in the state lished price. of processing after the beginning of the fur- (1) Each corresponding contract unit price nace melt. shall be decreased by the same percentage (f) Pending any cancellation of this con- that the established price is decreased. tract under paragraph (e) of this clause, or if (2) This decrease shall apply to items deliv- there is no cancellation, the Contractor shall ered on or after the effective date of the de- continue deliveries according to the delivery crease in the Contractor’s established price. schedule of the contract. The Contractor (3) This contract shall be modified accord- shall be paid for those deliveries at the con- ingly. tract unit price increased to the extent pro- (d) If the Contractor’s established price is vided by paragraph (d) of this clause. increased after the date set for opening of bids (or the contract date if this is a nego- (End of clause) tiated contract), upon the Contractor’s writ- ten request to the Contracting Officer, the corresponding contract unit price shall be in- [56 FR 36479, July 31, 1991, as amended at 62 creased by the same percentage that the es- FR 2614, Jan. 17, 1997; 62 FR 40473, July 29, tablished price is increased, and this con- 1997] tract shall be modified accordingly, pro- vided— 252.216–7001 Economic price adjust- (1) The aggregate of the increases in any ment—nonstandard steel items. contract unit price under this contract shall As prescribed in 216.203–4–70(b), use not exceed 10 percent of the original contract the following clause: unit price; (2) The increased contract unit price shall ECONOMIC PRICE ADJUSTMENT—NONSTANDARD be effective on the effective date of the in- STEEL ITEMS (JUL 1997) crease in the applicable established price if the Contractor’s written request is received (a) Definitions. by the Contracting Officer within ten days of As used in this clause— the change. If it is not, the effective date of Base labor index means the average of the the increased unit price shall be the date of labor indices for the three months which receipt of the request by the Contracting Of- consist of the month of bid opening (or offer ficer; and submission) and the months immediately (3) The increased contract unit price shall preceding and following that month. not apply to quantities scheduled for deliv- Base steel index means the Contractor’s es- ery before the effective date of the increased tablished price (see note 6) including all ap- contract unit price unless the Contractor’s plicable extras of $llll per lllll (see failure to deliver before that date results note 1) for lllll (see note 2) on the date from causes beyond the control and without set for bid opening (or the date of submission the fault or negligence of the Contractor, of the offer).
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Current labor index means the average of (i) The adjusted cost of labor (obtained by the labor indices for the month in which de- multiplying lll percent of the contract livery of supplies is required to be made and unit price by a fraction, of which the numer- the month preceding. ator shall be the current labor index and the Current steel index means the Contractor’s denominator shall be the base labor index); established price (see note 6) for that item, (ii) The adjusted cost of steel (obtained by including all applicable extras in effect multiplying lll percent of the contract llll days (see note 3) prior to the first unit price by a fraction, of which the numer- day of the month in which delivery is re- ator shall be the current steel index and the quired. denominator shall be the base steel index); Established price is— and (1) A price which is an established catalog (iii) The amount equal to lll percent of or market price of a commercial item sold in the original contract unit price (representing substantial quantities to the general public; that portion of the unit price which relates and neither to the cost of labor nor the cost of (2) The net price after applying any appli- steel, and which is therefore not subject to cable standard trade discounts offered by the revision (see note 5)). Contractor from its catalog, list, or schedule (4) The aggregate of the increases in any price. (But see Note 6.) contract unit price under this contract shall Labor index means the average straight not exceed ten percent of the original con- time hourly earnings of the Contractor’s em- tract unit price. ployees in the llll shop of the Contrac- (5) Computations shall be made to the tor’s lllll plant (see note 4) for any par- nearest one-hundredth of one cent. ticular month. (f)(1) Pending any revisions of the contract Month means calendar month. However, if unit prices, the Contractor shall be paid the the Contractor’s accounting period does not contract unit price for deliveries made. coincide with the calendar month, then that (2) Within 30 days after final delivery (or accounting period shall be used in lieu of such other period as may be authorized by month. the Contracting Officer), the Contractor (b) Each contract unit price shall be sub- shall furnish a statement identifying the ject to revision, under the terms of this correctness of— clause, to reflect changes in the cost of labor (i) The average straight time hourly earn- and steel. For purpose of this price revision, ings of the Contractor’s employees in the the proportion of the contract unit price at- shop identified in paragraph (a) that are rel- tributable to costs of labor not otherwise in- evant to the computations of the base labor cluded in the price of the steel item identi- index and the current labor index; and fied under the base steel index definition in (ii) The Contractor’s established prices (see paragraph (a) shall be lll percent, and the note 6), including all applicable extras for proportion of the contract unit price attrib- like quantities of the item that are relevant utable to the cost of steel shall be lll per- to the computation of the base steel index and cent. (See note 5.) the current steel index. (c)(1) Unless otherwise specified in this (3) Upon request of the Contracting Officer, contract, the labor index shall be computed the Contractor shall make available all by dividing the total straight time earnings records used in the computation of the labor of the Contractor’s employees in the shop indices. identified in paragraph (a) for any given (4) Upon receipt of the statement, the Con- month by the total number of straight time tracting Officer will compute the revised hours worked by those employees in that contract unit prices and modify the contract month. accordingly. No modification to this con- (2) Any revision in a contract unit price to tract will be made pursuant to this clause reflect changes in the cost of labor shall be until the Contracting Officer has verified the computed solely by reference to the ‘‘base revised established price (see note 6). labor index’’ and the ‘‘current labor index.’’ (g)(1) In the event any item of this con- (d) Any revision in a contract unit price to tract is subject to a total or partial termi- reflect changes in the cost of steel shall be nation for convenience, the month in which computed solely by reference to the ‘‘base the Contractor receives notice of the termi- steel index’’ and the ‘‘current steel index.’’ nation, if prior to the month in which deliv- (e)(1) Each contract unit price shall be re- ery is required, shall be considered the vised for each month in which delivery of month in which delivery of the terminated supplies is required to be made. item is required for the purposes of deter- (2) The revised contract unit price shall mining the current labor and steel indices apply to the deliveries of those quantities re- under paragraphs (c) and (d). quired to be made in that month regardless (2) For any item which is not terminated of when actual delivery is made. for convenience, the month in which delivery (3) Each revised contract unit price shall is required under the contract shall continue be computed by adding— to apply for determining those indices with
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respect to the quantity of the non-termi- ECONOMIC PRICE ADJUSTMENT—WAGE RATES nated item. OR MATERIAL PRICES CONTROLLED BY A FOR- (3) If this contract is terminated for de- EIGN GOVERNMENT (JUN 1997) fault, any price revision shall be limited to (a) The Contractor represents that the the quantity of the item which has been de- prices set forth in this contract— livered by the Contractor and accepted by (1) Are based on the wage rate(s) or mate- the Government prior to receipt by the Con- rial price(s) established and controlled by tractor of the notice of termination. the Government ofllll(Offeror insert name (h) If the Contractor’s failure to make de- of host country); and livery of any required quantity arises out of (2) Do not include contingency allowances causes beyond the control and without the to pay for possible increases in wage rates or fault or negligence of the Contractor, within material prices. the meaning of the clause of this contract (b) If wage rates or material prices are re- entitled ‘‘Default,’’ the quantity not deliv- vised by the government named in paragraph ered shall be delivered as promptly as pos- (a) of this clause, the Contracting Officer sible after the cessation of the cause of the shall make an equitable adjustment in the failure, and the delivery schedule set forth in contract price and shall modify the contract this contract shall be amended accordingly. to the extent that the Contractor’s actual Notes: costs of performing this contract are in- 1 Offeror insert the unit price and unit creased or decreased, as a direct result of the measure of the standard steel mill item to be revision, subject to the following: used in the manufacture of the contract (1) For increases in established wage rates item. or material prices, the increase in contract unit price(s) shall be effective on the same 2 Offeror identify the standard steel mill date that the government named in para- item to be used in the manufacture of the graph (a) of this clause increased the appli- contract item. cable wage rate(s) or material price(s), but 3 Offeror insert best estimate of the num- only if the Contracting Officer receives the ber of days required for processing the stand- Contractor’s written request for contract ad- ard steel mill item in the shop identified justment within 10 days of the change. If the under the labor index definition. Contractor’s request is received later, the ef- 4 Offeror identify the shop and plant in fective date shall be the date that the Con- which the standard steel mill item identified tracting Officer received the Contractor’s re- under the base steel index definition will be fi- quest. nally fabricated or processed into the con- (2) For decreases in established wage rates tract item. or material prices, the decrease in contract 5 Offeror insert the same percentage fig- unit price(s) shall be effective on the same ures for the corresponding blanks in para- date that the government named in para- graphs (b), (e)(3)(i), and (e)(3)(ii). In para- graph (a) of this clause decreased the appli- graph (e)(3)(iii), insert the percentage rep- cable wage rate(s) or material price(s). The resenting the difference between the sum of decrease in contract unit price(s) shall apply the percentages inserted in paragraph (b) and to all items delivered on and after the effec- 100 percent. tive date of the government’s rate or price 6 In negotiated acquisitions of nonstandard decrease. steel items, when there is no established price (c) No modification changing the contract or when it is not desirable to use this price, unit price(s) shall be executed until the Con- this paragraph may refer to another appro- tracting Officer has verified the applicable priate price basis, e.g., an established change in the rates or prices set by the gov- interplant price. ernment named in paragraph (a) of this clause. The Contractor shall make available (End of clause) its books and records that support a re- quested change in contract price. (d) Failure to agree to any adjustment [56 FR 36479, July 31, 1991, as amended at 62 shall be a dispute under the Disputes clause FR 2614, Jan. 17, 1997; 62 FR 40473, July 29, of this contract. 1997] (End of clause) 252.216–7002 [Reserved] [62 FR 34128, June 24, 1997] 252.216–7003 Economic price adjust- ment—wage rates or material 252.217–7000 Exercise of option to ful- prices controlled by a foreign gov- fill foreign military sales commit- ernment. ments. As prescribed in 216.203–4–70(c), use As prescribed in 217.208–70(a), use the the following clause: following clause:
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EXERCISE OF OPTION TO FULFILL FOREIGN before acceptance by the Government of the MILITARY SALES COMMITMENTS (DEC 1991) final scheduled delivery. (a) The Government may exercise the op- (2) The Contracting Officer will provide a tion(s) of this contract to fulfill foreign mili- preliminary oral or written notice to the tary sales commitments. Contractor stating the quantities to be (b) The foreign military sales commit- added or accelerated under the terms of this ments are for: clause, followed by a contract modification llllllllllllllllllllllll incorporating the transmitted information (Insert name of country, or To Be Deter- and instructions. The notice and modifica- mined) tion will establish a not-to-exceed price llllllllllllllllllllllll equal to the highest contract unit price or (Insert applicable CLIN) cost of the added or accelerated items as of the date of the notice. (End of clause) (3) The Contractor will not be required to deliver at a rate greater than the maximum Alternate I (DEC 1991). As prescribed in sustainable delivery rate under paragraph 217.208–70(a)(1), substitute the following para- (b)(2) of this clause, nor will the exercise of graph (b) for paragraph (b) of the basic this option extend delivery more than 24 clause: months beyond the scheduled final delivery. (b) On the date the option is exercised, the (d) Price negotiation. (1) Unless the option Government shall identify the foreign coun- cost or price was previously agreed upon, the try for the purpose of negotiating any equi- Contractor shall, within 30 days from the table adjustment attributable to foreign date of option exercise, submit to the Con- military sales. Failure to agree on an equi- tracting Officer a cost or price proposal (in- table adjustment shall be treated as a dis- cluding a cost breakdown) for the added or pute under the Disputes clause of this con- accelerated items. tract. (2) Failure to agree on a cost or price in ne- gotiations resulting from the exercise of this 252.217–7001 Surge option. option shall constitute a dispute concerning As prescribed in 217.208–70(b), use the a question of fact within the meaning of the following clause: Disputes clause of this contract. However, nothing in this clause shall excuse the Con- SURGE OPTION (AUG 1992) tractor from proceeding with the perform- (a) General. The Government has the op- ance of the contract, as modified, while any tion to— resulting claim is being settled. (1) Increase the quantity of supplies or services called for under this contract by no (End of clause) more than lll percent; and/or (2) Accelerate the rate of delivery called [56 FR 36479, July 31, 1991, as amended at 57 for under this contract, at a price or cost es- FR 42633, Sept. 15, 1992] tablished before contract award or to be es- tablished by negotiation as provided in this 252.217–7002 Offering property for ex- clause. change. (b) Schedule. (1) When the Production Surge Plan (DI–MGMT–80969) is included in As prescribed in 217.7005, use the fol- the contract, the option delivery schedule lowing provision: shall be the production rate provided with the Plan. If the Plan was negotiated before OFFERING PROPERTY FOR EXCHANGE (DEC contract award, then the negotiated schedule 1991) shall be used. (a) The property described in item number (2) If there is no Production Surge Plan in llll, is being offered in accordance with the contract, the Contractor shall, within 30 the exchange provisions of section 201(c) of days from the date of award, furnish the the Federal Property and Administrative Contracting Officer a delivery schedule Services Act of 1949, 63 Stat. 384 (40 U.S.C. showing the maximum sustainable rate of 481(c)). delivery for items in this contract. This de- (b) The property is located at (insert ad- livery schedule shall provide acceleration by dress). Offerors may inspect the property month up to the maximum sustainable rate during the period (insert beginning and end- of delivery achievable within the Contrac- ing dates and insert hours during day). tor’s existing facilities, equipment, and sub- contracting structure. (End of provision) (3) The Contractor shall not revise the op- tion delivery schedule without approval from 252.217–7003 Changes. the Contracting Officer. (c) Exercise of option. (1) The Contracting As prescribed in 217.7104(a), use the Officer may exercise this option at any time following clause:
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CHANGES (DEC 1991) would be endangered by delay, or whenever (a) The Contracting Officer may, at any the Contracting Officer determines that time and without notice to the sureties, by military necessity requires that immediate written change order, make changes within work on a vessel is necessary, the Con- the general scope of any job order issued tracting Officer may issue a written order to under the Master Agreement in— perform that work and the Contractor here- (1) Drawings, designs, plans, and specifica- by agrees to comply with that order and to tions; perform work on such vessel within its capa- (2) Work itemized; bilities. (3) Place of performance of the work; (1) As soon as practicable after the (4) Time of commencement or completion issuance of the order, the Contracting Officer of the work; and and the Contractor shall negotiate a price (5) Any other requirement of the job order. for the work and the Contracting Officer (b) If a change causes an increase or de- shall issue a job order covering the work. crease in the cost of, or time required for, (2) The Contractor shall, upon request, fur- performance of the job order, whether or not nish the Contracting Officer with a break- changed by the order, the Contracting Offi- down of costs incurred by the Contractor and cer shall make an equitable adjustment in the price or date of completion, or both, and an estimate of costs expected to be incurred shall modify the job order in writing. in the performance of the work. The Con- (1) Within ten days after the Contractor re- tractor shall maintain, and make available ceives notification of the change, the Con- for inspection by the Contracting Officer or tractor shall submit to the Contracting Offi- the Contracting Officer’s representative, cer a request for price adjustment, together records supporting the cost of performing with a written estimate of the increased the work. cost. (3) Failure of the parties to agree upon the (2) The Contracting Officer may grant an price of the work shall constitute a dispute extension of this period if the Contractor re- within the meaning of the Disputes clause of quests it within the ten day period. the Master Agreement. In the meantime, the (3) If the circumstances justify it, the Con- Contractor shall diligently proceed to per- tracting Officer may accept and grant a re- form the work ordered. quest for equitable adjustment at any later (c)(1) If the nature of any repairs is such time prior to final payment under the job that their extent and probable cost cannot order, except that the Contractor may not be ascertained readily, the Contracting Offi- receive profit on a payment under a late re- cer may issue a job order (on a sealed bid or quest. negotiated basis) to determine the nature (c) If the Contractor includes in its claim and extent of required repairs. the cost of property made obsolete or excess as a result of a change, the Contracting Offi- (2) Upon determination by the Contracting cer shall have the right to prescribe the Officer of what work is necessary, the Con- manner of disposition of that property. tractor, if requested by the Contracting Offi- (d) Failure to agree to any adjustment cer, shall negotiate prices for performance of shall be a dispute within the meaning of the that work. The prices agreed upon shall be Disputes clause. set forth in a modification of the job order. (e) Nothing in this clause shall excuse the (3) Failure of the parties to agree upon the Contractor from proceeding with the job price shall constitute a dispute under the order as changed. Disputes clause. In the meantime, the Con- tractor shall diligently proceed to perform (End of clause) the work ordered.
252.217–7004 Job orders and com- (End of clause) pensation. As prescribed in 217.7104(a), use the 252.217–7005 Inspection and manner following clause: of doing work.
JOB ORDERS AND COMPENSATION (DEC 1991) As prescribed in 217.7104(a), use the following clause: (a) The Contracting Officer shall solicit bids or proposals and make award of job or- INSPECTION AND MANNER OF DOING WORK ders in accordance with FAR part 14 or 15, as (JAN 1997) applicable. The issuance of a job order signed by the Contracting Officer constitutes (a) The Contractor shall perform work in award. The job order shall incorporate the accordance with the job order, any drawings terms and conditions of the Master Agree- and specifications made a part of the job ment. order, and any change or modification issued (b) Whenever the Contracting Officer de- under the Changes clause of the Master termines that a vessel, its cargo or stores, Agreement.
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(b)(1) Except as provided in paragraph (b) alongside the Contractor’s pier or in dry (2) of this clause, and unless otherwise spe- dock or on a marine railway; cifically provided in the job order, all oper- (4) Unless otherwise provided in a job ational practices of the Contractor and all order, provide sufficient security patrols to workmanship, material, equipment, and arti- reasonably maintain a fire watch for protec- cles used in the performance of work under tion of the vessel when it is in the Contrac- the Master Agreement shall be in accordance tor’s custody; with the best commercial marine practices (5) To the extent necessary, clean, wash, and the rules and requirements of the Amer- and steam out or otherwise make safe, all ican Bureau of Shipping, the U.S. Coast tanks under alteration or repair; Guard, and the Institute of Electrical and (6) Furnish the Contracting Officer or des- Electronic Engineers, in effect at the time of ignated representative with a copy of the Contractor’s submission of bid (or accept- ‘‘gas-free’’ or ‘‘safe-for-hotwork’’ certificate, ance of the job order, if negotiated). provided by a Marine Chemist or Coast (2) When Navy specifications are specified Guard authorized person in accordance with in the job order, the Contractor shall follow Occupational Safety and Health Administra- Navy standards of material and workman- tion regulations (29 CFR 1915.14) before any ship. The solicitation shall prescribe the hot work is done on a tank; Navy standard whenever applicable. (7) Treat the contents of any tank as Gov- (c) The Government may inspect and test ernment property in accordance with the all material and workmanship at any time Government Property (Fixed-Price Con- during the Contractor’s performance of the tracts) clause; and work. (8) Dispose of the contents of any tank (1) If, prior to delivery, the Government only at the direction, or with the concur- finds any material or workmanship is defec- rence, of the Contracting Officer. tive or not in accordance with the job order, (f) Except as otherwise provided in the job in addition to its rights under the Guaran- order, when the vessel is in the custody of tees clause of the Master Agreement, the the Contractor or in dry dock or on a marine Government may reject the defective or non- railway and the temperature is expected to conforming material or workmanship and re- ° quire the Contractor to correct or replace it go as low as 35 F, the Contractor shall take at the Contractor’s expense. all necessary steps to— (2) If the Contractor fails to proceed (1) Keep all hose pipe lines, fixtures, traps, promptly with the replacement or correction tanks, and other receptacles on the vessel of the material or workmanship, the Govern- from freezing; and ment may replace or correct the defective or (2) Protect the stern tube and propeller nonconforming material or workmanship hubs from frost damage. and charge the Contractor the excess costs (g) The Contractor shall, whenever prac- incurred. ticable— (3) As specified in the job order, the Con- (1) Perform the required work in a manner tractor shall provide and maintain an inspec- that will not interfere with the berthing and tion system acceptable to the Government. messing of Government personnel attached (4) The Contractor shall maintain com- to the vessel; and plete records of all inspection work and shall (2) Provide Government personnel attached make them available to the Government to the vessel access to the vessel at all during performance of the job order and for times. 90 days after the completion of all work re- (h) Government personnel attached to the quired. vessel shall not interfere with the Contrac- (d) The Contractor shall not permit any tor’s work or workers. welder to work on a vessel unless the welder (i)(1) The Government does not guarantee is, at the time of the work, qualified to the the correctness of the dimensions, sizes, and standards established by the U.S. Coast shapes set forth in any job order, sketches, Guard, American Bureau of Shipping, or De- drawings, plans, or specifications prepared or partment of the Navy for the type of welding furnished by the Government, unless the job being performed. Qualifications of a welder order requires that the Contractor perform shall be as specified in the job order. the work prior to any opportunity to inspect. (e) The Contractor shall— (2) Except as stated in paragraph (i)(1) of (1) Exercise reasonable care to protect the this clause, and other than those parts fur- vessel from fire; nished by the Government, the Contractor (2) Maintain a reasonable system of inspec- shall be responsible for the correctness of the tion over activities taking place in the vicin- dimensions, sizes, and shapes of parts fur- ity of the vessel’s magazines, fuel oil tanks, nished under this agreement. or storerooms containing flammable mate- (j) The Contractor shall at all times keep rials; the site of the work on the vessel free from (3) Maintain a reasonable number of hose accumulation of waste material or rubbish lines ready for immediate use on the vessel caused by its employees or the work. At the at all times while the vessel is berthed completion of the work, unless the job order
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specifies otherwise, the Contractor shall re- (4) Upon request, the Contractor will fur- move all rubbish from the site of the work nish the Contracting Officer any reports con- and leave the immediate vicinity of the work cerning expenditures on the work to date area ‘‘broom clean.’’ that the Contracting Officer may require. (c) The Government will retain until final (End of clause) completion and acceptance of all work cov- ered by the job order, an amount estimated [56 FR 36479, July 31, 1991, as amended at 62 or approved by the Contracting Officer under FR 2614, Jan. 17, 1997] paragraph (b) of this clause. The amount re- tained will be in accordance with the rate 252.217–7006 Title. authorized by Congress for Naval vessel re- pair contracts at the time of job order As prescribed in 217.7104(a), use the award. following clause: (d) The Contracting Officer may direct TITLE (DEC 1991) that progress payments be based on the price of the job order as adjusted as a result of (a) Unless otherwise provided, title to all change orders under the Changes clause of materials and equipment to be incorporated the Master Agreement. If the Contracting in a vessel in the performance of a job order Officer does not so direct— shall vest in the Government upon delivery (1) Payments of any increases shall be at the location specified for the performance made from time to time after the amount of of the work. the increase is determined under the (b) Upon completion of the job order, or Changes clause of the Master Agreement; with the approval of the Contracting Officer and during performance of the job order, all Con- (2) Reductions resulting from decreases tractor-furnished materials and equipment shall be made for the purposes of subsequent not incorporated in, or placed on, any vessel, progress payments as soon as the amounts shall become the property of the Contractor, are determined under the Changes clause of unless the Government has reimbursed the the Master Agreement. Contractor for the cost of the materials and (e) Upon completion of the work under a equipment. job order and final inspection and accept- (c) The vessel, its equipment, movable ance, and upon submission of invoices in stores, cargo, or other ship’s materials shall such form and with such copies as the Con- not be considered Government-furnished tracting Officer may prescribe, the Con- property. tractor shall be paid for the price of the job (End of clause) order, as adjusted pursuant to the Changes clause of the Master Agreement, less any 252.217–7007 Payments. performance reserves deemed necessary by the Contracting Officer, and less the amount As prescribed in 217.7104(a), use the of any previous payments. following clause: (f) All materials, equipment, or any other property or work in process covered by the PAYMENTS (DEC 1991) progress payments made by the Government, (a) Progress payments, as used in this upon the making of those progress pay- clause, means payments made before comple- ments, shall become the sole property of the tion of work in progress under a job order. Government, and are subject to the provi- (b) Upon submission by the Contractor of sions of the Title clause of the Master Agree- invoices in the form and number of copies di- ment. rected by the Contracting Officer, and as ap- proved by the Contracting Officer, the Gov- (End of clause) ernment will make progress payments as work progresses under the job order. 252.217–7008 Bonds. (1) Generally, the Contractor may submit As prescribed in 217.7104(a), use the invoices on a semi-monthly basis, unless ex- penditures justify a more frequent submis- following clause: sion. BONDS (DEC 1991) (2) The Government need not make progress payments for invoices aggregating (a) If the solicitation requires an offeror to less than $5,000. submit a bid bond, the Offeror may furnish, (3) The Contracting Officer shall approve instead, an annual bid bond (or evidence progress payments based on the value, com- thereof) or an annual performance and pay- puted on the price of the job order, of labor ment bond (or evidence thereof). and materials incorporated in the work, ma- (b) If the solicitation does not require a bid terials suitably stored at the site of the bond, the Offeror shall not include in the work, and preparatory work completed, less price any contingency to cover the premium the aggregate of any previous payments. of such a bond.
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(c) Even if the solicitation does not require (d) If the Government terminates the job bonds, the Contracting Officer may neverthe- order in whole or in part as provided in para- less require a performance and payment graph (a) of this clause— bond, in form, amount, and with a surety ac- (1) The Government may, upon such terms ceptable to the Contracting Officer. Where and in such manner as the Contracting Offi- performance and payment bond is required, cer may deem appropriate, arrange for the the offer price shall be increased upon the completion of the work so terminated, at award of the job order in an amount not to such plant or plants, including that of the exceed the premium of a corporate surety Contractor, as may be designated by the bond. Contracting Officer. (d) If any surety upon any bond furnished (i) The Contractor shall continue the per- in connection with a job order under this formance of the job order to the extent not agreement fails to submit requested reports terminated under the provisions of this as to its financial condition or otherwise be- clause. comes unacceptable to the Government, the (ii) If the work is to be completed at the Contracting Officer may require the Con- plant, the Government may use all tools, tractor to furnish whatever additional secu- machinery, facilities, and equipment of the rity the Contracting Officer determines nec- Contractor determined by the Contracting essary to protect the interests of the Govern- Office to be necessary for that purpose. ment and of persons supplying labor or mate- (iii) If the cost to the Government of the rials in the performance of the work con- work procured or completed (after adjusting templated under the Master Agreement. such cost to exclude the effect of changes in the plans and specifications made subsequent (End of clause) to the date of termination) exceeds the price fixed for work under the job order (after ad- 252.217–7009 Default. justing such price on account of changes in the plans and specifications made before the As prescribed in 217.7104(a), use the date of termination), the Contractor, or the following clause: Contractor’s surety, if any, shall be liable for such excess. DEFAULT (DEC 1991) (2) The Government, in addition to any (a) The Government may, subject to the other rights provided in this clause, may re- provisions of paragraph (b) of this clause, by quire the Contractor to transfer title and de- written notice of default to the Contractor, livery to the Government, in the manner and terminate the whole or any part of a job to the extent directed by the Contracting Of- order if the Contractor fails to— ficer, any completed supplies and such par- (1) Make delivery of the supplies or to per- tially completed supplies and materials, form the services within the time specified parts, tools, dies, jigs, fixtures, plans, draw- in a job order or any extension; ings, information and contract rights (here- (2) Make progress, so as to endanger per- inafter called ‘‘manufacturing materials’’) as formance of the job order; or the Contractor has specifically produced or (3) Perform any of the other provisions of specifically acquired for the performance of this agreement or a job order. the terminated part of the job order. (b) Except for defaults of subcontractors, (i) The Contractor shall, upon direction of the Contractor shall not be liable for any ex- the Contracting Officer, protect and preserve cess costs if failure to perform the job order property in possession of the Contractor in arises from causes beyond the control and which the Government has an interest. without the fault or negligence of the Con- (ii) The Government shall pay to the Con- tractor. Examples of such causes include tractor the job order price for completed acts of God or of the public enemy, acts of items of work delivered to and accepted by the Government in either its sovereign or the Government, and the amount agreed contractual capacity, fires, floods, upon by the Contractor and the Contracting epidemics, quarantine restrictions, strikes, Officer for manufacturing materials deliv- freight embargoes, and unusually severe ered to and accepted by the Government, and weather. for the protection and preservation of prop- (c) If the Contractor’s failure to perform is erty. Failure to agree shall be a dispute con- caused by the default of a subcontractor, and cerning a question of fact within the mean- if such default arises out of causes beyond ing of the Disputes clause. the control of both the Contractor and sub- (e) If, after notice of termination of the job contractor, and without the fault or neg- order, it is determined that the Contractor ligence of either, the Contractor shall not be was not in default, or that the default was liable for any excess costs for failure to per- excusable, the rights and obligations of the form, unless the supplies or services to be parties shall be the same as if the notice of furnished by the subcontractor were obtain- termination had been issued for the conven- able from other sources in sufficient time to ience of the Government. permit the Contractor to perform the job (f) If the Contractor fails to complete the order within the time specified. performance of a job order within the time
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specified, or any extension, the actual dam- (3) Treat salvage, scrap or other ship’s ma- age to the Government for the delay will be terial of the Government resulting from per- difficult or impossible to determine. formance of the work as items of Govern- (1) In lieu of actual damage, the Contractor ment-furnished property, in accordance with shall pay to the Government as fixed, agreed, the Government Property (Fixed Price Con- and liquidated damages for each calendar tracts) clause; day of delay the amount, if any, set forth in (4) Perform, or pay the cost of, any repair, the job order (prorated to the nearest hour reconditioning or replacement made nec- for fractional days). essary as the result of the use by the Con- (2) If the Government terminates the job tractor of any of the vessel’s machinery, order, the Contractor shall be liable, in addi- equipment or fittings, including, but not tion to the excess costs provided in para- limited to, winches, pumps, rigging, or pipe graph (d) of this clause, for liquidated dam- lines; and ages accruing until such time as the Govern- (5) Furnish suitable offices, office equip- ment may reasonably obtain completion of ment and telephones at or near the site of the work. the work for the Government’s use. (3) The Contractor shall not be charged (d) The job order will state whether dock with liquidated damages when the delay and sea trials are required to determine arises out of causes beyond the control and whether or not the Contractor has satisfac- without the fault or negligence of the Con- torily performed the work. tractor. Subject to the provisions of the Dis- (1) If dock and sea trials are required, the putes clause of the Master Agreement, the vessel shall be under the control of the ves- Contracting Officer shall ascertain the facts sel’s commander and crew. and the extent of the delay and shall extend (2) The Contractor shall not conduct dock the time for performance when in the judg- and sea trials not specified in the job order ment of the Contracting Officer, the findings without advance approval of the Contracting of fact justify an extension. Officer. Dock and sea trials not specified in (g) The rights and remedies of the Govern- the job order shall be at the Contractor’s ex- ment provided in this clause shall not be ex- pense and risk. clusive and are in addition to any other rights and remedies provided by law under (3) The Contractor shall provide and install this agreement. all fittings and appliances necessary for dock and sea trials. The Contractor shall be re- (End of clause) sponsible for care, installation, and removal of instruments and apparatus furnished by 252.217–7010 Performance. the Government for use in the trials. As prescribed in 217.7104(a), use the (End of clause) following clause: 252.217–7011 Access to vessel. PERFORMANCE (DEC 1991) As prescribed at 217.7104(a), use the (a) Upon the award of a job order, the Con- tractor shall promptly start the work speci- following clause: fied and shall diligently prosecute the work ACCESS TO VESSEL (DEC 1991) to completion. The Contractor shall not start work until the job order has been (a) Upon the request of the Contracting Of- awarded except in the case of emergency ficer, the Contractor shall grant admission work ordered by the Contracting Officer to the Contractor’s facilities and access to under the Job Orders and Compensation vessel, on a non-interference basis, as nec- clause of the Master Agreement. essary to perform their respective respon- (b) The Government shall deliver the vessel sibilities, to a reasonable number of: described in the job order at the time and lo- (1) Government and other Government con- cation specified in the job order. Upon com- tractor employees (in addition to those Gov- pletion of the work, the Government shall ernment employees attached to the vessel); accept delivery of the vessel at the time and and location specified in the job order. (2) Representatives of offerors on other (c) The Contractor shall, without charge contemplated Government work. and without specific requirement in a job (b) All personnel granted access shall com- order,— ply with Contractor rules governing per- (1) Make available at the plant to per- sonnel at its shipyard. sonnel of the vessel while in dry dock or on a marine railway, sanitary lavatory and (End of clause) similar facilities acceptable to the Con- tracting Officer; 252.217–7012 Liability and insurance. (2) Supply and maintain suitable brows and gangways from the pier, dry dock, or marine As prescribed in 217.7104(a), use the railway to the vessel; following clause:
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LIABILITY AND INSURANCE (DEC 1991) have assumed under the provisions of this paragraph (b). (a) The Contractor shall exercise its best (c) Indemnification. The Contractor indem- efforts to prevent accidents, injury, or dam- nifies the Government and the vessel and its age to all employees, persons, and property, owners against all claims, demands, or in and about the work, and to the vessel or causes of action to which the Government, part of the vessel upon which work is done. the vessel or its owner(s) might be subject as (b) Loss or damage to the vessel, materials, or a result of damage or injury (including equipment. (1) Unless otherwise directed or death) to the property or person of anyone approved in writing by the Contracting Offi- other than the Government or its employees, cer, the Contractor shall not carry insurance or the vessel or its owner, arising in whole or against any form of loss or damage to the in part from the negligence or other wrong- vessel(s) or to the materials or equipment to ful act of the Contractor or its agents or em- which the Government has title or which ployees, or any subcontractor, or its agents have been furnished by the Government for or employees. installation by the Contractor. The Govern- (1) The Contractor’s obligation to indem- ment assumes the risks of loss of and dam- nify under this paragraph shall not exceed age to that property. the sum of $300,000 as a consequence of any (2) The Government does not assume any single occurrence with respect to any one risk with respect to loss or damage com- vessel. pensated for by insurance or otherwise or re- (2) The indemnity includes, without limi- sulting from risks with respect to which the tation, suits, actions, claims, costs, or de- Contractor has failed to maintain insurance, mands of any kind, resulting from death, if available, as required or approved by the personal injury, or property damage occur- Contracting Officer. ring during the period of performance of (3) The Government does not assume risk work on the vessel or within 90 days after re- of and will not pay for any costs of the fol- delivery of the vessel. For any claim, etc., lowing: made after 90 days, the rights of the parties (i) Inspection, repair, replacement, or re- shall be as determined by other provisions of newal of any defects in the vessel(s) or mate- this agreement and by law. The indemnity rial and equipment due to— does apply to death occurring after 90 days (A) Defective workmanship performed by where the injury was received during the pe- the Contractor or its subcontractors; riod covered by the indemnity. (B) Defective materials or equipment fur- (d) Insurance. (1) The Contractor shall, at nished by the Contractor or its subcontracts; its own expense, obtain and maintain the fol- or lowing insurance— (C) Workmanship, materials, or equipment (i) Casualty, accident, and liability insur- which do not conform to the requirements of ance, as approved by the Contracting Officer, the contract, whether or not the defect is la- insuring the performance of its obligations tent or whether or not the nonconformance under paragraph (c) of this clause. is the result of negligence. (ii) Workers Compensation Insurance (or (ii) Loss, damage, liability, or expense its equivalent) covering the employees en- caused by, resulting from, or incurred as a gaged on the work. consequence of any delay or disruption, will- (2) The Contractor shall ensure that all ful misconduct or lack of good faith by the subcontractors engaged on the work obtain Contractor or any of its representatives that and maintain the insurance required in para- have supervision or direction of— graph (d)(1) of this clause. (A) All or substantially all of the Contrac- (3) Upon request of the Contracting Officer, tor’s business; or the Contractor shall provide evidence of the (B) All or substantially all of the Contrac- insurance required by paragraph (d) of this tor’s operation at any one plant. clause. (4) As to any risk that is assumed by the (e) The Contractor shall not make any al- Government, the Government shall be sub- lowance in the job order price for the inclu- rogated to any claim, demand or cause of ac- sion of any premium expense or charge for tion against third parties that exists in favor any reserve made on account of self-insur- of the Contractor. If required by the Con- ance for coverage against any risk assumed tracting Officer, the Contractor shall exe- by the Government under this clause. cute a formal assignment or transfer of the (f) The Contractor shall give the Con- claim, demand, or cause of action. tracting Officer written notice as soon as (5) No party other than the Contractor practicable after the occurrence of a loss or shall have any right to proceed directly damage for which the Government has as- against the Government or join the Govern- sumed the risk. ment as a co-defendant in any action. (1) The notice shall contain full details of (6) Notwithstanding the foregoing, the the loss or damage. Contractor shall bear the first $5,000 of loss (2) If a claim or suit is later filed against or damage from each occurrence or incident, the Contractor as a result of the event, the the risk of which the Government would Contractor shall immediately deliver to the
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Government every demand, notice, sum- (End of clause) mons, or other process received by the Con- tractor or its employees or representatives. 252.217–7013 Guarantees. (3) The Contractor shall cooperate with the Government and, upon request, shall assist As prescribed in 217.7104(a), use the in effecting settlements, securing and giving following clause: evidence, obtaining the attendance of wit- GUARANTEES (DEC 1991) nesses, and in the conduct of suits. The Gov- ernment shall reimburse the Contractor for (a) In the event any work performed or ma- expenses incurred in this effort, other than terials furnished by the contractor under the the cost of maintaining the Contractor’s Master Agreement prove defective or defi- usual organization. cient within 90 days from the date of redeliv- (4) The Contractor shall not, except at its ery of the vessel(s), the Contractor, as di- own expense, voluntarily make any pay- rected by the Contracting Officer and at its ment, assume any obligation, or incur any own expense, shall correct and repair the de- expense other than what would be impera- ficiency to the satisfaction of the Con- tive for the protection of the vessel(s) at the tracting Officer. time of the event. (b) If the Contractor or any subcontractor (g) In the event or loss of or damage to any has a guarantee for work performed or mate- vessel(s), material, or equipment which may rials furnished that exceeds the 90 day pe- result in a claim against the Government riod, the Government shall be entitled to under the insurance provisions of this con- rely upon the longer guarantee until its expi- tract, the Contractor shall promptly notify ration. the Contracting Officer of the loss or dam- (c) With respect to any individual work age. The Contracting Officer may, without item identified as incomplete at the time of prejudice to any other right of the Govern- redelivery of the vessel(s), the guarantee pe- ment, either— riod shall run from the date the item is com- (1) Order the Contractor to proceed with pleted. replacement or repair, in which event the (d) If practicable, the Government shall Contractor shall effect the replacement or give the Contractor an opportunity to cor- repair; rect the deficiency. (i) The Contractor shall submit to the Con- (1) If the Contracting Officer determines it tracting Officer a request for reimbursement is not practicable or is otherwise not advis- of the cost of the replacement or repair to- able to return the vessel(s) to the Con- gether with whatever supporting documenta- tractor, or the Contractor fails to proceed tion the Contracting Officer may reasonably with the repairs promptly, the Contracting require, and shall identify the request as Officer may direct that the repairs be per- being submitted under the Insurance clause formed elsewhere, at the Contractor’s ex- of the agreement. pense. (ii) If the Government determines that the (2) If correction and repairs are performed risk of the loss or damage is within the scope by other than the Contractor, the Con- of the risks assumed by the Government tracting Officer may discharge the Contrac- under this clause, the Government will reim- tor’s liability by making an equitable deduc- burse the Contractor for the reasonable, al- tion in the price of the job order. lowable cost of the replacement or repair, (e) The Contractor’s liability shall extend plus a reasonable profit (if the work or re- for an additional 90 day guarantee period on placement or repair was performed by the those defects or deficiencies that the Con- Contractor) less the deductible amount spec- tractor corrected. ified in paragraph (b) of this clause. (f) At the option of the Contracting Officer, (iii) Payments by the Government to the defects and deficiencies may be left uncor- Contractor under this clause are outside the rected. In that event, the Contractor and scope of and shall not affect the pricing Contracting Officer shall negotiate an equi- structure of the contract, and are additional table reduction in the job price. Failure to to the compensation otherwise payable to agree upon an equitable reduction shall con- the Contractor under this contract; or stitute a dispute under the Disputes clause (2) In the event the Contracting Officer de- of this agreement. cides that the loss or damage shall not be re- placed or repaired, the Contracting Officer (End of clause) shall— (i) Modify the contract appropriately, con- 252.217–7014 Discharge of liens. sistent with the reduced requirements re- flected by the unreplaced or unrepaired loss As prescribed in 217.7104(a), use the or damage; or following clause: (ii) Terminate the repair of any part or all DISCHARGE OF LIENS (DEC 1991) of the vessel(s) under the Termination for Convenience of the Government clause of (a) The Contractor shall immediately dis- this agreement. charge, or cause to be discharged, any lien or
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right in rem of any kind, other than in favor (2) No such device or equipment shall be- of the Government, that exists or arises in come a fixture as a result of its being affixed connection with work done or material fur- to realty not owned by the Government. nished under any job order under this agree- ment. (End of clause) (b) If any lien or right in rem is not imme- diately discharged, the Government, at the 252.217–7017 Time of delivery. expense of the Contractor, may discharge, or cause to be discharged, the lien or right. As prescribed in 217.7203(a)(1), use the following clause: (End of clause) TIME OF DELIVERY (DEC 1991) 252.217–7015 Safety and health. (a) Ordering offices shall specify delivery As prescribed in 217.7104(a), use the locations and quantities in all oral or writ- following clause: ten delivery orders under this contract. (b) The Contractor shall complete deliv- SAFETY AND HEALTH (DEC 1991) eries within the hours prescribed in the schedule of this contract and on the days Nothing contained in the Master Agree- specified by the order. ment or any job order shall relieve the Con- (c) Orders requiring delivery within 24 tractor of any obligations it may have to hours from Contractor receipt are governed comply with— by paragraph (e) of the Requirements clause (a) The Occupational Safety and Health of this contract. Act of 1970 (29 U.S.C. 651, et seq.); (b) The Safety and Health Regulations for (End of clause) Ship Repairing (29 CFR part 1915); or (c) Any other applicable Federal, State, Alternate I (DEC 1991). As prescribed in and local laws, codes, ordinances, and regula- 217.7203(a)(1), substitute the following para- tions. graph (c) for paragraph (c) of the basic clause: (End of clause) (c) The Contractor shall not be required to deliver within less than lll hours from 252.217–7016 Plant protection. the time the Contractor receives a delivery order. As prescribed in 217.7104(a), use the following clause: 252.217–7018 Change in plant loca- PLANT PROTECTION (DEC 1991) tion—bakery and dairy products. (a) The Contractor shall provide, for the As prescribed in 217.7203(a)(2), use the plant and work in process, reasonable safe- following clause: guards against all hazards, including unau- CHANGE IN PLANT LOCATION—BAKERY AND thorized entry, malicious mischief, theft, vandalism, and fire. DAIRY PRODUCTS (DEC 1991) (b) The Contractor shall also provide what- (a) The Offeror shall identify in the clause ever additional safeguards are necessary to in this solicitation entitled Place of Per- protect the plant and work in process from formance, all plants to be used for manufac- espionage, sabotage, and enemy action. turing, processing, and shipment. Failure to (1) The Government shall reimburse the furnish this information with the offer may Contractor for that portion of the costs of result in rejection of the offer. the additional safeguards that is allocable to (b) The Offeror shall not change any place the contract in the same manner as if the of performance between the date set for re- Contracting Officer had issued a change ceipt of offers and the award, except where order for the additional safeguards. time permits and then only after receipt of (2) The costs reimbursed shall not include the Contracting Officer’s written approval. any overhead allowance, unless the overhead (c) The Contractor shall not change any is incident to the construction or installa- place of performance after contract award tion of necessary security devices or equip- without advance approval by the Con- ment. tracting Officer. (c) Upon payment by the Government of the cost of any device or equipment required (End of clause) or approved under paragraph (b) of this clause, title shall vest in the Government. 252.217–7019 Sanitary conditions. (1) The Contractor shall comply with the instructions of the Contracting Officer con- As prescribed in 217.7203(a)(3), use the cerning its identification and disposition. following clause:
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SANITARY CONDITIONS (DEC 1991) 252.217–7020 Examination and testing. (a) The Contractor shall ensure that all As prescribed in 217.7203(b)(1), use the supplies delivered under this contract, and following clause: all plant facilities, machinery, equipment, and apparatus used in the production, proc- EXAMINATION AND TESTING (DEC 1991) essing, handling, storage, or delivery of these (a) The Government reserves the right to supplies, meet the sanitary standards (in- examine and test all products to be delivered cluding bacteriological requirements) pre- under the contract. Examination and testing scribed by the specifications cited in this of dairy products shall be in accordance with contract. the Veterinary/Medical Wholesomeness As- (b) The Government reserves the right to surance Program for Fresh and Cultured inspect and test at any reasonable times all Dairy Products and Frozen Desserts (AR 40– plant facilities, machinery, equipment, and 70; NAVSUPINST 4355.6; AFR 161–46; and parts used in the production, processing, MCO 10110.44). handling, storage, transportation, or deliv- (b) Samples. (1) The Government shall se- ery of supplies under this contract. lect the samples. For purposes of this clause, (c) The Contracting Officer or representa- the Contractor agrees that a lot consists of a tive shall notify the Contractor in writing of day’s production of the type of product deliv- any failure to meet the sanitary standards ered, or intended to be delivered, under this (including bacteriological requirements) pre- contract. scribed by this contract. If the Contractor (2) Samples selected at origin shall be fur- does not correct the failure within three nished at the Contractor’s expense, and shall be considered representative of all the prod- days from receipt of notice, the Contracting ucts delivered to the Government from the Officer may— lot sampled. (1) Terminate for default all or part of this (3) Samples selected at destination shall be contract; or furnished at Government expense, and shall (2) Suspend work (wholly or partially) be considered representative of all of that under the contract for ten days or any longer type product delivered to the Government on period considered necessary to allow correc- the date sampled. tion of the failure. (4) When samples are selected from con- (d) The suspension does not extend the life tainers of 1/2 gallon size or smaller, the en- of this contract and shall not be considered tire contents of the container shall con- sufficient reason for extending the delivery stitute the sample. When samples are se- time. lected from containers larger than 1/2 gallon, (e) During the suspension period, the Gov- a 1/2 pint sample shall be taken for labora- ernment reserves the right to acquire similar tory analysis. supplies from other sources, on whatever (c) Deficiencies in amounts. The Contractor terms and in whatever manner the Con- shall reimburse the Government for defi- tracting Officer considers appropriate. The ciencies (i.e., amounts less than required in this contract) in the amount of butterfat, Contractor shall be liable to the Government milk solids non-fat, or total solids of any for any excess costs for those similar sup- type of product as determined by chemical plies. analysis. The amount of the reimbursement (f) If the Contractor does not correct the shall be determined in accordance with the failure within the suspension period, the Deficiency Adjustment clause of this con- Contracting Officer may terminate for de- tract. The Government shall not reimburse fault the unexpired portion of this contract the Contractor for butterfat, milk solids without allowing additional time for correc- non-fat, and total solids content in excess of tion, notwithstanding paragraph (a)(2) of the the amount required by this contract. Default (Fixed-Price Supply and Service) (d) Deficiencies in products. (1) The Con- clause of this contract. tracting Officer or representative shall no- tify the Contractor orally (with written con- (End of clause) firmation) or in writing when two of the last four consecutive lots tested are noncon- Alternate I (DEC 1991). As prescribed in forming for the same specification require- 217.7203(a)(3), add the following to paragraph ments. The notice shall be in effect as long (d) of the basic clause: as two of the last four consecutive lots test- In a suspension, the quantity of supplies des- ed exceed the same limit of the specification. ignated in the schedule as a minimum shall The Government will take additional sam- be reduced by an amount proportionate to ples between 3 and 14 days after the date of the ratio between (1) the number of days the the notice. work is suspended; and (2) the number of (2) The Contracting Officer may suspend days in the contract period. The quantity of work under this contract for up to ten days supplies designated as maximum shall not be when three out of the last five consecutive reduced. lots tested are nonconforming for the same
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specification requirement, or when any defi- is computed, as reported in the Dairy Market ciency causes the production of a product News, published by the Department of Agri- which is considered to be a health hazard. culture, Agricultural Marketing Service, (e) Suspension. (1) During the suspension Madison, Wisconsin. period, the Government reserves the right to (2) Milk solids nonfat. Subtract the total acquire similar supplies from other sources, pounds of milk solids non-fat delivered from on whatever terms and in whatever manner the total pounds of milk solids non-fat re- the Contracting Officer considers appro- quired to be delivered, and multiply the re- priate. The Contractor shall be liable to the mainder by the milk solids non-fat value. Government for any excess costs for those The milk solids non-fat value is 1.45 multi- similar supplies. plied by the average Central States top price (2) The Contractor shall use the suspension for ‘‘Extra Grade, Non-fat Dry Milk, Spray period to correct the deficiencies. The Con- (bags)’’ during the monthly period for which tractor shall notify the Government when the deficiency is computed, as reported in corrective action is complete. the Dairy Market News. (3) The Contracting Officer shall lift the (3) Total solids. Add to the total solids de- suspension only after the Government has livered the total amount of any shortages for verified the corrective action and notified butterfat and milk solids non-fat that the the Contractor in writing. Contractor has already reimbursed. Subtract (4) The suspension does not extend the life this amount from the total solids required to of this contract and shall not be considered be delivered. Multiply the remainder by the sufficient reason for extending the delivery milk solids non-fat value. time. (b) The Government will not assess (5) If the Contractor does not correct the amounts totaling $25 or less during a month- failure within the suspension period, the ly accounting period. Monthly periods begin Contracting Officer may terminate for de- on the first day of the contract period and on fault the unexpired portion of this contract the same day of each succeeding month. without allowing additional time for correc- (c) The butterfat, milk solids non-fat, and tion, notwithstanding paragraph (a)(2) of the total solids content of one type of product Default (Fixed-Price Supply and Service) shall not be averaged with or offset against clause of this contract. the content of another type of product, and the content of products delivered in any one (End of clause) monthly period will not be averaged with or offset against the content of products deliv- Alternate I (DEC 1991). As prescribed in ered in any other monthly period. 217.7203(b)(1), add the following to paragraph (d) The Contractor shall identify the tare (d)(2) of the basic clause: weights of all containers on the shipping In a suspension, the quantity of supplies documents, and furnish a copy to the Gov- designated in the schedule as minimum shall ernment inspector at destination. The tare be reduced by an amount proportionate to weight of dispenser containers shall include the ratio between (i) the number of days the all parts of the container delivered as a unit, work is suspended; and (ii) the number of including lids, tubes, and seals. If different days in the contract period. The quantity of types of containers with different tares are supplies designated as maximum shall not be included in a single delivery, the Contractor reduced. shall furnish the tare weight and identifying 252.217–7021 Deficiency adjustment. characteristics of each type of container. (e) The Government shall inspect a rep- As prescribed in 217.7203(b)(2), use the resentative sample of the line item. If vol- following clause: ume and net weight shortages are found, the Government will adjust the entire quantity DEFICIENCY ADJUSTMENT (DEC 1991) of the line item delivered on the day the (a) When the Contractor is required under shortage is discovered. For the purpose of de- the Examination and Testing clause of the termining net weight, the following weight contract to reimburse the Government for factors apply: deficiencies in the amount of butterfat, milk solids non-fat, or total solids, reimbursement Product Weight factor shall be determined by the following for- Chocolate flavored milk or 8.8 pounds/gallon. mula— drink. (1) Butterfat. Subtract the total pounds of Milk whole fresh, buttermilk 8.6 pounds/gallon. butterfat delivered from the total pounds of fluid, milk whole fresh. cul- butterfat required to be delivered, and mul- tured, and milk skim fresh. tiply the remainder by the butterfat value. Fresh cream (18 percent but- 8.5 pounds/gallon. terfat or less), half-and-half The butterfat value is 1.30 multiplied by the fresh, and cream sour cul- average Central States top ‘‘Wholesale Sell- tured. ing Price’’ of Grade A, 92 score butter during Fresh cream (more than 18 8.4 pounds/gallon. the monthly period for which the deficiency percent butterfat).
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Product Weight factor (b) The Government shall not be liable for any damage to, or loss or destruction of, con- Cottage cheese, butter, and Weight on container. tainers and equipment furnished by the Con- other non-frozen products. tractor. Ice cream and frozen des- Applicable commodity speci- serts. fication. (End of clause) (f) Contractor reimbursement for deficient supplies does not prejudice the Government’s 252.217–7025 Containers and equip- right to terminate for default or to pursue ment. any other remedy under this contract or as As prescribed in 217.7203(b)(3), use the provided by law. following clause:
(End of clause) CONTAINERS AND EQUIPMENT (DEC 1991) (a) The Contractor shall ensure that dis- 252.217–7022 Code dating. penser containers and filling equipment used As prescribed in 217.7203(a)(4), use the in the performance of this contract, and any following clause: Contractor-furnished refrigerated bulk milk dispenser cabinets, comply with MIL–STD– CODE DATING (DEC 1991) 175, Minimum Sanitary Standards for the (a) The Contractor may use a code to com- Equipment and Methods for Handling of Milk ply with the requirement stated in the and Milk Products in Bulk Milk Dispensing schedule or specifications of this contract Operations. for showing a date on the labels of delivered (b) The Contractor shall install, service, items. and maintain any Contractor-furnished bulk (b) Before using a code, the Contractor milk dispenser cabinets to the Contracting shall— Officer’s satisfaction. The Contractor has (1) Provide a written explanation to the sole responsibility for the supply, installa- Contracting Officer; and tion, maintenance, and removal of the cabi- (2) Obtain the Contracting Officer’s ap- nets, including labor and material costs, and proval in writing. for any damage to, or loss or destruction of, (c) The Contractor shall also obtain the such cabinets. Contracting Officer’s written approval before (c) When the Contractor fails to furnish making any changes in the code symbols, milk dispenser cabinets or milk dispenser system, or explanation. containers as required in the schedule, or does not properly service, maintain, and re- (End of clause) pair such dispenser cabinets, so that milk cannot be dispensed as needed by the Gov- 252.217–7023 Marking. ernment, the Contractor shall, for as long as such conditions exist, deliver a sufficient As prescribed in 217.7203(a)(5), use the quantity of milk in half-pint containers to following clause: satisfy orders for milk dispenser containers. The price per gallon for milk dispenser con- MARKING (DEC 1991) tainers shall apply. Commercial markings are acceptable, not- (d) When any loss of contents of a dis- withstanding any specification references to penser container occurs (including loss due MIL–STD–129. to contamination, spoilage, or leakage) as a result of functional failure of the dispenser (End of clause) cabinet or dispenser containers, the Con- tractor shall immediately replace the lost 252.217–7024 Responsibility for con- contents without cost to the Government, tainers and equipment. unless such functional failure was due to a As prescribed in 217.7203(a)(6), use the general power failure at the Government in- stallation. following clause:
RESPONSIBILITY FOR CONTAINERS AND (End of clause) EQUIPMENT (DEC 1991) 252.217–7026 Identification of sources (a) The Contractor shall— of supply. (1) Maintain all reusable containers and equipment in a sanitary condition and in a As prescribed in 217.7303, use the fol- good state of repair and working order; and lowing provision: (2) Remove all empty, reusable containers IDENTIFICATION OF SOURCES OF SUPPLY (NOV from Government premises at the time of 1995) each delivery, unless the Contracting Officer grants permission in writing for less fre- (a) The Government is required under 10 quent removal. U.S.C. 2384 to obtain certain information on
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the actual manufacturer or sources of sup- (b) The apparently successful Offeror plies it acquires. agrees to complete and submit the following table before award:
TABLE
Source of supply Line items National stock Commercial Actual mfg? No. item (Y or N) Company Address Part No.
(1) (2) (3) (4) (4) (5) (6)
lll ...... lll ...... lll ...... lll ...... lll ...... lll ...... lll (1) List each deliverable item of supply and item of technical data. (2) If there is no national stock number, list ‘‘none.’’ (3) Use ‘‘Y’’ if the item is a commercial item; otherwise use ‘‘N.’’ If ‘‘Y’’ is listed, the Offeror need not complete the remaining columns in the table. (4) For items of supply, list all sources. For technical data, list the source. (5) For items of supply, list each source’s part number for the item. (6) Use ‘‘Y’’ if the source of supply is the actual manufacturer; ‘‘N’’ if it is not; and ‘‘U’’ if unknown.
(End of provision) contracting activity, determine a reasonable price or fee in accordance with subpart 15.4 [56 FR 36479, July 31, 1991, as amended at 59 and part 31 of the FAR, subject to Contractor FR 27675, May 27, 1994; 60 FR 61601, Nov. 30, appeal as provided in the Disputes clause. In 1995] any event, the Contractor shall proceed with completion of the contract, subject only to 252.217–7027 Contract definitization. the Limitation of Government Liability clause. As prescribed in 217.7406(b), use the fol- (1) After the Contracting Officer’s deter- lowing clause: mination of price or fee, the contract shall be governed by— CONTRACT DEFINITIZATION (OCT 1998) (i) All clauses required by the FAR on the (a) A lll(insert specific type of contract date of execution of this underfinitized con- action) is contemplated. The Contractor tract action for either fixed-price or cost-re- agrees to begin promptly negotiating with imbursement contracts, as determined by the Contracting Officer the terms of a defini- the Contracting Officer under this paragraph tive contract that will include (1) all clauses (c); required by the Federal Acquisition Regula- (ii) All clauses required by law as of the date of the Contracting Officer’s determina- tion (FAR) on the date of execution of the tion; and underfinitized contract action, (2) all clauses (iii) Any other clauses, terms, and condi- required by law on the date of execution of tions mutually agreed upon. the definitive contract action, and (3) any (2) To the extent consistent with para- other mutually agreeable clauses, terms, and graph (c)(1) of this clause, all clauses, terms, conditions. The Contractor agrees to submit and conditions included in this undefinitized a lll(insert type of proposal; e.g., fixed-price contract action shall continue in effect, ex- or cost-and-fee) proposal and cost or pricing cept those that by their nature apply only to data supporting its proposal. an undefinitized contract action. (b) The schedule for definitizing this con- (d) The definitive contract resulting from tract is as follows (insert target date for this undefinitized contract action will in- definitization of the contract action and dates clude a negotiated llllllllll (insert for submission of proposal, beginning of nego- ‘‘cost/price ceiling’’ or ‘‘firm-fixed price’’) in no tiations, and, if appropriate, submission of the event to exceed llllllllll (insert the make-or-buy and subcontracting plans and cost not-to-exceed amount). or pricing data). llllllllllllllllllllllll (End of clause) llllllllllllllllllllllll llllllllllllllllllllllll [61 FR 7750, Feb. 29, 1996; 61 FR 18195, Apr. 24, llllllllllllllllllllllll 1996, as amended at 63 FR 55052, Oct. 14, 1998] (c) If agreement on a definitive contract 252.217–7028 Over and above work. action to supersede this undefinitized con- tract action is not reached by the target As prescribed in 217.7702, use a clause date in paragraph (b) of this clause, or with- substantially as follows: in any extension of it granted by the Con- OVER AND ABOVE WORK (DEC 1991) tracting Officer, the Contracting Officer may, with the approval of the head of the (a) Definitions.
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As used in this clause— (End of clause) (1) Over and above work means work discov- ered during the course of performing over- 252.219–7000—252.219–7002 [Reserved] haul, maintenance, and repair efforts that is— 252.219–7003 Small, small disadvan- (i) Within the general scope of the con- taged and women-owned small busi- tract; ness subcontracting plan (DoD con- (ii) Not covered by the line item(s) for the tracts). basic work under the contract; and As prescribed in 219.708(b)(1)(A), use (iii) Necessary in order to satisfactorily the following clause: complete the contract. (2) Work request means a document pre- SMALL, SMALL DISADVANTAGED AND WOMEN- pared by the Contractor which describes over OWNED SMALL BUSINESS SUBCONTRACTING and above work being proposed. PLAN (DOD CONTRACTS) (APR 1996) (b) The Contractor and Administrative This clause supplements the Federal Ac- Contracting Officer shall mutually agree to quisition Regulation 52.219–9, Small, Small procedures for Government administration Disadvantaged and Women-Owned Small and Contractor performance of over and Business Subcontracting Plan, clause of this above work requests. If the parties cannot contract. agree upon the procedures, the Administra- (a) Definitions. Historically black colleges and tive Contracting Officer has the unilateral universities, as used in this clause, means in- right to direct the over and above work pro- stitutions determined by the Secretary of cedures to be followed. These procedures Education to meet the requirements of 34 shall, as a minimum, cover— CFR 608.2. The term also means any non- (1) The format, content, and submission of profit research institution that was an inte- work requests by the Contractor. Work re- gral part of such a college or university be- fore November 14, 1986. quests shall contain data on the type of dis- Minority institutions, as used in this clause, crepancy disclosed, the specific location of means institutions meeting the require- the discrepancy, and the estimated labor ments of section 1046(3) of the Higher Edu- hours and material required to correct the cation Act of 1965 (20 U.S.C. 1135d–5(3)). The discrepancy. Data shall be sufficient to sat- term also includes Hispanic-serving institu- isfy contract requirements and obtain the tions as defined in section 316(b)(1) of such authorization of the Contracting Officer to Act (20 U.S.C. 1059c (b)(1)). perform the proposed work; (b) Except for company or division-wide (2) Government review, verification, and commercial items subcontracting plans, the authorization of the work; and term small disadvantaged business, when used (3) Proposal pricing, submission, negotia- in the FAR 52.219–9 clause, includes histori- tion, and definitization. cally black colleges and universities and mi- (c) Upon discovery of the need for over and nority institutions, in addition to small dis- above work, the Contractor shall prepare and advantaged business concerns. furnish to the Government a work request in (c) Work under the contract or its sub- accordance with the agreed-to procedures. contracts shall be credited toward meeting (d) The Government shall— the small disadvantaged business concern goal required by paragraph (d) of the FAR (1) Promptly review the work request; 52.219–9 clause when: (2) Verify that the proposed work is re- (1) It is performed on Indian lands or in quired and not covered under the basic con- joint venture with an Indian tribe or a trib- tract line item(s); ally-owned corporation, and (3) Verify that the proposed corrective ac- (2) It meets the requirements of 10 U.S.C. tion is appropriate; and 2323a. (4) Authorize over and above work as nec- (d) Subcontracts awarded to workshops ap- essary. proved by the Committee for Purchase from (e) The Contractor shall promptly submit People Who Are Blind or Severely Disabled to the Contracting Officer, a proposal for the (41 U.S.C. 46–48), may be counted toward the over and above work. The Government and Contractor’s small business subcontracting Contractor will then negotiate a settlement goal. for the over and above work. Contract modi- (e) A mentor firm, under the Pilot Mentor- fications will be executed to definitize all Protege Program established under Section over and above work. 831 of Pub. L. 101–510, as amended, may count (f) Failure to agree on the price of over and toward its small disadvantaged business goal, subcontracts awarded— above work shall be a dispute within the (1) Protege firms which are qualified orga- meaning of the Disputes clause of this con- nizations employing the severely handi- tract. capped; and
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(2) Former protege firms that meet the cri- (2) Item 14, Remarks, shall be completed to teria in Section 831(g)(4) of Pub. L. 101–510. include semi-annual cumulative— (f) The master plan approval referred to in (i) Small business, small disadvantaged paragraph (f) of the FAR 52.219–9 clause is business, and women-owned small business approval by the Contractor’s cognizant con- goals; and tract administration activity. (ii) Small business and small disadvan- (g) In those subcontracting plans which taged business goals, actual accomplish- specifically identify small, small disadvan- ments, and percentages for each of the two taged, and women-owned small businesses, designated industry categories. the Contractor shall notify the Administra- (d) The failure of the Contractor or subcon- tive Contracting Officer of any substitutions tractor to comply in good faith with (1) the of firms that are not small, small disadvan- clause of this contract entitled ‘‘Utilization taged, or women-owned small businesses for of Small, Small Disadvantaged and Women- the firms listed in the subcontracting plan. Owned Small Business Concerns,’’ or (2) an Notifications shall be in writing and shall approved plan required by this clause, shall occur within a reasonable period of time be a material breach of the contract. after award of the subcontract. Contractor- specified formats shall be acceptable. (End of clause)
(End of clause) [56 FR 36479, July 31, 1991, as amended at 60 FR 35668, July 10, 1995; 61 FR 39901, July 31, [56 FR 36479, July 31, 1991, as amended at 59 1996; 62 FR 34129, June 24, 1997] FR 22131, Apr. 29, 1994; 59 FR 27675, May 27, 1994; 60 FR 61601, Nov. 30, 1995; 61 FR 18688, 252.219–7005—252.219–7008 [Reserved] Apr. 29, 1996] 252.219–7009 Section 8(a) direct 252.219–7004 Small, small disadvan- award. taged and women-owned small busi- As prescribed in 219.811–3(1), use the ness subcontracting plan (test pro- following clause: gram). SECTION 8(A) DIRECT AWARD (JUN 1998) As prescribed in 219.708(b)(1)(B), use the following clause: (a) This contract is issued as a direct award between the contracting office and the SMALL, SMALL DISADVANTAGED AND WOMEN- 8(a) Contractor pursuant to the Memo- OWNED SMALL BUSINESS SUBCONTRACTING randum of Understanding dated May 6, 1998, PLAN (TEST PROGRAM) (JUN 1997) between the Small Business Administration (SBA) and the Department of Defense. Ac- (a) Definition. Subcontract, as used in this cordingly, the SBA is not a party to this con- clause, means any agreement (other than tract. SBA does retain responsibility for 8(a) one involving an employer-employee rela- certification, for 8(a) eligibility determina- tionship) entered into by a Federal Govern- tions and related issues, and for providing ment prime Contractor or subcontractor counseling and assistance to the 8(a) Con- calling for supplies or services required for tractor under the 8(a) Program. The cog- performance of the contract or subcontract. nizant SBA district office is: (b) The Offeror’s comprehensive small busi- ness subcontracting plan and its successors, llllllllllllllllllllllll which are authorized by and approved under llllllllllllllllllllllll the test program of Section 834 of Pub. L. llllllllllllllllllllllll 101–189, as amended, shall be included in and llllllllllllllllllllllll made a part of the resultant contract. Upon expulsion from the test program or expira- [To be completed by the Contracting Officer at tion of the test program, the Contractor the time of award] shall negotiate an individual subcontracting (b) The contracting office is responsible for plan for all future contracts that meet the administering the contract and for taking requirements of Section 211 of Pub. L. 95–507. any action on behalf of the Government (c) The Contractor shall submit Standard under the terms and conditions of the con- Form (SF) 295, Summary Subcontract Re- tract; provided that the contracting office port, in accordance with the instructions on shall give advance notice to the SBA before the form, except— it issues a final notice terminating perform- (1) One copy of the SF 295 and attachments ance, either in whole or in part, under the shall be submitted to Director, Small and contract. The contracting office also shall Disadvantaged Business Utilization, Office of coordinate with the SBA prior to processing the Deputy Under Secretary of Defense any novation agreement. The contracting of- (International and Commercial Programs), fice may assign contract administration 3061 Defense Pentagon, Room 2A338, Wash- functions to a contract administration of- ington, DC 20301–3061; and fice.
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(c) The Contractor agrees that— 252.222–7000 Restrictions on employ- (1) It will notify the Contracting Officer, ment of personnel. simultaneous with its notification to the SBA (as required by SBA’s 8(a) regulations As prescribed in 222.7004, use the fol- at 13 CFR 124.308), when the owner or owners lowing clause: upon whom 8(a) eligibility is based plan to RESTRICTIONS ON EMPLOYMENT OF PERSONNEL relinquish ownership or control of the con- (MAR 2000) cern. Consistent with Section 407 of Pub. L. 100–656, transfer of ownership or control shall (a) The Contractor shall employ, for the result in termination of the contract for con- purpose of performing that portion of the venience, unless the SBA waives the require- contract work in llll, individuals who ment for termination prior to the actual re- are residents thereof and who, in the case of linquishing of ownership and control; and any craft or trade, possess or would be able (2) It will not subcontract the performance to acquire promptly the necessary skills to perform the contract. of any of the requirements of this contract (b) The Contractor shall insert the sub- without the prior written approval of the stance of this clause, including this para- SBA and the Contracting Officer. graph (b), in each subcontract awarded under this contract. (End of clause) (End of clause) [63 FR 33588, June 19, 1998] [65 FR 14403, Mar. 16, 2000] 252.219–7010 Alternate A. 252.222–7001 Right of first refusal of ALTERNATE A (JUN 1998) employment—Closure of military installations. As prescribed in 219.811–3(2), sub- stitute the following paragraph (c) for As prescribed in 222.7102, use the fol- paragraph (c) of the clause at FAR lowing clause:
52.219–18: RIGHT OF FIRST REFUSAL OF EMPLOYMENT— (c) Any award resulting from this solicita- CLOSURE OF MILITARY INSTALLATIONS (APR tion will be made directly by the Con- 1992) tracting Officer to the successful 8(a) offeror (a) The Contractor shall give Government selected through the evaluation criteria set employees, who have been or will be ad- forth in this solicitation. versely affected by the closure of the mili- [63 FR 33588, June 19, 1998] tary installation where this contract will be performed, the right of first refusal for em- 252.219–7011 Notification to delay per- ployment openings under the contract. This formance. right applies to positions for which the em- ployee is qualified, if consistent with post- As prescribed in 219.811-3 (3), use the Government employment conflict of interest following clause: standards. (b) Government personnel seeking pref- NOTIFICATION TO DELAY PERFORMANCE (JUN erence under this clause shall provide the 1998) Contractor with evidence from the Govern- ment personnel office. The Contractor shall not begin perform- ance under this purchase order until 2 work- (End of clause) ing days have passed from the date of its re- ceipt. Unless the Contractor receives notifi- cation from the Small Business Administra- [57 FR 52594, Nov. 4, 1992, as amended at 58 tion thatit is ineligible for this 8(a) award, or FR 28472, May 13, 1993] otherwise receives instructions from the Contracting Officer, performance under this 252.222–7002 Compliance with local purchase order may begin on the third work- labor laws (overseas). ing day following receipt of the purchase As prescribed in 222.7201(a), use the order. If a determination of ineligibility is following clause: issued within the 2-day period, the purchase order shall be considered canceled. COMPLIANCE WITH LOCAL LABOR LAWS (OVERSEAS) (JUNE 1997) (End of clause) (a) The Contractor shall comply with all— (1) Local laws, regulations, and labor union [63 FR 33588, June 19, 1998] agreements governing work hours; and
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(2) Labor regulations including collective COMPLIANCE WITH SPANISH SOCIAL SECURITY bargaining agreements, workers’ compensa- LAWS AND REGULATIONS (JUN 1997) tion, working conditions, fringe benefits, and (a) The Contractor shall comply with all labor standards or labor contract matters. Spanish Government social security laws (b) The Contractor indemnifies and holds and regulations. Within 30 calendar days harmless the United States Government after the start of contract performance, the from all claims arising out of the require- Contractor shall ensure that copies of the ments of this clause. This indemnity in- documents identified in paragraph (a)(1) cludes the Contractor’s obligation to handle through (a)(5) of this clause are available at and settle, without cost to the United States all reasonable times for inspection by the Government, any claims or litigation con- Contracting Officer or an authorized rep- cerning allegations that the Contractor or resentative. The Contractor shall retain the the United States Government, or both, have records in accordance with the Audit and not fully complied with local labor laws or Records clause of this contract. regulations relating to the performance of (1) TC1—Certificate of Social Security work required by this contract. Payments; (c) Notwithstanding paragraph (b) of this (2) TC2—List of Employees; clause, consistent with paragraphs 31.205– (3) TC2/1—Certificate of Social Security 15(a) and 31.205–47(d) of the Federal Acquisi- Payments for Trainees; tion Regulation, the Contractor will be reim- (4) Nominal (pay statements) signed by bursed for the costs of all fines, penalties, both the employee and the Contractor; and and reasonable litigation expenses incurred (5) Informa de Situacion de Empressa (Re- as a result of compliance with specific con- port of the Condition of the Enterprise) from tract terms and conditions or written in- the Ministerio de Trabajo y S.S., Tesoreria structions from the Contracting officer. General de la Seguridad Social (annotated with the pertinent contract number(s) next (End of clause) to the employee’s name). (b) All TC1’s, TC2’s, and TC2/1’s shall con- [62 FR 34129, June 24, 1997] tain a representation that they have been paid by either the Social Security Adminis- 252.222–7003 Permit from Italian tration office or the Contractor’s bank or Inspectorate of Labor. savings institution. Failure by the Con- tractor to comply with the requirements of As prescribed in 222.7201(b), use the this clause may result in termination of the following clause: contract under the clause of the contract en- titled ‘‘Default.’’ PERMIT FROM ITALIAN INSPECTORATE OF LABOR (JUN 1997) (End of clause) Prior to the date set for commencement of work and services under this contract, the [62 FR 34129, June 24, 1997] Contractor shall obtain the prescribed per- mit from the Inspectorate of Labor having 252.222–7005 Prohibition on use of jurisdiction over the work site, in accord- nonimmigrant aliens—Guam. ance with Article 5g of Italian Law Number As prescribed in 222.7303, use the fol- 1369, dated October 23, 1960. The Contractor lowing clause: shall ensure that a copy of the permit is available at all reasonable times for inspec- PROHIBITION ON USE OF NONIMMIGRANT tion by the Contracting Officer or an author- ALIENS—GUAM (SEP 1999) ized representative. Failure to obtain such permit may result in termination of the con- The work required by this contract shall tract for the convenience of the United not be performed by any alien who is issued States Government, at no cost to the United a visa or otherwise provided nonimmigrant States Government. status under Section 101(a)(15)(H)(ii) of the Immigration and Nationality Act (8 U.S.C. (End of clause) 1101(a)(15)(H)(ii)). This prohibition does not apply to the performance of work by lawfully admitted citizens of the freely associated [62 FR 34129, June 24, 1997] states of the Republic of the Marshall Is- lands, the Federated States of Micronesia, or 252.222–7004 Compliance with Spanish the Republic of Palau. social security laws and regula- tions. (End of clause) As prescribed in 222.7201(c), use the following clause: [64 FR 52673, Sept. 30, 1999]
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252.223–7000 [Reserved] SAFETY PRECAUTIONS FOR AMMUNITION AND EXPLOSIVES (MAY 1994) 252.223–7001 Hazard warning labels. (a) Definition. Ammunition and explosives, as As prescribed in 223.303, use the fol- used in this clause— lowing clause: (1) Means liquid and solid propellants and explosives, pyrotechnics, incendiaries and HAZARD WARNING LABELS (DEC 1991) smokes in the following forms: (i) Bulk, (a) ‘‘Hazardous material,’’ as used in this (ii) Ammunition; clause, is defined in the Hazardous Material (iii) Rockets; Identification and Material Safety Data (iv) Missiles; clause of this contract. (v) Warheads; (b) The Contractor shall label the item (vi) Devices; and package (unit container) of any hazardous (vii) Components of (i) through (vi), except material to be delivered under this contract for wholly inert items. in accordance with the Hazard Communica- (2) This definition does not include the fol- tion Standard (29 CFR 1910.1200 et seq). The lowing, unless the Contractor is using or in- Standard requires that the hazard warning corporating these materials for initiation, label conform to the requirements of the propulsion, or detonation as an integral or standard unless the material is otherwise component part of an explosive, an ammuni- subject to the labelling requirements of one tion or explosive end item, or of a weapon of the following statutes: system— (1) Federal Insecticide, Fungicide and (i) Inert components containing no explo- Rodenticide Act; sives, propellants, or pyrotechnics; (2) Federal Food, Drug and Cosmetics Act; (ii) Flammable liquids; (3) Consumer Product Safety Act; (iii) Acids; (4) Federal Hazardous Substances Act; or (iv) Oxidizers; (5) Federal Alcohol Administration Act. (v) Powdered metals; or (c) The Offeror shall list which hazardous (vi) Other materials having fire or explo- material listed in the Hazardous Material sive characteristics. Identification and Material Safety Data (b) Safety requirements. (1) The Contractor clause of this contract will be labelled in ac- shall comply with the requirements of the cordance with one of the Acts in paragraphs DoD Contractors’ Safety Manual for Ammu- (b) (1) through (5) of this clause instead of nition and Explosives, DoD 4145.26–M, here- the Hazard Communication Standard. Any after referred to as ‘‘the manual,’’ in effect hazardous material not listed will be inter- on the date of the solicitation for this con- preted to mean that a label is required in ac- tract. The Contractor shall also comply with cordance with the Hazard Communication any other additional requirements included Standard. in the schedule of this contract. (2) The Contractor shall allow the Govern- Material (if none, insert ‘‘none.’’) Act ment access to the Contractor’s facilities, llll llll personnel, and safety program documenta- llll llll tion. The Contractor shall allow authorized Government representatives to evaluate (d) The apparently successful Offeror safety programs, implementation, and facili- agrees to submit, before award, a copy of the ties. hazard warning label for all hazardous mate- (c) Noncompliance with the manual. (1) If the rials not listed in paragraph (c) of this Contracting Officer notifies the Contractor clause. The Offeror shall submit the label of any noncompliance with the manual or with the Material Safety Data Sheet being schedule provisions, the Contractor shall furnished under the Hazardous Material take immediate steps to correct the non- Identification and Material Safety Data compliance. The Contractor is not entitled clause of this contract. to reimbursement of costs incurred to cor- (e) The Contractor shall also comply with rect noncompliances unless such reimburse- MIL–STD–129, Marking for Shipment and ment is specified elsewhere in the contract. Storage (including revisions adopted during (2) The Contractor has 30 days from the the term of this contract). date of notification by the Contracting Offi- cer to correct the noncompliance and inform (End of clause) the Contracting Officer of the actions taken. The Contracting Officer may direct a dif- 252.223–7002 Safety precautions for ferent time period for the correction of non- ammunition and explosives. compliances. (3) If the Contractor refuses or fails to cor- As prescribed in 223.370–5, use the fol- rect noncompliances within the time period lowing clause: specified by the Contracting Officer, the
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Government has the right to direct the Con- (i) The clause shall include a provision al- tractor to cease performance on all or part of lowing authorized Government safety rep- this contract. The Contractor shall not re- resentatives to evaluate subcontractor safe- sume performance until the Contracting Of- ty programs, implementation, and facilities ficer is satisfied that the corrective action as the Government determines necessary. was effective and the Contracting Officer so (ii) NOTE: The Government Contracting Of- informs the Contractor. ficer or authorized representative shall no- (4) The Contracting Officer may remove tify the prime Contractor of all findings con- Government personnel at any time the Con- tractor is in noncompliance with any safety cerning subcontractor safety and compliance requirement of this clause. with the manual. The Contracting Officer or (5) If the direction to cease work or the re- authorized representative may furnish copies moval of Government personnel results in in- to the subcontractor. The Contractor in turn creased costs to the Contractor, the Con- shall communicate directly with the subcon- tractor shall not be entitled to an adjust- tractor, substituting its name for references ment in the contract price or a change in the to ‘‘the Government’’. The Contractor and delivery or performance schedule unless the higher tier subcontractors shall also include Contracting Officer later determines that provisions to allow direction to cease per- the Contractor had in fact complied with the formance of the subcontract if a serious un- manual or schedule provisions. If the Con- corrected or recurring safety deficiency po- tractor is entitled to an equitable adjust- tentially causes an imminent hazard to DoD ment, it shall be made in accordance with personnel, property, or contract perform- the Changes clause of this contract. ance. (d) Mishaps. If a mishap involving ammuni- (2) The Contractor agrees to ensure that tion or explosives occurs, the Contractor shall— the subcontractor complies with all contract (1) Notify the Contracting Officer imme- safety requirements. The Contractor will de- diately; termine the best method for verifying the (2) Conduct an investigation in accordance adequacy of the subcontractor’s compliance. with other provisions of this contract or as (3) The Contractor shall ensure that the required by the Contracting Officer; and subcontractor understands and agrees to the (3) Submit a written report to the Con- Government’s right to access to the sub- tracting Officer. contractor’s facilities, personnel, and safety (e) Contractor responsibility for safety. (1) program documentation to perform safety Nothing in this clause, nor any Government surveys. The Government performs these action or failure to act in surveillance of this safety surveys of subcontractor facilities contract, shall relieve the Contractor of its solely to prevent the occurrence of any mis- responsibility for the safety of— hap which would endanger the safety of DoD (i) The Contractor’s personnel and prop- personnel or otherwise adversely impact erty; (ii) The Government’s personnel and prop- upon the Government’s contractual inter- erty; or ests. (iii) The general public. (4) The Contractor shall notify the Con- (2) Nothing in this clause shall relieve the tracting Officer or authorized representative Contractor of its responsibility for com- before issuing any subcontract when it in- plying with applicable Federal, State, and volves ammunition or explosives. If the pro- local laws, ordinances, codes, and regula- posed subcontract represents a change in the tions (including those requiring the obtain- place of performance, the Contractor shall ing of licenses and permits) in connection request approval for such change in accord- with the performance of this contract. ance with the clause of this contract entitled (f) Contractor responsibility for contract per- ‘‘Change in Place of Performance—Ammuni- formance. (1) Neither the number or fre- tion and Explosives’’. quency of inspections performed by the Gov- ernment, nor the degree of surveillance exer- (End of clause) cised by the Government, relieve the Con- tractor of its responsibility for contract per- formance. [56 FR 36479, July 31, 1991, as amended at 59 (2) If the Government acts or fails to act in FR 27675, May 27, 1994] surveillance or enforcement of the safety re- quirements of this contract, this does not 252.223–7003 Change in place of per- impose or add to any liability of the Govern- formance—ammunition and explo- ment. sives. (g) Subcontractors. (1) The Contractor shall insert this clause, including this paragraph As prescribed in 223.370–5, use the fol- (g), in every subcontract that involves am- lowing clause: munition or explosives.
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CHANGE IN PLACE OF PERFORMANCE— (2) Supervisory training to assist in identi- AMMUNITION AND EXPLOSIVES (DEC 1991) fying and addressing illegal drug use by Con- tractor employees; (a) The Offeror shall identify, in the ‘‘Place of Performance’’ provision of this solicita- (3) Provision for self-referrals as well as su- tion, the place of performance of all ammu- pervisory referrals to treatment with max- nition and explosives work covered by the imum respect for individual confidentiality Safety Precautions for Ammunition and Ex- consistent with safety and security issues; plosives clause of this solicitation. Failure (4) Provision for identifying illegal drug to furnish this information with the offer users, including testing on a controlled and may result in rejection of the offer. carefully monitored basis. Employee drug (b) The Offeror agrees not to change the testing programs shall be established taking place of performance of any portion of the account of the following: offer covered by the Safety Precautions for (i) The Contractor shall establish a pro- Ammunition and Explosives clause con- gram that provides for testing for the use of tained in this solicitation after the date set illegal drugs by employees in sensitive posi- for receipt of offers without the written ap- tions. The extent of and criteria for such proval of the Contracting Officer. The Con- testing shall be determined by the Con- tracting Officer shall grant approval only if tractor based on considerations that include there is enough time for the Government to the nature of the work being performed perform the necessary safety reviews on the under the contract, the employee’s duties, new proposed place of performance. the efficient use of Contractor resources, and (c) If a contract results from this offer, the the risks to health, safety, or national secu- Contractor agrees not to change any place of rity that could result from the failure of an performance previously cited without the ad- employee adequately to discharge his or her vance written approval of the Contracting position. Officer. (ii) In addition, the Contractor may estab- lish a program for employee drug testing— (End of clause) (A) When there is a reasonable suspicion that an employee uses illegal drugs; or 252.223–7004 Drug-free work force. (B) When an employee has been involved in As prescribed in 223.570–4, use the fol- an accident or unsafe practice; lowing clause: (C) As part of or as a follow-up to coun- seling or rehabilitation for illegal drug use; DRUG-FREE WORK FORCE (SEP 1988) (D) As part of a voluntary employee drug (a) Definitions. (1) Employee in a sensitive po- testing program. sition, as used in this clause, means an em- (iii) The Contractor may establish a pro- ployee who has been granted access to classi- gram to test applicants for employment for fied information; or employees in other posi- illegal drug use. tions that the Contractor determines involve (iv) For the purpose of administering this national security, health or safety, or func- clause, testing for illegal drugs may be lim- tions other than the foregoing requiring a ited to those substances for which testing is high degree of trust and confidence. prescribed by section 2.1 of subpart B of the (2) Illegal drugs, as used in this clause, ‘‘Mandatory Guidelines for Federal Work- means controlled substances included in place Drug Testing Programs’’ (53 FR 11980 Schedules I and II, as defined by section (April 11 1988)), issued by the Department of 802(6) of title 21 of the United States Code, Health and Human Services. the possession of which is unlawful under (d) Contractors shall adopt appropriate chapter 13 of that title. The term ‘‘illegal personnel procedures to deal with employees drugs’’ does not mean the use of a controlled who are found to be using drugs illegally. substance pursuant to a valid prescription or Contractors shall not allow any employee to other uses authorized by law. remain on duty or perform in a sensitive po- (b) The Contractor agrees to institute and sition who is found to use illegal drugs until maintain a program for achieving the objec- such times as the Contractor, in accordance tive of a drug-free work force. While this with procedures established by the Con- clause defines criteria for such a program, tractor, determines that the employee may contractors are encouraged to implement al- perform in such a position. ternative approaches comparable to the cri- (e) The provisions of this clause pertaining teria in paragraph (c) that are designed to to drug testing program shall not apply to achieve the objectives of this clause. the extent they are inconsistent with state (c) Contractor programs shall include the or local law, or with an existing collective following, or appropriate alternatives: bargaining agreement; provided that with re- (1) Employee assistance programs empha- spect to the latter, the Contractor agrees sizing high level direction, education, coun- that those issues that are in conflict will be seling, rehabilitation, and coordination with a subject of negotiation at the next collec- available community resources; tive bargaining session.
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(End of clause) of non-DoD-owned toxic or hazardous mate- rials as defined in this clause. [57 FR 32737, July 23, 1992] [58 FR 28472, May 13, 1993, as amended at 60 FR 13076, Mar. 10, 1995; 60 FR 61601, Nov. 30, 252.223–7005 [Reserved] 1995]
252.223–7006 Prohibition on storage 252.223–7007 Safeguarding sensitive and disposal of toxic and hazardous conventional arms, ammunition, materials. and explosives. As prescribed in 223.7103(a), use the As prescribed in 223.7203, use the fol- following clause: lowing clause:
PROHIBITION ON STORAGE AND DISPOSAL OF SAFEGUARDING SENSITIVE CONVENTIONAL TOXIC AND HAZARDOUS MATERIALS (APR 1993) ARMS, AMMUNITION, AND EXPLOSIVES (SEP (a) Definitions. 1999) As used in this clause— (a) Definition. (1) Storage means a non-transitory, semi- ‘‘Arms, ammunition, and explosives permanent or permanent holding, placement, (AA&E),’’ as used in this clause, means those or leaving of material. It does not include a items within the scope (chapter 1, paragraph temporary accumulation of a limited quan- B) of DoD 5100.76–M, Physical Security of tity of a material used in or a waste gen- Sensitive Conventional Arms, Ammunition, erated or resulting from authorized activi- and Explosives. ties, such as servicing, maintenance, or re- (b) The requirements of DoD 5100.76–M pair of Department of Defense (DoD) items, apply to the following items of AA&E being equipment, or facilities. developed, produced, manufactured, or pur- (2) Toxic or hazardous materials means: chased for the Government, or provided to (i) Materials referred to in section 101(14) the Contractor as Government-furnished of the Comprehensive Environmental Re- property under this contract: sponse, Compensation, and Liability Act (CERCLA) of 1980 (42 U.S.C. 9601(14)) and ma- National Sensitivity terials designated under section 102 of Nomenclature stock category CERCLA (42 U.S.C. 9602) (40 CFR part 302); number (ii) Materials that are of an explosive, flammable, or pyrotechnic nature; or (iii) Materials otherwise identified by the Secretary of Defense as specified in DoD reg- (c) The Contractor shall comply with the ulations. requirements of DoD 5100.76–M, as specified (b) In accordance with 10 U.S.C. 2692, the in the statement of work. The edition of DoD Contractor is prohibited from storing or dis- 5100.76–M in effect on the date of issuance of posing of non-DoD-owned toxic or hazardous the solicitation for this contract shall apply. materials on a DoD installation, except to (d) The Contractor shall allow representa- the extent authorized by a statutory excep- tives of the Defense Security Service (DSS), tion to 10 U.S.C. 2692 or as authorized by the and representatives of other appropriate of- Secretary of Defense or his designee. fices of the Government, access at all reason- Alternate I (NOV 1995). As prescribed in able times into its facilities and those of its 223.7103(b), add the following paragraphs (c) subcontractors, for the purpose of per- and (d) to the basic clause: forming surveys, inspections, and investiga- (c) With respect to treatment or disposal tions necessary to review compliance with authorized pursuant to 10 U.S.C. 2692(b)(9), the physical security standards applicable to and notwithstanding any other provision of this contract. the contract, the Contractor assumes all fi- (e) The Contractor shall notify the cog- nancial and environmental responsibility nizant DSS field office of any subcontract in- and liability resulting from any treatment volving AA&E within 10 days after award of or disposal of non-DoD-owned toxic or haz- the subcontract. ardous materials on a military installation. (f) The Contractor shall ensure that the re- The Contractor shall indemnify, defend, and quirements of this clause are included in all hold the Government harmless for all costs, subcontracts, at every tier— liability, or penalties resulting from the (1) For the development, production, man- Contractor’s treatment or disposal of non- ufacture, or purchase of AA&E; or DoD-owned toxic or hazardous materials on (2) When AA&E will be provided to the sub- a military installation. contractor as Government-furnished prop- (d) The Contractor shall include this erty. clause, including this paragraph (d), in each (g) Nothing in this clause shall relieve the subcontract which requires, may require, or Contractor of its responsibility for com- permits a subcontractor to treat or dispose plying with applicable Federal, state, and
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local laws, ordinances, codes, and regula- 252.225–7001 Buy American Act and tions (including requirements for obtaining Balance of Payments Program. licenses and permits) in connection with the performance of this contract. As prescribed in 225.1101(2), use the following clause: (End of clause) BUY AMERICAN ACT AND BALANCE OF PAYMENTS PROGRAM (MAR 1998) [61 FR 7750, Feb. 29, 1996, as amended at 64 FR 51077, Sept. 21, 1999] (a) Definitions. As used in this clause— 252.225–7000 Buy American Act—Bal- (1) Components means those articles, mate- ance of Payments Program Certifi- rials, and supplies directly incorporated into cate. end products. (2) Domestic end product means— As prescribed in 225.1101(1), use the (i) An unmanufactured end product that following provision: has been mined or produced in the United States; or BUY AMERICAN ACT—BALANCE OF PAYMENTS (ii) An end product manufactured in the PROGRAM CERTIFICATE (SEP 1999) United States if the cost of its qualifying (a) Definitions. Domestic end product, quali- country components and its components fying country, qualifying country end product, that are mined, produced, or manufactured and qualifying country end product have the in the United States exceeds 50 percent of meanings given in the Buy American Act the cost of all its components. The cost of and Balance of Payments Program clause of components shall include transportation this solicitation. costs to the place of incorporation into the (b) Evaluation. Offers will be evaluated by end product and U.S. duty (whether or not a giving preference to domestic end products duty-free entry certificate may be issued). A and qualifying country end products over component shall be considered to have been nonqualifying country end products. mined, produced, or manufactured in the (c) Certifications. (1) The Offeror certifies United States (regardless of its source in that— fact) if the end product in which it is incor- (i) Each end product, except those listed in porated is manufactured in the United paragraphs (c) (2) or (3) of this provision, is States and the component is of a class or a domestic end product; and kind— (ii) Components of unknown origin are con- (A) Determined to be not mined, produced, sidered to have been mined, produced, or or manufactured in the United States in suf- manufactured outside the United States or a ficient and reasonably available commercial qualifying country. quantities and of a satisfactory quality; or (B) That the Secretary concerned deter- (2) The Offeror certifies that the following mines would be inconsistent with the public end products are qualifying country end interest to apply the restrictions of the Buy products: American Act. (3) End product means those articles, mate- QUALIFYING COUNTRY END PRODUCTS rials, and supplies to be acquired for public Line item No. Country of origin use under the contract. For this contract, the end products are the line items to be de- llll llll livered to the Government (including sup- plies to be acquired by the Government for (List only qualifying country end products.) public use in connection with service con- tracts, but excluding installation and other (3) The Offeror certifies that the following services to be performed after delivery). end products are nonqualifying country end (4) Nonqualifying country end product means products: an end product that is neither a domestic end product nor a qualifying country end NONQUALIFYING COUNTRY END PRODUCTS product. (5) Qualifying country means any country Line item No. Country of origin (If known) set forth in subsection 225.872–1 of the De- llll llll fense Federal Acquisition Regulation Sup- plement. (6) Qualifying country component means an (End of provision) item mined, produced, or manufactured in a qualifying country. [56 FR 36479, July 31, 1991, as amended at 64 (7) Qualifying country end product means— FR 51077, Sept. 21, 1999; 65 FR 19857, Apr. 13, (i) An unmanufactured end product mined 2000] or produced in a qualifying country; or
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(ii) An end product manufactured in a 252.225–7003 Information for duty-free qualifying country if the cost of the compo- entry evaluation. nents mined, produced, or manufactured in the qualifying country and its components As prescribed in 225.1101(4), use the mined, produced, or manufactured in the following provision: United States exceeds 50 percent of the cost of all its components. INFORMATION FOR DUTY-FREE ENTRY (b) This clause implements the Buy Amer- EVALUATION (MAR 1998) ican Act (41 U.S.C. Section 10a–d) in a man- (a) Does the offeror propose to furnish— ner that will encourage a favorable inter- (1) A domestic end product with nonquali- national balance of payments by providing a fying country components for which the of- preference to domestic end products over feror requests duty-free entry; or other end products, except for end products (2) A foreign end product consisting of end which are qualifying country end products. items, components, or material of foreign or- (c) The Contractor agrees that it will de- igin other than those for which duty-free liver only domestic end products unless, in entry is to be accorded pursuant to the Duty- its offer, it specified delivery of other end Free Entry—Qualifying Country Supplies products in the Buy American Act—Balance (End Products and Components) clause or, if of Payments Program Certificate provision applicable, the Duty-Free Entry—Eligible of the solicitation. An offer certifying that a End Products clause of this solicitation? qualifying country end product will be sup- Yes ( ) No ( ) plied requires the Contractor to deliver a (b) If the answer in paragraph (a) is yes, qualifying country end product or a domestic answer the following questions: end product. (1) Are such foreign supplies now in the (d) The offered price of qualifying country United States? end products should not include custom fees Yes ( ) No ( ) or duty. The offered price of nonqualifying (2) Has the duty on such foreign supplies country end products, and products manufac- been paid? tured in the United States that contain non- Yes ( ) No ( ) qualifying country components, must in- (3) If the answer to paragraph (b)(2) is no, clude all applicable duty. The award price what amount is included in the offer to cover will not include duty for end products or such duty? $llll components that are to be accorded duty- (c) If the duty has not been paid, the Gov- free entry. Generally, when the Buy Amer- ernment may elect to make award on a duty- ican Act is applicable, each nonqualifying free basis. If so, the offered price will be re- country offer is adjusted for the purpose of duced in the contract award by the amount evaluation by adding 50 percent of the offer, specified in paragraph (b)(3). The Offeror inclusive of duty. agrees to identify, at the request of the Con- (End of clause) tracting Officer, the foreign supplies which are subject to duty-free entry.
[63 FR 11541, Mar. 9 1998, as amended at 65 FR (End of provision) 19857, Apr. 13, 2000] Alternate I (MAR 1998). As prescribed in 252.225–7002 Qualifying country 225.1101(4), substitute the following para- sources as subcontractors. graph (a) for paragraph (a) of the basic As prescribed in 225.1101(3), use the clause: following clause: (a) Does the offeror propose to furnish a U.S. made end product with nonqualifying QUALIFYING COUNTRY SOURCES AS country components for which the offeror re- SUBCONTRACTORS (DEC 1991) quests duty-free entry? Yes ( ) No ( ) Subject to the restrictions in section 225.872 of the Defense FAR Supplement, the [63 FR 11542, Mar. 9, 1998, as amended at 65 Contractor shall not preclude qualifying FR 19857, Apr. 13, 2000] country sources and U.S. sources from com- peting for subcontracts under this contract. 252.225–7004 [Reserved]
(End of clause) 252.225–7005 Identification of expendi- tures in the United States. [56 FR 36479, July 31, 1991, as amended at 65 As prescribed in 225.1103(1), use the FR 19857, Apr. 13, 2000] following clause:
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IDENTIFICATION OF EXPENDITURES IN THE BUY AMERICAN ACT—TRADE AGREEMENTS— UNITED STATES (DEC 1991) BALANCE OF PAYMENTS PROGRAM CERTIFI- CATE (MAR 1998) (a) On each invoice, voucher, or other re- quest for payment under this contract, the (a) Definitions. Caribbean Basin country end Contractor shall identify that part of the re- product, designated country end product, do- quested payment which represents estimated mestic end product NAFTA country end prod- expenditures in the United States. The iden- uct, nondesignated country end product, quali- fying country end product, and U.S. made end tification— product have the meanings given in the Buy (1) May be expressed either as dollar American Act—Trade Agreements—Balance amounts or as percentages of the total of Payments Program clause of this solicita- amount of the request for payment. tion. (2) Should be based on reasonable esti- (b) Evaluation. Offers will be evaluated in mates. accordance with the policies and procedures (3) Shall consist of stating the full amount of Part 225 of the Defense Federal Acquisi- of the payment requested, subdivided into tion Regulation Supplement. Offers of for- the following categories: eign end products that are not U.S. made, (i) U.S. products—expenditures for mate- qualifying country, designated country, Car- rial and equipment manufactured or pro- ibbean Basin country, or NAFTA country duced in the United States, excluding trans- end products will not be considered for award, unless the Contracting Officer deter- portation; mines that there are no offers of such end (ii) U.S. services—expenditures for services products; or the offers of such end products performed in the United States, including are insufficient to fulfill the requirements; charges for overhead, other indirect costs, or a national interest exception to the Trade and profit; Agreements Act is granted. (iii) Transportation on U.S. carriers—ex- (c) Certifications. (1) The Offeror certifies penditures for transportation furnished by that— U.S. flag, ocean, surface, and air carriers; (i) Each end product, except the end prod- and ucts listed in paragraph (c)(2) of this provi- (iv) Expenditures not identified under sion, is a domestic end product; and paragraphs (a) (1), (2), and (3). (ii) Components of unknown origin are con- (b) If this contract is principally for sup- sidered to have been mined, produced, or plies or if the Contractor is not an incor- manufactured outside the United States or a qualifying country. porated concern incorporated in the United (2) The Offeror must identify all end prod- States, or an unincorporated concern having ucts that are not domestic end products. its principal place of business in the United (i) The Offeror certifies that the following States, the amounts identified under para- supplies qualify as ‘‘U.S. made end products’’ graphs (a)(3) (i), (ii), and (iii) will be limited but do not meet the definition of ‘‘domestic to payments made pursuant to the require- end product’’: ments either of the United States Products (insert line item number) and Services clause, if any, or of any other llllllllllllllllllllllll specific provision of this contract that obli- gates the Contractor to acquire certain ma- (ii) The Offeror certifies that the following terials, equipment, transportation, or serv- supplies are qualifying country end products: ices from U.S. sources. (insert line item number) (c) Nothing in this clause requires the es- llllllllllllllllllllllll tablishment or maintenance of detailed ac- (insert country of origin) counting records or gives the U.S. Govern- llllllllllllllllllllllll ment any right to audit the Contractor’s (iii) The Offeror certifies that the fol- books or records. lowing supplies qualify as designated coun- try end products: (End of clause) (insert line item number) llllllllllllllllllllllll [56 FR 36479, July 31, 1991, as amended at 65 (insert country of origin) FR 19857, Apr. 13, 2000] llllllllllllllllllllllll (iv) The Offeror certifies that the following 252.225–7006 Buy American Act—trade supplies qualify as Caribbean Basin country agreements—Balance of Payments end products: Program certificate. (insert line item number) As prescribed in 225.1101(5), use the llllllllllllllllllllllll following provision: (insert country of origin)
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llllllllllllllllllllllll from which it was so transformed. The term (v) The Offeror certifies that the following refers to a product offered for purchase under supplies qualify as NAFTA country end prod- a supply contract, but for purposes of calcu- ucts: lating the value of the end product includes services (except transportation services) in- (insert line item number) cidental to its supply, provided that the llllllllllllllllllllllll value of those incidental services does not (insert country of origin) exceed the value of the product itself; and llllllllllllllllllllllll (ii) Excludes products, other than petro- (vi) The following supplies are other non- leum and any product derived from petro- designated country end products. leum, that are not granted duty-free treat- (insert line item number) ment under the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(b)). These exclu- llllllllllllllllllllllll sions presently consist of— (insert country of origin) (A) Textiles, apparel articles, footwear, llllllllllllllllllllllll handbags, luggage, flat goods, work gloves, leather wearing apparel, and handloomed, (End of provision) handmade, or folklore articles that are not granted duty-free status in the Harmonized [62 FR 34129, June 24, 1997, as amended at 63 Tariff Schedule of the United States FR 11542, Mar. 9, 1998; 65 FR 19857, Apr. 13, (HTSUS); 2000] (B) Tuna, prepared or preserved in any manner in airtight containers; and 252.225–7007 Buy American Act—trade (C) Watches and watch parts (including agreements—Balance of Payments cases, bracelets, and straps) of whatever type Program. including, but not limited to, mechanical, quartz digital, or quartz analog, if such As prescribed in 225.1101(6), use the watches or watch parts contain any material following clause: that is the product of any country to which the HTSUS column 2 rates of duty (HTSUS BUY AMERICAN ACT—TRADE AGREEMENTS— General Note 3(b)) apply. BALANCE OF PAYMENTS PROGRAM (SEP 2001) (3) Components means those articles, mate- (a) Definitions. As used in this clause— rials, and supplies directly incorporated into (1) Caribbean Basin country means— end products. Antigua and Barbuda (4) Designated country means— Aruba Aruba Bahamas Austria Barbados Bangladesh Belize Belgium British Virgin Islands Benin Costa Rica Bhutan Dominica Botswana El Salvador Burkina Faso Grenada Burundi Guatemala Canada Guyana Cape Verde Haiti Central; African Republic Jamaica Chad Montserrat Comoros Netherlands Antilles Denmark Nicaragua Djibouti Equatorial Guinea St. Kitts-Nevis Finland St. Lucia France St. Vincent and the Grenadines Gambia Trinidad and Tobago Germany (2) Caribbean Basin country end product— Greece (i) Means an article that— Guinea (A) Is wholly the growth, product, or man- Guinea-Bissau ufacture of a Caribbean Basin country; or Haiti (B) In the case of an article that consists Hong Kong in whole or in part of materials from another Iceland country or instrumentality, has been sub- Ireland stantially transformed in a Caribbean Basin Israel country into a new and different article of Italy commerce with a name, character, or use Japan distinct from that of the article or articles Kiribati
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Lesotho States and the component is of a class or Liechtenstein kind— Luxembourg (A) Determined to be not mined, produced, Malawi or manufactured in the United States in suf- Maldives ficient and reasonably available commercial Mali quantities and of a satisfactory quality; or Mozambique (B) That the Secretary concerned deter- Nepal mines would be inconsistent with the public Netherlands interest to apply the restrictions of the Buy Niger American Act. Norway (7) End product means those articles, mate- Portugal rials, and supplies to be acquired for public Republic of Korea use under the contract. For this contract, Rwanda the end products are the line items to be de- Sao Tome and Principe livered to the Government (including sup- Sierra Leone plies to be acquired by the Government for Singapore public use in connection with service con- Somalia tracts, but excluding installation and other Spain services to be performed after delivery). Sweden Switzerland (8) NAFTA country end product means an ar- Tanzania U.R. ticle that— Togo (i) Is wholly the growth, product, or manu- Tuvalu facture of the NAFTA country; or Uganda (ii) In the case of an article that consists United Kingdom in whole or in part of materials from another Vanuatu country or instrumentality, has been sub- Western Samoa stantially transformed in a NAFTA country Yemen into a new and different article of commerce (5) Designated country end product means an with a name, character, or use distinct from article that— that of the article or articles from which it (i) Is wholly the growth, product, or manu- was so transformed. The term refers to a facture of the designated country; or product offered for purchase under a supply (ii) In the case of an article that consists contract, but for purposes of calculating the in whole or in part of materials from another value of the end product includes services country or instrumentality, has been sub- (except transportation services) incidental stantially transformed in a designated coun- to its supply, provided that the value of try into a new and different article of com- those incidental services does not exceed the merce with a name, character, or use dis- value of the product itself. tinct from that of the article or articles from (9) Nondesignated country end product means which it was so transformed. The term refers any end product that is not a U.S. made end to a product offered for purchase under a product or a designated country end product. supply contract, but for purposes of calcu- (10) North American Free Trade Agreement lating the value of the end product includes (NAFTA) country means Canada or Mexico. services (except transportation services) in- (11) Qualifying country means any country cidental to its supply, provided that the set forth in subsection 225.872–1 of the De- value of those incidental services does not fense Federal Acquisition Regulation Sup- exceed the value of the product itself. plement. (6) Domestic end product means— (12) Qualifying country component means an (i) An unmanufactured end product that item mined, produced, or manufactured in a has been mined or produced in the United qualifying country. States; or (13) Qualifying country end product means— (ii) An end product manufactured in the (i) An unmanufactured end product mined United States if the cost of its qualifying or produced in a qualifying country; or country components and its components (ii) An end product manufactured in a that are mined, produced, or manufactured qualifying country if the cost of the compo- in the United States exceeds 50 percent of nents mined, produced, or manufactured in the cost of all its components. The cost of the qualifying country and its components components shall include transportation mined, produced or manufactured in the costs to the place of incorporation into the United States exceeds 50 percent of the cost end product and U.S. duty (whether or not a of all its components. duty-free entry certification may be issued). (14) United States means the United States, A component shall be considered to have its possessions, Puerto Rico, and any other been mined, produced, or manufactured in place subject to its jurisdiction, but does not the United States (regardless of its source in include leased bases or trust territories. fact) if the end product in which it is incor- (15) U.S. made end product means an article porated is manufactured in the United that—
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(i) Is wholly the growth, product, or manu- free status of articles specified in paragraph facture of the United States; or (a)(2)(ii)(A) of this clause. (ii) In the case of an article that consists (1) General Note 3(c), Products Eligible for in whole or in part of materials from another Special Tariff Treatment. country or instrumentality, has been sub- (2) General Note 17, Products of Countries stantially transformed in the United States Designated as Beneficiary Countries Under into a new and different article of commerce the United States-Caribbean Basin Trade with a name, character, or use distinct from Partnership Act of 2000. that of the article or articles from which it (3) Section XXII, Chapter 98, Subchapter II, was so transformed. (b) Unless otherwise specified, the Trade Articles Exported and Returned, Advanced Agreements Act of 1979 (19 U.S.C. 2501 et seq.), or Improved Abroad, U.S. Note 7(b). the North American Free Trade Agreement (4) Section XXII, Chapter 98, Subchapter Implementation Act of 1993 (19 U.S.C. 3301 XX, Goods Eligible for Special Tariff Bene- note), and the Caribbean Basin Initiative fits Under the United States-Caribbean Basin apply to all items in the Schedule. Trade Partnership Act. (c)(1) The Contractor agrees to deliver under this contract only domestic end prod- (End of clause) ucts unless, in its offer, it specified delivery of U.S. made, qualifying country, designated [63 FR 11542, Mar. 9, 1998, as amended at 64 country, Caribbean Basin country, NAFTA FR 8730, Feb. 23, 1999; 65 FR 19858, 19860, Apr. country, or other nondesignated country end 13, 2000; 66 FR 47112, 47113, Sept. 11, 2001; 66 products in the Buy American Act—Trade FR 50504, Oct. 3, 2001] Agreements—Balance of Payments Program Certificate provision of the solicitation. (2) The Contractor may not supply a non- 252.225–7008 Supplies to be accorded designated country end product unless— duty-free entry. (i) It is a qualifying country end product, a As prescribed in 225.1101(7), use the Caribbean Basin country end product, or a following clause: NAFTA country end product; (ii) The Contracting Officer has determined SUPPLIES TO BE ACCORDED DUTY-FREE ENTRY that offers of U.S. made end products or (MAR 1998) qualifying, designated, NAFTA, or Caribbean Basin country end products from responsive, In accordance with paragraph (b) of the responsible offerors are either not received Duty-Free Entry clause of this contract, in or are insufficient to fill the Government’s addition to duty-free entry for all qualifying requirements; or country supplies (end products and compo- (iii) A national interest waiver has been nents) and all eligible end products subject granted under section 302 of the Trade Agree- to applicable trade agreements (if this con- ments Act of 1979. tract contains the Buy American Act—Trade (d) The offered price of qualifying country Agreements—Balance of Payments Program end products and the offered price of des- clause or the Buy American Act—North ignated country end products, NAFTA coun- American Free Trade Agreement Implemen- try end products, and Caribbean Basin coun- tation Act—Balance of Payments Program try end products, for line items subject to clause), the following foreign end products the Trade Agreements Act or the North that are neither qualifying country end prod- American Free Trade Agreement Implemen- ucts nor eligible end products under a trade tation Act, should not include custom fees or agreement, and the following nonqualifying duty. The offered price of end products listed country components, are accorded duty-free in paragraph (c)(2)(vi) of the Buy American entry. Act—Trade Agreements—Balance of Pay- ments Program Certificate provision of the llllllllllllllllllllllll solicitation, or the offered price of U.S. made llllllllllllllllllllllll end products that contain nonqualifying llllllllllllllllllllllll country components, must include all appli- cable duty. The award price will not include duty for end products or components that (End of clause) are to be accorded duty-free entry. Gen- erally, each offer of a U.S. made end product [63 FR 11543, Mar. 9, 1998, as amended at 65 that does not meet the definition of ‘‘domes- FR 19858, Apr. 13, 2000] tic end product’’ is adjusted for the purpose of evaluation by adding 50 percent of the of- 252.225–7009 Duty-free entry—Quali- fered price, inclusive of duty. fying country supplies (end prod- (e) The HTSUS is available on the Internet ucts and components). at http://www.customs.ustreas.gov/impoexpo/ impoexpo.htm. The following sections of the As prescribed in 225.1101(8), use the HTSUS provide information regarding duty- following clause:
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DUTY-FREE ENTRY—QUALIFYING COUNTRY (i) Military department in care of the Con- SUPPLIES (END PRODUCTS AND COMPONENTS) tractor, including the Contractor’s delivery (AUG 2000) address; or (ii) Military installation; and (a) Definitions. Qualifying country and quali- (2) Include the following information— fying country end products have the meaning (i) Prime contract number, and delivery given in the Buy American Act and Balance order if applicable; of Payments Program clause, Buy American (ii) Number of the subcontract/purchase Act—Trade Agreements—Balance of Pay- order for foreign supplies if applicable; ments Program clause, Buy American Act— (iii) Identification of carrier; North American Free Trade Agreement Im- (iv)(A) For direct shipments to a U.S. mili- plementation Act—Balance of Payments tary installation, the notation: Program clause, or Trade Agreements clause UNITED STATES GOVERNMENT, DE- of this contract. PARTMENT OF DEFENSE Duty-Free Entry (b) The requirements of this clause apply to be claimed pursuant to Section XXII, to this contract and subcontracts, including Chapter 98, Subchapter VIII, Item 9808.00.30 purchase orders, that involve supplies to be of the Harmonized Tariff Schedule of the accorded duty-free entry whether placed— United States. Upon arrival of shipment at (1) Directly with a foreign concern as a the appropriate port of entry, District Direc- prime contract; or tor of Customs, please release shipment (2) As a subcontract or purchase order under 19 CFR part 142 and notify Com- under a contract with a domestic concern. mander, Defense Contract Management (c) Except as otherwise approved by the (DCM) New York, ATTN: Customs Team, Contracting Officer, or unless supplies were DCMDN–GNIC, 207 New York Avenue, Build- imported into the United States before the ing 120, Staten Island, New York, 10305–5013, date of this contract or, in the case of sup- for execution of Customs Forms 7501, 7501A, plies imported by a first or lower tier sub- or 7506 and any required duty-free entry cer- contractor, before the date of the sub- tificates. contract, no amount is or will be included in (B) In cases where the shipment will be the contract price for duty for— consigned to other than a military installa- (1) End items that are qualifying country tion, e.g., a domestic contractor’s plant, the end products; or shipping document notation shall be altered (2) Components (including, without limita- to insert the name and address of the con- tion, raw materials and intermediate assem- tractor, agent or broker who will notify blies) produced or made in qualifying coun- Commander, DCM New York, for execution tries, that are to be incorporated in the end of the duty-free certificate. items to be delivered under this contract, (v) Gross weight in pounds (if freight is provided that the end items are manufac- based on space tonnage, state cubic feet in tured in the United States or in a qualifying addition to gross shipping weight); country. (vi) Estimated value in U.S. dollars; and (d) The Contractor warrants that— (vii) Activity Address Number of the con- (1) All qualifying country supplies, for tract administration office actually admin- which duty-free entry is to be claimed, are istering the prime contract, e.g., for DCM intended to be delivered to the Government Dayton, S3605A. or incorporated in the end items to be deliv- (g) Preparation of customs forms. (1) Except ered under this contract; and for shipments consigned to a military instal- (2) The Contractor will pay duty to the ex- lation, the Contractor shall prepare, or au- tent that such supplies, or any portion there- thorize an agent to prepare, any customs of (if not scrap or salvage) are diverted to forms required for the entry of foreign sup- nongovernmental use, other than as a result plies in connection with DoD contracts into of a competitive sale made, directed, or au- the United States, its possessions, or Puerto thorized by the Contracting Officer. Rico. The completed customs forms shall be (e) The Government agrees to execute submitted to the District Director of Cus- duty-free entry certificates and to afford toms with a copy to DCM New York for exe- such assistance as appropriate to obtain the cution of any required duty-free entry cer- duty-free entry of qualifying country sup- tificates. Shipments consigned directly to a plies for which the shipping documents bear military installation will be released in ac- the notation specified in paragraph (f) of this cordance with 10.101 and 10.102 of the U.S. clause, except as the Contractor may other- Customs regulations. wise agree. (2) For shipments containing both supplies (f) All shipping documents submitted to that are to be accorded duty-free entry and Customs, covering foreign end products or supplies that are not, the Contractor shall supplies for which duty-free entry certifi- identify on the customs forms those items cates are to be issued under this clause, that are eligible for duty-free entry. shall— (h) The contractor agrees— (1) Consign the shipments to the appro- (1) To prepare (if this contract is placed di- priate— rectly with a foreign supplier), or to instruct
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the foreign supplier to prepare, a sufficient graph (k) in all subcontracts for supplies. number of copies of the bill of lading (or Each subcontract shall require the subcon- other shipping document) so that at least tractor to identify this contract by including two of the copies accompanying the ship- its contract number on any shipping docu- ment will be available for use by the District ments submitted to Customs covering sup- Director of Customs at the port of entry; plies for which duty-free entry is to be (2) To consign the shipment as specified in claimed pursuant to this clause. The Con- paragraph (f) of this clause; and tractor also agrees that the name and ad- (3) To mark the exterior of all packages as dress of the Contracting Officer admin- follows: istering the prime contract (name and ad- (i) ‘‘UNITED STATES GOVERNMENT, DE- dress of the contract administration office PARTMENT OF DEFENSE;’’ and cognizant of the prime contract), and its ac- (ii) The activity address number of the tivity address number (appendix G of the De- contract administration office actually ad- fense FAR Supplement), and the information ministering the prime contract. required by paragraphs (i) (1), (2), and (3) of (i) The Contractor agrees to notify the this clause will be included in applicable sub- Contracting Officer administering the prime contracts. contract in writing of any purchase under the contract of qualifying country supplies (End of clause) to be accorded duty-free entry that are to be imported into the United States for delivery [56 FR 36479, July 31, 1991, as amended at 56 to the Government or for incorporation in FR 67221, Dec. 30, 1991; 60 FR 29502, June 5, end items to be delivered to the Government. 1995; 62 FR 2614, Jan. 17, 1997; 63 FR 11544, The notice shall be furnished to the contract Mar. 9, 1998; 65 FR 19858, Apr. 13, 2000; 65 FR administration office immediately upon 52953, Aug. 31, 2000; 65 FR 58607, Sept. 29, 2000] award to the qualifying country supplier. The notice shall contain— 252.225–7010 Duty-free entry—addi- (1) Prime contractor’s name, address, and tional provisions. CAGE code; (2) Prime contract number, and delivery As prescribed in 225.1101(9), use the order number if applicable; following clause: (3) Total dollar value of the prime contract DUTY-FREE ENTRY—ADDITIONAL PROVISIONS or delivery order; (AUG 2000) (4) Expiration date of the prime contract or delivery order; (a) The requirements of this clause supple- (5) Foreign supplier’s name and address; ment the Duty-Free Entry clause of this con- (6) Number of the subcontract/purchase tract. order for foreign supplies; Both of these clauses apply to this con- (7) Total dollar value of the subcontract tract and subcontracts, including purchase for foreign supplies; orders, that involve supplies to be accorded (8) Expiration date of the subcontract for duty-free entry whether placed— foreign supplies; (1) Directly with a foreign concern as a (9) List of items purchased; prime contract; or (10) An agreement by the Contractor that (2) As a subcontractor purchase order duty shall be paid by the Contractor to the under a contract with a domestic concern. extent that such supplies, or any portion (if (b) The Contractor shall send the notifica- not scrap or salvage), are diverted to non- tion required by paragraph (b)(1) of the governmental use other than as a result of a Duty-Free Entry clause of this contract to competitive sale made, directed, or author- the Contracting Officer administering this ized by the Contracting Officer; contract. (11) The qualifying country; and (c) In addition to any data required by (12) The scheduled delivery date(s). paragraph (b)(1) of the Duty-Free Entry (j) This clause does not apply to purchases clause, the Contractor shall furnish the fol- of qualifying country supplies in connection lowing for all foreign supplies to be imported with this contract if— pursuant to paragraph (a) or (b) of the Duty- (1) The qualifying country supplies are Free Entry clause. The Contractor shall fur- identical in nature to supplies purchased by nish this information to the Contracting Of- the Contractor or any subcontractor in con- ficer administering the prime contract im- nection with its commercial business; and mediately upon award of any contract or (2) It is not economical or feasible to ac- subcontract involving supplies to be ac- count for such supplies so as to ensure that corded duty-free entry. the amount of the supplies for which duty- (1) Prime contractor’s name, address, and free entry is claimed does not exceed the CAGE code; amount purchased in connection with this (2) Prime contract number plus delivery contract. order number, if applicable; (k) The Contractor agrees to insert the (3) Total dollar value of the prime contract substance of this clause, including this para- or delivery order;
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(4) Expiration date of the prime contract into the United States, its possessions, or or delivery order; Puerto Rico of foreign supplies in connection (5) Foreign supplier’s name and address; with DoD contracts. The Contractor shall (6) Number of the subcontract/purchase submit the completed customs forms to the order for foreign supplies; District Director of Customs with a copy to (7) Total dollar value of the subcontract DCM New York for execution of any required for foreign supplies; duty-free entry certificates. For shipments (8) Expiration date of the subcontract for containing both supplies which are to be ac- foreign supplies; corded duty-free entry and supplies which (9) List of items purchased; and are not, the Contractor shall identify on the (10) An agreement by the Contractor that customs forms those items which are eligible duty shall be paid by the Contractor to the for duty-free entry under the provisions of extent that such supplies, or any portion (if the Duty-Free Entry clause. Shipments con- not scrap or salvage), are diverted to non- signed directly to a military installation governmental use other than as a result of a will be released in accordance with §§ 10.101 competitive sale made, directed, or author- and 10.102 of the U.S. Customs regulations. ized by the Contracting Officer. (g) The Contractor shall ensure that all ex- (d) The Contractor agrees to incorporate terior containers are marked in accordance the substance of this clause, including this with paragraph (g) of the Duty-Free Entry paragraph (d), in any subcontract (including clause, including the following additional purchase orders) in accordance with para- data— graph (i) of the Duty-Free Entry clause of (1) ‘‘UNITED STATES GOVERNMENT, this contract. The Contractor agrees that DEPARTMENT OF DEFENSE;’’ and the name and address of the Contracting Of- (2) The activity address number for the ficer administering the prime contract contract administration office actually ad- (name and address of the contract adminis- ministering the prime contract. tration office cognizant of the prime con- tract and its activity address number (appen- (End of clause) dix G of the Defense FAR Supplement)) and the information required by paragraphs [56 FR 36479, July 31, 1991, as amended at 59 (c)(1), (2), and (3) of this clause will be in- FR 1291, Jan. 10, 1994; 60 FR 29502, June 5, cluded in applicable subcontracts. 1995; 62 FR 2614, Jan. 17, 1997; 63 FR 11544, (e) To properly complete the shipping doc- Mar. 9, 1998; 65 FR 19858, Apr. 13, 2000; 65 FR ument instructions as required by paragraph 52953, Aug. 31, 2000] (f) of the Duty-Free Entry clause, the Con- tractor shall insert Defense Contract Man- 252.225–7011 Restriction on acquisi- agement (DCM) New York, ATTN: Customs tion of supercomputers. Team, DCMDN–GNIC, 207 New York Avenue, Building 120, Staten Island, New York 10305– As prescribed in 225.7023–3, use the 5013, as the cognizant contract administra- following clause: tion office (for paragraph (f) only) in those cases when the shipment is consigned di- RESTRICTION ON ACQUISITION OF rectly to a military installation. When the SUPERCOMPUTERS (JUL 1995) shipment will be consigned to a location The Contractor agrees that any supercom- other than a military installation, e.g., a do- puters furnished under this contract have mestic contractor’s plant, change the ship- been manufactured in the United States. ping document notation required by para- graph (f) of the clause to insert the name and (End of clause) address of the Contractor, agent or broker that will prepare the customs documentation [60 FR 34471, July 3, 1995] for execution of the Duty-Free Entry certifi- cates. In either case, the shipping documents 252.225–7012 Preference for certain will contain the following items in addition domestic commodities. to those required by paragraph (f) of the Duty-Free Entry clause: As prescribed in 225.7002–3(a), use the (1) Delivery order number on the Govern- following clause: ment prime contract, if applicable; PREFERENCE FOR CERTAIN DOMESTIC (2) Number of the subcontract/purchase COMMODITIES (AUG 2000) order for foreign supplies, if applicable; (3) Activity address number of the contract (a) The Contractor agrees to deliver under administration office actually administering this contract only such of the following arti- the prime contract, e.g., for DCM Dayton, cles that have been grown, reprocessed, re- S3605A. used, or produced in the United States, its (f) Except for shipments consigned to a possessions, or Puerto Rico— military installation, the Contractor shall (1) Food; prepare, or authorize an agent to prepare, (2) Clothing; any customs forms required for the entry (3) Tents, tarpaulins, or covers;
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(4) Cotton and other natural fiber products; PREFERENCE FOR DOMESTIC SPECIALTY (5) Woven silk or woven silk blends; METALS (MAR 1998) (6) Spun silk yarn for cartridge cloth; (7) Synthetic fabric, and coated synthetic (a) Definitions. As used in this clause— fabric, including all textile fibers and yarns (1) Qualifying country means any country that are for use in such fabrics; set forth in subsection 225.872–1 of the De- (8) Canvas products; fense Federal Acquisition Regulation Sup- (9) Wool (whether in the form of fiber or plement. yarn or contained in fabrics, materials, or (2) Specialty metals means— manufactured articles); or (i) Steel— (10) Any item of individual equipment (A) Where the maximum alloy content ex- (Federal Supply Class 8465) manufactured ceeds one or more of the following limits: from or containing such fibers, yarns, fab- manganese, 1.65 percent; silicon, 0.60 percent; rics, or materials. or copper, 0.60 percent; or (b) This clause does not apply— (B) That contains more than 0.25 percent of (1) To supplies listed in FAR 25.104(a), or any of the following elements: aluminum, other supplies for which the Government has chromium, cobalt, columbium, molybdenum, determined that a satisfactory quality and nickel, titanium, tungsten, or vanadium; sufficient quantity cannot be acquired as and (ii) Metal alloys consisting of nickel, iron- when needed at U.S. market prices; nickel, and cobalt base alloys containing a (2) To foods which have been manufactured total of other alloying metals (except iron) or processed in the United States, its posses- in excess of 10 percent; sions, or Puerto Rico; (iii) Titanium and titanium alloys; or (3) To chemical warfare protective clothing (iv) Zirconium and zirconium base alloys. produced in the countries listed in sub- (b) The Contractor agrees that any spe- section 225.872–1 of the Defense FAR Supple- cialty metals incorporated in articles deliv- ment; or ered under this contract will be melted in (4) To fibers and yarns that are for use in the United States, its possessions, or Puerto synthetic fabric or coated synthetic fabric Rico. (but does apply to the synthetic or coated (c) This clause does not apply to the extent synthetic fabric itself), if— that— (i) The fabric is to be used as a component (1) The Secretary or designee determines of an end item that is not a textile product. that a satisfactory quality and sufficient Examples of textile products, made in whole quantity of such articles cannot be acquired or in part of fabric, include— when needed at U.S. market prices; (a) Draperies, floor coverings, furnishings, (2) The specialty metal is melted in a and bedding (Federal Supply Group 72, qualifying country or is incorporated in an Household and Commercial Furnishings and article manufactured in a qualifying coun- Appliances); try; (B) Items made in whole or in part of fabric (3) The acquisition is necessary to comply in Federal Supply Group 83, Textile/leather/ with agreements with foreign governments furs/apparel/findings/tents/flags, or Federal requiring the United States to purchase sup- Supply Group 84, Clothing, Individual Equip- plies from foreign sources to offset sales ment and Insignia; made by the U.S. Government or U.S. firms (C) Upholstered seats (whether for house- under approved programs; or hold, office, or other use); and (4) The specialty metal is purchased by a (D) Parachutes (Federal Supply Class 1670); subcontractor at any tier. or (ii) The fibers and yarns are para-aramid (End of clause) fibers and yarns manufactured in the Nether- lands. Alternate I (MAR 1998). As prescribed in 225.7002–3(b), substitute the following para- (End of clause) graph (c) for paragraph (c) of the basic clause, and add the following paragraph (d) [56 FR 36479, July 31, 1991, as amended at 59 to the basic clause: FR 27675, May 27, 1994; 60 FR 61601, Nov. 30, (c) This clause does not apply to the extent 1995; 61 FR 50455, Sept. 26, 1996; 62 FR 5780, that— Feb. 7, 1997; 62 FR 47154, Sept. 8, 1997; 64 FR (1) The Secretary or designee determines 24529, May 7, 1999; 65 FR 52953, Aug. 31, 2000] that a satisfactory quality and sufficient quantity of such articles cannot be acquired 252.225–7013 [Reserved] when needed at U.S. market prices; (2) The specialty metal is melted in a 252.225–7014 Preference for domestic qualifying country or is incorporated in an specialty metals. article manufactured in a qualifying coun- try; or As prescribed in 225.7002–3(b), use the (3) The acquisition is necessary to comply following clause: with agreements with foreign governments
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requiring the United States to purchase sup- bearings that are acquired as components plies from foreign sources to offset sales if— made by the U.S. Government or U.S. firms (i) The end items or components con- under approved programs. taining ball or roller bearings are commer- (d) The Contractor agrees to include the cial items; or terms of this clause, including this para- (ii) The ball or roller bearings are commer- graph (d), in every subcontract or purchase cial components manufactured in the United order awarded under this contract unless the Kingdom. item being purchased contains no specialty (2) The commercial item exception in para- metals. graph (c)(1) of this clause does not include items designed or developed under a Govern- [56 FR 36479, July 31, 1991, as amended at 60 ment contract or contracts where the end FR 61602, Nov. 30, 1995; 61 FR 50455, Sept. 26, item is bearings and bearing components. 1996; 62 FR 5780, Feb. 7, 1997; 63 FR 11544, Mar. (d) The restriction in paragraph (b) of this 9, 1998] clause may be waived upon request from the Contractor in accordance with subsection 252.225–7015 Preference for domestic 225.7019–3 of the Defense Federal Acquisition hand or measuring tools. Regulation Supplement. If the restriction is As prescribed in 225.7002–3(c), use the waived for miniature and instrument ball following clause: bearings, the Contractor agrees to acquire a like quantity and type of domestic manufac- PREFERENCE FOR DOMESTIC HAND OR ture for nongovernmental use. MEASURING TOOLS (DEC 1991) (e) The Contractor agrees to retain records showing compliance with this restriction The Contractor agrees to deliver under this until 3 years after final payment and to contract only hand or measuring tools pro- make records available upon request of the duced in the United States or its possessions. Contracting Office. (f) The Contractor agrees to insert this (End of clause) clause, including this paragraph (f), in every subcontract and purchase order issued in [56 FR 36479, July 31, 1991, as amended at 59 performance of this contract, unless items FR 27675, May 27, 1994; 61 FR 50455, Sept. 26, acquired are— 1996] (1) Commercial items other than ball or roller bearings; or 252.225–7016 Restriction on acquisi- (2) Items that do not contain ball or roller tion of ball and roller bearings. bearings. As prescribed in 225.7019–4, use the (End of clause) following clause: Alternate I (Dec 2000). As prescribed in RESTRICTION ON ACQUISITION OF BALL AND 225.7019–4(b), substitute the following para- ROLLER BEARINGS (DEC 2000) graph (c)(1)(ii) for paragraph (c)(1)(ii) of the (a) Definitions. basic clause: As used in this clause— (c)(1)(ii) The ball or roller bearings are (1) ‘‘Bearing components’’ means the bear- commercial components. ing element, retainer, inner race, or outer [61 FR 50455, Sept. 26, 1996, as amended at 62 race. FR 34131, June 24, 1997; 63 FR 43888, Aug. 17, (2) ‘‘Miniature and instrument ball bear- 1998; 65 FR 77828, Dec. 13, 2000] ings’’ means all rolling contact ball bearings with a basic outside diameter (exclusive of 252.225–7017 Prohibition on award to flange diameters) of 30 millimeters or less, companies owned by the People’s regardless of material, tolerance, perform- Republic of China. ance, or quality characteristics. (b) The Contractor agrees that, except as As prescribed in 225.771–5, use the fol- provided in paragraph (c) of this clause, all lowing provision: ball and roller bearings and ball and roller PROHIBITION ON AWARD TO COMPANIES OWNED bearing components (including miniature BY THE PEOPLE’S REPUBLIC OF CHINA (FEB and instrument ball bearings) delivered 2000) under this contract, either as end items or components of end items, shall be wholly (a) Definition. ‘‘People’s Republic of manufactured in the United States or Can- China,’’ as used in this provision, means the ada. Unless otherwise specified, raw mate- government of the People’s Republic of rials, such as performed bar, tube, or rod China, including its political subdivisions, stock and lubricants, need not be mined or agencies, and instrumentalities. produced in the United States or Canada. (b) Prohibition on award. Section 8120 of the (c)(1) The restriction in paragraph (b) of Department of Defense Appropriations Act this clause does not apply to ball or roller for fiscal year 1999 (Pub. L. 105–262), as
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amended by Section 144 of Title I, Division C, and firms, however, are encouraged to sub- of the Omnibus Consolidated and Emergency mit offers since this provision is not in- Supplemental Appropriations Act, 1999 (Pub. tended to restrict BMD access to unique for- L. 105–277), prohibits the award of a contract eign expertise when contract performance under this solicitation to any company in requires a level of competency unavailable in which the Director of Defense Procurement the United States. (Office of the Under Secretary of Defense (d) The prohibition does not apply to a for- (Acquisition, Technology, and Logistics)) has eign government or firm if— determined that the People’s Republic of (1) The contract will be performed within China or the People’s Liberation Army of the the United States; People’s Republic of China owns more than (2) The contract is exclusively for RDT&E 50 percent interest. in connection with antitactical ballistic mis- (c) Representation. By submission of an sile systems; offer, the offeror represents that the People’s (3) The foreign government or firm agrees Republic of China or the People’s Liberation to share a substantial portion of the total Army of the People’s Republic of China does contract cost. The foreign share is consid- not own more than 50 percent interest in the ered substantial where it is equitable with offeror. respect to the relative benefits to be derived from the contract by the United States and (End of provision) the foreign parties. For example, if the con- tract is more beneficial to the foreign party, [65 FR 6554, Feb. 10, 2000] its share of the costs should be correspond- ingly higher; or 252.225–7018 Notice of prohibition of (4) The U.S. Government determines that certain contracts with foreign enti- the contract cannot be competently per- ties for the conduct of Ballistic Mis- formed by a U.S. firm at a price equal to or sile Defense RDT&E. less than the price at which the RDT&E can be performed by a foreign government or As prescribed in 225.7011–5, use the firm. following provision: (e) The offeror (llll) is (llll) is not a U.S. firm. NOTICE OF PROHIBITION OF CERTAIN CON- TRACTS WITH FOREIGN ENTITIES FOR THE (End of provision) CONDUCT OF BALLISTIC MISSILE DEFENSE RDT&E (JAN 1997) [56 FR 36479, July 31, 1991, as amended at 59 (a) Definitions. FR 27675, May 27, 1994; 62 FR 2614, Jan. 17, (1) Competent means the ability of an offer- 1997] or to satisfy the requirements of the solicita- tion. This determination is based on a com- 252.225–7019 Restriction on acquisi- prehensive assessment of each offeror’s pro- tion of foreign anchor and mooring posal including consideration of the specific chain. areas of evaluation criteria in the relative order of importance described in the solicita- As prescribed in 225.7012–3, use the tion. following clause: (2) Foreign firm means a business entity RESTRICTION ON ACQUISITION OF FOREIGN owned or controlled by one or more foreign ANCHOR AND MOORING CHAIN (DEC 1991) nationals or a business entity in which more than 50 percent of the stock is owned or con- (a) Welded shipboard anchor and mooring trolled by one or more foreign nationals. chain, four inches in diameter and under, de- (3) U.S. firm means a business entity other livered under this contract— than a foreign firm. (1) Shall be manufactured in the United (b) This provision implements section 222 States, including cutting, heat treating, of the Defense Authorization Act for FYs quality control, testing, and welding (both 1988 and 1989 (Pub. L. 100–180) prohibiting the forging and shot blasting process); and award of certain contracts, for the conduct (2) The cost of the components manufac- of Ballistic Missile Defense (BMD) Program tured in the United States shall exceed 50 research, development, test, or evaluation percent of the total cost of components. (RDT&E), to foreign governments or firms. (b) The Contractor may request a waiver of (c) Except as provided in paragraph (d) of this restriction if adequate domestic supplies this provision, any funds appropriated to, or meeting the above requirements are not for the use of, the DoD, may not be used to available to meet the contract delivery enter into or carry out any contract, includ- schedule. ing any contract awarded as a result of a (c) The Contractor shall include this broad agency announcement (BAA), with a clause, including this paragraph (c), in all foreign government or firm if the contract subcontracts, unless the items acquired con- provides for the conduct of RDT&E in con- tain none of the restricted welded shipboard nection with the BMD. Foreign governments anchor and mooring chain.
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(End of clause) British Virgin Islands Costa Rica [56 FR 36479, July 31, 1991, as amended at 61 Dominica FR 13108, Mar. 26, 1996] El Salvador Grenada 252.225–7020 Trade agreements certifi- Guatemala cate. Guyana Haiti As prescribed in 225.1101(10), use the Jamaica following provision: Montserrat Netherlands Antilles TRADE AGREEMENTS CERTIFICATE (MAR 1998) Nicaragua (a) Definitions. Caribbean Basin country end St. Kitts-Nevis product, designated country end product, St. Lucia NAFTA country end product, nondesignated St. Vincent and the Grenadines country end product, qualifying country end Trinidad and Tobago product, and U.S. made end product have the (2) Caribbean Basin country end product— meanings given in the Trade Agreements (i) Means an article that— clause of this solicitation. (A) Is wholly the growth, product, or man- (b) Evaluation. Offers will be evaluated in ufacture of a Caribbean Basin country; or accordance with the policies and procedures (B) In the case of an article that consists of part 225 of the Defense Federal Acquisi- in whole or in part of materials from another tion Regulation Supplement. Offers of for- country or instrumentality, has been sub- eign end products that are not U.S. made, stantially transformed in a Caribbean Basin qualifying country, designated country, Car- country into a new and different article of ibbean Basin country, or NAFTA country commerce with a name, character, or use end products will not be considered for distinct from that of the article or articles award, unless the Contracting Officer deter- from which it was so transformed. The term mines that there are not offers of such end refers to a product offered for purchase under products; or the offers of such end products a supply contract, but for purposes of calcu- are insufficient to fulfill the requirements; lating the value of the end product includes or a national interest exception to the Trade services (except transportation services) in- Agreements Act is granted. cidental to its supply, provided that the (c) Certifications. (1) The offeror certifies value of those incidental services does not that each end product to be delivered under exceed the value of the product itself; and this contract, except those listed in para- (ii) Excludes products, other than petro- graph (c)(2) of this provision, is a U.S. made, leum and any product derived from petro- qualifying country, designated country, Car- leum, that are not granted duty-free treat- ibbean Basin country, or NAFTA country ment under the Caribbean Basin Economic end product. Recovery Act (19 U.S.C. 2703(b)). These exclu- (2) The following supplies are other nondes- sions presently consist of— ignated country end products: (A) Textiles, apparel articles, footwear, (insert line item number) handbags, luggage, flat goods, work gloves, leather wearing apparel, and handloomed, llllllllllllllllllllllll handmade, or folklore articles that are not (insert country of origin) granted duty-free status in the Harmonized llllllllllllllllllllllll Tariff Schedule of the United States (HTSUS); (End of provision) (B) Tuna, prepared or preserved in any manner in airtight containers; and [63 FR 11545, Mar. 9, 1998, as amended at 65 (C) Watches and watch parts (including FR 19858, Apr. 13, 2000] cases, bracelets, and straps) of whatever type including, but not limited to, mechanical, 252.225–7021 Trade agreements. quartz digital, or quartz analog, if such watches or watch parts contain any material As prescribed in 225.1101(11), use the that is the product of any country to which following clause: the HTSUS column 2 rates of duty (HTSUS General Note 3(b)) apply. TRADE AGREEMENTS (SEP 2001) (3) Components means those articles, mate- (a) Definitions. As used in this clause— rials, and supplies directly incorporated into (1) Caribbean Basin country means— end products. Antigua and Barbuda (4) Designated country means— Aruba Aruba Bahamas Austria Barbados Bangladesh Belize Belgium
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Benin tinct from that of the article or articles from Bhutan which it was so transformed. The term refers Botswana to a product offered for purchase under a Burkina Faso supply contract, but for purposes of calcu- Burundi lating the value of the end product includes Canada services (except transportation services) in- Cape Verde cidental to its supply, provided that the Central African Republic value of those incidental services does not Chad exceed the value of the product itself. Comoros (6) End product means those articles, mate- Denmark rials, and supplies to be acquired for public Dijbouti use under the contract. For this contract, Equatorial Guinea the end products are the line items to be de- Finland livered to the Government (including sup- France plies to be acquired by the Government for Gambia pubic use in connection with service con- Germany tracts, but excluding installation and other Greece services to be performed after delivery). Guinea (7) NAFTA country end product means an ar- Guinea-Bissau ticle that— Haiti (i) Is wholly the growth, product, or manu- Hong Kong facture of the NAFTA country; or Iceland (ii) In the case of an article that consists Ireland Israel in whole or in part of materials from another Italy country or instrumentality, has been sub- Japan stantially transformed in a NAFTA country Kiribati into a new and different article of commerce Lesotho with a name, character, or use distinct from Liechtenstein that of the article or articles from which it Luxembourg was so transformed. The term refers to a Malawi product offered for purchase under a supply Maldives contract, but for purposes of calculating the Mali value of the end product includes services Mozambique (except transportation services) incidental Nepal to its supply, provided that the value of Netherlands those incidental services does not exceed the Niger value of the product itself. Norway (8) Nondesignated country end product means Portugal any end product that is not a U.S. made end Republic of Korea product or a designated country end product. Rwanda (9) North American Free Trade Agreement Sao Tome and Principe (NAFTA) country means Canada or Mexico. Sierra Leone (10) Qualifying country means any country Singapore set forth in subsection 225.872–1 of the De- Somalia fense Federal Acquisition Regulation Sup- Spain plement. Sweden (11) Qualifying country end product means— Switzerland (i) An unmanufactured end product mined Tanzania U.R. or produced in a qualifying country; or Togo (ii) An end product manufactured in a Tuvalu qualifying country if the cost of the compo- Uganda nents mined, produced, or manufactured in United Kingdom the qualifying country and its components Vanuatu mined, produced, or manufactured in the Western Samoa United States exceeds 50 percent of the cost Yemen of all its components. (5) Designated country end product means an (12) United States means the United States, article that— its possessions, Puerto Rico, and any other (i) Is wholly the growth, product, or manu- place subject to its jurisdiction, but does not facture of the designated country; or include leased bases or trust territories. (ii) In the case of an article that consists (13) U.S. made end product means an article in whole or in part of materials from another that— country or instrumentality, has been sub- (i) Is wholly the growth, product, or manu- stantially transformed in a designated coun- facture of the United States; or try into a new and different article of com- (ii) In the case of an article that consists merce with a name, character, or use dis- in whole or in part of materials from another
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country or instrumentality, has been sub- fits Under the United States-Caribbean Basin stantially transformed in the United States Trade Partnership Act. into a new and different article of commerce with a name, character, or use distinct from (End of clause) that of the article or articles from which it was so transformed. [63 FR 11545, Mar. 9, 1998; 63 FR 29061, May 27, (b) Unless otherwise specified, the Trade 1998, as amended at 64 FR 8730, Feb. 23, 1999; Agreements Act of 1979 (19 U.S.C. 2501, et 65 FR 19858, 19860, Apr. 13, 2000; 66 FR 47112, seq.), the North American Free Trade Agree- 47113, Sept. 11, 2001; 66 FR 50504, Oct. 3, 2001] ment Implementation Act of 1993 (19 U.S.C. 3301 note), and the Caribbean Basin Initia- 252.225–7022 Restriction on acquisi- tive apply to all items in the Schedule. tion of polyacrylonitrile (PAN) car- (c)(1) The Contractor agrees to deliver bon fiber. under this contract only U.S. made, quali- As prescribed in 225.7103–3, use the fying country, designated country, Carib- bean Basin country or NAFTA country end following clause: product unless, in its offer, it specified deliv- RESTRICTION ON ACQUISITION OF ery of other nondesignated country end prod- POLYACRYLONITRILE (PAN) CARBON FIBER ucts in the Trade Agreements Certificate (JUN 1997) provision of the solicitation. (2) The Contractor may not supply a non- (a) This clause applies only if the end prod- designated country end product other than a uct furnished under this contract contains qualifying country end product, a Caribbean polyacrylonitrile carbon fibers (alternatively Basin country end product, or a NAFTA referred to as PAN-based carbon fibers or country end product, unless— PAN-based graphite fibers). (i) The Contracting Officer has determined (b) PAN carbon fibers contained in the end that offers of U.S. made end products or product shall be manufactured in the United qualifying, designated, Caribbean Basin, or States or Canada using PAN precursor pro- NAFTA country end products from respon- duced in the United States or Canada. sive, responsible offerors are either not re- (c) The Contracting Officer may waive the requirement in paragraph (b) of this clause ceived or are insufficient to fill the Govern- in whole or in part. The Contractor may re- ment’s requirements; or quest a waiver from the Contracting Officer (ii) A national interest waiver has been by identifying the circumstances and includ- granted under section 302 of the Trade Agree- ing a plan to qualify U.S. or Canadian ments Act of 1979. sources expeditiously. (d) The offered price of end products listed in paragraph (c)(2) of the Trade Agreements (End of clause) Certificate provision of the solicitation must include all applicable duty, whether or not a duty-free entry certificate will be granted. [62 FR 34131, June 24, 1997] The offered price of qualifying country, des- ignated country, Caribbean Basin country, 252.225–7023 Restriction on acquisi- or NAFTA country end products, for line tion of vessel propellers. items subject to the Trade Agreements Act As prescribed in 225.7020–4, use the or the North American Free Trade Agree- following clause: ment Implementation Act, should not in- clude custom fees or duty. The offered price RESTRICTION ON ACQUISITION OF VESSEL of U.S. made end products should not include PROPELLERS (DEC 2000) duty for qualifying country components. (a) Except as provided in paragraph (b) of (e) The HTSUS is available on the Internet this clause, the Contractor shall deliver at http://www.customs.ustreas.gov.impoexpo/ under this contract, whether as end items or impoexpo.htm. The following sections of the components of end items, vessel propellers— HTSUS provide information regarding duty- (1) Manufactured in the United States or free status of articles specified in paragraph Canada; and (a)(2)(ii)(A) of this clause: (2) For which all component castings were (1) General Note 3(c), Products Eligible for poured and finished in the United States or Special Tariff Treatment. Canada. (2) General Note 17, Products of Countries (b) The restriction in paragraph (a) of this Designated as Beneficiary Countries Under clause— the United States-Caribbean Basin Trade (1) Does not apply to vessel propellers that Partnership Act of 2000. are commercial items; and (3) Section XXII, Chapter 98, Subchapter II, (2) For other than commercial items, may Articles Exported and Returned, Advanced be waived upon request from the Contractor or Improved Abroad, U.S. Note 7(b). in accordance with subsection 225.7020–3 of (4) Section XXII, Chapter 98, Subchapter the Defense Federal Acquisition Regulation XX, Goods Eligible for Special Tariff Bene- Supplement.
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(End of clause) contracts and purchase orders issued in per- formance of this contract, when products [65 FR 77829, Dec. 13, 2000] purchased contain restricted forging items.
252.225–7024 Restriction on acquisi- (End of clause) tion of night vision image intensi- fier tubes and devices. [62 FR 34131, June 24, 1997] As prescribed in 225.7015–3, use the 252.225–7026 Reporting of contract following clause: performance outside the United States. RESTRICTION ON ACQUISITION OF NIGHT VISION IMAGE INTENSIFIER TUBES AND DEVICES As prescribed in 225.7203, use the fol- (DEC 1991) lowing clause: All second and third generation night vi- REPORTING OF CONTRACT PERFORMANCE sion image intensifier tubes and devices pro- OUTSIDE THE UNITED STATES (JUN 2000) vided under this contract shall be manufac- tured in the United States or Canada. (a) Reporting criteria. Reporting under this clause is required for— (End of clause) (1) Offers exceeding $10 million, if the Of- feror is aware at the time the offer is sub- 252.225–7025 Restriction on acquisi- mitted that it or its first-tier subcontractor tion of forgings. intends to perform any part of the contract that exceeds $500,000 outside the United As prescribed in 225.7102–4, use the States and Canada, if that part could be per- following clause: formed inside the United States or Canada; (2) Contracts exceeding $10 million, when RESTRICTION ON ACQUISITION OF FORGINGS any part that exceeds $500,000 could be per- (JUN 1997) formed inside the United States or Canada, (a) Definitions. As used in this clause— but will be performed outside the United (1) ‘‘Domestic manufacture’’ means manu- States and Canada. If the information was factured in the United States or Canada if submitted with the offer, it need not be re- the Canadian firm— submitted unless it changes; and (i) Normally produces similar items or is (3) Contracts exceeding $500,000, when any currently producing the item in support of part that exceeds the simplified acquisition DoD contracts (as prime or subcontractor); threshold in Part 2 of the Federal Acquisi- and tion Regulation will be performed outside (ii) Agrees to become (upon receiving a the United States, unless a foreign place of contract/order) a planned producer under performance is— DoD’s Industrial Preparedness Production (i) The principal place of performance; and Planning Program, if it is not already a (ii) Indicated by the Offeror’s entry in the planned producer for the item. Place of Performance provision of the solici- (2) ‘‘Forging items’’ means— tation. (b) Submission of reports. (1) The Offeror Items Categories shall submit reports required by paragraph (a)(1) of this clause with its offer. Ship propulsion shafts ...... Excludes service and landing (2) The Contractor shall submit reports re- craft shafts. Periscope tubes ...... All. quired by paragraph (a)(2) of this clause to Ring forgings for bull gears ... All greater than 120 inches in the Contracting Officer as soon as the infor- diameter. mation is known, with a copy to the ad- dressee in paragraph (b)(3) of this clause. (b) The Contractor agrees that end items With respect to performance by a first-tier and their components delivered under this subcontractor, this information shall be re- contract shall contain forging items that are ported, to the maximum extent practicable, of domestic manufacture only. at least 30 days before award of the sub- (c) The restriction in paragraph (b) of this contract. clause may be waived upon request from the (3) The Contractor shall submit reports re- Contractor in accordance with subsection quired by paragraph (a)(3) of this clause 225.7102–3 of the Defense Federal Acquisition within 10 days of the end of each Govern- Regulation Supplement. ment quarter to—Deputy Director of Defense (d) The Contractor agrees to retain records Procurement (Foreign Contracting) showing compliance with this restriction OUSD(AT&L)DP(FC) Washington, DC 20301– until 3 years after final payment and to 3060 make records available upon request of the (4) The Offeror/Contractor shall submit re- Contracting Officer. ports on DD Form 2139, Report of Contract (e) The Contractor agrees to insert this Performance Outside the United States. clause, including this paragraph (e), in sub- Computer-generated reports are acceptable,
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provided the report contains all information fees exceeding $50,000 per foreign military required by DD Form 2139. Copies of DD sale case. Form 2139 may be obtained from the Con- tracting Officer. (End of clause) (c) Flowdown requirements. (1) The Con- tractor shall include a clause substantially [63 FR 11546, Mar. 9, 1998] the same as this one in all first-tier sub- contracts exceeding $500,000, except sub- 252.225–7028 Exclusionary policies contracts for commercial items, construc- and practices of foreign govern- tion, ores, natural gases, utilities, petroleum ments. products and crudes, timber (logs), or sub- sistence. As prescribed in 225.7308(b), use the (2) The Contractor shall provide the prime following clause: contract number to subcontractors for re- porting purposes. EXCLUSIONARY POLICIES AND PRACTICES OF (d) Information required. Information to be FOREIGN GOVERNMENTS (DEC 1991) reported on the part of this contract per- No person, partnership, corporation, or formed outside the United States (or outside other entity performing functions pursuant the United States and Canada for reports re- to this contract, shall, in employing or as- quired by paragraphs (a)(1) and (a)(2) of this signing personnel to participate in the per- clause) includes that for— formance of any such function, whether in (1) Subcontracts; the United States or abroad, take into ac- (2) Purchases; and count the exclusionary policies or practices (3) Intracompany transfers when transfers of any foreign government where such poli- originate in a foreign location. cies or practices are based on race, religion, national origin, or sex. (End of clause) (End of clause) [58 FR 28474, May 13, 1993, as amended at 60 FR 29502, June 5, 1995; 60 FR 61602, Nov. 30, 252.225–7029 Preference for United 1995; 63 FR 11546, Mar. 9, 1998; 65 FR 39707, States or Canadian air circuit June 27, 2000] breakers. 252.225–7027 Restriction on contingent As prescribed in 225.7016–4, use the fees for foreign military sales. following clause:
As prescribed in 225.7308(a), use the PREFERENCE FOR UNITED STATES OR following clause. Insert in paragraph CANADIAN AIR CIRCUIT BREAKERS (AUG 1998) (b)(1) of the clause the name(s) of any (a) Unless otherwise specified in its offer, foreign country customer(s) listed in the Contractor agrees that air circuit break- 225.7303–4(b). ers for naval vessels provided under this con- tract shall be manufactured in the United RESTRICTION ON CONTINGENT FEES FOR States, Canada, or the United Kingdom. FOREIGN MILITARY SALES (MAR 1998) (b) Unless an exception applies under De- (a) Except as provided in paragraph (b) of fense Federal Acquisition Regulation Sup- this clause, contingent fees, as defined in the plement (DFARS) 225.7016–2 or a waiver is Covenant Against Contingent Fees clause of granted under DFARS 225.7005(a) (1) or (2), this contract, are generally an allowable preference will be given to air circuit break- cost, provided the fees are paid to a bona fide ers manufactured in the United States or employee of the Contractor or to a bona fide Canada by adding 50 percent for evaluation established commercial or selling agency purposes to the offered price of all other air maintained by the Contractor for the pur- circuit breakers, except those manufactured pose of securing business. in the United Kingdom. (b) For foreign military sales, unless the contingent fees have been identified and pay- (End of clause) ment approved in writing by the foreign cus- tomer before contract award, the following [63 FR 43889, Aug. 17, 1998] contingent fees are unallowable under this contract: 252.225–7030 Restriction on acquisi- (1) For sales to the Government(s) of tion of carbon, alloy, and armor llllllllll, contingent fees in any steel plate. amount. (2) For sales to Governments not listed in As prescribed in 225.7017–4, use the paragraph (b)(1) of this clause, contingent following clause:
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RESTRICTION ON ACQUISITION OF CARBON, 252.225–7032 Waiver of United King- ALLOY, AND ARMOR STEEL PLATE (OCT 1992) dom levies. The Contractor agrees that all carbon, As prescribed in 225.873–3, use the fol- alloy, and armor steel plate in Federal sup- lowing clause: ply class 9515, or described by American So- ciety for Testing Materials (ASTM) or Amer- WAIVER OF UNITED KINGDOM LEVIES (OCT ican Iron and Steel Institute (AISI) speci- 1992) fications, furnished as a deliverable under (a) Offered prices for contracts and sub- this contract, or purchased by the contractor contracts with United Kingdom (U.K.) firms as a raw material, for use in a Government- may contain commercial exploitation levies owned facility or a facility under the control assessed by the Government of the U.K. The of the Department of Defense, shall be melt- Offeror shall identify to the Contracting Of- ed and rolled in the United States or Canada. ficer all levies included in the offered price by describing— (End of clause) (1) The name of the U.K. firm; (2) The item to which the levy applies and quantity; and [57 FR 53601, Nov. 12, 1992] (3) The amount of levy plus any associated indirect costs and profit or fee. 252.225–7031 Secondary Arab boycott (b) If, after award of the prime contract, of Israel. the Contractor contemplates award of a sub- As prescribed in 225.770–5, use the fol- contract over $1 million to a U.K. firm, the lowing clause: Contractor shall identify any levy before award of the subcontract and shall provide SECONDARY ARAB BOYCOTT OF ISRAEL (JUN the following information to the Contracting 1992) Officer— (1) Name of the U.K. firm; (a) Definitions. (2) Prime contract number; As used in this clause— (3) Description of item to which levy ap- Foreign person means any person other plies: than a United States person as defined in (4) Quantity being acquired; and section 16(2) of the Export Administration (5) Amount of levy plus any associated in- Act of 1979 (50 U.S.C. App. Sec 2415). direct costs and profit or fee. United States person is defined in section (c) The Offeror/Contractor should obtain 16(2) of the Export Administration Act of assistance in identifying the levy from the U.K. firm. In the event of difficulty, the Of- 1979 and means any United States resident or feror/Contractor may seek advice through national (other than an individual resident Director of Procurement, United Kingdom outside the United States and employed by Defence Procurement Office, British Em- other than a United States person), any do- bassy, 3100 Massachusetts Avenue, NW, mestic concern (including any permanent do- Washington, DC 20006. mestic establishment of any foreign con- (d) The U.S. Government may attempt to cern), and any foreign subsidiary or affiliate obtain a waiver of levies pursuant to the (including any permanent foreign establish- U.S./U.K. reciprocal waiver agreement of ment) of any domestic concern which is con- July 1987. trolled in fact by such domestic concern, as (1) Where levies are waived before contract determined under regulations of the Presi- award, the offer will be evaluated without dent. the levy. (b) Certification. By submitting this offer, (2) Where levies are identified but not the Offeror, if a foreign person, company or waived before contract award, the offer will entity, certifies that it— be evaluated inclusive of the levies. (1) Does not comply with the Secondary (3) Where a waiver of the levy is obtained Arab Boycott of Israel; and after award, the U.S. Government reserves the right to reduce the contract price by the (2) Is not taking or knowingly agreeing to amount of the levy waived plus associated take any action, with respect to the Sec- indirect costs, profit or fee. ondary Boycott of Israel by Arab countries, (e) The Contractor agrees to insert the sub- which 50 U.S.C. App. Sec. 2407(a) prohibits a stance of this clause, including this para- United States person from taking. graph (e), in any subcontract for supplies where a lower tier subcontract over $1 mil- (End of clause) lion with a U.K. firm is anticipated.
[57 FR 29041, June 30, 1992, as amended at 59 (End of clause) FR 27675, May 27, 1994] [57 FR 53602, Nov. 12, 1992]
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252.225–7033 Restriction on acquisi- llllllllllllllllllllllll tion of four ton dolly jacks. (insert country of origin) As prescribed in 225.7018–3, use the llllllllllllllllllllllll following clause: (ii) The Offeror certifies that the following supplies qualify as NAFTA country end prod- RESTRICTION ON ACQUISITION OF FOUR TON ucts: DOLLY JACKS (APR 1993) (insert line item number) Four ton dolly jacks delivered under this llllllllllllllllllllllll contract shall be manufactured in the United (insert country of origin) States unless a waiver is granted in accord- llllllllllllllllllllllll ance with subsection 225.7018–2 of the De- fense Federal Acquisition Regulation Sup- (iii) The following supplies are other for- plement. eign end products: (insert line item number) (End of clause) llllllllllllllllllllllll (insert country of origin) [58 FR 28474, May 13, 1993] llllllllllllllllllllllll 252.225–7034 [Reserved] (End of provision)
252.225–7035 Buy American Act— Alternate I (MAR 1998). As prescribed in North American Free Trade Agree- 225.1101(12)(ii), substitute the phrase ‘‘Cana- ment Implementation Act—Balance dian end product’’ for the phrase ‘‘NAFTA of Payments Program Certificate. country end product’’ in paragraph (a); and As prescribed in 225.1101(12), use the substitute the phrase ‘‘Canadian end prod- following provision: ucts’’ for the phrase ‘‘NAFTA country end products’’ in paragraphs (b) and (c)(2)(ii) of BUY AMERICAN ACT—NORTH AMERICAN FREE the basic clause. TRADE AGREEMENT IMPLEMENTATION ACT— BALANCE OF PAYMENTS PROGRAM CERTIFI- [63 FR 11546, Mar. 9, 1998, as amended at 65 CATE (MAR 1998) FR 19858, Apr. 13, 2000] (a) Definitions. Domestic end product, foreign 252.225–7036 Buy American Act— end product, NAFTA country end product, and North American Free Trade Agree- qualifying country end product have the mean- ment Implementation Act—Balance ings given in the Buy American Act—North of Payments Program. American Free Trade Agreement Implemen- tation Act—Balance of Payments Program As prescribed in 225.1101(13),use the clause of this solicitation. following clause: (b) Evaluation. Offers will be evaluated in accordance with the policies and procedures BUY AMERICAN ACT—NORTH AMERICAN FREE of Part 225 of the Defense Federal Acquisi- TRADE AGREEMENT IMPLEMENTATION ACT— tion Regulation Supplement. For line items BALANCE OF PAYMENTS PROGRAM (MAR subject to the North American Free Trade 1998) Agreement Implementation Act, offers of (a) Definitions. As used in this clause— qualifying country end products or NAFTA (1) Components means those articles, mate- country end products will be evaluated with- rials, and supplies directly incorporated into out regard to the restrictions of the Buy end products. American Act or the Balance of Payments (2) Domestic end product means— Program. (i) An unmanufactured end product that (c) Certifications. (1) The offeror certifies has been mined or produced in the United that— States; or (i) Each end product, except the end prod- (ii) An end product manufactured in the ucts listed in paragraph (c)(2) of this provi- United States if the cost of its qualifying sion, is a domestic end product; and country components and its components (ii) Components of unknown origin are con- that are mined, produced, or manufactured sidered to have been mined, produced, or in the United States exceeds 50 percent of manufactured outside the United States or a the cost of all its components. The cost of qualifying country. components shall include transportation (2) The Offeror must identify all end prod- costs to the place of incorporation into the ucts that are not domestic end products. end product and U.S. duty (whether or not a (i) The Offeror certifies that the following duty-free entry certificate may be issued). A supplies are qualifying country (except Can- component shall be considered to have been ada) end products: mined, produced, or manufactured in the (insert line item number) United States (regardless of its source in
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fact) if the end product in which it is incor- less, in its offer, it specified delivery of porated is manufactured in the United qualifying country, NAFTA country, or States and the component is of a class or other foreign end products in the Buy Amer- kind— ican Act—North American Free Trade Agree- (A) Determined to be not mined, produced, ment Implementation Act—Balance of Pay- or manufactured in the United States in suf- ments Program Certificate provision of the ficient and reasonably available commercial solicitation. An offer certifying that a quali- quantities and of a satisfactory quality; or fying country end product or a NAFTA coun- (B) That the Secretary concerned deter- try end product will be supplied requires the mines would be inconsistent with the public Contractor to supply a qualifying country interest to apply the restrictions of the Buy end product or a NAFTA country end prod- American Act. uct, whichever is certified, or, at the Con- (3) End product means those articles, mate- tractor’s option, a domestic end product. rials, and supplies to be acquired for public (d) The offered price of qualifying country use under the contract. For this contract, end products, or NAFTA country end prod- the end products are the line items to be de- ucts for line items subject to the North livered to the Government (including sup- American Free Trade Agreement Implemen- plies to be acquired by the Government for tation Act, should not include custom fees or public use in connection with service con- duty. The offered price of foreign end prod- tracts, but excluding installation and other ucts listed in paragraph (c)(2)(iii) of the Buy services to be performed after delivery). American Act—North American Free Trade (4) Foreign end product means an end prod- Agreement Implementation Act—Balance of uct other than a domestic end product. Payments Program Certificate provision of (5) North American Free Trade Agreement the solicitation, or the offered price of do- (NAFTA) country means Canada or Mexico. mestic end products that contain nonquali- (6) NAFTA country end product means an ar- fying country components, must include all ticle that— applicable duty. The award price will not in- (i) Is wholly the growth, product, or manu- clude duty for end products or components facture of a NAFTA country; or that are to be accorded duty-free entry. Gen- (ii) In the case of an article that consists erally, each foreign end product listed in in whole or in part of materials from another paragraph (c)(2)(iii) of the Buy American country or instrumentality, has been sub- Act—North American Free Trade Agreement stantially transformed in a NAFTA country Implementation Act—Balance of Payments into a new and different article of commerce Program Certificate provision of the solici- with a name, character, or use distinct from tation is adjusted for the purpose of evalua- that of the article or articles from which it tion by adding 50 percent of the offered price, was so transformed. The term refers to a inclusive of duty. product offered for purchase under a supply contract, but for purposes of calculating the value of the end product includes services (End of clause) (except transportation services) incidental Alternate I (SEP 1999). As prescribed in to its supply, provided that the value of 225.1101(13)(i)(B), substitute the following those incidental services does not exceed the paragraphs (a)(6), (c), and (d) for paragraphs value of the product itself. (a)(6), (c), and (d) of the basic clause: (7) Qualifying country means any country set forth in subsection 225.872–1 of the De- (a)(6) Canadian end product, means an arti- fense Federal Acquisition Regulation Sup- cle that— plement. (i) Is wholly the growth, product, or manu- (8) Qualifying country component means an facture of Canada; or item mined, produced, or manufactured in a (ii) In the case of an article that consists qualifying country. in whole or in part of materials from another (9) Qualifying country end product means— country or instrumentality, has been sub- (i) An unmanufactured end product mined stantially transformed in Canada into a new or produced in a qualifying country; or and different article of commerce with a (ii) An end product manufactured in a name, character, or use distinct from that of qualifying country if the cost of the compo- the article or articles from which it so was nents mined, produced, or manufactured in so transformed. The term refers to a product the qualifying country and its components offered for purchase under a supply contract, mined, produced, or manufactured in the but for purposes of calculating the value of United States exceeds 50 percent of the cost the end product includes services (except of all its components. transportation services) incidental to its (b) Unless otherwise specified, the North supply, provided that the value of those inci- American Free Trade Agreement Implemen- dental services does not exceed that of the tation Act of 1993 (19 U.S.C. 3301 note) applies product itself. to all items in the Schedule. (c) The Contractor agrees to deliver under (c) The Contractor agrees to deliver under this contract only domestic end products un- this contract only domestic end products un- less, in its offer, it specified delivery of
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qualifying country, Canadian, or other for- purchase orders, that involve delivery of eli- eign end products in the Buy American Act— gible end products to be accorded duty-free North American Free Trade Agreement Im- entry whether placed— plementation Act—Balance of Payments (1) Directly with a foreign concern as a Program Certificate provision of the solici- prime contract; or tation. An offer certifying that a qualifying (2) As a subcontract or purchase order country end product or a Canadian end prod- under a contract with a domestic concern. uct will be supplied requires the Contractor (c) Except as otherwise approved by the to supply a qualifying country end product Contracting Officer, no amount is or will be or a Canadian end product, whichever is cer- included in the contract price for duty for el- tified, or, at the Contractor’s option, a do- igible end products. mestic end product. (d) The Contractor warrants that— (d) The offered price of qualifying country (1) All eligible end products, for which end products, or Canadian end products for duty-free entry is to be claimed under this line items subject to the North American clause, are intended to be delivered to the Free Trade Agreement Implementation Act, Government; and should not include custom fees or duty. The (2) The Contractor will pay any applicable offered price of foreign end products listed in duty to the extent that such eligible end paragraph (c)(2)(iii) of the Buy American products, or any portion thereof (if not scrap Act—North American Free Trade Agreement or salvage) are diverted to nongovernmental Implementation Act—Balance of Payments use, other than as a result of a competitive Program Certificate provision of the solici- sale made, directed, or authorized by the tation, or the offered price of domestic end Contracting Officer. products that contain nonqualifying country (e) The Government agrees to execute components, must include all applicable duty-free certificates and to afford such as- duty. The award price will not include duty sistance as appropriate to obtain the duty- for end products or components that are to free entry of eligible end products for which be accorded duty-free entry. Generally, each the shipping documents bear the notation foreign end product listed in paragraph specified in paragraph (f) of this clause, ex- (c)(2)(iii) of the Buy American Act—North cept as the Contractor may otherwise agree. American Free Trade Agreement Implemen- (f) All shipping documents submitted to tation Act—Balance of Payments Program Customs, covering eligible end products for Certificate provision of the solicitation is which duty-free entry certificates are to be adjusted for the purpose of evaluation by issued under this clause, shall— adding 50 percent of the offered price, inclu- (1) Consign the shipments to the appro- sive of duty. priate— (i) Military department in care of the Con- [63 FR 11547, Mar. 9, 1998, as amended at 64 tractor, including the Contractor’s delivery FR 51077, Sept. 21, 1999; 65 FR 19858, Apr. 13, address; or 2000] (ii) Military installation; and (2) Include the following information— 252.225–7037 Duty-free entry—Eligible (i) Prime contract number, and delivery end products. order if applicable; As prescribed in 225.1101(14), use the (ii) Number of the subcontract/purchase order for foreign supplies if applicable; following clause: (iii) Identification of carrier; (iv)(A) For direct shipments to a U.S. mili- DUTY-FREE ENTRY—ELIGIBLE END PRODUCTS tary installation, the notation: (AUG 2000) UNITED STATES GOVERNMENT, DE- (a) Definition. Eligible end product, as used PARTMENT OF DEFENSE Duty-Free Entry in this clause, means— to be claimed pursuant to Section XXII, (1) Designated country end product, Carib- Chapter 98, Subchapter VIII, Item 9808.00.30 bean Basin country end product, or NAFTA of the Harmonized Tariff Schedule of the country end product, as defined in the Trade United States. Upon arrival of shipment at Agreements clause of this contract; the appropriate port of entry, District Direc- (2) NAFTA country end product, as defined tor of Customs, please release shipment in the Buy American Act—North American under 19 CFR part 142, and notify Com- Free Trade Agreement Implementation mander, Defense Contract Management Act—Balance of Payments Program clause of (DCM) New York, ATTN: Customs Team, this contract; or DCMDN–GNIC, 207 New York Avenue, Build- (3) Canadian end product, as defined in Al- ing 120, Staten Island, New York 10305–5013, ternate I of the Buy American Act—North for execution of Customs Forms 7501, 7501A, American Free Trade Agreement Implemen- or 7506 and any required duty-free entry cer- tation Act—Balance of Payments Program tificates. clause of this contract. (B) In cases where the shipment will be (b) The requirements of this clause apply consigned to other than a military installa- to this contract and subcontracts, including tion, e.g., a domestic contractor’s plant, the
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shipping document notation shall be altered The notice shall be furnished to the contract to insert the name and address of the con- administration office immediately upon tractor, agent or broker who will notify award to the supplier of the eligible end Commander, DCM New York, for execution products. The notice shall contain— of the duty-free certificate. (Note: In those (1) Prime contractor’s name, address, and instances where the shipment will be con- CAGE code; signed to a contractor’s plant and no duty- (2) Prime contract number, and delivery free entry certificate is required, the con- order number if applicable; tractor or its agent shall claim duty-free (3) Total dollar value of the prime contract entry under NAFTA or other trade agree- or delivery order; ment and shall comply with the U.S. Cus- (4) Expiration date of the prime contract toms Service requirements. No notification or delivery order; to Commander, DCM New York, is required.) (5) Foreign supplier’s name and address; (v) Gross weight in pounds (if freight is (6) Number of the subcontract/purchase based on space tonnage, state cubic feet in order for eligible end products; addition to gross shipping weight); (7) Total dollar value of the subcontract (vi) Estimated value in U.S. dollars; and for eligible end products; (vii) Activity Address Number of the con- (8) Expiration date of the subcontract for tract administration office actually admin- eligible end products; istering the prime contract, e.g., for DCM (9) List of items purchased; Dayton, S3605A. (10) An agreement by the Contractor that (g) Preparation of customs forms. (1) Ex- any applicable duty shall be paid by the Con- cept for shipments consigned to a military tractor to the extent that such eligible end installation, the Contractor shall prepare, or products are diverted to nongovernmental authorize an agent to prepare, any customs use other than as a result of a competitive forms required for the entry of eligible end sale made, directed, or authorized by the products in connection with DoD contracts Contracting Officer; and into the United States, its possessions, or (11) The scheduled delivery date(s). Puerto Rico. The completed customs forms shall be submitted to the District Director of (End of clause) Customs with a copy to DCM New York for execution of any required duty-free entry [63 FR 11548, Mar. 9, 1998, as amended at 65 certificates. Shipments consigned directly to FR 19858, Apr. 13, 2000; 65 FR 52953, Aug. 31, a military installation will be released in ac- 2000] cordance with 10.101 and 10.102 of the U.S. Customs regulations. 252.225–7038 Restriction on acquisi- (2) For shipments containing both supplies tion of aircraft fuel cells. that are to be accorded duty-free entry and supplies that are not, the Contractor shall As prescribed in 225.7021–3, use the identify on the customs forms those items following clause: that are eligible for duty-free entry. RESTRICTION ON ACQUISITION OF AIRCRAFT (h) The Contractor agrees— FUEL CELLS (FEB 1994) (1) To prepare (if this contract is placed di- rectly with a foreign supplier), or to instruct The Contractor agrees that all aircraft fuel the foreign supplier to prepare, a sufficient cells furnished under this contract have been number of copies, of the bill of lading (or manufactured in the United States by a do- other shipping document) so that at least mestic-operated entity. two of the copies accompanying the ship- ment will be available for use by the District (End of clause) Director of Customs at the port of entry; (2) To consign the shipment as specified in [59 FR 11729, Mar. 14, 1994; 59 FR 38931, Aug. paragraph (f) of this clause; and 1, 1994] (3) To mark the exterior of all packages as follows: 252.225–7039 Restriction on acquisi- (i) ‘‘UNITED STATES GOVERNMENT, DE- tion of totally enclosed lifeboat sur- PARTMENT OF DEFENSE;’’ and vival systems. (ii) The activity address number of the contract administration office actually ad- As prescribed in 225.7022–4, use the ministering the prime contract. following clause: (i) The Contractor agrees to notify the RESTRICTION ON ACQUISITION OF TOTALLY EN- Contracting Officer administering the prime CLOSED LIFEBOAT SURVIVAL SYSTEMS (APR contract in writing of any purchase under 1996) the contract of eligible end products to be accorded duty-free entry that are to be im- For totally enclosed lifeboat survival sys- ported into the United States for delivery to tems furnished under this contract, which the Government or for incorporation in end consist of lifeboat and associated davits and items to be delivered to the Government. winches, the Contractor agrees that—
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(a) 50 percent or more of the components side the United States under this contract, have been manufactured in the United shall— States, and (1) Affiliate with the Overseas Security Ad- (b) 50 percent or more of the labor in the visory Council, if the Contractor or subcon- manufacture and assembly of the entire sys- tractor is a U.S. entity; tem has been performed in the United (2) Ensure that Contractor and subcon- States. tractor personnel who are U.S. nationals and are in-country on a non-transitory basis, (End of clause) register with the U.S. Embassy, and that Contractor and subcontractor personnel who [59 FR 19146, Apr. 22, 1994, as amended at 61 are third country nationals comply with any FR 13108, Mar. 26, 1996] security related requirements of the Em- bassy of their nationality; 252.225–7040 [Reserved] (3) Provide, to Contractor and subcon- tractor personnel, antiterrorism/force pro- 252.225–7041 Correspondence in tection awareness information commensu- English. rate with that which the Department of De- fense (DoD) provides to its military and ci- As prescribed in 225.1103(2), use the vilian personnel and their families, to the following clause: extent such information can be made avail- able prior to travel outside the United CORRESPONDENCE IN ENGLISH (JUNE 1997) States; and The Contractor shall ensure that all con- (4) Obtain and comply with the most cur- tract correspondence that is addressed to the rent antiterrorism/force protection guidance United States Government is submitted in for Contractor and subcontractor personnel. English or with an English translation. (b) The requirements of this clause do not apply to any subcontractor that is— (End of clause) (1) A foreign government; (2) A representative of a foreign govern- [62 FR 34132, June 24, 1997, as amended at 65 ment; or FR 19858, Apr. 13, 2000] (3) A foreign corporation wholly owned by a foreign government. 252.225–7042 Authorization to per- (c) Information and guidance pertaining to form. DoD antiterrorism/force protection can be obtained from [Contracting Officer to insert As prescribed in 225.1103(3), use the applicable information cited in 225.7401]. following clause: (End of clause) AUTHORIZATION TO PERFORM (JUNE 1997) The Contractor represents that it has been [63 FR 31937, June 11, 1998] duly authorized to operate and to do busi- ness in the country or countries in which 252.226–7000 Notice of historically this contract is to be performed. The Con- black college or university and mi- tractor also represents that it will fully com- nority institution set-aside. ply with all laws, decrees, labor standards, and regulations of such country or countries, As prescribed in 226.7008(a), use the during the performance of this contract. following clause:
(End of clause) NOTICE OF HISTORICALLY BLACK COLLEGE OR UNIVERSITY AND MINORITY INSTITUTION SET- ASIDE (APR 1994) [62 FR 34132, June 24, 1997, as amended at 65 FR 19858, Apr. 13, 2000] (a) Definitions. Historically black colleges and universities, as used in this clause, means in- 252.225–7043 Antiterrorism/force pro- stitutions determined by the Secretary of tection policy for defense contrac- Education to meet the requirements of 34 tors outside the United States. CFR 608.2. The term also means any non- profit research institution that was an inte- As prescribed in 225.7402, use the fol- gral part of such a college or university be- lowing clause: fore November 14, 1986. Minority institutions, as used in this clause, ANTITERRORISM/FORCE PROTECTION POLICY means institutions meeting the require- FOR DEFENSE CONTRACTORS OUTSIDE THE ments of section 1046(3) of the Higher Edu- UNITED STATES (JUN 1998) cation Act of 1965 (20 U.S.C. 1135d–5(3)). The (a) Except as provided in paragraph (b) of term also includes Hispanic-serving institu- this clause, the Contractor and its sub- tions as defined in section 316(b)(1) of such contractors, if performing or traveling out- Act (20 U.S.C. 1059c(b)(1)).
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(b) General. (1) Offers are solicited only award of a subcontract or by the failure to from historically black colleges or univer- award a subcontract. sities and minority institutions. (b) The Contractor shall use its best efforts (2) Any award resulting from this solicita- to give Indian organizations and Indian- tion will be made only to an offeror which is owned economic enterprises the maximum a historically black college or university or practicable opportunity to participate in the a minority institution at the time of submis- subcontracts it awards, to the fullest extent sion of its initial offer including price. consistent with efficient performance of the (c) Agreements. The offeror will— contract. (1) Perform at least 50 percent of the cost (c) The Contracting Officer and the Con- of contract performance incurred for per- tractor, acting in good faith, may rely on the sonnel with its own employees; and representation of an Indian organization or (2) Upon request by the Contracting Offi- Indian-owned economic enterprise as to its cer, provide evidence prior to award that the eligibility, unless an interested party chal- Secretary of Education has determined the lenges its status or the Contracting Officer offeror to be a historically black college or has independent reason to question that sta- university or minority institution. tus. (d) In the event of a challenge to the rep- (End of clause) resentation of a subcontractor, the Con- tracting Officer will refer the matter to the [56 FR 36479, July 31, 1991, as amended at 59 U.S. Department of the Interior, Bureau of FR 22131, Apr. 29, 1994] Indian Affairs, Attn: Chief, Division of Con- tracting and Grants Administration, 1849 C 252.226–7001 Utilization of Indian Or- Street NW, MS–2626–MIB, Washington, DC ganizations and Indian-Owned Eco- 20240–4000. The BIA will determine the eligi- nomic Enterprises-DoD Contracts. bility and will notify the Contracting Offi- cer. No incentive payment will be made— As prescribed in 226.104, use the fol- (1) Within 50 working days of subcontract lowing clause: award; (2) While a challenge is pending; or UTILIZATION OF INDIAN ORGANIZATIONS AND (3) If a subcontractor is determined to be INDIAN-OWNED ECONOMIC ENTERPRISES-DOD an ineligible participant. CONTRACTS (SEP 2001) (e)(1) The Contractor, on its own behalf or (a) Definitions. As used in this clause— on behalf of a subcontractor at any tier, may ‘‘Indian’’ means any person who is a mem- request an adjustment under the Indian In- ber of any Indian tribe, band, group, pueblo, centive Program to the following: or community that is recognized by the Fed- (i) The estimated cost of a cost-type con- eral Government as eligible for services from tract. the Bureau of Indian Affairs (BIA) in accord- (ii) The target cost of a cost-plus-incen- ance with 25 U.S.C. 1452(c) and any ‘‘Native’’ tive-fee contract. as defined in the Alaska Native Claims Set- (iii) The target cost and ceiling price of a tlement Act (43 U.S.C. 1601). fixed-price incentive contract. ‘‘Indian organization’’ means the gov- (iv) The price of a firm-fixed-price con- erning body of any Indian tribe or entity es- tract. tablished or recognized by the governing (2) The amount of the adjustment that body of an Indian tribe for the purposes of 25 may be made to the contract is 5 percent of U.S.C. Chapter 17. the estimated cost, target cost, or firm-fixed ‘‘Indian-owned economic enterprise’’ price included in the subcontract initially means any Indian-owned (as determined by awarded to the Indian organization or In- the Secretary of the Interior) commercial, dian-owned economic enterprise. industrial, or business activity established (3) The Contractor has the burden of prov- or organized for the purpose of profit, pro- ing the amount claimed and must assert its vided that Indian ownership constitutes not request for an adjustment prior to comple- less than 51 percent of the enterprise. tion of contract performance. ‘‘Indian tribe’’ means any Indian tribe, (4) The Contracting Officer, subject to the band, group, pueblo, or community, includ- terms and conditions of the contract and the ing native villages and native groups (includ- availability of funds, will authorize an incen- ing corporations organized by Kenai, Juneau, tive payment of 5 percent of the amount paid Sitka, and Kodiak) as defined in the Alaska to the subcontractor. Native Claims Settlement Act, that is recog- (5) If the Contractor requests and receives nized by the Federal Government as eligible an adjustment on behalf of a subcontractor, for services from BIA in accordance with 25 the Contractor is obligated to pay the sub- U.S.C. 1452 (c). contractor the adjustment. ‘‘Interested party’’ means a contractor or (f) The Contractor shall insert the sub- an actual or prospective offeror whose direct stance of this clause, including this para- economic interest would be affected by the graph (f), in all subcontracts that—
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(1) Are for other than commercial items; terms which are more favorable to the li- and censee than those contained herein, the Gov- (2) Are expected to exceed the simplified ernment shall be entitled to the benefit of acquisition threshold in Part 2 of the Federal such more favorable terms with respect to Acquisition Regulation. all royalties accruing under this contract (End of clause) after the date such more favorable terms be- come effective, and the Contractor shall [66 FR 47111, Sept. 11, 2001; 66 FR 50504, Oct. promptly notify the Secretary in writing of 3, 2001] the granting of such more favorable terms. (b) In the event any claim of any patent 252.227–7000 Non-estoppel. hereby licensed is construed or held invalid As prescribed at 227.7009–1, insert the by decision of a court of competent jurisdic- following clause in patent releases, li- tion, the requirement to pay royalties under cense agreements, and assignments: this contract insofar as its arises solely by reason of such claim, and any other claim NON-ESTOPPEL (OCT 1966) not materially different therefrom, shall be interpreted in conformity with the court’s The Government reserves the right at any decision as to the scope of validity of such time to contest the enforceability, validity, claims; Provided, however, that in the event scope of, or the title to any patent or patent such decision is modified or reversed on ap- application herein licensed without waiving peal, the requirement to pay royalties under or forfeiting any right under this contract. this contract shall be interpreted in con- formity with the final decision rendered on (End of clause) such appeal. 252.227–7001 Release of past infringe- (End of clause) ment. As prescribed at 227.7009–2(a), insert 252.227–7003 Termination. the following clause in patent releases, As prescribed at 227.7009–2(c), insert license agreements, and assignments: the following clause in patent releases, license agreements, and assignments: RELEASE OF PAST INFRINGEMENT (AUG 1984) The Contractor hereby releases each and TERMINATION (AUG 1984) every claim and demand which he now has or Notwithstanding any other provision of may hereafter have against the Government this contract, the Government shall have the for the manufacture or use by or for the Gov- right to terminate the within license, in ernment prior to the effective date of this whole or in part, by giving the Contractor contract, of any inventions covered by (i) not less than thirty (30) days notice in writ- any of the patents and applications for pat- ing of the date such termination is to be ef- ent identified in this contract, and (ii) any fective; provided, however, that such termi- other patent or application for patent owned nation shall not affect the obligation of the or hereafter acquired by him, insofar as and Government to pay royalties which have ac- only to the extent that such other patent or crued prior to the effective date of such ter- patent application covers the manufacture, mination. use, or disposition of (description of subject matter).* (End of clause)
(End of clause) 252.227–7004 License grant. 252.227–7002 Readjustment of pay- As prescribed at 227.7009–3(a), insert ments. the following clause in patent releases, As prescribed at 227.7009–2(b), insert license agreements, and assignments: the following clause in patent releases, LICENSE GRANT (AUG 1984) license agreements, and assignments: (a) The Contractor hereby grants to the READJUSTMENT OF PAYMENTS (OCT 1966) Government an irrevocable, nonexclusive, nontransferable, and paid up license under (a) If any license, under substantially the the following patents, applications for pat- same patents and authorizing substantially ent, and any patents granted on such appli- the same acts which are authorized under cations, and under any patents which may this contract, has been or shall hereafter be issue as the result of any reissue, division or granted within the United States, on royalty continuation thereof, to practice by or cause to be practiced for the Government through- *Bracketed portions of the clause may be out the world, any and all of the inventions omitted when not appropriate or not encom- thereunder, in the manufacture and use of passed by the release as negotiated. any article or material, in the use of any
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method or process, and in the disposition of patents, applications for patent, and any any article or material in accordance with patents granted on such applications, and law: under any patents which may issue as the re- U.S. Patent No. lllllllllllllll sult of any reissue, division, or continuation Date lllllllllllllllllllll thereunder to practice by or cause to be Application Serial No. lllllllllll practiced for the Department of llll, Filing Date lllllllllllllllll throughout the world, any and all of the in- together with corresponding foreign patents ventions thereunder in the manufacture and and foreign applications for patents, insofar use of any article or material, in the use of as the Contractor has the right to grant li- any method or process, and in the disposi- censes thereunder without incurring an obli- tion of any article or material in accordance gation to pay royalties or other compensa- with law: U.S. Patent No. tion to others solely on account of such lllllllllllllll Date grant. lllllllllllllllllllll Application Serial No. (b) No rights are granted or implied by the lllllllllll Filing Date lllllllllllllllll agreement under any other patents other than as provided above or by operation of together with corresponding foreign patents law. and foreign applications for patent, insofar (c) Nothing contained herein shall limit as the Contractor has the right to grant li- any rights which the Government may have censes thereunder without incurring an obli- obtained by virtue of prior contracts or by gation to pay royalties or other compensa- operation of law or otherwise. tion to others solely on account of such grant. (End of clause) (b) No rights are granted or implied by the agreement under any other patents other 252.227–7005 License term. than as provided above or by operation of law. As prescribed at 227.7009–3(b), insert (c) Nothing contained herein shall limit one of the following clauses in patent any rights which the Government may have releases, license agreements, and as- obtained by virtue of prior contracts or by signments: operation of law or otherwise.
LICENSE TERM (OCT 2001) (End of clause) Alternate I (AUG 1984). The license hereby granted shall remain in full force and effect 252.227–7007 License term—running for the full term of each of the patents re- royalty. ferred to in the ‘‘License Grant’’ clause of As prescribed at 227.7009–4(b), insert this contract and any and all patents here- the following clause in patent releases, after issued on applications for patent re- license agreements, and assignments: ferred to in such ‘‘License Grant’’ clause. Alternate II (OCT 2001). The license hereby LICENSE TERM—RUNNING ROYALTY (AUG 1984) granted shall terminate on the llll day of llll ,llll; Provided, however, that The license hereby granted shall remain in said termination shall be without prejudice full force and effect for the full term of each to the completion of any contract entered of the patents referred to in the ‘‘License into by the Government prior to said date of Grant’’ clause of this contract and any and termination or to the use or disposition all patents hereafter issued on applications for patent referred to above unless sooner thereafter of any articles or materials manu- terminated as elsewhere herein provided. factured by or for the Government under this license. (End of clause) [56 FR 36479, July 31, 1991, as amended at 66 FR 49861, Oct. 1, 2001] 252.227–7008 Computation of royalties. As prescribed at 227.7009–4(c), insert 252.227–7006 License grant—running royalty. the following clause in patent releases, license agreements, and assignments: As prescribed at 227.7009–4(a), insert the following clause in patent releases, COMPUTATION OF ROYALTIES (AUG 1984) license agreements, and assignments: Subject to the conditions hereinafter stat- ed, royalties shall accrue to the Contractor LICENSE GRANT—RUNNING ROYALTY (AUG under this agreement on all articles or mate- 1984) rials embodying, or manufactured by the use (a) The Contractor hereby grants to the of, any or all inventions claimed under any Government, as represented by the Secretary unexpired United States patent licensed of lllll, an irrevocable, nonexclusive, herein, upon acceptance thereof by the De- nontransferable license under the following partment of llllll, at the rate of
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llll percent of the net selling price of (End of clause) such articles or materials (amount) per (name of item) * whether manufactured by 252.227–7010 License to other Govern- the Government or procured under a fixed ment agencies. price contract, and at the rate of (amount) per (name of item) acquired or manufactured As prescribed at 227.7009–4(e), insert by a Contractor performing under a cost-re- the following clause in patent releases, imbursement contract. With respect to such license agreements, and assignments: articles or materials made by the Depart- ment of llllll, ‘‘net selling price,’’ as LICENSE TO OTHER GOVERNMENT AGENCIES used in this paragraph, means the actual (AUG 1984) cost of direct labor and materials without al- The Contractor hereby agrees to grant a lowance for overhead and supervision. separate license under the patents, applica- tions for patents, and improvements referred (End of clause) to in the ‘‘License Grant’’ clause of this con- tract, on the same terms and conditions as 252.227–7009 Reporting and payment appear in this license contract, to any other of royalties. department or agency of the Government at As prescribed at 227.7009–4(d), insert any time on receipt of a written request for the following clause in patent releases, such a license from such department or agen- license agreements, and assignments: cy; Provided, however, that as to royalties which accrue under such separate licenses, REPORTING AND PAYMENT OF ROYALTIES (AUG reports and payments shall be made directly 1984) to the Contractor by each such other depart- ment or agency pursuant to the terms of (a) The (procuring office) shall, on or be- such separate licenses. The Contractor shall fore the sixtieth (60th) day next following notify the Licensee hereunder promptly upon the end of each yearly* period ending receipt of any request for license hereunder. llllll during which royalties have ac- crued under this license, deliver to the Con- tractor, subject to military security regula- (End of clause) tions, a report in writing furnishing nec- essary information relative to royalties 252.227–7011 Assignments. which have accrued under this contract. As prescribed at 227.7010, insert the (b) Royalties which have accrued under following clause in assignments. this contract during the yearly* period end- ing llllll shall be paid to the Con- ASSIGNMENT (AUG 1984) tractor (if appropriations therefor are avail- The Contractor hereby conveys to the Gov- able or become available) within sixty (60) ernment, as represented by the Secretary of days next following the receipt of a voucher llllll, the entire right, title, and inter- from the Contractor submitted in accordance est in and to the following patents (and ap- with the report referred to in (a) of this plications for patent), in and to the inven- clause; Provided, that the Government shall tions thereof, and in and to all claims and not be obligated to pay, in respect of any demands whatsoever for infringement there- such yearly period, on account of the com- of heretofore accrued, the same to be held bined royalties accruing under this contract and enjoyed by the Government through its directly and under any separate licenses duly appointed representatives to the full granted pursuant to the ‘‘License to Other end of the term of said patents (and to the Government Agencies’’ clause (if any) of this contract, an amount greater than full end of the terms of all patents which llllll dollars ($llllll), and if such may be granted upon said applications for combined royalties exceed the said max- patent, or upon any division, continuation- imum yearly obligation, each department or in-part or continuation thereof): agency shall pay a pro rata share of the said U.S. Patent No. lllllllllllllll maximum yearly obligation as determined Date lllllllllllllllllllll by the proportion its accrued royalties bear Name of Inventor llllllllllllll to the combined total of accrued royalties. U.S. Application Serial No. lllllllll Filing Date lllllllllllllllll * Use bracketed matter as appropriate. Name of Inventor llllllllllllll * The frequency, date, and length of report- together with corresponding foreign patents ing periods should be selected as appropriate and applications for patent insofar as the to the particular circumstances of the con- Contractor has the right to assign the same. tract.
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(End of clause) authorize an assignment of any claim against the Government otherwise than as 252.227–7012 Patent license and re- permitted by law. lease contract. In Witness Whereof, the parties hereto have executed this contract. As prescribed at 227.7012, insert the following clause in patent releases, li- THE UNITED STATES OF AMERICA By llllllllllllllllllllll cense agreements, and assignments: Date lllllllllllllllllllll llllllllllllllllllllllll (Signature and Title of (Contract No.) Contractor Representative) lllllllll By llllllllllllllllllllll PATENT LICENSE AND RELEASE CONTRACT Date lllllllllllllllllllll (SEP 1999) *If only a release is procured, delete this This CONTRACT is effective as of the ll article; if an assignment is procured, use the day of [month, year], between the UNITED clause at 252.227–7011. STATES OF AMERICA (hereinafter called **When the Contractor is an individual, the Government), and lllll (hereinafter change ‘‘successors’’ to ‘‘heirs’’; if a partner- called the Contractor), (a corporation orga- ship, modify appropriately. nized and existing under the laws of the (End of clause) State of lllll), (a partnership consisting of lllll), (an individual trading as [64 FR 49685, Sept. 14, 1999] lllll), of the City of lllll, in the State of lllll. 252.227–7013 Rights in technical Whereas, the Contractor warrants that it data—Noncommercial items. has the right to grant the within license and As prescribed in 227.7103–6(a), use the release, and the Government desires to pro- following clause: cure the same, and Whereas, this contract is authorized by RIGHTS IN TECHNICAL DATA—NONCOMMERCIAL law, including 10 U.S.C. 2386. ITEMS (NOV 1995) Now Therefore, in consideration of the grant, release and agreements hereinafter re- (a) Definitions. As used in this clause: cited, the parties have agreed as follows: (1) Computer data base means a collection of Article 1. License Grant.* data recorded in a form capable of being (Insert the clause at 252.227–7004 for a paid processed by a computer. The term does not up license, or the clause at 252.227–7006 for a include computer software. license on a running royalty basis.) (2) Computer program means a set of in- Article 2. License Term.* structions, rules, or routines recorded in a (Insert the appropriate alternative clause form that is capable of causing a computer at 252.227–7005 for a paid up license, or the to perform a specific operation or series of clause at 252.227–7007 for a license on a run- operations. ning royalty basis.) (3) Computer software means computer pro- Article 3. Release of Past Infringement. grams, source code, source code listings, ob- (Insert the clause at 252.227–7001.) ject code listings, design details, algorithms, Article 4. Non-Estoppel. processes, flow charts, formulae and related (Insert the clause at 252.227–7000.) material that would enable the software to Article 5. Payment. be reproduced, recreated, or recompiled. The Contractor shall be paid the sum of Computer software does not include com- lll Dollars ($lll) in full compensation puter data bases or computer software docu- for the rights herein granted and agreed to mentation. be granted. (For a license on a running roy- (4) Computer software documentation means alty basis, insert the clause at 252.227–7006 in owner’s manuals, user’s manuals, installa- accordance with the instructions therein, tion instructions, operating instructions, and also the clause as specified at 252.227– and other similar items, regardless of stor- 7002 and 252.227–7009 and 252.227–7010.) age medium, that explain the capabilities of Article 6. Covenant Against Contingent the computer software or provide instruc- Fees. tions for using the software. (Insert the clause at FAR 52.203–5.) (5) Detailed manufacturing or process data Article 7. Assignment of Claims. means technical data that describe the steps, (Insert the clause at FAR 52.232–23.) sequences, and conditions of manufacturing, Article 8. Gratuities. processing or assembly used by the manufac- (Insert the clause at FAR 52.203–3.) turer to produce an item or component or to Article 9. Disputes. perform a process. (Insert the clause at FAR 52.233–1.) (6) Developed means that an item, compo- Article 10. Successors and Assignees. nent, or process exists and is workable. Thus, This Agreement shall be binding upon the the item or component must have been con- Contractor, its successors** and assignees, structed or the process practiced. Work- but nothing contained in this Article shall ability is generally established when the
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item, component, or process has been ana- (ii) Release or disclose technical data out- lyzed or tested sufficiently to demonstrate side the Government and authorize persons to reasonable people skilled in the applicable to whom release or disclosure has been made art that there is a high probability that it to use, modify, reproduce, release, perform, will operate as intended. Whether, how display, or disclose that data for United much, and what type of analysis or testing is States government purposes. required to establish workability depends on (13) Limited rights means the rights to use, the nature of the item, component, or proc- modify, reproduce, release, perform, display, ess, and the state of the art. To be considered or disclose technical data, in whole or in ‘‘developed,’’ the item, component, or proc- part, within the Government. The Govern- ess need not be at the stage where it could be ment may not, without the written permis- offered for sale or sold on the commercial sion of the party asserting limited rights, re- market, nor must the item, component, or lease or disclose the technical data outside process be actually reduced to practice with- the Government, use the technical data for in the meaning of Title 35 of the United manufacture, or authorize the technical data States Code. to be used by another party, except that the (7) Developed exclusively at private expense Government may reproduce, release or dis- means development was accomplished en- close such data or authorize the use or repro- tirely with costs charged to indirect cost duction of the data by persons outside the pools, costs not allocated to a government Government if reproduction, release, disclo- contract, or any combination thereof. sure, or use is— (i) Private expense determinations should (i) Necessary for emergency repair and be made at the lowest practicable level. overhaul; or (ii) A release or disclosure of technical (ii) Under fixed-price contracts, when total data (other than detailed manufacturing or costs are greater than the firm-fixed-price or process data) to, or use of such data by, a ceiling price of the contract, the additional foreign government that is in the interest of development costs necessary to complete de- the Government and is required for velopment shall not be considered when de- evaluational or informational purposes; termining whether development was at gov- (iii) Subject to a prohibition on the further ernment, private, or mixed expense. reproduction, release, disclosure, or use of (8) Developed exclusively with government the technical data; and funds means development was not accom- (iv) The contractor or subcontractor as- plished exclusively or partially at private ex- serting the restriction is notified of such re- pense. production, release, disclosure, or use. (9) Developed with mixed funding means de- (14) Technical data means recorded informa- velopment was accomplished partially with tion, regardless of the form or method of the costs charged to indirect cost pools and/or recording, of a scientific or technical nature costs not allocated to a government con- (including computer software documenta- tract, and partially with costs charged di- tion). The term does not include computer rectly to a government contract. software or data incidental to contract ad- (10) Form, fit, and function data means tech- ministration, such as financial and/or man- nical data that describes the required overall agement information. physical, functional, and performance char- (15) Unlimited rights means rights to use, acteristics (along with the qualification re- modify, reproduce, perform, display, release, quirements, if applicable) of an item, compo- or disclose technical data in whole or in nent, or process to the extent necessary to part, in any manner, and for any purpose permit identification of physically and func- whatsoever, and to have or authorize others tionally interchangeable items. to do so. (11) Government purpose means any activity (b) Rights in technical data. The Contractor in which the United States Government is a grants or shall obtain for the Government party, including cooperative agreements the following royalty free, world-wide, non- with international or multi-national defense exclusive, irrevocable license rights in tech- organizations, or sales or transfers by the nical data other than computer software doc- United States Government to foreign govern- umentation (see the Rights in Noncommer- ments or international organizations. Gov- cial Computer Software and Noncommercial ernment purposes include competitive pro- Computer Software Documentation clause of curement, but do not include the rights to this contract for rights in computer software use, modify, reproduce, release, perform, dis- documentation): play, or disclose technical data for commer- (1) Unlimited rights. The Government shall cial purposes or authorize others to do so. have unlimited rights in technical data that (12) Government purpose rights means the are— rights to— (i) Data pertaining to an item, component, (i) Use, modify, reproduce, release, per- or process which has been or will be devel- form, display, or disclose technical data oped exclusively with Government funds; within the Government without restriction; (ii) Studies, analyses, test data, or similar and data produced for this contract, when the
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study, analysis, test, or similar work was (iii) The Government shall not release or specified as an element of performance; disclose technical data in which it has gov- (iii) Created exclusively with Government ernment purpose rights unless— funds in the performance of a contract that (A) Prior to release or disclosure, the in- does not require the development, manufac- tended recipient is subject to the non-disclo- ture, construction, or production of items, sure agreement at 227.7103–7 of the Defense components, or processes; Federal Acquisition Regulation Supplement (iv) Form, fit, and function data; (DFARS); or (v) Necessary for installation, operation, (B) The recipient is a Government con- maintenance, or training purposes (other tractor receiving access to the data for per- than detailed manufacturing or process formance of a Government contract that data); contains the clause at DFARS 252.227–7025, (vi) Corrections or changes to technical Limitations on the Use or Disclosure of Gov- data furnished to the Contractor by the Gov- ernment-Furnished Information Marked ernment; with Restrictive Legends. (vii) Otherwise publicly available or have (iv) The Contractor has the exclusive right, been released or disclosed by the Contractor including the right to license others, to use or subcontractor without restrictions on fur- technical data in which the Government has ther use, release or disclosure, other than a obtained government purpose rights under release or disclosure resulting from the sale, this contract for any commercial purpose transfer, or other assignment of interest in during the time period specified in the gov- the technical data to another party or the ernment purpose rights legend prescribed in sale or transfer of some or all of a business paragraph (f)(2) of this clause. entity or its assets to another party; (3) Limited rights. (i) Except as provided in (viii) Data in which the Government has paragraphs (b)(1)(ii) and (b)(1)(iv) through obtained unlimited rights under another (b)(1)(ix) of this clause, the Government Government contract or as a result of nego- shall have limited rights in technical data— tiations; or (A) Pertaining to items, components, or (ix) Data furnished to the Government, processes developed exclusively at private under this or any other Government con- expense and marked with the limited rights tract or subcontract thereunder, with— legend prescribed in paragraph (f) of this (A) Government purpose license rights or clause; or limited rights and the restrictive condi- (B) Created exclusively at private expense tion(s) has/have expired; or in the performance of a contract that does (B) Government purpose rights and the not require the development, manufacture, Contractor’s exclusive right to use such data construction, or production of items, compo- for commercial purposes has expired. nents, or processes. (2) Government purpose rights. (i) The Gov- (ii) The Government shall require a recipi- ernment shall have government purpose ent of limited rights data for emergency re- rights for a five-year period, or such other pair or overhaul to destroy the data and all period as may be negotiated, in technical copies in its possession promptly following data— completion of the emergency repair/overhaul (A) That pertain to items, components, or and to notify the Contractor that the data processes developed with mixed funding ex- have been destroyed. cept when the Government is entitled to un- (iii) The Contractor, its subcontractors, limited rights in such data as provided in and suppliers are not required to provide the paragraphs (b)(ii) and (b)(iv) through (b)(ix) Government additional rights to use, modify, of this clause; or reproduce, release, perform, display, or dis- (B) Created with mixed funding in the per- close technical data furnished to the Govern- formance of a contract that does not require ment with limited rights. However, if the the development, manufacture, construction, Government desires to obtain additional or production of items, components, or proc- rights in technical data in which it has lim- esses. ited rights, the Contractor agrees to prompt- (ii) The five-year period, or such other pe- ly enter into negotiations with the Con- riod as may have been negotiated, shall com- tracting Officer to determine whether there mence upon execution of the contract, sub- are acceptable terms for transferring such contract, letter contract (or similar contrac- rights. All technical data in which the Con- tual instrument), contract modification, or tractor has granted the Government addi- option exercise that required development of tional rights shall be listed or described in a the items, components, or processes or cre- license agreement made part of the contract. ation of the data described in paragraph The license shall enumerate the additional (b)(2)(i)(B) of this clause. Upon expiration of rights granted the Government in such data. the five-year or other negotiated period, the (4) Specifically negotiated license rights. The Government shall have unlimited rights in standard license rights granted to the Gov- the technical data. ernment under paragraphs (b)(1) through
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(b)(3) of this clause, including the period dur- (3) In addition to the assertions made in ing which the Government shall have gov- the Attachment, other assertions may be ernment purpose rights in technical data, identified after award when based on new in- may be modified by mutual agreement to formation or inadvertent omissions unless provide such rights as the parties consider the inadvertent omissions would have mate- appropriate but shall not provide the Gov- rially affected the source selection decision. ernment lesser rights than are enumerated Such identification and assertion shall be in paragraph (a)(13) of this clause. Any rights submitted to the Contracting Officer as soon so negotiated shall be identified in a license as practicable prior to the scheduled date for agreement made part of this contract. delivery of the data, in the following format, (5) Prior government rights. Technical data and signed by an official authorized to con- that will be delivered, furnished, or other- tractually obligate the Contractor: Identi- wise provided to the Government under this fication and Assertion of Restrictions on the contract, in which the Government has pre- Government’s Use, Release, or Disclosure of viously obtained rights shall be delivered, Technical Data. furnished, or provided with the pre-existing The Contractor asserts for itself, or the rights, unless— persons identified below, that the Govern- (i) The parties have agreed otherwise; or ment’s rights to use, release, or disclose the (ii) Any restrictions on the Government’s following technical data should be re- rights to use, modify, reproduce, release, per- stricted— form, display, or disclose the data have ex- pired or no longer apply. Technical data Asserted Name of per- to be fur- Basis for as- rights cat- son asserting (6) Release from liability. The Contractor nished with sertion 2 egory 3 restrictions 4 agrees to release the Government from li- restrictions 1 ability for any release or disclosure of tech- nical data made in accordance with para- (LIST) ...... (LIST) ...... (LIST) ...... (LIST) graph (a)(13) or (b)(2)(iii) of this clause, in ac- 1 If the assertion is applicable to items, components or proc- cordance with the terms of a license nego- esses developed at private expense, identify both the data and each such item, component, or process. tiated under paragraph (b)(4) of this clause, 2 Generally, the development of an item, component, or or by others to whom the recipient has re- process at private expense, either exclusively or partially, is leased or disclosed the data and to seek re- the only basis for asserting restrictions on the Government’s rights to use, release, or disclose technical data pertaining to lief solely from the party who has improp- such items, components, or processes. Indicate whether de- erly used, modified, reproduced, released, velopment was exclusively or partially at private expense. If performed, displayed, or disclosed Con- development was not at private expense, enter the specific reason for asserting that the Government’s rights should be tractor data marked with restrictive leg- restricted. ends. 3 Enter asserted rights category (e.g., government purpose license rights from a prior contract, rights in SBIR data gen- (c) Contractor rights in technical data. All erated under another contract, limited or government purpose rights not granted to the Government are re- rights under this or a prior contract, or specifically negotiated tained by the Contractor. licenses). 4 (d) Third party copyrighted data. The Con- Corporation, individual, or other person, as appropriate. tractor shall not, without the written ap- Date proval of the Contracting Officer, incor- lllllllllllllllllllll porate any copyrighted data in the technical Printed Name and Title lllllllllll data to be delivered under this contract un- llllllllllllllllllllllll less the Contractor is the copyright owner or Signature llllllllllllllllll has obtained for the Government the license rights necessary to perfect a license or li- (End of identification and assertion) censes in the deliverable data of the appro- priate scope set forth in paragraph (b) of this (4) When requested by the Contracting Offi- clause, and has affixed a statement of the li- cer, the Contractor shall provide sufficient cense or licenses obtained on behalf of the information to enable the Contracting Offi- Government and other persons to the data cer to evaluate the Contractor’s assertions. transmittal document. The Contracting Officer reserves the right to (e) Identification and delivery of data to be add the Contractor’s assertions to the At- furnished with restrictions on use, release, or tachment and validate any listed assertion, disclosure. (1) This paragraph does not apply at a later date, in accordance with the proce- to restrictions based solely on copyright. dures of the Validation of Restrictive Mark- (2) Except as provided in paragraph (e)(3) of ings on Technical Data clause of this con- this clause, technical data that the Con- tract. tractor asserts should be furnished to the (f) Marking requirements. The Contractor, Government with restrictions on use, re- and its subcontractors or suppliers, may lease, or disclosure are identified in an at- only assert restrictions on the Government’s tachment to this contract (the Attachment). rights to use, modify, reproduce, release, per- The Contractor shall not deliver any data form, display, or disclose technical data to with restrictive markings unless the data be delivered under this contract by marking are listed on the Attachment. the deliverable data subject to restriction.
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Except as provided in paragraph (f)(5) of this The Government’s rights to use, modify, clause, only the following legends are au- reproduce, release, perform, display, or dis- thorized under this contract: the government close these technical data are restricted by purpose rights legend at paragraph (f)(2) of paragraph (b)(3) of the Rights in Technical this clause; the limited rights legend at Data—Noncommercial Items clause con- paragraph (f)(3) of this clause; or the special tained in the above identified contract. Any license rights legend at paragraph (f)(4) of reproduction of technical data or portions this clause; and/or a notice of copyright as thereof marked with this legend must also prescribed under 17 U.S.C. 401 or 402. reproduce the markings. Any person, other (1) General marking instructions. The Con- than the Government, who has been provided tractor, or its subcontractors or suppliers, access to such data must promptly notify shall conspicuously and legibly mark the ap- the above named Contractor. propriate legend on all technical data that qualify for such markings. The authorized (End of legend) legends shall be placed on the transmittal document or storage container and, for (4) Special license rights markings. (i) Data in printed material, each page of the printed which the Government’s rights stem from a material containing technical data for which specifically negotiated license shall be restrictions are asserted. When only portions marked with the following legend: of a page of printed material are subject to the asserted restrictions, such portions shall Special License Rights be identified by circling, underscoring, with The Government’s rights to use, modify, a note, or other appropriate identifier. Tech- reproduce, release, perform, display, or dis- nical data transmitted directly from one close these data are restricted by Contract computer or computer terminal to another No. llllllll (Insert contract number) shall contain a notice of asserted restric- llllllll, License No. llllllll tions. Reproductions of technical data or any (Insert license identifier) llllllll. portions thereof subject to asserted restric- Any reproduction of technical data or por- tions shall also reproduce the asserted re- tions thereof marked with this legend must strictions. also reproduce the markings. (2) Government purpose rights markings. Data delivered or otherwise furnished to the Gov- (End of legend) ernment purpose rights shall be marked as follows: (ii) For purposes of this clause, special li- censes do not include government purpose li- Government Purpose Rights cense rights acquired under a prior contract Contract No. llllllllllllllll (see paragraph (b)(5) of this clause). (5) Pre-existing data markings. If the terms Contractor Name llllllllllllll of a prior contract or license permitted the Contractor Address lllllllllllll Contractor to restrict the Government’s llllllllllllllllllllllll rights to use, modify, reproduce, release, per- Expiration Date lllllllllllllll form, display, or disclose technical data de- The Government’s rights to use, modify, liverable under this contract, and those re- reproduce, release, perform, display, or dis- strictions are still applicable, the Contractor close these technical data are restricted by may mark such data with the appropriate re- paragraph (b)(2) of the Rights in Technical strictive legend for which the data qualified Data—Noncommercial Items clause con- under the prior contract or license. The tained in the above identified contract. No marking procedures in paragraph (f)(1) of restrictions apply after the expiration date this clause shall be followed. shown above. Any reproduction of technical (g) Contractor procedures and records. data or portions thereof marked with this Throughout performance of this contract, legend must also reproduce the markings. the Contractor and its subcontractors or suppliers that will deliver technical data (End of legend) with other than unlimited rights, shall— (1) Have, maintain, and follow written pro- (3) Limited rights markings. Data delivered cedures sufficient to assure that restrictive or otherwise furnished to the Government markings are used only when authorized by with limited rights shall be marked with the the terms of this clause; and following legend: (2) Maintain records sufficient to justify the validity of any restrictive markings on Limited Rights technical data delivered under this contract. Contract No. llllllllllllllll (h) Removal of unjustified and nonconforming markings. (1) Unjustified technical data mark- Contractor Name llllllllllllll ings. The rights and obligations of the par- Contractor Address lllllllllllll ties regarding the validation of restrictive llllllllllllllllllllllll markings on technical data furnished or to
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be furnished under this contract are con- subcontractor or supplier for delivery to the tained in the Validation of Restrictive Mark- Government under this contract, the Con- ings on Technical Data clause of this con- tractor shall use this same clause in the sub- tract. Notwithstanding any provision of this contract or other contractual instrument, contract concerning inspection and accept- and require its subcontractors or suppliers to ance, the Government may ignore or, at the do so, without alteration, except to identify Contractor’s expense, correct or strike a the parties. No other clause shall be used to marking if, in accordance with the proce- enlarge or diminish the Government’s, the dures in the Validation of Restrictive Mark- Contractor’s, or a higher-tier subcontrac- ings on Technical Data clause of this con- tor’s or supplier’s rights in a subcontractor’s tract, a restrictive marking is determined to or supplier’s technical data. be unjustified. (3) Technical data required to be delivered (2) Nonconforming technical data markings. A by a subcontractor or supplier shall nor- nonconforming marking is a marking placed mally be delivered to the next higher-tier on technical data delivered or otherwise fur- contractor, subcontractor, or supplier. How- nished to the Government under this con- ever, when there is a requirement in the tract that is not in the format authorized by prime contract for data which may be sub- this contract. Correction of nonconforming mitted with other than unlimited rights by a markings is not subject to the Validation of subcontractor or supplier, then said subcon- Restrictive Markings on Technical Data tractor or supplier may fulfill its require- clause of this contract. If the Contracting ment by submitting such data directly to the Officer notifies the Contractor of a noncon- Government, rather than through a higher- forming marking and the Contractor fails to tier contractor, subcontractor, or supplier. remove or correct such marking within sixty (4) The Contractor and higher-tier sub- (60) days, the Government may ignore or, at contractors or suppliers shall not use their the Contractor’s expense, remove or correct power to award contracts as economic lever- any nonconforming marking. age to obtain rights in technical data from (i) Relation to patents. Nothing contained in their subcontractors or suppliers. this clause shall imply a license to the Gov- (5) In no event shall the Contractor use its ernment under any patent or be construed as obligation to recognize and protect subcon- affecting the scope of any license or other tractor or supplier rights in technical data right otherwise granted to the Government as an excuse for failing to satisfy its contrac- under any patent. tual obligations to the Government. (j) Limitation on charges for rights in tech- nical data. (1) The Contractor shall not (End of clause) charge to this contract any cost, including, but not limited to, license fees, royalties, or Alternate I (JUNE 1995). As prescribed in similar charges, for rights in technical data 227.7103–6(b), add the following paragraph (l) to be delivered under this contract when— to the basic clause: (i) The Government has acquired, by any (l) Publication for sale. (1) This paragraph means, the same or greater rights in the only applies to technical data in which the data; or Government has obtained unlimited rights (ii) The data are available to the public or a license to make an unrestricted release without restrictions. of technical data. (2) The limitation in paragraph (j)(1) of (2) The Government shall not publish a de- this clause— liverable technical data item or items identi- (i) Includes costs charged by a subcon- fied in this contract as being subject to para- tractor or supplier, at any tier, or costs in- graph (l) of this clause or authorize others to curred by the Contractor to acquire rights in publish such data on its behalf if, prior to subcontractor or supplier technical data, if publication for sale by the Government and the subcontractor or supplier has been paid within twenty-four (24) months following the for such rights under any other Government date specified in this contract for delivery of contract or under a license conveying the such data or the removal of any national se- rights to the Government; and curity or export control restrictions, which- (ii) Does not include the reasonable costs ever is later, the Contractor publishes that of reproducing, handling, or mailing the doc- item or items for sale and promptly notifies the Contracting Officer of such publica- uments or other media in which the tech- tion(s). Any such publication shall include a nical data will be delivered. notice identifying the number of this con- (k) Applicability to subcontractors or sup- tract and the Government’s rights in the pliers. (1) The Contractor shall ensure that published data. the rights afforded its subcontractors and (3) This limitation on the Government’s suppliers under 10 U.S.C. 2320, 10 U.S.C. 2321, right to publish for sale shall continue as and the identification, assertion, and deliv- long as the data are reasonably available to ery processes of paragraph (e) of this clause the public for purchase. are recognized and protected. (2) Whenever any technical data for non- [60 FR 33490, June 28, 1995, as amended at 60 commercial items is to be obtained from a FR 61602, Nov. 30, 1995]
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252.227–7014 Rights in noncommercial (iii) Computer software documentation re- computer software and noncommer- quired to be delivered under a contract has cial computer software documenta- been written, in any medium, in sufficient tion. detail to comply with requirements under that contract. As prescribed in 227.7203–6(a)(1), use (7) Developed exclusively at private expense the following clause. means development was accomplished en- tirely with costs charged to indirect cost RIGHTS IN NONCOMMERCIAL COMPUTER SOFT- pools, costs not allocated to a government WARE AND NONCOMMERCIAL COMPUTER SOFT- contract, or any combination thereof. WARE DOCUMENTATION (JUN 1995) (i) Private expense determinations should (a) Definitions. As used in this clause: be made at the lowest practicable level. (1) Commercial computer software means (ii) Under fixed-price contracts, when total software developed or regularly used for non- costs are greater than the firm-fixed-price or governmental purposes which— ceiling price of the contract, the additional development costs necessary to complete de- (i) Has been sold, leased, or licensed to the velopment shall not be considered when de- public; termining whether development was at gov- (ii) Has been offered for sale, lease, or li- ernment, private, or mixed expense. cense to the public; (8) Developed exclusively with government (iii) Has not been offered, sold, leased, or funds means development was not accom- licensed to the public but will be available plished exclusively or partially at private ex- for commercial sale, lease, or license in time pense. to satisfy the delivery requirements of this (9) Developed with mixed funding means de- contract; or velopment was accomplished partially with (iv) Satisfies a criterion expressed in para- costs charged to indirect cost pools and/or graph (a)(1) (i), (ii), or (iii) of this clause and costs not allocated to a government con- would require only minor modification to tract, and partially with costs charged di- meet the requirements of this contract. rectly to a government contract. (2) Computer database means a collection of (10) Government purpose means any activity recorded data in a form capable of being in which the United States Government is a processed by a computer. The term does not party, including cooperative agreements include computer software. with international or multi-national defense (3) Computer program means a set of in- organizations or sales or transfers by the structions, rules, or routines, recorded in a United States Government to foreign govern- form that is capable of causing a computer ments or international organizations. Gov- to perform a specific operation or series of ernment purposes include competitive pro- operations. curement, but do not include the rights to (4) Computer software means computer pro- use, modify, reproduce, release, perform, dis- grams, source code, source code listings, ob- play, or disclose computer software or com- ject code listings, design details, algorithms, puter software documentation for commer- processes, flow charts, formulae, and related cial purposes or authorize others to do so. material that would enable the software to (11) Government purpose rights means the be reproduced, recreated, or recompiled. rights to— Computer software does not include com- (i) Use, modify, reproduce, release, per- puter databases or computer software docu- form, display, or disclose computer software mentation. or computer software documentation within (5) Computer software documentation means the Government without restriction; and owner’s manuals, user’s manuals, installa- (ii) Release or disclose computer software tion instructions, operating instructions, or computer software documentation outside and other similar items, regardless of stor- the Government and authorize persons to age medium, that explain the capabilities of whom release or disclosure has been made to the computer software or provide instruc- use, modify, reproduce, release, perform, dis- tions for using the software. play, or disclose the software or documenta- (6) Developed means that— tion for United States government purposes. (i) A computer program has been success- (12) Minor modification means a modifica- fully operated in a computer and tested to tion that does not significantly alter the the extent sufficient to demonstrate to rea- nongovernmental function or purpose of the sonable persons skilled in the art that the software or is of the type customarily pro- program can reasonably be expected to per- vided in the commercial marketplace. form its intended purpose; (13) Noncommercial computer software means (ii) Computer software, other than com- software that does not qualify as commercial puter programs, has been tested or analyzed computer software under paragraph (a)(1) of to the extent sufficient to demonstrate to this clause. reasonable persons skilled in the art that the (14) Restricted rights apply only to non- software can reasonably be expected to per- commercial computer software and mean the form its intended purpose; or Government’s rights to—
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(i) Use a computer program with one com- computer software to reflect the repairs or puter at one time. The program may not be overhaul made, provided that— accessed by more than one terminal or cen- (A) The intended recipient is subject to the tral processing unit or time shared unless use and non-disclosure agreement at DFARS otherwise permitted by this contract; 227.7103–7 or is a Government contractor re- (ii) Transfer a computer program to an- ceiving access to the software for perform- other Government agency without the fur- ance of a Government contract that contains ther permission of the Contractor if the the clause at DFARS 252.227–7025, Limita- transferor destroys all copies of the program tions on the Use or Disclosure of Govern- and related computer software documenta- ment-Furnished Information Marked with tion in its possession and notifies the licen- Restrictive Legends; and sor of the transfer. Transferred programs re- (B) The Government shall not permit the main subject to the provisions of this clause; recipient to decompile, disassemble, or re- (iii) Make the minimum number of copies verse engineer the software, or use software of the computer software required for safe- decompiled, disassembled, or reverse engi- keeping (archive), backup, or modification neered by the Government pursuant to para- purposes; graph (a)(14)(iv) of this clause, for any other (iv) Modify computer software provided purpose. that the Government may— (15) Unlimited rights means rights to use, (A) Use the modified software only as pro- modify, reproduce, release, perform, display, vided in paragraphs (a)(14) (i) and (iii) of this clause; and or disclose computer software or computer (B) Not release or disclose the modified software documentation in whole or in part, software except as provided in paragraphs in any manner and for any purpose whatso- (a)(14) (ii), (v) and (vi) of this clause; ever, and to have or authorize others to do (v) Permit contractors or subcontractors so. performing service contracts (see 37.101 of (b) Rights in computer software or computer the Federal Acquisition Regulation) in sup- software documentation. The Contractor port of this or a related contract to use com- grants or shall obtain for the Government puter software to diagnose and correct defi- the following royalty free, world-wide, non- ciencies in a computer program, to modify exclusive, irrevocable license rights in non- computer software to enable a computer pro- commercial computer software or computer gram to be combined with, adapted to, or software documentation. All rights not merged with other computer programs or granted to the Government are retained by when necessary to respond to urgent tactical the Contractor. situations, provided that— (1) Unlimited rights. The Government shall (A) The Government notifies the party have unlimited rights in— which has granted restricted rights that a (i) Computer software developed exclu- release or disclosure to particular contrac- sively with Government funds; tors or subcontractors was made; (ii) Computer software documentation re- (B) Such contractors or subcontractors are quired to be delivered under this contract; subject to the use and non-disclosure agree- (iii) Corrections or changes to computer ment at 227.7103–7 of the Defense Federal Ac- software or computer software documenta- quisition Regulation Supplement (DFARS) tion furnished to the Contractor by the Gov- or are Government contractors receiving ac- ernment; cess to the software for performance of a (iv) Computer software or computer soft- Government contract that contains the ware documentation that is otherwise pub- clause at DFARS 252.227–7025, Limitations on licly available or has been released or dis- the Use or Disclosure of Government-Fur- closed by the Contractor or subcontractor nished Information Marked with Restrictive Legends; without restriction on further use, release or (C) The Government shall not permit the disclosure, other than a release or disclosure recipient to decompile, disassemble, or re- resulting from the sale, transfer, or other as- verse engineer the software, or use software signment of interest in the software to an- decompiled, disassembled, or reverse engi- other party or the sale or transfer of some or neered by the Government pursuant to para- all of a business entity or its assets to an- graph (a)(14)(iv) of this clause, for any other other party; purpose; and (v) Computer software or computer soft- (D) Such use is subject to the limitation in ware documentation obtained with unlim- paragraph (a)(14)(i) of this clause; and ited rights under another Government con- (vi) Permit contractors or subcontractors tract or as a result of negotiations; or performing emergency repairs or overhaul of (vi) Computer software or computer soft- items or components of items procured under ware documentation furnished to the Gov- this or a related contract to use the com- ernment, under this or any other Govern- puter software when necessary to perform ment contract or subcontract thereunder the repairs or overhaul, or to modify the with—
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(A) Restricted rights in computer software, (4) Specifically negotiated license rights. (i) limited rights in technical data, or govern- The standard license rights granted to the ment purpose license rights and the restric- Government under paragraphs (b)(1) through tive conditions have expired; or (b)(3) of this clause, including the period dur- (B) Government purpose rights and the ing which the Government shall have gov- Contractor’s exclusive right to use such soft- ernment purpose rights in computer soft- ware or documentation for commercial pur- ware, may be modified by mutual agreement poses has expired. to provide such rights as the parties consider (2) Government purpose rights. (i) Except as appropriate but shall not provide the Gov- provided in paragraph (b)(1) of this clause, ernment lesser rights in computer software the Government shall have government pur- than are enumerated in paragraph (a)(14) of pose rights in computer software develop- this clause or lesser rights in computer soft- ment with mixed funding. ware documentation than are enumerated in (ii) Government purpose rights shall re- paragraph (a)(13) of the Rights in Technical main in effect for a period of five years un- Data—Noncommercial Items clause of this less a different period has been negotiated. contract. Upon expiration of the five-year or other ne- (ii) Any rights so negotiated shall be iden- gotiated period, the Government shall have tified in a license agreement made part of unlimited rights in the computer software or this contract. computer software documentation. The gov- (5) Prior government rights. Computer soft- ernment purpose rights period shall com- ware or computer software documentation mence upon execution of the contract, sub- that will be delivered, furnished, or other- contract, letter contract (or similar contrac- wise provided to the Government under this tual instrument), contract modification, or contract, in which the Government has pre- option exercise that required development of viously obtained rights shall be delivered, the computer software. furnished, or provided with the pre-existing (iii) The Government shall not release or rights, unless— disclose computer software in which it has (i) The parties have agreed otherwise; or government purpose rights to any other per- (ii) Any restrictions on the Government’s son unless— rights to use, modify, reproduce, release, per- (A) Prior to release or disclosure, the in- form, display, or disclose the data have ex- tended recipient is subject to the use and pired or no longer apply. non-disclosure agreement at DFARS 227.7103–7; or (6) Release from liability. The Contractor agrees to release the Government from li- (B) The recipient is a Government con- ability for any release or disclosure of com- tractor receiving access to the software or documentation for performance of a Govern- puter software made in accordance with ment contract that contains the clause at paragraph (a)(14) or (b)(2)(iii) of this clause, DFARS 252.227–7025, Limitations on the Use in accordance with the terms of a license ne- or Disclosure of Government Furnished In- gotiated under paragraph (b)(4) of this formation Marked with Restrictive Legends. clause, or by others to whom the recipient (3) Restricted rights. (i) The Government has released or disclosed the software, and to shall have restricted rights in noncommer- seek relief solely from the party who has im- cial computer software required to be deliv- properly used, modified, reproduced, re- ered or otherwise provided to the Govern- leased, performed, displayed, or disclosed ment under this contract that were devel- Contractor software marked with restrictive oped exclusively at private expense. legends. (ii) The Contractor, its subcontractors, or (c) Rights in derivative computer software or suppliers are not required to provide the computer software documentation. The Govern- Government additional rights in non- ment shall retain its rights in the unchanged commercial computer software delivered or portions of any computer software or com- otherwise provided to the Government with puter software documentation delivered restricted rights. However, if the Govern- under this contract that the Contractor uses ment desires to obtain additional rights in to prepare, or includes in, derivative com- such software, the Contractor agrees to puter software or computer software docu- promptly enter into negotiations with the mentation. Contracting Officer to determine whether (d) Third party copyrighted computer soft- there are acceptable terms for transferring ware or computer software documentation. The such rights. All noncommercial computer Contractor shall not, without the written ap- software in which the Contractor has grant- proval of the Contracting Officer, incor- ed the Government additional rights shall be porate any copyrighted computer software or listed or described in a license agreement computer software documentation in the made part of the contract (see paragraph software or documentation to be delivered (b)(4) of this clause). The license shall enu- under this contract unless the Contractor is merate the additional rights granted the the copyright owner or has obtained for the Government. Government the license rights necessary to
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perfect a license or licenses in the deliver- llllllllllllllllllllllll able software or documentation of the appro- Signature llllllllllllllllll priate scope set forth in paragraph (b) of this (End of identification and assertion) clause, and prior to delivery of such— (1) Computer software, has provided a (4) When requested by the Contracting Offi- statement of the license rights obtained in a cer, the Contractor shall provide sufficient form acceptable to the Contracting Officer; information to enable the Contracting Offi- or cer to evaluate the Contractor’s assertions. (2) Computer software documentation, has The Contracting Officer reserves the right to affixed to the transmittal document a state- add the Contractor’s assertions to the At- ment of the license rights obtained. tachment and validate any listed assertion, (e) Identification and delivery of computer at a later date, in accordance with the proce- software and computer software documentation dures of the Validation of Asserted Restric- to be furnished with restrictions on use, release, tions—Computer Software clause of this con- or disclosure. (1) This paragraph does not tract. apply to restrictions based solely on copy- (f) Marking requirements. The Contractor, right. and its subcontractors or suppliers, may (2) Except as provided in paragraph (e)(3) of only assert restrictions on the Government’s this clause, computer software that the Con- rights to use, modify, reproduce, release, per- tractor asserts should be furnished to the form, display, or disclose computer software Government with restrictions on use, re- by marking the deliverable software or docu- lease, or disclosure is identified in an attach- mentation subject to restriction. Except as ment to this contract (the Attachment). The provided in paragraph (f)(5) of this clause, Contractor shall not deliver any software only the following legends are authorized with restrictive markings unless the soft- under this contract; the government purpose ware is listed on the Attachment. rights legend at paragraph (f)(2) of this (3) In addition to the assertions made in clause; the restricted rights legend at para- the Attachment, other assertions may be graph (f)(3) of this clause; or the special li- identified after award when based on new in- cense rights legend at paragraph (f)(4) of this formation or inadvertent omissions unless clause; and/or a notice of copyright as pre- the inadvertent omissions would have mate- scribed under 17 U.S.C. 401 or 402. rially affected the source selection decision. Such identification and assertion shall be (1) General marking instructions. The Con- submitted to the Contracting Officer as soon tractor, or its subcontractors or suppliers, as practicable prior to the scheduled data for shall conspicuously and legibly mark the ap- delivery of the software, in the following for- propriate legend on all computer software mat, and signed by an official authorized to that qualify for such markings. The author- contractually obligate the Contractor: Iden- ized legends shall be placed on the trans- tification and Assertion of Restrictions on mitted document or software storage con- the Government’s Use, Release, or Disclosure tainer and each page, or portions thereof, of of Computer Software. printed material containing computer soft- The Contractor asserts for itself, or the ware for which restrictions are asserted. persons identified below, that the Govern- Computer software transmitted directly ment’s rights to use, release, or disclose the from one computer or computer terminal to following computer software should be re- another shall contain a notice of asserted re- stricted: strictions. However, instructions that inter- fere with or delay the operation of computer Computer software in order to display a restrictive Software to Asserted Name of Per- be Furnished Basis for Rights son Asserting rights legend or other license statement at With Assertion** Category*** Restrictions**** any time prior to or during use of the com- Restrictions* puter software, or otherwise cause such in- (LIST) (LIST) (LIST) (LIST) terference or delay, shall not be inserted in software that will or might be used in com- *Generally, development at private expense, either exclu- bat or situations that simulate combat con- sively or partially, is the only basis for asserting restrictions on the Government’s rights to use, release, or disclose computer ditions, unless the Contracting Officer’s software. written permission to deliver such software **Indicate whether development was exclusively or partially at private expense. If development was not at private ex- has been obtained prior to delivery. Repro- pense, enter the specific reason for asserting that the Govern- ductions of computer software or any por- ment’s rights should be restricted. tions thereof subject to asserted restrictions, ***Enter asserted rights category (e.g., restricted or govern- ment purpose rights in computer software, government pur- shall also reproduce the asserted restric- pose license rights from a prior contract, rights in SBIR soft- tions. ware generated under another contract, or specifically nego- tiated licenses). (2) Government purpose rights markings. ****Corporation, individual, or other person, as appropriate. Computer software delivered or otherwise furnished to the Government with govern- Date lllllllllllllllllllll ment purpose rights shall be marked as fol- Printed Name and Title lllllllllll lows:
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GOVERNMENT PURPOSE RIGHTS (End of legend) Contract No. llllllllllllllll (ii) For purposes of this clause, special li- Contractor Name llllllllllllll censes do not include government purpose li- cense rights acquired under a prior contract Contractor Address lllllllllllll (see paragraph (b)(5) of this clause). llllllllllllllllllllllll (5) Pre-existing markings. If the terms of a Expiration Date lllllllllllllll prior contract or license permitted the Con- The Government’s rights to use, modify, tractor to restrict the Government’s rights reproduce, release, perform, display, or dis- to use, modify, release, perform, display, or close this software are restricted by para- disclose computer software or computer soft- ware documentation and those restrictions graph (b)(2) of the Rights in Noncommercial are still applicable, the Contractor may Computer Software and Noncommercial mark such software or documentation with Computer Software Documentation clause the appropriate restrictive legend for which contained in the above identified contract. the software qualified under the prior con- No restrictions apply after the expiration tract or license. The marking procedures in date shown above. Any reproduction of the paragraph (f)(1) of this clause shall be fol- software or portions thereof marked with lowed. this legend must also reproduce the mark- (g) Contractor procedures and records. ings. Throughout performance of this contract, (End of legend) the Contractor and its subcontractors or (3) Restricted rights markings. Software de- suppliers that will deliver computer software livered or otherwise furnished to the Govern- or computer software documentation with ment with restricted rights shall be marked other than unlimited rights, shall— with the following legend: (1) Have, maintain, and follow written pro- cedures sufficient to assure that restrictive RESTRICTED RIGHTS markings are used only when authorized by the terms of this clause; and Contract No. llllllllllllllll (2) Maintain records sufficient to justify Contractor Name llllllllllllll the validity of any restrictive markings on Contractor Address lllllllllllll computer software or computer software documentation delivered under this con- llllllllllllllllllllllll tract. The Government’s rights to use, modify, (h) Removal of unjustified and nonconforming reproduce, release, perform, display, or dis- markings. (1) Unjustified computer software or close this software are restricted by para- computer software documentation markings. graph (b)(3) of the Rights in Noncommercial The rights and obligations of the parties re- Computer Software and Noncommercial garding the validation of restrictive mark- Computer Software Documentation clause ings on computer software or computer soft- contained in the above identified contract. ware documentation furnished or to be fur- Any reproduction of computer software or nished under this contract are contained in portions thereof marked with this legend the Validation of Asserted Restrictions— must also reproduce the markings. Any per- Computer Software and the Validation of Re- son, other than the Government, who has strictive Markings on Technical Data been provided access to such software must clauses of this contract, respectively. Not- promptly notify the above named Con- withstanding any provision of this contract tractor. concerning inspection and acceptance, the (End of legend) Government may ignore or, at the Contrac- (4) Special license rights markings. (i) Com- tor’s expense, correct or strike a marking if, puter software or computer documentation in accordance with the procedures of those in which the Government’s rights stem from clauses, a restrictive marking is determined a specifically negotiated license shall be to be unjustified. marked with the following legend: (2) Nonconforming computer software or com- puter software documentation markings. A non- SPECIAL LICENSE RIGHTS conforming marking is a marking placed on computer software or computer software The Government’s rights to use, modify, documentation delivered or otherwise fur- reproduce, release, perform, display, or dis- nished to the Government under this con- close this software are restricted by Con- tract that is not in the format authorized by tract No. llll(Insert contract num- this contract. Correction of nonconforming ber)llll, License No.llll(Insert li- markings is not subject to the Validation of cense identifier)llll. Any reproduction of Asserted Restrictions—Computer Software computer software, computer software docu- or the Validation of Restrictive Markings on mentation, or portions thereof marked with Technical Data clause of this contract. If the this legend must also reproduce the mark- Contracting Officer notifies the Contractor ings. of a nonconforming marking or markings
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and the Contractor fails to remove or correct (4) In no event shall the Contractor use its such markings within sixty (60) days, the obligation to recognize and protect subcon- Government may ignore or, at the Contrac- tractor or supplier rights in computer soft- tor’s expense, remove or correct any noncon- ware or computer software documentation as forming markings. an excuse for failing to satisfy its contrac- (i) Relation to patents. Nothing contained in tual obligation to the Government. this clause shall imply a license to the Gov- ernment under any patent or be construed as (End of clause) affecting the scope of any license or other right otherwise granted to the Government Alternate I (JUN 1995). As prescribed in under any patent. 227.7203–6(a)(2), add the following paragraph (j) Limitation on charges for rights in com- (l) to the basic clause: puter software or computer software documenta- (l) Publication for sale. (1) This paragraph tion. (1) The Contractor shall not charge to only applies to computer software or com- this contract any cost, including but not puter software documentation in which the limited to license fees, royalties, or similar Government has obtained unlimited rights charges, for rights in computer software or or a license to make an unrestricted release computer software documentation to be de- of the software or documentation. livered under this contract when— (2) The Government shall not publish a de- (i) The Government has acquired, by any liverable item or items of computer software means, the same or greater rights in the or computer software documentation identi- software or documentation; or fied in this contract as being subject to para- (ii) The software or documentation are graph (l) of this clause or authorize others to available to the public without restrictions. publish such software or documentation on (2) The limitation in paragraph (j)(1) of its behalf if, prior to publication for sale by this clause— the Government and within twenty-four (24) (i) Includes costs charged by a subcon- months following the date specified in this tractor or supplier, at any tier, or costs in- contract for delivery of such software or doc- curred by the Contractor to acquire rights in umentation, or the removal of any national subcontractor or supplier computer software security or export control restrictions, or computer software documentation, if the whichever is later, the Contractor publishes subcontractor or supplier has been paid for that item or items for sale and promptly no- such rights under any other Government tifies the Contracting Officer of such publi- contract or under a license conveying the cation(s). Any such publication shall include rights to the Government; and a notice identifying the number of this con- (ii) Does not include the reasonable costs tract and the Government’s rights in the of reproducing, handling, or mailing the doc- published software or documentation. uments or other media in which the software (3) This limitation on the Government’s or documentation will be delivered. rights to publish for sale shall continue as (k) Applicability to subcontractors or sup- long as the software or documentation are pliers. (1) Whenever any noncommercial com- reasonably available to the public for pur- puter software or computer software docu- chase. mentation is to be obtained from a subcon- tractor or supplier for delivery to the Gov- [60 FR 33493, June 28, 1995] ernment under this contract, the Contractor shall use this same clause in its subcontracts 252.227–7015 Technical data—Com- or other contractual instruments, and re- mercial items. quire its subcontractors or suppliers to do As prescribed in 227.7102–3, use the so, without alteration, except to identify the parties. No other clause shall be used to en- following clause: large or diminish the Government’s, the Con- TECHNICAL DATA—COMMERCIAL ITEMS (NOV tractor’s, or a higher tier subcontractor’s or 1995) supplier’s rights in a subcontractor’s or sup- plier’s computer software or computer soft- (a) Definitions. As used in this clause: ware documentation. (1) Commercial item does not include com- (2) The Contractor and higher tier sub- mercial computer software. contractors or suppliers shall not use their (2) Form, fit, and function data means tech- power to award contracts as economic lever- nical data that describes the required overall age to obtain rights in computer software or physical, functional, and performance char- computer software documentation from acteristics (along with the qualification re- their subcontractors or suppliers. quirements, if applicable) of an item, compo- (3) The Contractor shall ensure that sub- nent, or process to the extent necessary to contractor or supplier rights are recognized permit identification of physically and func- and protected in the identification, asser- tionally interchangeable items. tion, and delivery processes required by (3) The term item includes components or paragraph (e) of this clause. processes.
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(4) Technical data means recorded informa- (d) Release from liability. The Contractor tion, regardless of the form or method of re- agrees that the Government, and other per- cording, of a scientific or technical nature sons to whom the Government may have re- (including computer software documenta- leased or disclosed technical data delivered tion). The term does not include computer or otherwise furnished under this contract, software or data incidental to contract ad- shall have no liability for any release or dis- ministration, such as financial and/or man- closure of technical data that are not agement information. marked to indicate that such data are li- (b) License. (1) The Government shall have censed data subject to use, modification, re- the unrestricted right to use, modify, repro- production, release, performance, display, or duce, release, perform, display, or disclose disclosure restrictions. technical data, and to permit others to do so, that— (End of clause) (i) Have been provided to the Government or others without restrictions on use, modi- [60 FR 33497, June 28, 1995, as amended at 60 fication, reproduction, release, or further FR 61602, Nov. 30, 1995] disclosure other than a release or disclosure resulting from the sale, transfer, or other as- signment of interest in the technical data to 252.227–7016 Rights in bid or proposal another party or the sale or transfer of some information. or all of a business entity or its assets to an- As prescribed in 227.7103–6(e)(1), other party; 227.7104(e)(1), or 227.7203–6(b), use the (ii) Are form, fit, and function data; following clause: (iii) Are a correction or change to tech- nical data furnished to the Contractor by the RIGHTS IN BID OR PROPOSAL INFORMATION Government; (JUN 1995) (iv) Are necessary for operation, mainte- nance, installation, or training (other than (a) Definitions. (1) For contracts that re- detailed manufacturing or process data); or quire the delivery of technical data, the (v) Have been provided to the Government terms ‘‘technical data’’ and ‘‘computer soft- under a prior contract or licensing agree- ware’’ are defined in the Rights in Technical ment through which the Government has ac- Data—Noncommercial Item clause of this quired the rights to use, modify, reproduce, contract or, if this is a contract awarded release, perform, display, or disclose the data under the Small Business Innovative Re- without restrictions. search Program, the Rights in Noncommer- (2) Except as provided in paragraph (b)(1) of cial Technical Data and Computer Soft- this clause, the Government may use, mod- ware—Small Business Innovative Research ify, reproduce, release, perform, display, or (SBIR) Program clause of this contract. disclose technical data within the Govern- (2) For contracts that do not require the ment only. The Government shall not— delivery of technical data, the term ‘‘com- (i) Use the technical data to manufacture puter software’’ is defined in the Rights in additional quantities of the commercial Noncommercial Computer and Noncommer- items; or cial Computer Software Documentation (ii) Release, perform, display, disclose, or clause of this contract or, if this is a con- authorize use of the technical data outside tract awarded under the Small Business In- the Government without the Contractor’s novative Research Program, the Rights in written permission unless a release, disclo- Noncommercial Technical Data and Com- sure or permitted use is necessary for emer- puter Software—Small Business Innovative gency repair or overhaul of the commercial Research (SBIR) Program clause of this con- items furnished under this contract. tract. (c) Additional license rights. The Contractor, (b) Government rights to contract award. By its subcontractors, and suppliers are not re- submission of its offer, the Offeror agrees quired to provide the Government additional that the Government— rights to use, modify, reproduce, release, per- (1) May reproduce the bid or proposal, or form, display, or disclose technical data. any portions thereof, to the extent necessary However, if the Government desires to ob- to evaluate the offer. tain additional rights in technical data, the (2) Except as provided in paragraph (d) of Contractor agrees to promptly enter into ne- this clause, shall use information contained gotiations with the Contracting Officer to in the bid or proposal only for evaluational determine whether there are acceptable purposes and shall not disclose, directly or terms for transferring such rights. All tech- indirectly, such information to any person nical data in which the Contractor has including potential evaluators, unless that granted the Government additional rights person has been authorized by the head of shall be listed or described in a special li- the agency, his or her designee, or the Con- cense agreement made part of this contract. tracting Officer to receive such information. The license shall enumerate the additional (c) Government rights subsequent to contract rights granted the Government in such data. award. The Contractor agrees—
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(1) Except as provided in paragraphs (c)((2), IDENTIFICATION AND ASSERTION OF USE, RE- (d), and (e) of this clause, the Government LEASE, OR DISCLOSURE RESTRICTIONS (JUN shall have the rights to use, modify, repro- 1995) duce, release, perform, display, or disclose (a) The terms used in this provision are de- information contained in the Contractor’s fined in following clause or clauses con- bid or proposal within the Government. The tained in this solicitation— Government shall not release, perform, dis- (1) If a successful offeror will be required play, or disclose such information outside to deliver technical data, the Rights in Tech- the Government without the Contractor’s nical Data—Noncommercial Items clause, or, written permission. (2) The Government’s right to use, modify, if this solicitation contemplates a contract reproduce, release, perform, display, or dis- under the Small Business Innovative Re- close information that is technical data or search Program, the Rights in Noncommer- computer software required to be delivered cial Technical Data and Computer Soft- under this contract are determined by the ware—Small Business Innovative Research Rights in Technical Data—Noncommercial (SBIR) Program clause. Items, Rights in Noncommercial Computer (2) If a successful offeror will not be re- Software and Noncommercial Computer quired to deliver technical data, the Rights Software Documentation, or Rights in Non- in Noncommercial Computer Software and commercial Technical Data and Computer Noncommercial Computer Software Docu- Software—Small Business Innovative Re- mentation clause, or, if this solicitation con- search (SBIR) Program clause(s) of this con- templates a contract under the Small Busi- tract. ness Innovative Research Program, the (d) Government-furnished information. The Rights in Noncommercial Technical Data Government’s rights with respect to tech- and Computer Software—Small Business In- nical data or computer software contained in novative Research (SBIR) Program clause. the Contractor’s bid or proposal that were (b) The identification and assertion re- provided to the Contractor by the Govern- quirements in this provision apply only to ment are subject only to restrictions on use, technical data, including computer software modification, reproduction, release, perform- documents, or computer software to be deliv- ance, display, or disclosure, if any, imposed ered with other than unlimited rights. For by the developer or licensor of such data or contracts to be awarded under the Small software. Business Innovative Research Program, the (e) Information available without restrictions. notification requirements do not apply to The Government’s rights to use, modify, re- technical data or computer software that produce, release, perform, display, or, dis- will be generated under the resulting con- close information contained in a bid or pro- tract. Notification and identification is not posal, including technical data or computer required for restrictions based solely on software, and to permit others to do so, shall copyright. not be restricted in any manner if such infor- (c) Offers submitted in response to this so- mation has been released or disclosed to the licitation shall identify, to the extent known Government or to other persons without re- at the time an offer is submitted to the Gov- strictions other than a release or disclosure ernment, the technical data or computer resulting from the sale, transfer, or other as- software that the Offeror, its subcontractors signment of interest in the information to or suppliers, or potential subcontractors or another party or the sale or transfer of some suppliers, assert should be furnished to the or all of a business entity or its assets to an- Government with restrictions on use, re- other party. lease, or disclosure. (f) Flowdown. Contractor shall include this (d) The Offeror’s assertions, including the clause in all subcontracts or similar contrac- assertions of its subcontractors or suppliers tual instruments and require its subcontrac- or potential subcontractors or suppliers shall tors or suppliers to do so without alteration, be submitted as an attachment to its offer in except to identify the parties. the following format, dated and signed by an official authorized to contractually obligate (End of clause) the Offeror: Identification and Assertion of Restrictions [60 FR 33498, June 28, 1995] on the Government’s Use, Release, or Dis- closure of Technical Data or Computer 252.227–7017 Identification and asser- Software tion of use, release, or disclosure re- strictions. The Offeror asserts for itself, or the per- sons identified below, that the Government’s As prescribed in 227.7103–3(b), rights to use, release, or disclose the fol- 227.7104(e)(2), or 227.7203–3(a), use the lowing technical data or computer software following provision: should be restricted:
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Technical Data or Computer Software to be Furnished Basis for Assertion** Asserted Rights Category*** Name of Person Asserting With Restrictions* Restrictions****
(LIST)***** (LIST) (LIST) (LIST) *For technical data (other than computer software documentation) pertaining to items, components, or processes developed at private expense, identify both the deliverable technical data and each such items, component, or process. For computer software or computer software documentation identify the software or documentation. **Generally, development at private expense, either exclusively or partially, is the only basis for asserting restrictions. For tech- nical data, other than computer software documentation, development refers to development of the item, component, or process to which the data pertain. The Government’s rights in computer software documentation generally may not be restricted. For computer software, development refers to the software. Indicate whether development was accomplished exclusively or partially at private expense. If development was not accomplished at private expense, or for computer software documentation, enter the specific basis for asserting restrictions. ***Enter asserted rights category (e.g., government purpose license rights from a prior contract, rights in SBIR data generated under another contract, limited, restricted, or government purpose rights under this or a prior contract, or specially negotiated li- censes). ****Corporation, individual, or other person, as appropriate. *****Enter ‘‘none’’ when all data or software will be submitted without restrictions.
Date lllllllllllllllllllll (iv) Satisfies a criterion expressed in para- Printed Name and Title lllllllllll graph (a)(1)(i), (ii), or (iii) of this clause and llllllllllllllllllllllll would require only minor modification to meet the requirements of this contract. Signature llllllllllllllllll (2) Computer database means a collection of (End of identification and assertion) recorded data in a form capable of being (e) An offeror’s failure to submit, com- processed by a computer. The term does not plete, or sign the notification and identifica- include computer software. tion required by paragraph (d) of this provi- (3) Computer program means a set of in- sion with its offer may render the offer ineli- gible for award. structions, rules, or routines, recorded in a (f) If the Offeror is awarded a contract, the form that is capable of causing a computer assertions identified in paragraph (d) of this to perform a specific operation or series of provision shall be listed in an attachment to operations. that contract. Upon request by the Con- (4) Computer software means computer pro- tracting Officer, the Offeror shall provide grams, source code, source code listings, ob- sufficient information to enable the Con- ject code listings, design details, algorithms, tracting Officer to evaluate any listed asser- processes, flow charts, formulae, and related tion. material that would enable the software to be reproduced, re-created, or recompiled. (End of provision) Computer software does not include com- puter databases or computer software docu- [60 FR 33498, June 28, 1994] mentation. (5) Computer software documentation means 252.227–7018 Rights in noncommercial owner’s manuals, user’s manuals, installa- technical data and computer soft- tion instructions, operating instructions, ware—Small Business Innovation and other similar items, regardless of stor- Research (SBIR) Program. age medium, that explain the capabilities of As prescribed in 227.7104(a), use the the computer software or provide instruc- following clause: tions for using the software. (6) Detailed manufacturing or process data RIGHTS IN NONCOMMERCIAL TECHNICAL DATA means technical data that describe the steps, AND COMPUTER SOFTWARE—SMALL BUSI- sequences, and conditions of manufacturing, NESS INNOVATION RESEARCH (SBIR) PRO- processing or assembly used by the manufac- GRAM (JUN 1995) turer to produce an item or component or to perform a process. (a) Definitions. As used in this clause: (1) Commercial computer software means (7) Developed means— software developed or regularly used for non- (i) (Applicable to technical data other than governmental purposes which— computer software documentation.) An item, (i) Has been sold, leased, or licensed to the component, or process, exists and is work- public; able. Thus, the item or component must (ii) Has been offered for sale, lease, or li- have been constructed or the process prac- cense to the public; ticed. Workability is generally established (iii) Has not been offered, sold, leased, or when the item, component, or process has licensed to the public but will be available been analyzed or tested sufficiently to dem- for commercial sale, lease, or license in time onstrate to reasonable people skilled in the to satisfy the delivery requirements of this applicable art that there is a high prob- contract; or ability that it will operate as intended.
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Whether, how much, and what type of anal- organizations or sales or transfers by the ysis or testing is required to establish work- United States Government to foreign govern- ability depends on the nature of the item, ments or international organizations. Gov- component, or process, and the state of the ernment purposes include competitive pro- art. To be considered ‘‘developed,’’ the item, curement, but do not include the rights to component, or process need not be at the use, modify, reproduce, release, perform, dis- stage where it could be offered for sale or play, or disclose technical data or computer sold on the commercial market, nor must software for commercial purposes or author- the item, component or process be actually ize others to do so. reduced to practice within the meaning of (14) Limited rights means the rights to use, Title 35 of the United States Code; modify, reproduce, release, perform, display, (ii) A computer program has been success- fully operated in a computer and tested to or disclose technical data, in whole or in the extent sufficient to demonstrate to rea- part, within the Government. The Govern- sonable persons skilled in the art that the ment may not, without the written permis- program can reasonably be expected to per- sion of the party asserting limited rights, re- form its intended purpose; lease or disclose the technical data outside (iii) Computer software, other than com- the Government, use the technical data for puter programs, has been tested or analyzed manufacture, or permit the technical data to to the extent sufficient to demonstrate to be used by another party, except that the reasonable persons skilled in the art that the Government may reproduce, release or dis- software can reasonably be expected to per- close such data or permit the use or repro- form its intended purpose; or duction of the data by persons outside the (iv) Computer software documentation re- Government if reproduction, release, disclo- quired to be delivered under a contract has sure, or use is— been written, in any medium, in sufficient (i) Necessary for emergency repair and detail to comply with requirements under overhaul; or that contract. (ii) A release or disclosure of technical (8) Developed exclusively at private expense data (other than detailed manufacturing or means development was accomplished en- process data) to, or use of such data by, a tirely with costs charged to indirect cost foreign government that is in the interest of pools, costs not allocated to a government the Government and is required for contract, or any combination thereof. evaluational or informational purposes; (i) Private expense determinations should be made at the lowest practicable level. (iii) Subject to a prohibition on the further (ii) Under fixed-price contracts, when total reproduction, release disclosure, or use of costs are greater than the firm-fixed-price or the technical data; and ceiling price of the contract, the additional (iv) The Contractor or subcontractor as- development costs necessary to complete de- serting the restriction is notified of such re- velopment shall not be considered when de- production, release, disclosure, or use. termining whether development was at gov- (15) Minor modification means a modifica- ernment, private, or mixed expense. tion that does not significantly alter the (9) Developed exclusively with government nongovernmental function or purpose of funds means development was not accom- computer software or is of the type custom- plished exclusively or partially at private ex- arily provided in the commercial market- pense. place. (10) Developed with mixed funding means de- (16) Noncommercial computer software means velopment was accomplished partially with software that does not qualify as commercial costs charged to indirect cost pools and/or computer software under paragraph (a)(1) of costs not allocated to a government con- this clause. tract, and partially with costs charged di- (17) Restricted rights apply only to non- rectly to a government contract. commercial computer software and mean the (11) Form, fit, and function data means tech- Government’s rights to— nical data that describe the required overall physical, functional, and performance char- (i) Use a computer program with one com- acteristics (along with the qualification re- puter at one time. The program may not be quirements, if applicable) of an item, compo- accessed by more than one terminal or cen- nent, or process to the extent necessary to tral processing unit or time shared unless permit identification of physically and func- otherwise permitted by this contract; tionally interchangeable items. (ii) Transfer a computer program to an- (12) Generated means technical data or other Government agency without the fur- computer software first created in the per- ther permission of the Contractor if the formance of this contract. transferor destroys all copies of the program (13) Government purpose means any activity and related computer software documenta- in which the United States Government is a tion in its possession and notifies the licen- party, including cooperative agreements sor of the transfer. Transferred programs re- with international or multi-national defense main subject to the provisions of this clause;
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(iii) Make the minimum number of copies neered by the Government pursuant to para- of the computer software required for safe- graph (a)(17)(iv) of this clause, for any other keeping (archive), backup, or modification purpose. purposes; (18) SBIR data rights means a royalty-free (iv) Modify computer software provided license for the Government, including its that the Government may— support service contractors, to use, modify, (A) Use the modified software only as pro- reproduce, release, perform, display, or dis- vided in paragraphs (a)(17) (i) and (iii) of this close technical data or computer software clause; and generated and delivered under this contract (B) Not release or disclose the modified for any United States Government purpose. software except as provided in paragraphs (19) Technical data means recorded informa- (a)(17) (ii), (v) and (vi) of this clause; tion, regardless of the form or method of the (v) Permit contractors or subcontractors recording, of a scientific or technical nature performing service contracts (see 37.101 of (including computer software documenta- the Federal Acquisition Regulation) in sup- tion). The term does not include computer port of this or a related contract to use com- software or data incidental to contract ad- puter software to diagnose and correct defi- ministration, such as financial and/or man- ciencies in a computer program, to modify agement information. computer software to enable a computer pro- (20) Unlimited rights means rights to use, gram to be combined with, adapted to, or modify, reproduce, release, perform, display, merged with other computer programs or or disclose, technical data or computer soft- when necessary to respond to urgent tactical ware in whole or in part, in any manner and situations, provided that— for any purpose whatsoever, and to have or (A) The Government notifies the party authorize others to do so. which has granted restricted rights that a (b) Rights in technical data and computer release or disclosure to particular contrac- software. The Contractor grants or shall ob- tors or subcontractors was made; tain for the Government the following roy- (B) Such contractors or subcontractors are alty-free, world-wide, nonexclusive, irrev- subject to the non-disclosure agreement at ocable license rights in technical data or 227.7103–7 of the Defense Federal Acquisition noncommercial computer software. All Regulation Supplement (DFARS or are Gov- rights not granted to the Government are re- ernment contractors receiving access to the tained by the Contractor. software for performance of a Government (1) Unlimited rights. The Government shall contract that contains the clause at DFARS have unlimited rights in technical data, in- 252.227–7025, Limitations on the Use or Dis- cluding computer software documentation, closure of Government-Furnished Informa- or computer software generated under this tion Marked with Restrictive Legends; contract that are— (C) The Government shall not permit the (i) Form, fit, and function data; recipient to decompile disassemble, or re- (ii) Necessary for installation, operation, verse engineer the software, or use software maintenance, or training purposes (other decompiled, disassembled, or reverse engi- than detailed manufacturing or process neered by the Government pursuant to para- data); graph (a)(17)(iv) of this clause, for any other (iii) Corrections or changes to Govern- purpose; and ment-furnished technical data or computer (D) Such use is subject to the limitation in software; paragraph (a)(17)(i) of this clause; and (iv) Otherwise publicly available or have (vi) Permit contractors or subcontractors been released or disclosed by the Contractor performing emergency repairs or overhaul of or a subcontractor without restrictions on items or components of items, procured further use, release or disclosure other than under this or a related contract to use the a release or disclosure resulting from the computer software when necessary to per- sale, transfer, or other assignment of inter- form the repairs or overhaul, or to modify est in the technical data or computer soft- the computer software to reflect the repairs ware to another party or the sale or transfer or overhaul made, provided that— of some or all of a business entity or its as- (A) The intended recipient is subject to the sets to another party; non-disclosure agreement at DFARS (v) Data or software in which the Govern- 227.7103–7 or is a Government contractor re- ment has acquired previously unlimited ceiving access to the software for perform- rights under another Government contract ance of a Government contract that contains or through a specific license; and the clause at DFARS 252.227–7025, Limita- (vi) SBIR data upon expiration of the SBIR tions on the Use or Disclosure of Govern- data rights period. ment Furnished Information Marked with (2) Limited rights. The Government shall Restrictive Legends; and have limited rights in technical data, that (B) The Government shall not permit the were not generated under this contract, per- recipient to decompile, disassemble, or re- tain to items, components or processes de- verse engineer the software, or use software veloped exclusively at private expense, and decompiled, disassembled, or reverse engi- are marked, in accordance with the marking
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instructions in paragraph (f)(1) of this shall be delivered, furnished, or provided clause, with the legend prescribed in para- with the pre-existing rights, unless— graph (f)(2) of this clause. (i) The parties have agreed otherwise; or (3) Restricted rights in computer software. (ii) Any restrictions on the Government’s The Government shall have restricted rights rights to use, modify, release, perform, dis- in noncommercial computer software re- play, or disclose the technical data or com- quired to be delivered or otherwise furnished puter software have expired or no longer to the Government under this contract that apply. were developed exclusively at private ex- (7) Release from liability. The Contractor pense and were not generated under this con- agrees to release the Government from li- tract. ability for any release or disclosure of tech- (4) SBIR data rights. (i) Except for technical data, including computer software docu- nical data, computer software, or computer mentation, or computer software in which software documentation made in accordance the Government has unlimited rights under with paragraph (a)(14), (a)(17), or (b)(4) of this paragraph (b)(1) of this clause, the Govern- clause, or in accordance with the terms of a ment shall have SBIR data rights in all tech- license negotiated under paragraph (b)(5) of nical data or computer software generated this clause, or by others to whom the recipi- under this contract during the period com- ent has released or disclosed the data, soft- mencing with contract award and ending ware, or documentation and to seek relief upon the date five years after completion of solely from the party who has improperly the project from which such data were gen- used, modified, reproduced, released, per- erated. formed, displayed, or disclosed Contractor (ii) The Government may not release or data or software marked with restrictive leg- disclose SBIR data to any person, other than ends. its support services contractors, except— (c) Rights in derivative computer software or (A) As expressly permitted by the Con- computer software documentation. The Govern- tractor; ment shall retain its rights in the unchanged (B) For evaluation purposes; or portions of any computer software or com- (C) A release, disclosure, or use that is nec- puter software documentation delivered essary for emergency repair or overhaul of under this contract that the Contractor uses items operated by the Government. to prepare, or includes in, derivative soft- (iii) A release or disclosure of SBIR data to ware or documentation. the Government’s support services contrac- (d) Third party copyrighted technical data tors, or a release or disclosure under para- and computer software. The Contractor shall graph (b)(4)(ii)(B) or (C) of this clause, may not, without the written approval of the be made only if, prior to release or disclo- Contracting Officer, incorporate any copy- sure, the intended recipient is subject to the righted technical data, including computer use and non-disclosure agreement at DFARS software documentation, or computer soft- 227.7103–7 or is a Government contractor re- ware in the data or software to be delivered ceiving access to the technical data or soft- under this contract unless the Contractor is ware for performance of a Government con- the copyright owner or has obtained for the tract that contains the clause at DFARS Government the license rights necessary to 252.227–7025, Limitations on the Use of Dis- perfect a license or licenses in the deliver- closure of Government-Furnished Informa- able data or software of the appropriate tion Marked with Restrictive Legends. (5) Specifically negotiated license rights. The scope set forth in paragraph (b) of this clause standard license rights granted to the Gov- and, prior to delivery of such— ernment under paragraphs (b)(1) through (1) Technical data, has affixed to the trans- (b)(4) of this clause may be modified by mu- mittal document a statement of the license tual agreement to provide such rights as the rights obtained; or parties consider appropriate but shall not (2) Computer software, has provided a provide the Government lesser rights in statement of the license rights obtained in a technical data, including computer software form acceptable to the Contracting Officer. documentation, than are enumerated in (e) Identification and delivery of technical paragraph (a)(14) of this clause or lesser data or computer software to be furnished with rights in computer software than are enu- restrictions on use, release, or disclosure. (1) merated in paragraph (a)(17) of this clause. This paragraph does not apply to technical Any rights so negotiated shall be identified data or computer software that were or will in a license agreement made part of this con- be generated under this contract or to re- tract. strictions based solely on copyright. (6) Prior government rights. Technical data, (2) Except as provided in paragraph (e)(3) of including computer software documentation, this clause, technical data or computer soft- or computer software that will be delivered, ware that the Contractor asserts should be furnished, or otherwise provided to the Gov- furnished to the Government with restric- ernment under this contract, in which the tions on use, release, or disclosure is identi- Government has previously obtained rights fied in an attachment to this contract (the
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Attachment). The Contractor shall not de- (f) Marking requirements. The Contractor, liver any technical data or computer soft- and its subcontractors or suppliers, may ware with restrictive markings unless the only assert restrictions on the Government’s technical data or computer software are list- rights to use, modify, reproduce, release, per- ed on the Attachment. form, display, or disclose technical data or (3) In addition to the assertions made in computer software to be delivered under this the Attachment, other assertions may be contract by marking the deliverable data or identified after award when based on new in- software subject to restriction. Except as formation or inadvertent omissions unless provided in paragraph (f)(6) of this clause, the inadvertent omissions would have mate- only the following markings are authorized rially affected the source selection decision. under this contract: the limited rights leg- Such identification and assertion shall be end at paragraph (f)(2) of this clause; the re- submitted to the Contracting Officer as soon stricted rights legend at paragraph (f)(3) of as practicable prior to the scheduled date for this clause, the SBIR data rights legend at delivery of the technical data or computer paragraph (f)(4) of this clause, or the special software, in the following format, and signed license rights legend at paragraphs (f)(5) of by an official authorized to contractually ob- this clause; and/or a notice of copyright as ligate the Contractor: prescribed under 17 U.S.C. 401 or 402. (1) General marking instructions. The Con- Identification and Assertion of Restrictions tractor, or its subcontractors or suppliers, on the Government’s Use, Release, or Dis- shall conspicuously and legibly mark the ap- closure of Technical Data or Computer propriate legend to all technical data and Software computer software that qualify for such The Contractor asserts for itself, or the markings. The authorized legends shall be persons identified below, that the Govern- placed on the transmittal document or stor- ment’s rights to use, release, or disclose the age container and, for printed material, each following technical data or computer soft- page of the printed material containing tech- ware should be restricted: nical data or computer software for which restrictions are asserted. When only portions Technical data of a page of printed material are subject to or computer Asserted Name of per- the asserted restrictions, such portions shall software to be Basis for as- rights cat- son asserting sertion 2 be identified by circling, underscoring, with furnished with egory 3 restrictions 4 restrictions 1 a note, or other appropriate identifier. Tech- nical data or computer software transmitted (LIST) ...... (LIST) ...... (LIST) ...... (LIST) directly from one computer or computer ter- minal to another shall contain a notice of as- 1 If the assertion is applicable to items, components, or processes developed at private expense, identify both the serted restrictions. However, instructions technical data and each such item, component, or process. that interfere with or delay the operation of 2 Generally, development at private expense, either exclu- computer software in order to display a re- sively or partially, is the only basis for asserting restrictions on the Government’s rights to use, release, or disclose technical strictive rights legend or other license state- data or computer software. Indicate whether development was ment at any time prior to or during use of exclusively or partially at private expense. If development was the computer software, or otherwise cause not at private expense, enter the specific reason for asserting that the Government’s rights should be restricted. such interference or delay, shall not be in- 3 Enter asserted rights category (e.g., limited rights, re- serted in software that will or might be used stricted rights, government purpose rights, or government pur- in combat or situations that simulate com- pose license rights from a prior contract, SBIR data rights under another contract, or specifically negotiated licenses). bat conditions, unless the Contracting Offi- 4 Corporation, individual, or other person, as appropriate. cer’s written permission to deliver such soft- ware has been obtained prior to delivery. Re- Date lllllllllllllllllllll productions of technical data, computer soft- Printed Name and Title lllllllllll ware, or any portions thereof subject to as- Signature llllllllllllllllll serted restrictions shall also reproduce the asserted restrictions. (End of identification and assertion) (2) Limited rights markings. Technical data not generated under this contract that per- (4) When requested by the Contracting Offi- tain to items, components, or processes de- cer, the Contractor shall provide sufficient veloped exclusively at private expense and information to enable the Contracting Offi- delivered or otherwise furnished with limited cer to evaluate the Contractor’s assertions. rights shall be marked with the following The Contracting Officer reserves the right to legend: add the Contractor’s assertions to the At- tachment and validate any listed assertions, Limited Rights at a later date, in accordance with the proce- Contract No. llllllllllllllll dures of the Validation of Asserted Restric- Contractor Name llllllllllllll tions—Computer Software and/or Validation of Restrictive Markings on Technical Data Contractor Address lllllllllllll clauses of this contract. llllllllllllllllllllllll
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The Government’s rights to use, modify, re- marked with this legend are restricted dur- produce, release, perform, display, or dis- ing the period shown as provided in para- close these technical data are restricted by graph (b)(4) of the Rights in Noncommercial paragraph (b)(2) of the Rights in Non- Technical Data and Computer Software— commercial Technical Data and Computer Small Business Innovative Research (SBIR) Software—Small Business Innovative Re- Program clause contained in the above iden- search (SBIR) Program clause contained in tified contract. No restrictions apply after the above identified contract. Any reproduc- the expiration date shown above. Any repro- tion of technical data or portions thereof duction of technical data, computer soft- marked with this legend must also reproduce ware, or portions thereof marked with this the markings. Any person, other than the legend must also reproduce the markings. Government, who has been provided access to such data must promptly notify the above (End of legend) named Contractor. (5) Special license rights markings. (i) Tech- (End of legend) nical data or computer software in which the Government’s rights stem from a specifically (3) Restricted rights markings. Computer negotiated license shall be marked with the software delivered or otherwise furnished to following legend: the Government with restricted rights shall be marked with the following legend: Special License Rights Restricted Rights The Government’s rights to use, modify, reproduce, release, perform, display, or dis- Contract No. llllllllllllllll close this technical data or computer soft- Contractor Name llllllllllllll ware are restricted by Contract No. Contractor Address lllllllllllll llllllll (Insert contract number) llllllllllllllllllllllll llllllll, License No. llllllll The Government’s rights to use, modify, re- (Insert license identifier) llllllll. produce, release, perform, display, or dis- Any reproduction of technical data, com- close this software are restricted by para- puter software, or portions thereof marked graph (b)(3) of the Rights in Noncommercial with this legend must also reproduce the Technical Data and Computer Software— markings. Small Business Innovative Research (SBIR) Program clause contained in the above iden- (End of legend) tified contract. Any reproduction of com- puter software or portions thereof marked (ii) For purposes of this clause, special li- with this legend must also reproduce the censes do not include government purpose li- markings. Any person, other than the Gov- cense rights acquired under a prior contract ernment, who has been provided access to (see paragraph (b)(6) of this clause). such data must promptly notify the above (6) Pre-existing data markings. If the terms named Contractor. of a prior contract or license permitted the Contractor to restrict the Government’s (End of legend) rights to use, modify, reproduce, release, per- form, display, or disclose technical data or (4) SBIR data rights markings: Except for computer software, and those restrictions technical data or computer software in are still applicable, the Contractor may which the Government has acquired unlim- mark such data or software with the appro- ited rights under paragraph (b)(1) of this priate restrictive legend for which the data clause, or negotiated special license rights as or software qualified under the prior con- provided in paragraph (b)(5) of this clause, tract or license. The marking procedures in technical data or computer software gen- paragraph (f)(1) of this clause shall be fol- erated under this contract shall be marked lowed. with the following legend. The Contractor (g) Contractor procedures and records. shall enter the expiration date for the SBIR Throughout performance of this contract, data rights period on the legend: the Contractor, and its subcontractors or suppliers that will deliver technical data or SBIR Data Rights computer software with other than unlim- Contract No. llllllllllllllll ited rights, shall— Contractor Name llllllllllllll (1) Have, maintain, and follow written pro- Address lllllllllllllllllll cedures sufficient to assure that restrictive markings are used only when authorized by llllllllllllllllllllllll the terms of this clause; and Expiration of SBIR Data Rights Period ll (2) Maintain records sufficient to justify The Government’s rights to use, modify, re- the validity of any restrictive markings on produce, release, perform, display, or dis- technical data or computer software deliv- close technical data or computer software ered under this contract.
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(h) Removal of unjustified and nonconforming uments or other media in which the tech- markings. nical data or computer software will be de- (1) Unjustified markings. The rights and ob- livered. ligations of the parties regarding the valida- (k) Applicability to subcontractors or sup- tion of restrictive markings on technical pliers. (1) the Contractor shall assure that data or computer software furnished or to be the rights afforded its subcontractors and furnished under this contract are contained suppliers under 10 U.S.C. 2320, 10 U.S.C. 2321, in the Validation of Restrictive Markings on and the identification, assertion, and deliv- Technical Data and the Validation of As- ery processes required by paragraph (e) of serted Restrictions—Computer Software this clause are recognized and protected. clauses of this contract, respectively. Not- (2) Whenever any noncommercial technical withstanding any provision of this contract data or computer software is to be obtained concerning inspection and acceptance, the from a subcontractor or supplier for delivery Government may ignore or, at the Contrac- to the Government under this contract, the tor’s expense, correct or strike a marking if, Contractor shall use this same clause in the in accordance with the applicable procedures subcontract or other contractual instru- of those clauses, a restrictive marking is de- ment, and require its subcontractors or sup- termined to be unjustified. pliers to do so, without alteration, except to (2) Nonconforming markings. A noncon- identify the parties. The Contractor shall forming marking is a marking placed on use the Technical Data—Commercial Items technical data or computer software deliv- clause of this contract to obtain technical ered or otherwise furnished to the Govern- data pertaining to commercial items, compo- ment under this contract that is not in the nents, or processes. No other clause shall be format authorized by this contract. Correc- used to enlarge or diminish the Govern- tion of nonconforming markings is not sub- ment’s, the Contractor’s, or a higher tier ject to the Validation of Restrictive Mark- subcontractor’s or supplier’s rights in a sub- ings on Technical Data or the Validation of contractor’s or supplier’s technical data or Asserted Restrictions—Computer Software computer software. clause of this contract. If the Contracting (3) Technical data required to be delivered Officer notifies the Contractor of a noncon- by a subcontractor or supplier shall nor- forming marking or markings and the Con- mally be delivered to the next higher tier tractor fails to remove or correct such mark- contractor, subcontractor, or supplier. How- ings within sixty (6)) days, the Government ever, when there is a requirement in the may ignore or, at the Contractor’s expense, prime contract for technical data which may remove or correct any nonconforming mark- be submitted with other than unlimited ings. rights by a subcontractor or supplier, then (i) Relation to patents. Nothing contained in said subcontractor or supplier may fulfill its this clause shall imply a license to the Gov- requirement by submitting such technical ernment under any patent or be construed as data directly to the Government, rather affecting the scope of any license or other than through a higher tier contractor, sub- right otherwise granted to the Government contractor, or supplier. under any patent. (4) The Contractor and higher tier sub- (j) Limitation on charges for rights in tech- contractors or suppliers shall not use their nical data or computer software. (1) The Con- power to award contracts as economic lever- tractor shall not charge to this contract any age to obtain rights in technical data or cost, including but not limited to, license computer software from their subcontractors fees, royalties, or similar charges, for rights or suppliers. in technical data or computer software to be (5) In no event shall the Contractor use its delivered under this contract when— obligation to recognize and protect subcon- (i) The Government has acquired, by any tractor or supplier rights in technical data means, the same or greater rights in the or computer software as an excuse for failing data or software; or to satisfy its contractual obligation to the (ii) The data are available to the public Government. without restrictions. (2) The limitation in paragraph (j)(1) of (End of clause) this clause— (i) Includes costs charged by a subcon- Alternate I (JUN 1995). As prescribed in tractor or supplier, at any tier, or costs in- 227.7104(d), add the following paragraph (l) to curred by the Contractor to acquire rights in the basic clause: subcontractor of supplier technical data or (l) Publication for sale. (1) This paragraph computer software, if the subcontractor or applies only to technical data or computer supplier has been paid for such rights under software delivered to the Government with any other Government contract or under a SBIR data rights. license conveying the rights to the Govern- (2) Upon expiration of the SBIR data rights ment; and period, the Government will not exercise its (ii) Does not include the reasonable costs right to publish or authorize others to pub- of reproducing, handling, or mailing the doc- lish an item of technical data or computer
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software identified in this contract as being to provide sufficient information to enable subject to paragraph (l) of this clause if the the Contracting Officer to evaluate the Con- Contractor, prior to the expiration of the tractor’s asserted restrictions. Such infor- SBIR data rights period, or within two years mation shall be based upon the records re- following delivery of the data or software quired by this clause or other information item, or within twenty-four months fol- reasonably available to the Contractor. lowing the removal of any national security (2) Based upon the information provided, if or export control restrictions, whichever is the— later, publishes such data or software item(s) (i) Contractor agrees that an asserted re- and promptly notifies the Contracting Offi- striction is not valid, the Contracting Officer cer of such publication(s). Any such publica- may— tion(s) shall include a notice identifying the (A) Strike or correct the unjustified mark- number of this contract and the Govern- ing at the Contractor’s expense; or ment’s rights in the published data. (B) Return the computer software to the (3) This limitation on the Government’s Contractor for correction at the Contractor’s right to publish for sale shall continue as expense. If the Contractor fails to correct or long as the technical data or computer soft- strike the unjustified restrictions and return ware are reasonably available to the public the corrected software to the Contracting Of- for purchase. ficer within sixty (60) days following receipt [60 FR 33499, June 28, 1995, as amended at 60 of the software, the Contracting Officer may FR 61602, Nov. 30, 1995] correct the strike the markings at the Con- tractor’s expense. 252.227–7019 Validation of asserted re- (ii) Contracting Officer concludes that the strictions—Computer software. asserted restriction is appropriate for this contract, the Contracting Officer shall so no- As prescribed in 227.7104(e)(3) or tify the Contractor in writing. 227.7203–6(c), use the following clause: (3) The Contractor’s failure to provide a timely response to a Contracting Officer’s VALIDATION OF ASSERTED RESTRICTIONS— request for information or failure to provide COMPUTER SOFTWARE (JUN 1995) sufficient information to enable the Con- (a) Definitions. (1) As used in this clause, tracting Officer to evaluate an asserted re- unless otherwise specifically indicated, the striction shall constitute reasonable grounds term ‘‘Contractor’’ means the Contractor for questioning the validity of an asserted and its subcontractors or suppliers. restriction. (2) Other terms used in this clause are de- (e) Government right to challenge and vali- fined in the Rights in Noncommercial Com- date asserted restrictions. (1) The Government, puter Software and Noncommercial Com- when there are reasonable grounds to do so, puter Software Documentation clause of this has the right to review and challenge the va- contract. lidity of any restrictions asserted by the (b) Justification. The Contractor shall main- Contractor on the Government’s rights to tain records sufficient to justify the validity use, modify, reproduce, release, perform, dis- of any markings that assert restrictions on play, or disclose computer software deliv- the Government’s rights to use, modify, re- ered, to be delivered under this contract, or produce, perform, display, release, or dis- otherwise provided to the Government in the close computer software delivered or re- performance of this contract. Except for quired to be delivered under this contract software that is publicly available, has been and shall be prepared to furnish to the Con- furnished to the Government without re- tracting Officer a written justification for strictions, or has been otherwise made avail- such restrictive markings in response to a able without restrictions, the Government request for information under paragraph (d) may exercise this right only within three or a challenge under paragraph (f) of this years after the date(s) the software is deliv- clause. ered or otherwise furnished to the Govern- (c) Direct contact with subcontractors or sup- ment, or three years following final payment pliers. The Contractor agrees that the Con- under this contract, whichever is later. tracting Officer may transact matters under (2) The absence of a challenge to an as- this clause directly with subcontractors or serted restriction shall not constitute vali- suppliers at any tier who assert restrictions dation under this clause. Only a Contracting on the Government’s right to use, modify, Officer’s final decision or actions of an agen- reproduce, release, perform, display, or dis- cy Board of Contract Appeals or a court of close computer software. Neither this clause, competent jurisdiction that sustain the va- nor any action taken by the Government lidity of an asserted restriction constitute under this clause, creates or implies privity validation of the restriction. of contract between the Government and the (f) Challenge procedures. (1) A challenge Contractor’s subcontractors or suppliers. must be in writing and shall— (d) Requests for information. (1) The Con- (i) State the specific grounds for chal- tracting Officer may request the Contractor lenging the asserted restriction;
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(ii) Require the Contractor to respond lenges. The notice shall also state which within sixty (60) days; Contracting Officer initiated the first in (iii) Require the Contractor to provide jus- time unanswered challenge. The Contracting tification for the assertion based upon Officer who initiated the first in time unan- records kept in accordance with paragraph swered challenge, after consultation with the (b) of this clause and such other documenta- other Contracting Officers who have chal- tion that are reasonably available to the lenged the restrictions and the Contractor, Contractor, in sufficient detail to enable the shall formulate and distribute a schedule Contracting Officer to determine the valid- that provides the contractor a reasonable op- ity of the asserted restrictions; and portunity for responding to each challenge. (iv) State that a Contracting Officer’s final (g) Contractor appeal—Government obliga- decision, during the three-year period pre- tion. (1) The Government agrees that, not- ceding this challenge, or action of a court of withstanding a Contracting Officer’s final competent jurisdiction or Board of Contract decision denying the validity of an asserted Appeals that sustained the validity of an restriction and except as provided in para- identical assertion made by the Contractor graph (g)(3) of this clause, it will honor the (or a licensee) shall serve as justification for asserted restriction— the asserted restriction. (2) The Contracting Officer shall extend (i) For a period of ninety (90) days from the the time for response if the Contractor sub- date of the Contracting Officer’s final deci- mits a written request showing the need for sion to allow the Contractor to appeal to the additional time to prepare a response. appropriate Board of Contract Appeals or to (3) The Contracting Officer may request file suit in an appropriate court; additional supporting documentation if, in (ii) For a period of one year from the date the Contracting Officer’s opinion, the Con- of the Contracting Officer’s final decision if, tractor’s explanation does not provide suffi- within the first ninety (90) days following cient evidence to justify the validity of the the Contracting Officer’s final decision, the asserted restrictions. The Contractor agrees Contractor has provided notice of an intent to promptly respond to the Contracting Offi- to file suit in an appropriate court; or cer’s request for additional supporting docu- (iii) Until final disposition by the appro- mentation. priate Board of Contract Appeals or court of (4) Notwithstanding challenge by the Con- competent jurisdiction, if the Contractor tracting Officer, the parties may agree on has: (A) appealed to the Board of Contract the disposition of an asserted restriction at Appeals or filed suit an appropriate court any time prior to a Contracting Officer’s within ninety (90) days; or (B) submitted, final decision or, if the Contractor has ap- within ninety (90) days, a notice of intent to pealed that decision, filed suit, or provided file suit in an appropriate court and filed notice of an intent to file suit, at any time suit within one year. prior to a decision by a court of competent (2) The Contractor agrees that the Govern- jurisdiction or Board of Contract Appeals. ment may strike, correct, or ignore the re- (5) If the Contractor fails to respond to the strictive markings if the Contractor fails Contracting Officer’s request for information to— or additional information under paragraph (i) Appeal to a Board of Contract Appeals (f)(1) of this clause, the Contracting Officer shall issue a final decision, in accordance within ninety (90) days from the date of the with the Disputes clause of this contract, Contracting Officer’s final decision; pertaining to the validity of the asserted re- (ii) File suit in an appropriate court within striction. ninety (90) days from such date; or (6) If the Contracting Officer, after review- (iii) File suit within one year after the ing the written explanation furnished pursu- date of the Contracting Officer’s final deci- ant to paragraph (f)(1) of this clause, or any sion if the Contractor had provided notice of other available information pertaining to intent to file suit within ninety (90) days fol- the validity of an asserted restriction, deter- lowing the date of the Contracting Officer’s mines that the asserted restriction has— final decision. (i) Not been justified, the Contracting Offi- (3) The agency head, on a nondelegable cer shall issue promptly a final decision, in basis, may determine that urgent or compel- accordance with the Disputes clause of this ling circumstances do not permit awaiting contract, denying the validity of the as- the filing of suit in an appropriate court, or serted restriction; or the rendering of a decision by a court of (ii) Been justified, the Contracting Officer competent jurisdiction or Board of Contract shall issue promptly a final decision, in ac- Appeals. In that event, the agency head shall cordance with the Disputes clause of this notify the Contractor of the urgent or com- contract, validating the asserted restriction. pelling circumstances. Notwithstanding (7) A Contractor receiving challenges to paragraph (g)(1) of this clause, the Con- the same asserted restriction(s) from more tractor agrees that the agency may use, than one Contracting Officer shall notify modify, reproduce, release, perform, display, each Contracting Officer of the other chal- or disclose computer software marked with
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(i) government purpose legends for any pur- 252.227–7020 Rights in special works. pose, and authorize others to do so; or (ii) re- stricted or special license rights for govern- As prescribed in 227.7105–3, 227.7106(a) ment purposes only. The Government agrees or 227.7205(a), use the following clause: not to release or disclose such software un- RIGHTS IN SPECIAL WORKS (JUN 1995) less, prior to release or disclosure, the in- tended recipient is subject to the use and (a) Applicability. This clause applies to non-disclosure agreement at 227.7103–7 of the works first created, generated, or produced Defense Federal Acquisition Regulation Sup- and required to be delivered under this con- tract. plement (DFARS), or is a Government con- (b) Definitions. As used in this clause: tractor receiving access to the software for (1) ‘‘Computer data base’’ means a collec- performance of a Government contract that tion of data recorded in a form capable of contains the clause at DFARS 252.227–7025, being processed by a computer. The term Limitations on the Use or Disclosure of Gov- does not include computer software. ernment-Furnished Information Marked (2) ‘‘Computer program’’ means a set of in- with Restrictive Legends. The agency head’s structions, rules, or routines recorded in a determination may be made at any time form that is capable of causing a computer after the date of the Contracting Officer’s to perform a specific operation or series of final decision and shall not affect the Con- operations. tractor’s right to damages against the (3) ‘‘Computer software’’ means computer United States, or other relief provided by programs, source code, source code listings, law, if its asserted restrictions are ulti- object code listings, design details, algo- mately upheld. rithms, processes, flow charts, formulae and (h) Final disposition of appeal or suit. If the related material that would enable the soft- ware to be reproduced, recreated, or recom- Contractor appeals or files suit and if, upon piled. Computer software does not include final disposition of the appeal or suit, the computer data bases or computer software Contracting Officer’s decision is: documentation. (1) Sustained— (4) ‘‘Computer software documentation’’ (i) Any restrictive marking on such com- means owner’s manuals, user’s manuals, in- puter software shall be struck or corrected stallation instructions, operating instruc- at the contractor’s expense or ignored; and tions, and other similar items, regardless of (ii) If the asserted restriction is found not storage medium, that explain the capabili- to be substantially justified, the Contractor ties of the computer software or provide in- shall be liable to the Government for pay- structions for using the software. ment of the cost to the Government of re- (5) ‘‘Unlimited rights’’ means the rights to viewing the asserted restriction and the fees use, modify, reproduce, perform, display, re- and other expenses (as defined in 28 U.S.C. lease, or disclose a work in whole or in part, 2412(d)(2)(A)) incurred by the Government in in any manner, and for any purpose whatso- challenging the restriction, unless special ever, and to have or authorize others to do circumstances would make such payment so. (6) The term ‘‘works’’ includes computer unjust. data bases, computer software, or computer (2) Not sustained— software documentation; literary, musical, (i) The Government shall be bound by the choreographic, or dramatic compositions; asserted restriction; and pantomimes; pictorial, graphic, or sculptural (ii) If the challenge by the Government is compositions; motion pictures and other found not to have been made in good faith, audiovisual compositions; sound recordings the Government shall be liable to the Con- in any medium; or, items of similar nature. tractor for payment of fees and other ex- (c) License rights. (1) The Government shall penses (as defined in 28 U.S.C. 2412(d)(2)(A)) have unlimited rights in works first pro- incurred by the Contractor in defending the duced, created, or generated and required to restriction. be delivered under this contract. (i) Flowdown. The Contractor shall insert (2) When a work is first produced, created, this clause in all contracts, purchase orders, or generated under this contract, and such and other similar instruments with its sub- work is required to be delivered under this contractors or suppliers, at any tier, who contract, the Contractor shall assign copy- will be furnishing computer software to the right in those works to the Government. The Contractor, unless directed to the contrary Government in the performance of this con- by the Contracting Officer, shall place the tract. The clause may not be altered other following notice on such works: ‘‘ (Year than to identify the appropriate parties. date of delivery) United States Government, as represented by the Secretary of (End of clause) (department). All rights reserved.’’ For phonorecords, the ‘‘’’ markings shall [60 FR 33503, June 28, 1995] be replaced by a ‘‘P’’.
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(3) The Contractor grants to the Govern- the Government a nonexclusive, paid-up li- ment a royalty-free, world-wide, nonexclu- cense throughout the world (1) to distribute, sive, irrevocable license to reproduce, pre- perform publicly, and display publicly the pare derivative works from, distribute, per- works called for under this contract and (2) form, or display, and to have or authorize to authorize others to do so for Government others to do so, the Contractor’s copyrighted purposes. works not first produced, created, or gen- (c) The Contractor shall indemnify and erated under this contract that have been in- save and hold harmless the Government, and corporated into the works deliverable under its officers, agents, and employees acting for this contract. the Government, against any liability, in- (d) Third party copyrighted data. The Con- cluding costs and expenses, (1) for violation tractor shall not incorporate, without the of proprietary rights, copyrights, or rights of written approval of the Contracting Officer, privacy or publicity arising out of the cre- any copyrighted works in the works to be de- ation, delivery, or use, of any works fur- livered under this contract unless the Con- nished under this contract, or (2) based upon tractor is the copyright owner or has ob- any libelous or other unlawful matter con- tained for the Government the license rights tained in same works. necessary to perfect a license of the scope identified in paragraph (c)(3) of this clause (End of clause) and, prior to delivery of such works— (1) Has affixed to the transmittal docu- ment a statement of the license rights ob- [56 FR 36479, July 31, 1991, as amended at 60 tained; or FR 33504, June 28, 1994] (2) For computer software, has provided a statement of the license rights obtained in a 252.227–7022 Government rights (un- form acceptable to the Contracting Officer. limited). (e) Indemnification. The Contractor shall As prescribed at 227.7107–1(a), use the indemnify and save and hold harmless the following clause: Government, and its officers, agents and em- ployees acting for the Government, against GOVERNMENT RIGHTS (UNLIMITED) (MAR 1979) any liability, including costs and expenses, (1) for violation of proprietary rights, copy- The Government shall have unlimited rights, or rights of privacy or publicity, aris- rights, in all drawings, designs, specifica- ing out of the creation, delivery, use, modi- tions, notes and other works developed in fication, reproduction, release, performance, the performance of this contract, including display, or disclosure of any works furnished the right to use same on any other Govern- under this contract, or (2) based upon any li- ment design or construction without addi- belous or other unlawful matter contained in tional compensation to the Contractor. The such works. Contractor hereby grants to the Government (f) Government-furnished information. Para- a paid-up license throughout the world to all graphs (d) and (e) of this clause are not appli- such works to which he may assert or estab- cable to information furnished to the Con- lish any claim under design patent or copy- tractor by the Government and incorporated right laws. The Contractor for a period of in the works delivered under this contract. three (3) years after completion of the project agrees to furnish the original or cop- (End of clause) ies of all such works on the request of the Contracting Officer. [60 FR 33504, June 28, 1995] (End of clause) 252.227–7021 Rights in data—existing works. [56 FR 36479, July 31, 1991, as amended at 60 FR 33504, June 28, 1994] As prescribed at 227.7105–2(a), use the following clause: 252.227–7023 Drawings and other data RIGHTS IN DATA—EXISTING WORKS (MAR 1979) to become property of Government. (a) The term works as used herein includes As prescribed at 227.7107–1(b), use the literary, musical, and dramatic works; pan- following clause: tomimes and choreographic works; pictorial, DRAWINGS AND OTHER DATA TO BECOME graphic and sculptural works; motion pic- PROPERTY OF GOVERNMENT (MAR 1979) tures and other audiovisual works; sound re- cordings; and works of a similar nature. The All designs, drawings, specifications, notes term does not include financial reports, cost and other works developed in the perform- analyses, and other information incidental ance of this contract shall become the sole to contract administration. property of the Government and may be used (b) Except as otherwise provided in this on any other design or construction without contract, the Contractor hereby grants to additional compensation to the Contractor.
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The Government shall be considered the LIMITATIONS ON THE USE OR DISCLOSURE OF ‘‘person for whom the work was prepared’’ GOVERNMENT-FURNISHED INFORMATION for the purpose of authorship in any copy- MARKED WITH RESTRICTIVE LEGENDS (JUN rightable work under 17 U.S.C. 201(b). With 1995) respect thereto, the Contractor agrees not to (a)(1) For contracts requiring the delivery assert or authorize others to assert any of technical data, the terms ‘‘limited rights’’ rights nor establish any claim under the de- and ‘‘Government purpose rights’’ are de- sign patent or copyright laws. The Con- fined in the Rights in Technical Data—Non- tractor for a period of three (3) years after commercial Items clause of this contract. completion of the project agrees to furnish (2) For contracts that do not require the all retained works on the request of the Con- delivery of technical data, the terms ‘‘gov- tracting Officer. Unless otherwise provided ernment purpose rights’’ and ‘‘restricted in this contract, the Contractor shall have rights’’ are defined in the Rights in Non- the right to retain copies of all works beyond commercial Computer Software and Non- such period. commercial Computer Software Documenta- tion clause of this contract. (End of clause) (3) For Small Business Innovative Re- search program contracts, the terms ‘‘lim- [56 FR 36479, July 31, 1991, as amended at 60 ited rights’’ and ‘‘restricted rights’’ are de- FR 33505, June 28, 1995] fined in the Rights in Noncommercial Tech- nical Data and Computer Software—Small 252.227–7024 Notice and approval of Business Innovative Research (SBIR) Pro- restricted designs. gram clause of this contract. (b) Technical data or computer software As prescribed at 227.7107–3, use the provided to the Contractor as Government following clause: furnished information (GFI) under this con- tract may be subject to restrictions on use, NOTICE AND APPROVAL OF RESTRICTED modification, reproduction, release, perform- DESIGNS (APR 1984) ance, display, or further disclosure. In the performance of this contract, the (1) GFI marked with limited or restricted Contractor shall, to the extent practicable, rights legends. The Contractor shall use, mod- make maximum use of structures, machines, ify, reproduce, perform, or display technical products, materials, construction methods, data received from the Government with and equipment that are readily available limited rights legends or computer software through Government or competitive com- received with restricted rights legends only mercial channels, or through standard or in the performance of this contract. The proven production techniques, methods, and Contractor shall not, without the express processes. Unless approved by the Con- written permission of the party whose name tracting Officer, the Contractor shall not appears in the legend, release or disclose produce a design or specification that re- such data or software to any person. quires in this construction work the use of (2) GFI marked with government purpose structures, products, materials, construction rights legends. The Contractor shall use tech- equipment, or processes that are known by nical data or computer software received the Contractor to be available only from a from the Government with government pur- sole source. The Contractor shall promptly pose rights legends for government purposes report any such design or specification to only. The Contractor shall not, without the the Contracting Officer and give the reason express written permission of the party whose name appears in the restrictive leg- why it is considered necessary to so restrict end, use, modify, reproduce, release, per- the design or specification. form, or display such data or software for any commercial purpose or disclose such (End of clause) data or software to a person other than its subcontractors, suppliers, or prospective sub- [56 FR 36479, July 31, 1991, as amended at 60 contractors or suppliers, who require the FR 33505, June 28, 1995] data or software to submit offers for, or per- form, contracts under this contract. Prior to 252.227–7025 Limitations on the use or disclosing the data or software, the Con- disclosure of government-furnished tractor shall require the persons to whom information marked with restric- disclosure will be made to complete and sign tive legends. the non-disclosure agreement at 227.7103–7 of the Defense Federal Acquisition Regulation As prescribed in 227.7103–6(c), Supplement (DFARS). 227.7104(f)(1), or 227.7203–6(d), use the (3) GFI marked with specially negotiated li- following clause: cense rights legends. The Contractor shall use,
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modify, reproduce, release, perform, or dis- expire two (2) years after the date Con- play technical data or computer software re- tractor accepts the last delivery of that item ceived from the Government with specially from that subcontractor for use in per- negotiated license legends only as permitted forming this contract. in the license. Such data or software may not be released or disclosed to other persons (End of clause) unless permitted by the license and, prior to release or disclosure, the intended recipient [56 FR 36479, July 31, 1991, as amended at 60 has completed the non-disclosure agreement FR 33505, June 28, 1995] at DFARS 227.7103–7. The Contractor shall modify paragraph (1)(c) of the non-disclosure 252.227–7027 Deferred ordering of agreement to reflect the recipient’s obliga- technical data or computer soft- tions regarding use, modification, reproduc- ware. tion, release, performance, display, and dis- closure of the data or software. As prescribed at 227.7103–8(b), use the (c) Indemnification and creation of third following clause: party beneficiary rights. The Contractor agrees— DEFERRED ORDERING OF TECHNICAL DATA OR (1) To indemnify and hold harmless the COMPUTER SOFTWARE (APR 1988) Government, its agents, and employees from In addition to technical data or computer every claim or liability, including attorneys software specified elsewhere in this contract fees, court costs, and expenses, arising out to be delivered hereunder, the Government of, or in any way related to, the misuse or may, at any time during the performance of unauthorized modification, reproduction, re- this contract or within a period of three (3) lease, performance, display, or disclosure of years after acceptance of all items (other technical data or computer software received than technical data or computer software) to from the Government with restrictive leg- be delivered under this contract or the ter- ends by the Contractor or any person to mination of this contract, order any tech- whom the Contractor has released or dis- nical data or computer software generated in closed such data or software; and the performance of this contract or any sub- (2) That the party whose name appears on contract hereunder. When the technical data the restrictive legend, in addition to any or computer software is ordered, the Con- other rights it may have, is a third party beneficiary who has the right of direct ac- tractor shall be compensated for converting tion against the Contractor, or any person to the data or computer software into the pre- whom the Contractor has released or dis- scribed form, for reproduction and delivery. closed such data or software, for the unau- The obligation to deliver the technical data thorized duplication, release, or disclosure of of a subcontractor and pertaining to an item technical data or computer software subject obtained from him shall expire three (3) to restrictive legends. years after the date the Contractor accepts the last delivery of that item from that sub- (End of clause) contractor under this contract. The Govern- ment’s rights to use said data or computer software shall be pursuant to the ‘‘Rights in [60 FR 33505, June 28, 1995] Technical Data and Computer Software’’ clause of this contract. 252.227–7026 Deferred delivery of technical data or computer soft- (End of clause) ware. As prescribed at 227.7103–8(a), use the [56 FR 36479, July 31, 1991, as amended at 60 following clause: FR 33505, June 28, 1995]
DEFERRED DELIVERY OF TECHNICAL DATA OR 252.227–7028 Technical data or com- COMPUTER SOFTWARE (APR 1988) puter software previously delivered The Government shall have the right to re- to the government. quire, at any time during the performance of As prescribed in 227.7103–6(d), this contract, within two (2) years after ei- ther acceptance of all items (other than data 227.7104(f)(2), or 227.7203–6(e), use the or computer software) to be delivered under following provision: this contract or termination of this con- TECHNICAL DATA OR COMPUTER SOFTWARE tract, whichever is later, delivery of any PREVIOUSLY DELIVERED TO THE GOVERN- technical data or computer software item MENT (JUN 1995) identified in this contract as ‘‘deferred deliv- ery’’ data or computer software. The obliga- The Offeror shall attach to its offer an tion to furnish such technical data required identification of all documents or other to be prepared by a subcontractor and per- media incorporating technical data or com- taining to an item obtained from him shall puter software it intends to deliver under
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this contract with other than unlimited 252.227–7031 [Reserved] rights that are identical or substantially similar to documents or other media that 252.227–7032 Rights in technical data the Offeror has produced for, delivered to, or and computer software (foreign). is obligated to deliver to the Government under any contract or subcontract. The at- As prescribed in 227.7103–17, use the tachment shall identify— following clause: (a) The contract number under which the RIGHTS IN TECHNICAL DATA AND COMPUTER data or software were produced; SOFTWARE (FOREIGN) (JUN 1975) (b) The contract number under which, and the name and address of the organization to The United States Government may dupli- whom, the data or software were most re- cate, use, and disclose in any manner for any cently delivered or will be delivered; and purposes whatsoever, including delivery to (c) Any limitations on the Government’s other governments for the furtherance of rights to use or disclose the data or software, mutual defense of the United States Govern- including, when applicable, identification of ment and other governments, all technical the earliest date the limitations expire. data including reports, drawings and blue- prints, and all computer software, specified (End of provision) to be delivered by the Contractor to the United States Government under this con- tract. [60 FR 33505, June 28, 1995] (End of clause) 252.227–7029 [Reserved]
252.227–7030 Technical data—with- [56 FR 36479, July 31, 1991, as amended at 60 holding of payment. FR 33505, June 28, 1995] As prescribed at 227.7103–6(e)(2) or 252.227–7033 Rights in shop drawings. 227.7104(e)(4), use the following clause: As prescribed in 227.7107–(1)(c), use TECHNICAL DATA—WITHHOLDING OF PAYMENT the following clause: (MAR 2000) RIGHTS IN SHOP DRAWINGS (APR 1966) (a) If technical data specified to be deliv- ered under this contract, is not delivered (a) Shop drawings for construction means within the time specified by this contract or drawings, submitted to the Government by the Construction Contractor, subcontractor is deficient upon delivery (including having or any lower-tier subcontractor pursuant to restrictive markings not identified in the a construction contract, showing in detail (i) list described in the clause at 252.227– the proposed fabrication and assembly of 7013(e)(2) or 252.227–7018(e)(2) of this con- structural elements and (ii) the installation tract), the Contracting Officer may until (i.e., form, fit, and attachment details) of such data is accepted by the Government, materials or equipment. The Government withhold payment to the Contractor of ten may duplicate, use, and disclose in any man- percent (10%) of the total contract price or ner and for any purpose shop drawings deliv- amount unless a lesser withholding is speci- ered under this contract. fied in the contract. Payments shall not be (b) This clause, including this paragraph withheld nor any other action taken pursu- (b), shall be included in all subcontracts ant to this paragraph when the Contractor’s hereunder at any tier. failure to make timely delivery or to deliver such data without deficiencies arises out of (End of clause) causes beyond the control and without the fault or negligence of the Contractor. [56 FR 36479, July 31, 1991, as amended at 60 (b) The withholding of any amount or sub- FR 33505, June 28, 1995] sequent payment to the Contractor shall not be construed as a waiver of any rights accru- 252.227–7034 Patents—subcontracts. ing to the Government under this contract. As prescribed at 227.304–4, insert the (End of clause) following clause:
PATENTS—SUBCONTRACTS (APR 1984) [56 FR 36479, July 31, 1991, as amended at 60 FR 33505, June 28, 1995; 62 FR 34132, June 24, The Contractor will include the clause at 1997; 65 FR 14398, Mar. 16, 2000] FAR 52.227–12, Patent Rights—Retention by
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the Contractor (Long Form), suitably modi- duplicate, or disclose technical data deliv- fied to identify the parties, in all sub- ered or required to be delivered under the contracts, regardless of tier, for experi- contract or subcontract. Except under con- mental, developmental, or research work to tracts for commercial items, the Contractor be performed by other than a small business or subcontractor shall be prepared to furnish firm or nonprofit organization. to the Contracting Officer a written jus- tification for such restrictive markings in (End of clause) response to a challenge under paragraph (e) of this clause. 252.227–7035 [Reserved] (d) Prechallenge request for information. (1) The Contracting Officer may request the 252.227–7036 Declaration of Technical Contractor or subcontractor to furnish a Data Conformity. written explanation for any restriction as- As prescribed at 227.7103–6(e)(3) or serted by the Contractor or subcontractor on 227.7104(e)(5), use the following clause: the right of the United States or others to use technical data. If, upon review of the ex- DECLARATION OF TECHNICAL DATA planation submitted, the Contracting Officer CONFORMITY (JAN 1997) remains unable to ascertain the basis of the restrictive marking, the Contracting Officer All technical data delivered under this may further request the Contractor or sub- contract shall be accompanied by the fol- contractor to furnish additional information lowing written declaration: The Contractor, in the records of, or otherwise in the posses- llllllllll, hereby declares that, to sion of or reasonably available to, the Con- the best of its knowledge and belief, the tractor or subcontractor to justify the valid- technical data delivered herewith under Con- ity of any restrictive marking on technical tract No. llllllllll is complete, ac- data delivered or to be delivered under the curate, and complies with all requirements contract or subcontract (e.g., a statement of of the contract. facts accompanied with supporting docu- Date lllllllllllllllllllll mentation). The Contractor or subcontractor Name and Title of Authorized Official lll shall submit such written data as requested by the Contracting Officer within the time (End of clause) required or such longer period as may be mu- tually agreed. [62 FR 2614, Jan. 17, 1997] (2) If the Contracting Officer, after review- ing the written data furnished pursuant to 252.227–7037 Validation of restrictive paragraph (d)(1) of this clause, or any other markings on technical data. available information pertaining to the va- lidity of a restrictive marking, determines As prescribed in 227.7102–3(c), that reasonable grounds exist to question 227.7103(e)(4), 227.7104(e)(6), or 227.7203– the current validity of the marking and that 6(f), use the following clause: continued adherence to the marking would make impracticable the subsequent competi- VALIDATION OF RESTRICTIVE MARKINGS ON tive acquisition of the item, component, or TECHNICAL DATA (SEP 1999) process to which the technical data relates, (a) Definitions. The terms used in this the Contracting Officer shall follow the pro- clause are defined in the Rights in Technical cedures in paragraph (e) of this clause. Data—Noncommercial Items clause of this (3) If the Contractor or subcontractor fails contract. to respond to the Contracting Officer’s re- (b) Contracts for commercial items—presump- quest for information under paragraph (d)(1) tion of development at private expense. Under a of this clause, and the Contracting Officer contract for a commercial item, component, determines that continued adherence to the or process, the Department of Defense shall marking would make impracticable the sub- presume that a Contractor’s asserted use or sequent competitive acquisition of the item, release restrictions are justified on the basis component, or process to which the technical that the item, component, or process was de- data relates, the Contracting Officer may veloped exclusively at private expense. The challenge the validity of the marking as de- Department shall not challenge such asser- scribed in paragraph (e) of this clause. tions unless information the Department (e) Challenge. (1) Notwithstanding any pro- provides demonstrates that the item, compo- vision of this contract concerning inspection nent, or process was not developed exclu- and acceptance, if the Contracting Officer sively at private expense. determines that a challenge to the restric- (c) Justification. The Contractor or subcon- tive marking is warranted, the Contracting tractor at any tier is responsible for main- Officer shall send a written challenge notice taining records sufficient to justify the va- to the Contractor or subcontractor asserting lidity of its markings that impose restric- the restrictive markings. Such challenge tions on the Government and others to use, shall—
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(i) State the specific grounds for chal- procedures in paragraphs (g)(2) (ii) through lenging the asserted restriction; (iv) of this clause. (ii) Require a response within sixty (60) (g) Final decision when Contractor or subcon- days justifying and providing sufficient evi- tractor responds. (1) if the Contracting Officer dence as to the current validity of the as- determines that the Contractor or subcon- serted restriction; tractor has justified the validity of the re- (iii) State that a DoD Contracting Officer’s strictive marking, the Contracting Officer final decision, issued pursuant to paragraph shall issue a final decision to the Contractor (g) of this clause, sustaining the validity of or subcontractor sustaining the validity of a restrictive marking identical to the as- the restrictive marking, and stating that the serted restriction, within the three-year pe- Government will continue to be bound by the riod preceding the challenge, shall serve as restrictive marking. This final decision shall justification for the asserted restriction if be issued within sixty (60) days after receipt the validated restriction was asserted by the of the Contractor’s or subcontractor’s re- same Contractor or subcontractor (or any li- sponse to the challenge notice, or within censee of such Contractor or subcontractor) such longer period that the Contracting Offi- to which such notice is being provided; and cer has notified the Contractor or subcon- (iv) State that failure to respond to the tractor that the Government will require. challenge notice may result in issuance of a final decision pursuant to paragraph (f) of The notification of a longer period for this clause. issuance of a final decision will be made (2) The Contracting Officer shall extend within sixty (60) days after receipt of the re- the time for response as appropriate if the sponse to the challenge notice. Contractor or subcontractor submits a writ- (2)(i) If the Contracting Officer determines ten request showing the need for additional that the validity of the restrictive marking time to prepare a response. is not justified, the Contracting Officer shall (3) The Contractor’s or subcontractor’s issue a final decision to the Contractor or written response shall be considered a claim subcontractor in accordance with the Dis- within the meaning of the Contract Disputes putes clause of this contract. Notwith- Act of 1978 (41 U.S.C. 601, et seq.), and shall standing paragraph (e) of the Disputes be certified in the form prescribed at 33.207 of clause, the final decision shall be issued the Federal Acquisition Regulation, regard- within sixty (60) days after receipt of the less of dollar amount. Contractor’s or subcontractor’s response to (4) A Contractor or subcontractor receiving the challenge notice, or within such longer challenges to the same restrictive markings period that the Contracting Officer has noti- from more than one Contracting Officer shall fied the Contractor or subcontractor of the notify each Contracting Officer of the exist- longer period that the Government will re- ence of more than one challenge. The notice quire. The notification of a longer period for shall also state which Contracting Officer issuance of a final decision will be made initiated the first in time unanswered chal- within sixty (60) days after receipt of the re- lenge. The Contracting Officer initiating the sponse to the challenge notice. first in time unanswered challenge after con- (ii) The Government agrees that it will sultation with the Contractor or subcon- continue to be bound by the restrictive tractor and the other Contracting Officers, marking of a period of ninety (90) days from shall formulate and distribute a schedule for the issuance of the Contracting Officer’s responding to each of the challenge notices final decision under paragraph (g)(2)(i) of to all interested parties. The schedule shall this clause. The Contractor or subcontractor afford the Contractor or subcontractor an agrees that, if it intends to file suit in the opportunity to respond to each challenge no- tice. All parties will be bound by this sched- United States Claims Court it will provide a ule. notice of intent to file suit to the Con- (f) Final decision when Contractor or subcon- tracting Officer within ninety (90) days from tractor fails to respond. Upon a failure of a the issuance of the Contracting Officer’s Contractor or subcontractor to submit any final decision under paragraph (g)(2)(i) of response to the challenge notice, other than this clause. If the Contractor or subcon- a failure to respond under a contract for tractor fails to appeal, file suit, or provide a commercial items, the Contracting Officer notice of intent to file suit to the Con- will issue a final decision to the Contractor tracting Officer within the ninety (90)-day or subcontractor in accordance with the Dis- period, the Government may cancel or ignore putes clause of this contract pertaining to the restrictive markings, and the failure of the validity of the asserted restriction. This the Contractor or subcontractor to take the final decision shall be issued as soon as pos- required action constitutes agreement with sible after the expiration of the time period such Government action. of paragraph (e)(1)(ii) or (e)(2) of this clause. (iii) The Government agrees that it will Following issuance of the final decision, the continue to be bound by the restrictive Contracting Officer will comply with the marking where a notice of intent to file suit
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in the United States Claims Court is pro- the marking, unless special circumstances vided to the Contracting Officer within nine- would make such payment unjust. ty (90) days from the issuance of the final de- (2) If the Contractor or subcontractor ap- cision under paragraph (g)(2)(i) of this peals or files suit and if, upon final disposi- clause. The Government will no longer be tion of the appeal or suit, the Contracting bound, and the Contractor or subcontractor Officer’s decision is not sustained— agrees that the Government may strike or (i) The Government shall continue to be ignore the restrictive markings, if the Con- bound by the restrictive marking; and tractor or subcontractor fails to file its suit (ii) The Government shall be liable to the within one (1) year after issuance of the final Contractor or subcontractor for payment of decision. Notwithstanding the foregoing, fees and other expenses (as defined in 28 where the head of an agency determines, on U.S.C. 2412(d)(2)(A)) incurred by the Con- a nondelegable basis, that urgent or compel- tractor or subcontractor in defending the ling circumstances will not permit waiting marking, if the challenge by the Government for the filing of a suit in the United States Claims Court, the Contractor or subcon- is found not to have been made in good faith. tractor agrees that the agency may, fol- (i) Duration of right to challenge. The Gov- lowing notice to the Contractor or subcon- ernment may review the validity of any re- tractor, authorize release or disclosure of the striction on technical data, delivered or to technical data. Such agency determination be delivered under a contract, asserted by may be made at any time after issuance of the Contractor or subcontractor. During the the final decision and will not affect the Con- period within three (3) years of final pay- tractor’s or subcontractor’s right to damages ment on a contract or within three (3) years against the United States where its restric- of delivery of the technical data to the Gov- tive markings are ultimately upheld or to ernment, whichever is later, the Contracting pursue other relief, if any, as may be pro- Officer may review and make a written de- vided by law. termination to challenge the restriction. The (iv) The Government agrees that it will be Government may, however, challenge a re- bound by the restrictive marking where an striction on the release, disclosure or use of appeal or suit is filed pursuant to the Con- technical data at any time if such technical tract Disputes Act until final disposition by data— an agency Board of Contract Appeals or the (1) Is publicly available; United States Claims Court. Notwith- (2) Has been furnished to the United States standing the foregoing, where the head of an without restriction; or agency determines, on a nondelegable basis, (3) Has been otherwise made available following notice to the Contractor that ur- without restriction. Only the Contracting gent or compelling circumstances will not Officer’s final decision resolving a formal permit awaiting the decision by such Board challenge by sustaining the validity of a re- of Contract Appeals or the United States strictive marking constitutes ‘‘validation’’ Claims Court, the Contractor or subcon- as addressed in 10 U.S.C. 2321. tractor agrees that the agency may author- (j) Decision not to challenge. A decision by ize release or disclosure of the technical the Government, or a determination by the data. Such agency determination may be Contracting Officer, to not challenge the re- made at any time after issuance of the final strictive marking or asserted restriction decision and will not affect the Contractor’s shall not constitute ‘‘validation.’’ or subcontractor’s right to damages against (k) Privity of contract. The Contractor or the United States where its restrictive subcontractor agrees that the Contracting markings are ultimately upheld or to pursue other relief, if any, as may be provided by Officer may transact matters under this law. clause directly with subcontractors at any tier that assert restrictive markings. How- (h) Final disposition of appeal or suit. (1) If ever, this clause neither creates nor implies the Contractor or subcontractor appeals or privity of contract between the Government files suit and if, upon final disposition of the and subcontractors. appeal or suit, the Contracting Officer’s deci- sion is sustained— (l) Flowdown. The Contractor or subcon- (i) The restrictive marking on the tech- tractor agrees to insert this clause in contrac- nical data shall be cancelled, corrected or ig- tual instruments with its subcontractors or sup- nored; and pliers at any tier requiring the delivery of tech- nical data, except contractual instruments for (ii) If the restrictive marking is found not commercial items or commercial components. to be substantially justified, the Contractor or subcontractor, as appropriate, shall be lia- ble to the Government for payment of the (End of clause) cost to the Government of reviewing the re- strictive marking and the fees and other ex- [60 FR 33505, June 28, 1995, as amended at 60 penses (as defined in 28 U.S.C. 2412(d)(2)(A)) FR 61602, Nov. 30, 1995; 64 FR 51077, Sept. 21, incurred by the Government in challenging 1999]
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252.227–7038 [Reserved] (c) The Contracting Officer may require the Contractor to assign to the Government 252.227–7039 Patents—reporting of all right, title, and interest to any refund, subject inventions. rebate, or recapture arising out of any claim settlements. As prescribed at 227.303(a), insert the (d) The Contractor agrees to— following clause: (1) Investigate and promptly notify the Contracting Officer in writing of any occur- PATENTS—REPORTING OF SUBJECT INVENTIONS rence which may give rise to a claim or po- (APR 1990) tential claim, including the estimated The Contractor shall furnish the Con- amount of the claim; tracting Officer the following: (2) Give the Contracting Officer immediate (a) Interim reports every twelve (12) written notice of any suit or action filed months (or such longer period as may be which may result in a payment under this specified by the Contracting Officer) from clause; and (3) Provide assistance to the Government the date of the contract, listing subject in- in connection with any third party suit or ventions during that period and stating that claim relating to this clause which the Gov- all subject inventions have been disclosed or ernment elects to prosecute or defend in its that there are no such inventions. own behalf. (b) A final report, within three (3) months after completion of the contracted work, (End of clause) listing all subject inventions or stating that there were no such inventions. 252.228–7001 Ground and flight risk. (c) Upon request, the filing date, serial number and title, a copy of the patent appli- As prescribed in 228.370(b), use the cation and patent number, and issue data for following clause: any subject invention for which the Con- tractor has retained title. GROUND AND FLIGHT RISK (SEP 1996) (d) Upon request, the Contractor shall fur- (a) Definitions. As used in this clause— nish the Government an irrevocable power to (1) Aircraft, unless otherwise provided in inspect and make copies of the patent appli- the Schedule, means— cation file. (i) Aircraft to be delivered to the Govern- ment under this contract (either before or (End of clause) after Government acceptance), including complete aircraft and aircraft in the process 252.228–7000 Reimbursement for war- of being manufactured, disassembled, or re- hazard losses. assembled; provided that an engine, portion As prescribed in 228.370(a), use the of a wing or a wing is attached to a fuselage of the aircraft; and following clause: (ii) Aircraft, whether in a state of dis- REIMBURSEMENT FOR WAR-HAZARD LOSSES assembly or reassembly, furnished by the (DEC 1991) Government to the Contractor under this contract, including all property installed, in (a) Costs for providing employee war-haz- the process of installation, or temporarily ard benefits in accordance with paragraph (b) removed; provided that the aircraft and of the Workers’ Compensation and War-Haz- property are not covered by a separate bail- ard Insurance clause of this contract are al- ment agreement. lowable if the Contractor— (2) Contractor’s premises means those prem- (1) Submits proof of loss files to support ises designated in the Schedule or in writing payment or denial of each claim; by the Contracting Officer, and any other (2) Subject to Contracting Officer approval, place the aircraft is moved for safeguarding. makes lump sum final settlement of any (3) Flight means any flight demonstration, open claims and obtains necessary release flight test, taxi test, or other flight made in documents within one year of the expiration the performance of this contract, or for the or termination of this contract, unless other- purpose of safeguarding the aircraft, or pre- wise extended by the Contracting Officer; viously approved in writing by the Con- and tracting Officer. (3) Provides the Contracting Officer at the (i) For land based aircraft, flight begins time of final settlement of this contract— with the taxi roll from a flight line on the (i) An investigation report and evaluation Contractor’s premises and continues until of any potential claim; and the aircraft has completed the taxi roll in re- (ii) An estimate of the dollar amount in- turning to a flight line on the Contractor’s volved should the potential claim mature. premises; (b) The cost of insurance for liabilities re- (ii) For seaplanes, flight begins with the imbursable under this clause is not allow- launching from a ramp on the Contractor’s able. premises and continues until the aircraft has
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completed its landing run and is beached at If the Contracting Officer later determines a ramp on the Contractor’s premises; that the cited conditions were not unreason- (iii) For helicopters, flight begins upon en- able, an equitable adjustment shall be made gagement of the rotors for the purpose of in the contract price for any additional costs take-off from the Contractor’s premises and incurred in correcting the conditions. Any continues until the aircraft has returned to dispute as to the unreasonableness of the the ground on the Contractor’s premises and conditions or the equitable adjustment shall the rotors are disengaged; and be considered a dispute under the Disputes (iv) For vertical take-off aircraft, flight be- clause of this contract. gins upon disengagement from any launching (3) If the Contracting Officer finds that the platform or device on the Contractor’s prem- Contractor failed to act promptly to correct ises and continues until the aircraft has been the cited conditions or failed to correct the engaged to any launching platform or device conditions within a reasonable time, the on the Contractor’s premises; Contracting Officer may terminate the Gov- (v) All aircraft off the Contractor’s prem- ernment’s assumption of risk for any air- ises shall be considered to be in flight when craft in the open under the cited conditions. on the ground or water for reasonable peri- The termination will be effective at 12:01 am ods of time following emergency landings, on the fifteenth day following the day the landings made in performance of this con- written notice is received by the Contractor. tract, or landings approved in writing by the If the Contracting Officer later determines Contracting Officer. that the Contractor acted promptly to cor- (4) Flight crew member means the pilot, the rect the cited conditions or that the time co-pilot, and, unless otherwise provided in taken by the Contractor was not unreason- the Schedule, the flight engineer, navigator, able, an equitable adjustment shall be made and bombardier-navigator when assigned to in the contract price for any additional costs their respective crew positions for the pur- incurred as a result of termination of the pose of conducting any flight on behalf of the Government’s assumption of risk. Any dis- Contractor. If required, a defense systems pute as to the timeliness of the Contractor’s operator may also be assigned as a flight action or the equitable adjustment shall be crew member. considered a dispute under the Disputes (5) In the open means located wholly out- clause of this contract. side of buildings on the Contractor’s prem- ises or other places described in the Schedule (4) If the Government terminates its as- as being in the open. Government furnished sumption of risk, the risk of loss for Govern- aircraft shall be considered to be located in ment-furnished property shall be determined the open at all times while in the Contrac- in accordance with the Government Property tor’s possession, care, custody, or control. clause of this contract. (6) Operation means operations and tests of (5) The Contractor shall promptly notify the aircraft and its installed equipment, ac- the Contracting Officer when unreasonable cessories, and power plants, while the air- conditions have been corrected. If the Gov- craft is in the open or in motion. The term ernment elects to again assume the risk of does not apply to aircraft on any production loss and relieve the Contractor of liabilities, line or in flight. the Contracting Officer will notify the Con- (b) Except as may be specifically provided tractor. The Contractor shall be entitled to in the Schedule as an exception to this an equitable adjustment in the contract clause, the Government assumes the risk of price for any insurance costs extending from damage to, or loss or destruction of aircraft the end of the third working day after the in the open, during operation, and in flight. Contractor notice of correction until the The Contractor shall not be liable to the Contractor is notified that the Government Government for such damage, loss, or de- will assume the risk of loss. If the Govern- struction. ment does not again assume the risk of loss (c) The Government’s assumption of risk and conditions have been corrected, the Con- for aircraft in the open shall continue unless tractor shall be entitled to an equitable ad- the Contracting Officer finds that the air- justment for insurance costs, if any, extend- craft is in the open under unreasonable con- ing after the third working day. ditions, and the Contractor fails to take (d) The Government’s assumption of risk prompt corrective action. shall not extend to damage, loss, or destruc- (1) The Contracting Officer, when finding tion of aircraft which— aircraft in the open under unreasonable con- (1) Results from failure of the Contractor, ditions, shall notify the Contractor in writ- due to willful misconduct or lack of good ing of the unreasonable conditions and re- faith of any of the Contractor’s managerial quire the Contractor to make corrections personnel, to maintain and administer a pro- within a reasonable time. gram for the protection and preservation of (2) Upon receipt of the notice, the Con- aircraft in the open and during operation in tractor shall promptly correct the cited con- accordance with sound industrial practice. ditions, regardless of whether there is agree- The term Contractor’s managerial personnel ment that the conditions are unreasonable. means the Contractor’s directors, officers,
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and any of the Contractor’s managers, super- Contracting Officer, provides for relief from intendents, or other equivalent representa- each liability. In the absence of approval, the tives who supervise or direct all or substan- subcontract shall contain provisions requir- tially all of the Contractor’s business; or all ing the return of aircraft in as good condi- or substantially all of the Contractor’s oper- tion as when received, except for reasonable ations at any one plant or separate location wear and tear or for the utilization of the at which this contract is performed; or a sep- property in accordance with the provisions arate and complete major industrial oper- of this contract. Where a subcontractor has ation in connection with the performance of not been relieved from liability, and damage, this contract; loss, or destruction occurs, the Contractor (2) Is sustained during flight if the flight shall enforce liability against the subcon- crew members have not been approved in tractor for the benefit of the Government. writing by the Government Flight Rep- (g) The Contractor warrants that the con- resentative, who has been authorized in ac- tract price does not and will not include, ex- cordance with the combined regulation enti- cept as may be authorized in this clause, any tled ‘‘Contractor’s Flight and Ground Oper- charge or contingency reserve for insurance ations’’ (Air Force Regulation 55–22, Army covering damage, loss, or destruction of air- Regulation 95–20, NAVAIR Instruction craft while in the open, during operation, or 3710.1C, and Defense Logistics Agency Man- ual 8210.1); in flight when the risk has been assumed by (3) Occurs in the course of transportation the Government, even if the assumption may by rail, or by conveyance on public streets, be terminated for aircraft in the open. highways, or waterways, except for Govern- (h) In the event of damage, loss, or destruc- ment-furnished property; tion of aircraft in the open, during oper- (4) Is covered by insurance; ation, or in flight, the Contractor shall take (5) Consists of wear and tear; deterioration all reasonable steps to protect the aircraft (including rust and corrosion); freezing; or from further damage, to separate damaged mechanical, structural, or electrical break- and undamaged aircraft, to put all aircraft down or failure, unless these are the result of in the best possible order and further, except other loss, damage or destruction covered by in cases covered by paragraph (e) of this this clause. (This exclusion does not apply to clause, the Contractor shall furnish to the Government-furnished property if damage Contracting Officer a statement of— consists of reasonable wear and tear or dete- (1) The damaged, lost, or destroyed air- rioration, or results from inherent vice in craft; the property.); or (2) The time and origin of the damage, loss, (6) Is sustained while the aircraft is being or destruction; worked on and is a direct result of the work (3) All known interests in commingled unless such damage, loss, or destruction property of which aircraft are a part; and would be covered by insurance which would (4) The insurance, if any, covering the in- have been maintained by the Contractor, but terest in commingled property. for the Government’s assumption of risk. (e) With the exception of damage, loss, or Except in cases covered by paragraph (e) of destruction in flight, the Contractor assumes this clause, the Contracting Officer will the risk and shall be responsible for the first make an equitable adjustment in the con- $25,000 of loss or damage to aircraft in the tract price for expenditures made by the open or during operation resulting from each Contractor in performing the obligations separate event, except for reasonable wear under this paragraph. and tear and to the extent the loss or dam- (i) If prior to delivery and acceptance by age is caused by negligence of Government the Government, aircraft is damaged, lost, or personnel. If the Government elects to re- destroyed and the Government assumed the quire that the aircraft be replaced or re- risk, the Government shall either— stored by the Contractor to its condition im- (1) Require that the aircraft be replaced or mediately prior to the damage, the equitable restored by the Contractor to the condition adjustment in the price authorized by para- immediately prior to the damage, in which graph (i) of this clause shall not include the event the Contracting Officer will make an dollar amount of the risk assumed by the equitable adjustment in the contract price Contractor. In the event the Government and the time for contract performance; or does not elect repair or replacement, the (2) Terminate this contract with respect to Contractor agrees to credit the contract the aircraft, in which event the Contractor price or pay the Government $25,000 (or the shall be paid the contract price for the air- amount of the loss, if less) as directed by the craft (or, if applicable, any work to be per- Contracting Officer. formed on the aircraft) less any amount the (f) A subcontractor shall not be relieved Contracting Officer determines— from liability for damage, loss, or destruc- (i) It would have cost the Contractor to tion of aircraft while in its possession or complete the aircraft (or any work to be per- control, except to the extent that the sub- formed on the aircraft) together with antici- contract, with the written approval of the pated profit on uncompleted work; and
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(ii) Would be the value of the damaged air- (i) For land-based aircraft, flight begins craft or any salvage retained by the Con- with the taxi roll from a flight line and con- tractor. tinues until the aircraft has completed the The Contracting Officer shall prescribe the taxi roll to a flight line. manner of disposition of the damaged, lost, (ii) For seaplanes, flight begins with the or destroyed aircraft, or any parts of the air- launching from a ramp and continues until craft. If any additional costs of such disposi- the aircraft has completed its landing run tion are incurred by the Contractor, a fur- and is beached at a ramp. ther equitable adjustment will be made in (iii) For helicopters, flight begins upon en- the amount due the Contractor. Failure of gagement of the rotors for the purpose of the parties to agree upon termination costs take-off and continues until the aircraft has or an equitable adjustment with respect to returned to the ground and rotors are dis- any aircraft shall be considered a dispute engaged. under the Disputes clause. (iv) For vertical take-off aircraft, flight be- (j) In the event the Contractor is reim- gins upon disengagement from any launching bursed or compensated by a third person for platform or device and continues until the damage, loss, or destruction of aircraft and aircraft has been reengaged to any launching has also been compensated by the Govern- platform or device. ment, the Contractor shall equitably reim- (3) Flight crew members means the pilot, co- burse the Government. The Contractor shall pilot, and unless otherwise provided in the do nothing to prejudice the Government’s Schedule, the flight engineer, navigator, right to recover against third parties for bombardier-navigator, and defense systems damage, loss, or destruction. Upon the re- operator as required, when assigned to their quest of the Contracting Officer or author- respective crew positions to conduct any ized representative, the Contractor shall at flight on behalf of the Contractor. Government expense furnish to the Govern- (b) This clause takes precedence over any ment all reasonable assistance and coopera- other provision of this contract (particularly paragraph (g) of the Government Property tion (including the prosecution of suit and (Cost-Reimbursement, Time-and-Materials, the execution of instruments of assignment or Labor-Hour Contracts) clause and para- of subrogation) in obtaining recovery. graph (c) of the Insurance—Liability to (k) The Contractor agrees to be bound by Third Persons clause). the operating procedures contained in the (c) Unless the flight crew members pre- combined regulation entitled ‘‘Contractor’s viously have been approved in writing by the Flight and Ground Operations’’ in effect on Government Flight Representative, who has the date of contract award. been authorized in accordance with the com- (End of clause) bined regulation entitled ‘‘Contractor’s Flight and Ground Operations’’ (Air Force Regulation 55–22, Army Regulation 95–20, [56 FR 36479, July 31, 1991, as amended at 56 NAVAIR Instruction 3710.1C, and Defense Lo- FR 67221, Dec. 30, 1991; 61 FR 50456, Sept. 26, gistics Agency Manual 8210.1), the Con- 1996] tractor shall not be— (1) Relieved of liability for damage, loss, or 252.228–7002 Aircraft flight risk. destruction of aircraft sustained during As prescribed in 228.370(c), use the flight; or following clause: (2) Reimbursed for liabilities to third per- sons for loss or damage to property or for AIRCRAFT FLIGHT RISK (SEP 1996) death or bodily injury caused by aircraft during flight. (a) Definitions. As used in this clause— (d)(1) The loss, damage, or destruction of (1) Aircraft, unless otherwise provided in aircraft during flight in an amount exceed- the Schedule, means— ing $100,000 or 20 percent of the estimated (i) Aircraft furnished by the Contractor cost of this contract, whichever is less, is under this contract (either before or after subject to an equitable adjustment when the Government acceptance); or Contractor is not liable under— (ii) Aircraft furnished by the Government (i) The Government Property (Cost-Reim- to the Contractor, including all Government bursement, Time-and-Materials, or Labor- property placed on, installed or attached to Hour Contracts) clause, and the aircraft; provided that the aircraft and (ii) Paragraph (c) of this clause. property are not covered by a separate bail- (2) The equitable adjustment under this ment agreement. contract for the resulting repair, restora- (2) Flight means any flight demonstration, tion, or replacement of aircraft shall be flight test, taxi test, or other flight made in made— the performance of this contract, or for the (i) In the estimated cost, the delivery purpose of safeguarding the aircraft, or pre- schedule, or both; and viously approved in writing by the Con- (ii) In the amount of any fee to be paid to tracting Officer. the Contractor.
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(3) In determining the amount of equitable gated to pay and has paid detention benefits adjustment in the fee, the Contracting Offi- to a captured person, or the person’s depend- cer will consider any fault of the Contractor, ents, the Government will reimburse the its employees, or any subcontractor that ma- Contractor up to an amount equal to the terially contributed to the damage, loss, or lesser of— destruction. (1) Total wage or salary being paid at the (4) Failure to agree on any adjustment time of capture due from the Contractor to shall be a dispute concerning a question of the captured person for the period of deten- fact within the meaning of the Disputes tion; or clause of this contract. (2) That amount which would have been (e) The Contractor agrees to be bound by payable if the detention had occurred under the operating procedures contained in the circumstances covered by the War Hazards combined regulation entitled ‘‘Contractor’s Compensation Act. Flight and Found Operations’’ in effect on (c) The period of detention shall not be the date of contract award. considered as time spent in contract per- formance, and the Government shall not be (End of clause) obligated to make payment for that time ex- cept as provided in this clause. [56 FR 36479, July 31, 1991, as amended at 61 (d) The obligation of the Government shall FR 50456, Sept. 26, 1996] apply to the entire period of detention, ex- cept that it is subject to the availability of 252.228–7003 Capture and detention. funds from which payment can be made. The As prescribed in 228.370(d), use the rights and obligations of the parties under following clause: this clause shall survive prior expiration, completion, or termination of this contract. CAPTURE AND DETENTION (DEC. 1991) (e) The Contractor shall not be reimbursed under this clause for payments made if the (a) As used in this clause— employees were entitled to compensation for (1) Captured person means any employee of capture and detention under the War Haz- the Contractor who is— ards Compensation Act, as amended. (i) Assigned to duty outside the United States for the performance of this contract; (End of clause) and (ii) Found to be missing from his or her [56 FR 36479, July 31, 1991, as amended at 57 place of employment under circumstances FR 42633, Sept. 15, 1992] that make it appear probable that the ab- sence is due to the action of the force of any power not allied with the United States in a 252.228–7004 Bonds or other security. common military effort; or As prescribed in 228.170, use the fol- (iii) Known to have been taken prisoner, lowing provision: hostage, or otherwise detained by the force of such power, whether or not actually en- BONDS OR OTHER SECURITY (DEC. 1991) gaged in employment at the time of capture; provided, that at the time of capture or de- (a) Offerors shall furnish a bid guarantee in tention, the person was either— the amount of $llll with their bids. The (A) Engaged in activity directly arising offeror receiving notice of award shall fur- out of and in the course of employment nish— under this contract; or (1) A performance bond in the penal (B) Captured in an area where required to amount of $llll; and be only in order to perform this contract. (2) Payment in full of any sum due the (2) A period of detention begins with the day Government. of capture and continues until the captured (b) The Contractor shall furnish the per- person is returned to the place of employ- formance bond to the Contracting Officer ment, the United States, or is able to be re- within ll days after receipt of the notice of turned to the jurisdiction of the United award. The Contracting Officer will not issue States, or until the person’s death is estab- the notice to proceed until receipt of an ac- lished or legally presumed to have occurred ceptable performance bond and payment of by evidence satisfactory to the Contracting any sum due the Government. Officer, whichever occurs first. (c) Bonds supported by sureties whose (3) United States comprises geographically names appear on the list contained in Treas- the 50 states and the District of Columbia. ury Department Circular 570 are acceptable. (4) War Hazards Compensation Act refers to Performance bonds from individual sureties the statute compiled in chapter 12 of title 42, are acceptable if each person acting as a sur- U.S. Code (sections 1701–1717), as amended. ety provides a SF 28, Affidavit of Individual (b) If pursuant to an agreement entered Surety, and a pledge of assets acceptable to into prior to capture, the Contractor is obli- the Contracting Officer.
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(End of provision) days after the date of the Notice to Proceed, that the Contractor has obtained the re- 252.228–7005 Accident reporting and quired types of insurance in the following investigation involving aircraft, minimum amounts. The representation also missiles, and space launch vehicles. shall state that the Contractor will promptly notify the Contracting Officer of any notice As prescribed in 228.370(e), use the of cancellation of insurance or material following clause: change in insurance coverage that could af- fect the United States Government’s inter- ACCIDENT REPORTING AND INVESTIGATION IN- ests. VOLVING AIRCRAFT, MISSILES, AND SPACE LAUNCH VEHICLES (DEC. 1991) Type of insur- Coverage Coverage Property (a) The Contractor shall report promptly ance per person per accident damage to the Administrative Contracting Officer all Comprehensive pertinent facts relating to each accident in- General Liabil- volving an aircraft, missile, or space launch ity ...... $300,000 $1,000,000 $100,000 vehicle being manufactured, modified, re- paired, or overhauled in connection with this (e) The Contractor shall provide the Con- contract. tracting Officer with a similar representa- (b) If the Government conducts an inves- tion for all subcontracts with non-Spanish tigation of the accident, the Contractor will concerns that will perform work in Spain cooperate and assist the Government’s per- under this contract. sonnel until the investigation is complete. (f) Insurance policies required herein shall (c) The Contractor will include a clause in be purchased from Spanish insurance compa- subcontracts under this contract to require nies or other insurance companies legally subcontractor cooperation and assistance in authorized to conduct business in Spain. accident investigations. Such policies shall conform to Spanish laws and regulations and shall— (End of clause) (1) Contain provisions requiring submission to Spanish law and jurisdiction of any prob- 252.228–7006 Compliance with Spanish lem that may arise with regard to the inter- laws and insurance. pretation or application of the clauses and As prescribed at 228.370(f), use the fol- conditions of the insurance policy; lowing clause: (2) Contain a provision authorizing the in- surance company, as subrogee of the insured COMPLIANCE WITH SPANISH LAWS AND entity, to assume and attend to directly, INSURANCE (DEC 1998) with respect to any person damaged, the (a) The requirements of this clause apply legal consequences arising from the occur- only if the Contractor is not a Spanish con- rence of such damages; cern. (3) Contain a provision worded as follows: (b) The Contractor shall, without addi- ‘‘The insurance company waives any right of tional expense to the United States Govern- subrogation against the United States of ment, comply with all applicable Spanish America that may arise by reason of any Government laws pertaining to sanitation, payment under this policy.’’; traffic, security, employment of labor, and (4) Not contain any deductible amount or all other laws relevant to the performance of similar limitation; and this contract. The Contractor shall hold the (5) Not contain any provisions requiring United States Government harmless and free submission to any type of arbitration. from any liability resulting from the Con- tractor’s failure to comply with such laws. (End of clause) (c) The contractor shall, at its own ex- pense, provide and maintain during the en- [62 FR 34132, June 24, 1997, as amended at 63 tire performance of this contract, all work- FR 69006, Dec. 15, 1998] men’s compensation, employees’ liability, bodily injury insurance, and other required 252.229–7000 Invoices exclusive of insurance adequate to cover the risk as- taxes or duties. sumed by the Contractor. The Contractor As prescribed in 229.402–1, use the fol- shall indemnify and hold harmless the United States Government from liability re- lowing clause: sulting from all claims for damages as a re- INVOICES EXCLUSIVE OF TAXES OR DUTIES sult of death or injury to personnel or dam- (JUNE 1997) age to real or personal property related to the performance of this contract. Invoices submitted in accordance with the (d) The Contractor agrees to represent in terms and conditions of this contract shall writing to the Contracting Officer, prior to be exclusive of all taxes or duties for which commencement of work and not later than 15 relief is available.
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(End of clause) 252.229–7002 Customs exemptions (Germany). [62 FR 34132, June 24, 1997] As prescribed in 229.402–70(b), use the following clause: 252.229–7001 Tax relief. As prescribed in 229.402–70(a), use the CUSTOMS EXEMPTIONS (GERMANY) (JUNE 1997) following clause: Imported products required for the direct benefit of the United States Forces are au- TAX RELIEF (JUNE 1997) thorized to be acquired duty-free by the Con- tractor in accordance with the provisions of (a) Prices set forth in this contract are ex- the Agreement Between the United States of clusive of all taxes and duties from which America and Germany Concerning Tax Re- the United States Government is exempt by lief to be Accorded by Germany to United virtue of tax agreements between the United States Expenditures in the Interest of Com- States Government and the Contractor’s mon Defense. government. The following taxes or duties have been excluded from the contract price: (End of clause) NAME OF TAX: (Offeror Insert) RATE (PERCENTAGE): (Offeror Insert) [62 FR 34133, June 24, 1997] (b) The Contractor’s invoice shall list sepa- 252.229–7003 Tax exemptions (Italy). rately the gross price, amount of tax de- As prescribed in 229.402–70(c), use the ducted, and net price charged. following clause: (c) When items manufactured to United States Government specifications are being TAX EXEMPTIONS (ITALY) (JUNE 1997) acquired, the Contractor shall identify the materials or components intended to be im- (a) The Contractor represents that the con- ported in order to ensure that relief from im- tract prices, including the prices in sub- port duties is obtained. If the Contractor in- contracts awarded hereunder, do not include tends to use imported products from inven- taxes from which the United States Govern- tories on hand, the price of which includes a ment is exempt. factor for import duties, the Contractor shall (b) The United States Government is ex- ensure the United States Government’s ex- empt from payment of Imposta Valore emption from these taxes. The Contractor Aggiunto (IVA) tax in accordance with Arti- cle 72 of the IVA implementing decree on all may obtain a refund of the import duties supplies and services sold to United States from its government or request the duty-free Military Commands in Italy. import of an amount of supplies or compo- (1) Upon receipt of the invoice, the paying nents corresponding to that used from inven- office will stamp the following statement on tory for this contract. one copy of the invoice: ‘‘I certify that this invoice is true and cor- (End of clause) rect and reflects expenditures made in Italy for the Common Defense by the United ALTERNATE I (JUNE 1997) States Government pursuant to inter- As prescribed in 229.402–70(a), add the fol- national agreements. The amount to be paid lowing paragraph (d) to the basic clause: does not include the IVA tax, because this (d) Tax relief will be claimed in Germany transaction is not subject to the tax in ac- pursuant to the provisions of the Agreement cordance with Article 72 of Decree Law 633, Between the United States of America and dated October 26, 1972.’’ Germany Concerning Tax Relief to be Ac- (2) This certified copy, signed by an au- corded by Germany to United States Expend- thorized Government official, will be re- itures in the Interest of Common Defense. turned together with payment to the Con- The Contractor shall use Abwicklungsschein tractor. The payment will not include the fuer abgabenbeguenstigte Lieferungen/ amount of IVA tax. Leistungen nach dem Offshore (3) The Contractor must retain this copy of Steuerabkommen (Performance Certificate the invoice with the representation to sub- for Tax-Free Deliveries/Performance accord- stantiate non-payment of the IVA tax. ing to the Offshore Tax Relief Agreement) or (c) In addition to the IVA tax, purchases by other documentary evidence acceptable to the United States Forces in Italy are exempt the German tax authorities. All purchases from the following taxes: made and paid for on a tax-free basis during (1) Imposta di Fabbricazione (Production a 30-day period may be accumulated, totaled, Tax for Petroleum Products). and reported as tax-free. (2) Imposta di Consumo (Consumption Tax for Electrical Power). [62 FR 34132, June 24, 1997] (3) Dazi Doganali (Customs Duties).
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(4) Tassa di Sbarco e d’Imbarco sulle Merci in sufficient time to permit processing by Transportate per Via Aerea e per Via the appropriate United States and Spanish Maritima (Port Fees). Government agencies prior to the arrival of (5) Tassa de Circolazione sui Veicoli (Vehi- the equipment, material, or supplies in cle Circulation Tax). Spain. Seasonal variations in processing (6) Imposta di Registro (Registration Tax). times are common, and the Contractor (7) Imposta di Bollo (Stamp Tax). should program its projects accordingly. Any (d) The Contractor’s administrative proce- delay or expense arising directly or indi- dures for claiming and validating the exemp- rectly from this process shall not excuse un- tions are as follows: timely performance (except as expressly al- (1) Contract offer price shall not reflect lowed in other provisions of this contract), IVA or any other tax or duty. (2) Contract number must be set forth on constitute a direct or constructive change, Contractor invoices, which should state the or otherwise provide a basis for additional exemptions claimed pursuant to Article 72 of compensation or adjustment of any kind. Decree Law 633, dated October 26, 1972, for (d) To ensure that all duty-free imports are IVA exemption. properly accounted for, exported, or disposed (3) Fiscal code for appropriated funds pay- of, in accordance with Spanish law, the Con- ments by Aviano Air Base is: 91000190933. tractor shall obtain a written bank letter of (4) Questions may be addressed to the Min- guaranty payable to the Treasurer of the istry of Finance, 11th District, Rome (06) United States, or such other authority as 5910982. may be designated by the Contracting Offi- cer, in the amount set forth in paragraph (g) (End of clause) of this clause, prior to effecting any duty- free imports for the performance of this con- [62 FR 34133, June 24, 1997; 62 FR 49305, Sept. tract. 19, 1997] (e) If the Contractor fails to obtain the re- quired guaranty, the Contractor agrees that 252.229–7004 Status of contractors as a the Contracting Officer may withhold a por- direct contractor (Spain). tion of the contract payments in order to es- As prescribed in 229.402–70(d), use the tablish a fund in the amount set forth in following clause: paragraph (g) of this clause. The fund shall be used for the payment of import taxes in STATUS OF CONTRACTOR AS A DIRECTOR the event that the Contractor fails to prop- CONTRACTOR (SPAIN) (JUNE 1997) erly account for, export, or dispose of equip- ment, materials, or supplies imported on a (a) ‘‘Direct Contractor,’’ as used in this duty-free basis. clause, means an individual, company, or en- tity with whom an agency of the United (f) The amount of the bank letter of guar- States Department of Defense has executed a anty or size of the fund required under para- written agreement that allows duty-free im- graph (d) or (e) of this clause normally shall port of equipment, materials, and supplies be 5 percent of the contract value. However, into Spain for the construction, develop- if the Contractor demonstrates to the Con- ment, maintenance, and operation of Span- tracting Officer’s satisfaction that the ish-American installations and facilities. amount retained by the United States Gov- (b) The Contractor is hereby designated as ernment or guaranteed by the bank is exces- a Direct Contractor under the provisions of sive, the amount shall be reduced to an Complementary Agreement 5, articles 11, 14, amount commensurate with contingent im- 15, 17, and 18 of the Agreement on Friend- port tax and duty-free liability. This bank ship, Defense and Cooperation between the guaranty or fund shall not be released to the United States Government and the Kingdom Contractor until the Spanish General Direc- of Spain, dated July 2, 1982. The Agreement torate of Customs verifies the accounting, relates to contacts to be performed in whole export, or disposition of the equipment, ma- or part in Spain, the provisions of which are terial, or supplies imported on a duty-free hereby incorporated into and made a part of basis. this contract by reference. (g) The amount required under paragraph (c) The Contractor shall apply to the ap- (d), (e), or (f) of this clause is (Contracting Of- propriate Spanish authorities for approval of ficer insert amount at time of contract award). status as a Direct Contractor in order to (h) The Contractor agrees to insert the complete duty-free import of non-Spanish provisions of this clause, including this para- equipment, materials, and supplies rep- graph (h), in all subcontracts. resented as necessary for contract perform- ance by the Contracting Officer. Orders for equipment, materials, and supplies placed (End of clause) prior to official notification of such approval shall be at the Contractor’s own risk. The [62 FR 34133, June 24, 1997, as amended at 63 Contractor must submit its documentation FR 11548, Mar. 9, 1998]
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252.229–7005 Tax exemptions (Spain). between the appropriate United States au- thorities and Her Majesty’s Customs and Ex- As prescribed in 229.402–70(e), use the cise (Reference Priv 46/7). By executing this following clause: contract, the Contracting Officer certifies that these supplies or services are being pur- TAX EXEMPTIONS (SPAIN) (JUNE 1997) chased for United States Government official (a) The Contractor represents that the con- purposes only. tract prices, including subcontract prices, do not include the taxes identified herein, or (End of clause) any other taxes from which the United States Government is exempt. [62 FR 34134, June 24, 1997] (b) In accordance with tax relief agree- ments between the United States Govern- 252.229–7007 Verification of United ment and the Spanish Government, and be- States receipt of goods. cause the incumbent contract arises from the activities of the United States Forces in As prescribed in 229.402–70(g), use the Spain, the contract will be exempt from the following clause: following excise, luxury, and transaction taxes: VERIFICATION OF UNITED STATES RECEIPT OF (1) Derechos de Aduana (Customs Duties). GOODS (JUNE 1997) (2) Impuesto de Compensacion a la The Contractor shall insert the following Importacion (Compensation Tax on Imports). statement on all Material Inspection and Re- (3) Transmissiones Patrionomiales (Prop- ceiving Reports (DD Form 250 series) for erty Transfer Tax). Contracting Officer approval: ‘‘I certify that (4) Impuesto Sobre el Lujo (Luxury Tax). the items listed on this invoice have been re- (5) Actos Juridocos Documentados (Legal ceived by the United States.’’ Official Transactions). (6) Impuesto Sobre el Trafico de Empresas (Business Trade Tax). (End of clause) (7) Impuestos Especiales de Fabricacion (Special Products Tax). [62 FR 34134, June 24, 1997] (8) Impuesto Sobre el Petroleo y Derivados (Tax on Petroleum and its By-Products). 252.229–7008 Relief from import duty (9) Impuesto Sobre el Uso de Telefona (United Kingdom). (Telephone Tax). As prescribed in 229.402–70(h), use the (10) Impuesto General Sobre la Renta de Sociedades y demas Entidades Juridicas following clause: (General Corporation Income Tax). RELIEF FROM IMPORT DUTY (UNITED KINGDOM) (11) Impuesto Industrial (Industrial Tax). (JUNE 1997) (12) Impuesto de Rentas Sobre el Capital (Capital Gains Tax). Any import dutiable articles, components, (13) Plus Vailia (Increase on Real Prop- or raw materials supplied to the United erty). States Government under this contract shall (14) Contribucion Territorial Urbana (Met- be exclusive of any United Kingdom import ropolitan Real Estate Tax). duties. Any imported items supplied for (15) Contribucion Territorial Rustica y which import duty already has been paid will Pecuaria (Farmland Real Estate Tax). be supplied at a price exclusive of the (16) Impuestos de la Diputacion (County amount of import duty paid. The Contractor Service Charges). is advised to contact Her Majesty’s (HM) (17) Impuestos Municipal y Tasas Customs and Excise to obtain a refund upon Parafiscales (Municipal Tax and Charges). completion of the contract (Reference HM Customs and Excise Notice No. 431, February (End of clause) 1973, entitled ‘‘Relief from Customs Duty and/or Value Added Tax on United States [62 FR 34133, June 24, 1997] Government Expenditures in the United Kingdom’’). 252.229–7006 Value added tax exclu- sion (United Kingdom). (End of clause) As prescribed in 229.402–70(f), use the following clause: [62 FR 34134, June 24, 1997]
VALUE ADDED TAX EXCLUSION (UNITED 252.229–7009 Relief from customs duty KINGDOM) (JUNE 1997) and value added tax on fuel (pas- senger vehicles) (United Kingdom). The supplies or services identified in this contract are to be delivered at a price exclu- As prescribed in 229.402–70(i), use the sive of value added tax under arrangements following clause:
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RELIEF FROM CUSTOMS DUTY AND VALUE timated mileage per contract period, and ADDED TAX ON FUEL (PASSENGER VEHICLES) any other information that will assist HM (UNITED KINGDOM) (JUNE 1997) Customs and Excise in determining the (a) Pursuant to an agreement between the amount of relief to be granted. United States Government and Her Maj- (c) Within 30 days after the award of this esty’s (HM) Customs and Excise, fuels and contract, the Contractor shall provide the lubricants used by passenger vehicles (except Contracting Officer with evidence that an at- taxis) in the performance of this contract tempt to obtain such relief has been initi- will be exempt from customs duty and value ated. In the event the Contractor does not added tax. Therefore, the procedures out- attempt to obtain relief within the time lined in HM Customs and Excise Notice No. specified, the Contracting Officer may de- 431B, August 1982, and any amendment there- duct from the contract price the amount of to, shall be used to obtain relief from both relief that would have been allowed if HM customs duty and value added tax for fuel Customs and Excise had favorably considered used under the contract. These procedures the request for relief. shall apply to both loaded and unloaded (d) The amount of any rebate granted by miles. The unit prices shall be based on the HM Customs and Excise shall be paid in full recoupment by the Contractor of customs to the United States Government. Checks duty in accordance with the following allow- shall be made payable to the Treasurer of ances: (1) Vehicles (except taxis) with a seating the United States and forwarded to the Ad- capacity of less than 29, one gallon for every ministrative Contracting Officer. 27 miles. (2) Vehicles with a seating capacity of 29– (End of clause) 53, one gallon for every 13 miles. (3) Vehicles with a seating capacity of 54 or [62 FR 34134, June 24, 1997] more, one gallon for every 10 miles. (b) In the event the mileage of any route is 252.231–7000 Supplemental cost prin- increased or decreased within 10 percent, re- ciples. sulting in no change in route price, the cus- toms duty shall be reclaimed from HM Cus- As prescribed in 231.100–70, use the toms and Excise on actual mileage per- following clause: formed. SUPPLEMENTAL COST PRINCIPLES (DEC 1991) (End of clause) When the allowability of costs under this contract is determined in accordance with [62 FR 34134, June 24, 1997] part 31 of the Federal Acquisition Regulation 252.229–7010 Relief from customs duty (FAR), allowability shall also be determined on fuel (United Kingdom). in accordance with part 231 of the Defense FAR Supplement, in effect on the date of As prescribed in 229.402–70(j), use the this contract. following clause: (End of clause) RELIEF FROM CUSTOMS DUTY ON FUEL (UNITED KINGDOM) (JUNE 1997) 252.232–7000 Advance payment pool. (a) Pursuant to an agreement between the United States Government and Her Maj- As prescribed in 232.412–70(a), use the esty’s (HM) Customs and Excise, it is pos- following clause: sible to obtain relief from customs duty on fuels and lubricants used in support of cer- ADVANCE PAYMENT POOL (DEC. 1991) tain contracts. If vehicle fuels and lubricants (a) Notwithstanding any other provision of are used in support of this contract, the Con- this contract, advance payments will be tractor shall seek relief from customs duty made for contract performance in accord- in accordance with HM Customs Notice No. ance with the Determinations, Findings, and 431, February 1973, entitled ‘‘Relief from Cus- Authorization for Advance payment dated toms Duty and/or Value Added Tax on United States Government Expenditures in lllllll. the United Kingdom.’’ Application should be (b) Payments made in accordance with this sent to the Contractor’s local Customs and clause shall be governed by the terms and Excise Office. conditions of the Advance Payment Pool (b) Specific information should be included Agreement between the United States of in the request for tax relief, such as the America and (insert the name of the con- number of vehicles involved, types of vehi- tractor). The Agreement is incorporated in cles, rating of vehicles, fuel consumption, es- the contract by reference.
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(End of clause) liquidation rate (excepting paragraph (k), Limitations on Undefinitized Contract Actions) 252.232–7001 Disposition of payments. to 90 percent. As prescribed in 232.412–70(b), use the (b) If the contractor is a small disadvan- following clause: taged business concern, the Progress Pay- ments clause of this contract is modified to DISPOSITION OF PAYMENTS (DEC 1991) change each mention of the progress pay- ment rate and liquidation rate (excepting Payment will be by a dual payee Treasury check made payable to the contractor or the paragraph (k), Limitations on Undefinitized (insert the name of the disbursing office in the Contract Actions) to 95 percent. advance payment pool agreement), and will be (End of clause) forwarded to that disbursing office for appro- priate disposition. [66 FR 49865, Oct. 1, 2001]
(End of clause) 252.232–7005 Reimbursement of sub- contractor advance payments—DoD [56 FR 36479, July 31, 1991, as amended at 57 pilot mentor-protege program. FR 42633, Sept. 15, 1992] As prescribed in 232.412–70(c), use the 252.232–7002 Progress payments for following clause: foreign military sales acquisitions. REIMBURSEMENT OF SUBCONTRACTOR ADVANCE As prescribed in 232.502–4–70(a), use PAYMENTS—DOD PILOT MENTOR-PROTEGE the following clause: PROGRAM (SEP 2001)
PROGRESS PAYMENTS FOR FOREIGN MILITARY (a) The Government will reimburse the SALES ACQUISITIONS (DEC 1991) Contractor for any advance payments made If this contract includes foreign military by the Contractor, as a mentor firm, to a sales (FMS) requirements, the Contractor protege firm, pursuant to an approved men- shall— tor-protege agreement, provided— (a) Submit a separate progress payment re- (1) The Contractor’s subcontract with the quest for each progress payment rate; and protege firm includes a provision substan- (b) Submit a supporting schedule show- tially the same as FAR 52.232–12, Advance ing— Payments; (1) The amount of each request distributed (2) The Contractor has administered the to each country’s requirements; and advance payments in accordance with the (2) Total price per contract line item appli- policies of FAR subpart 32.4; and cable to each separate progress payment (3) The Contractor agrees that any finan- rate. cial loss resulting from the failure or inabil- (c) Identify in each progress payment re- ity of the protege firm to repay any unliqui- quest the contract requirements to which it dated advance payments is the sole financial applies (i.e., FMS or U.S.); (d) Calculate each request on the basis of responsibility of the Contractor. the prices, costs (including costs to com- (b) For a fixed price type contract, advance plete), subcontractor progress payments, and payments made to a protege firm shall be progress payment liquidations of the con- paid and administered as if there were 100 tract requirements to which it applies; and percent progress payments. The Contractor (e) Distribute costs among contract line shall include as a separate attachment with items and countries in a manner acceptable each Standard Form (SF) 1443, Contractor’s to the Administrative Contracting Officer. Request for Progress Payment, a request for reimbursement of advance payments made (End of clause) to a protege firm. The attachment shall pro- vide a separate calculation of lines 14a 252.232–7003 [Reserved] through 14e of SF 1443 for each protege, re- flecting the status of advance payments 252.232–7004 DoD progress payment made to that protege. rates. (c) For cost reimbursable, contracts, reim- As prescribed in 232.502–4–70(b), use bursement of advance payments shall be the following clause: made via public voucher. The Contractor shall show the amounts of advance payments DOD Progress Payment Rates (OCT 2001) made to each protege on the public voucher, (a) If the contractor is a small business in the form and detail directed by the cog- concern, the Progress Payments clause of nizant contracting officer or contract audi- this contract is modified to change each tor. mention of the progress payment rate and
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(End of clause) quired for the timely performance of the item(s) funded pursuant to this clause, for a [56 FR 67221, Dec. 30, 1991, as amended at 57 subsequent period as may be specified in the FR 53602, Nov. 12, 1992; 66 FR 47109, Sept. 11, allotment schedule in paragraph (i) of this clause, or otherwise agreed to by the parties. 2001] If after such notification additional funds are not allotted by the date identified in the 252.232–7006 [Reserved] Contractor’s notification, or by an agreed substitute date, the Contracting Officer will 252.232–7007 Limitation of Govern- terminate any item(s) for which additional ment’s obligation. funds have not been allotted, pursuant to the As prescribed in 232.705–70, use the clause of this contract entitled ‘‘Termi- following clause: nation for Convenience of the Government.’’ (d) When additional funds are allotted for LIMITATION OF GOVERNMENT’S OBLIGATION continued performance of the contract line (AUG 1993) item(s) identified in paragraph (a) of this clause, the parties will agree as to the period (a) Contract line item(s) lll* through of contract performance which will be cov- lll* are incrementally funded. For these ered by the funds. The provisions of para- item(s), the sum of $lll* of the total price graph (b) through (d) of this clause will apply is presently available for payment and allot- in like manner to the additional allotted ted to this contract. An allotment schedule funds and agreed substitute date, and the is set forth in paragraph (i) of this clause. contract will be modified accordingly. (b) For item(s) identified in paragraph (a) (e) If, solely by reason of failure of the of this clause, the Contractor agrees to per- Government to allot additional funds, by the form up to the point at which the total dates indicated below, in amounts sufficient amount payable by the Government, includ- for timely performance of the contract line ing reimbursement in the event of termi- item(s) identified in paragraph (a) of this nation of those item(s) for the Government’s clause, the Contractor incurs additional convenience, approximates the total amount costs or is delayed in the performance of the currently allotted to the contract. The Con- work under this contract and if additional tractor will not be obligated to continue funds are allotted, an equitable adjustment work on those item(s) beyond that point. will be made in the price or prices (including The Government will not be obligated in any appropriate target, billing, and ceiling prices event to reimburse the Contractor in excess where applicable) of the item(s), or in the of the amount allotted to the contract for time of delivery, or both. Failure to agree to those item(s) regardless of anything to the any such equitable adjustment hereunder contrary in the clause entitled ‘‘Termination will be a dispute concerning a question of for Convenience of the Government.’’ As fact within the meaning of the clause enti- used in this clause, the total amount payable tled ‘‘Disputes.’’ by the Government in the event of termi- (f) The Government may at any time prior nation of applicable contract line item(s) for to termination allot additional funds for the convenience includes costs, profit, and esti- performance of the contract line item(s) mated termination settlement costs for identified in paragraph (a) of this clause. those items(s). (g) The termination provisions of this (c) Notwithstanding the dates specified in clause do not limit the rights of the Govern- the allotment schedule in paragraph (i) of ment under the clause entitled ‘‘Default.’’ this clause, the Contractor will notify the The provisions of this clause are limited to Contracting Officer in writing at least nine- the work and allotment of funds for the con- ty days prior to the date when, in the Con- tract line item(s) set forth in paragraph (a) tractor’s best judgment, the work will reach of this clause. This clause no longer applies the point at which the total amount payable once the contract is fully funded except with by the Government, including any cost for regard to the rights or obligations of the par- termination for convenience, will approxi- ties concerning equitable adjustments nego- mate 85 percent of the total amount then al- tiated under paragraphs (d) or (e) of this lotted to the contract for performance of the clause. applicable item(s). The notification will (h) Nothing in this clause affects the right state (1) the estimated date when that point of the Government to terminate this con- will be reached and (2) an estimate of addi- tract pursuant to the clause of this contract tional funding, if any, needed to continue entitled ‘‘Termination for Convenience of performance of applicable line items up to the Government.’’ the next scheduled date for allotment of (i) The parties contemplate that the Gov- funds identified in paragraph (i) of this ernment will allot funds to this contract in clause, or to a mutually agreed upon sub- accordance with the following schedule: stitute date. The notification will also ad- On execution of contract...... $ vise the Contracting Officer of the estimated (month) (day), 199x ...... $ amount of additional funds that will be re- (month) (day), 199y...... $
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(month) (day), 199z ...... $ (End of clause)
(End of clause) [62 FR 34134, June 24, 1997]
Alternate I (AUG 1993). 252.232–7009 Mandatory payment by If only one line item will be incrementally Governmentwide commercial pur- funded, substitute the following paragraph chase card. (a) for paragraph (a) of the basic clause. (a) Contract line item lll is incremen- As prescribed in 232.1110, use the fol- tally funded. The sum of $lll* is presently lowing clause: available for payment and allotted to this contract. An allotment schedule is contained MANDATORY PAYMENT BY GOVERNMENTWIDE in paragraph (i) of this clause. COMMERCIAL PURCHASE CARD (JUL 2000) *To be inserted after negotiation. The Contractor agrees to accept the Gov- ernmentwide commercial purchase card as [58 FR 46093, Sept. 1, 1993] the method of payment for orders or calls valued at or below $2,500 under this contract 252.232–7008 Assignment of claims or agreement. (overseas). As prescribed in 232.806(a)(1), use the (End of clause) following clause: [65 FR 46626, July 31, 2000] ASSIGNMENT OF CLAIMS (OVERSEAS) (JUNE 1997) 252.233–7000 [Reserved] (a) No claims for monies due, or to become 252.233–7001 Choice of law (overseas). due, shall be assigned by the Contractor un- less— As prescribed in 233.215–70, use the (1) Approved in writing by the Contracting following clause: Officer; (2) Made in accordance with the laws and CHOICE OF LAW (OVERSEAS) (JUNE 1997) regulations of the United States of America; This contract shall be construed and inter- and preted in accordance with the substantive (3) Permitted by the laws and regulations laws of the United States of America. By the of the Contractor’s country. execution of this contract, the Contractor (b) In no event shall copies of this contract expressly agrees to waive any rights to in- of any plans, specifications, or other similar voke the jurisdiction of local national courts documents relating to work under this con- where this contract is performed and agrees tract, if marked ‘‘Top Secret,’’ ‘‘Secret,’’ or to accept the exclusive jurisdiction of the ‘‘Confidential’’ be furnished to any assignee United States Armed Services Board of Con- of any claim arising under this contract or tract Appeals and the United States Court of to any other person not entitled to receive Federal Claims for hearing and determina- such documents. However, a copy of any part tion of any and all disputes that may arise or all of this contract so marked may be fur- under the Disputes clause of this contract. nished, or any information contained herein may be disclosed, to such assignee upon the (End of clause) Contracting Officer’s prior written author- ization. [62 FR 34135, June 24, 1997] (c) Any assignment under this contract shall cover all amounts payable under this 252.234–7000 Notice of earned value contract and not already paid, and shall not management system. be made to more than one party, except that any such assignment may be made to one As prescribed in 234.005–71(a), use the party as agent or trustee for two or more following provision: parties participating in such financing. On each invoice or voucher submitted for pay- NOTICE OF EARNED VALUE MANAGEMENT ment under this contract to which any as- SYSTEM (MAR 1998) signment applies, and for which direct pay- (a) The offeror shall provide documenta- ment thereof is to be made to an assignee, tion that the cognizant Administrative Con- the Contractor shall— tracting Officer (ACO) has recognized that (1) Identify the assignee by name and com- the proposed earned value management sys- plete address; and tem (EVMS) complies with the EVMS cri- (2) Acknowledge the validity of the assign- teria of DoD 5000.2–R, Mandatory Procedures ment and the right of the named assignee to for Major Defense Acquisition Programs receive payment in the amount invoiced or (MDAPs) and Major Automated Information vouchered. System (MAIS) Acquisition Programs, or
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that the proposed cost/schedule control sys- isting cost/schedule control system that has tem has been accepted by the Department of been accepted by the Department of De- Defense. fense), the Contractor shall apply the system (b) If the offeror proposes to use a system to the contract and shall be prepared to dem- that does not meet the requirements of para- onstrate to the ACO that the EVMS complies graph (a) of this provision, the offeror shall with the EVMS criteria referenced in para- submit a comprehensive plan for compliance graph (a) of this clause. with the EVMS criteria. (c) The Government may require inte- (1) The plan shall— grated baseline reviews. Such reviews shall (A) Describe the EVMS the offeror intends be scheduled as early as practicable and to use in performance of the contract; should be conducted within 180 calendar days (B) Distinguish between the offeror’s exist- after (1) contract award, (2) the exercise of ing management system and modifications significant contract options, or (3) the incor- proposed to meet the criteria; poration of major modifications. The objec- (C) Describe the management system and tive of the integrated baseline review is for its application in terms of the 32 EVMS cri- the Government and the Contractor to joint- teria; ly assess areas, such as the Contractor’s (D) Describe the proposed procedure for ad- planning, to ensure complete coverage of the ministration of the criteria as applied to statement of work, logical scheduling of the subcontractors; and work activities, adequate resourcing, and (E) Provide documentation describing the identification of inherent risks. process and results of any third-party or self- (d) Unless a waiver is granted by the ACO, evaluation of the system’s compliance with Contractor-proposed EVMS changes require EVMS criteria. approval of the ACO prior to implementa- (2) The offeror shall provide information tion. The ACO shall advise the Contractor of and assistance as required by the Con- the acceptability of such changes within 30 tracting Officer to support review of the calendar days after receipt of the notice of plan. proposed changes from the Contractor. If the (3) The Government will review the advance approval requirements are waived offeror’s plan for EVMS before contract by the ACO, the Contractor shall disclose award. EVMS changes to the ACO at least 14 cal- (c) Offerors shall identify the major sub- endar days prior to the effective date of im- contractors, or major subcontracted effort if plementation. major subcontractors have not been selected, (e) The Contractor agrees to provide access planned for application of the criteria. The to all pertinent records and data requested prime contractor and the Government shall by the ACO or duly authorized representa- agree to subcontractors selected for applica- tive. Access is to permit Government sur- tion of the EVMS criteria. veillance to ensure that the EVMS complies, (End of provision) and continues to comply, with the criteria referenced in paragraph (a) of this clause. (f) The Contractor shall require the fol- [62 FR 9991, Mar. 5, 1997, as amended at 62 FR lowing subcontractors to comply with the re- 34135, June 24, 1997; 62 FR 49305, Sept. 19, 1997; quirements of this clause: 63 FR 11548, Mar. 9, 1998] (Contracting Officer to insert names of sub- 252.234–7001 Earned value manage- contractors selected for application of EVMS ment system. criteria in accordance with 252.234–7000(c).) llllllllllllllllllllllll As prescribed in 234.005–71(b), use the llllllllllllllllllllllll following clause: llllllllllllllllllllllll EARNED VALUE MANAGEMENT SYSTEM (MAR llllllllllllllllllllllll 1998) (a) In the performance of this contract, the (End of clause) Contractor shall use an earned value man- agement system (EVMS) that has been rec- [63 FR 11548, Mar. 9, 1998] ognized by the cognizant Administrative Contracting Officer (ACO) as complying with 252.235–7000 Indemnification under 10 the criteria provided in DoD 5000.2–R, Man- U.S.C. 2354—fixed price. datory Procedures for Major Defense Acqui- sition Programs (MDAPs) and Major Auto- As prescribed in 235.070–3, use the fol- mated Information System (MAIS) Acquisi- lowing clause: tion Programs. INDEMNIFICATION UNDER 10 U.S.C. 2354—FIXED (b) If, at the time of award, the Contrac- PRICE (DEC 1991) tor’s EVMS has not been recognized by the cognizant ACO as complying with EVMS cri- (a) This clause provides for indemnifica- teria (or the Contractor does not have an ex- tion under 10 U.S.C. 2354 if the Contractor
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meets all the terms and conditions of this the execution of this contract shall not in- clause. crease the Government’s liability under this (b) Claims, losses, and damages covered— clause unless the Contracting Officer con- (1) Claims by third persons for death, bod- sents, and the contract price is equitably ad- ily injury, sickness, or disease, or the loss, justed, if appropriate, to reflect the Contrac- damage, or lost use of property. Claims in- tor’s consideration for the Government’s as- clude those for reasonable expenses of litiga- sumption of increased liability. tion or settlement. The term third persons in- (f) Notice. The Contractor shall— cludes employees of the contractor; (1) Promptly notify the Contracting Officer (2) The loss, damage, and lost use of the of any occurrence, action, or claim that Contractor’s property, but excluding lost might trigger the Government’s liability profit; and under this clause; (3) Loss, damage, or lost use of the Govern- ment’s property. (2) Furnish the proof or evidence of any (c) The claim, loss, or damage— claim, loss, or damage in the form and man- (1) Must arise from the direct performance ner that the Government requires; and of this contract; (3) Immediately provide copies of all perti- (2) Must not be compensated by insurance nent papers that the Contractor receives or or other means, or be within deductible has received. amounts of the Contractor’s insurance; (g) The Government may direct, partici- (3) Must result from an unusually haz- pate in, and supervise the settlement or de- ardous risk as specifically defined in the con- fense of the claim or action. The Contractor tract; shall comply with the Government’s direc- (4) Must not result from willful misconduct tions and execute any authorizations re- or lack of good faith on the part of any of quired. the Contractor’s directors or officers, man- (h) Flowdown. The Government shall in- agers, superintendents, or other equivalent demnify the Contractor if the Contractor has representatives who have supervision or di- an obligation to indemnify a subcontractor rection of— under any subcontract at any tier under this (i) All or substantially all of the Contrac- contract for the unusually hazardous risk tor’s business; identified in this contract only if— (ii) All or substantially all of the Contrac- (1) The Contracting Officer gave prior writ- tor’s operations at any one plant or separate ten approval for the Contractor to provide in location where this contract is being per- a subcontract for the Contractor to indem- formed; or nify the subcontractor for unusually haz- (iii) A separate and complete major indus- ardous risks defined in this contract; trial operation connected with the perform- ance of this contract; (2) The Contracting Officer approved those (5) Must not be a liability assumed under indemnification provisions; any contract or agreement (except for sub- (3) The subcontract indemnification provi- contracts covered by paragraph (h) of this sions entitle the Contractor, or the Govern- clause), unless the Contracting Officer (or in ment, or both, to direct, participate in, and contracts with the Department of the Navy, supervise the settlement or defense of rel- the Department) specifically approved the evant actions and claims; and assumption of liability; and (4) The subcontract provides the same (6) Must be certified as just and reasonable rights and duties, the same provisions for no- by the Secretary of the department or des- tice, furnishing of papers and the like, be- ignated representative. tween the Contractor and the subcontractor, (d) The Contractor shall buy and maintain, as exist between the Government and the to the extent available, insurance against Contractor under this clause. unusually hazardous risks in the form, (i) The Government may discharge its obli- amount, period(s) of time, at the rate(s), and gations under paragraph (h) of this clause by with such insurers, as the Contracting Offi- making payments directly to subcontractors cer (or, for Navy contracts, the Department) or to persons to whom the subcontractors may from time to time require and approve. may be liable. If the cost of this insurance is higher than (j) The rights and obligations of the parties the cost of the insurance the Contractor had under this clause shall survive the termi- as of the date of the contract, the Govern- nation, expiration, or completion of this con- ment shall reimburse the Contractor for the tract. difference in cost, as long as it is properly al- locable to this contract and is not included (End of clause) in the contract price. The Government shall not be liable for claims, loss, or damage if in- 252.235–7001 Indemnification under 10 surance was available and is either required U.S.C. 2354—cost reimbursement. or approved under this paragraph. (e) A reduction of the insurance coverage As prescribed in 235.070–3, use the fol- maintained by the Contractor on the date of lowing clause:
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INDEMNIFICATION UNDER 10 U.S.C. 2354—COST (1) Promptly notify the Contracting Officer REIMBURSEMENT (DEC 1991) of any occurrence, action, or claim that (a) This clause provides for indemnifica- might trigger the Government’s liability tion under 10 U.S.C. 2354 if the Contractor under this clause; meets all the terms and conditions of this (2) Furnish the proof or evidence of any clause. claim, loss, or damage in the form and man- (b) Claims, losses, and damages covered— ner that the Government requires; and (1) Claims by third persons for death, bod- (3) Immediately provide copies of all perti- ily injury, sickness, or disease, or the loss, nent papers that the contractor receives or damage, or lost use of property. Claims in- has received. clude those for reasonable expenses of litiga- (f) The Government may direct, partici- tion or settlement. The term ‘‘third persons’’ pate in, and supervise the settlement or de- includes employees of the Contractor; fense of the claim or action. The Contractor (2) The loss, damage, and lost use of the shall comply with the Government’s direc- Contractor’s property, but excluding lost tions, and execute any authorizations re- profit; and quired. (3) Loss, damage, or lost use of the Govern- (g) The Limitation of Cost clause of this ment’s property. (c) The claim, loss, or damage— contract does not apply to the Government’s (1) Must arise from the direct performance obligations under this clause. The obliga- of this contract; tions under this clause are excepted from the (2) Must not be compensated by insurance release required by the Allowable Cost, Fee, or other means, or be within deductible and Payment clause of this contract. amounts of the Contractor’s insurance; (h) Under this clause, a claim, loss, or dam- (3) Must result from an unusually haz- age arises from the direct performance of ardous risk as specifically defined in the con- this contract if the cause of the claim, loss, tract; or damage occurred during the period of per- (4) Must not result from willful misconduct formance of this contract or as a result of or lack of good faith on the part of any of the performance of this contract. the Contractor’s directors or officers, man- (i) Flowdown. The Government shall in- agers, superintendents, or other equivalent demnify the Contractor if the Contractor has representatives who have supervision or di- an obligation to indemnify a subcontractor rection of— under any subcontract at any tier under this (i) All or substantially all of the Contrac- contract for the unusually hazardous risk tor’s business; identified in this contract only if— (ii) All or substantially all of the Contrac- tor’s operations at any one plant or separate (1) The Contracting Officer gave prior writ- location where this contract is being per- ten approval for the Contractor to provide in formed; or a subcontract for the Contractor to indem- (iii) A separate and complete major indus- nify the subcontractor for unusually haz- trial operation connected with the perform- ardous risks defined in this contract; ance of this contract; (2) The Contracting Officer approved those (5) Must not be a liability assumed under indemnification provisions; any contract or agreement (except for sub- (3) The subcontract indemnification provi- contracts covered by paragraph (i) of this sions entitle the Contractor, or the Govern- clause), unless the Contracting Officer (or in ment, or both, to direct, participate in, and contracts with the Department of the Navy, supervise the settlement or defense of rel- the Department) specifically approved the evant actions and claims; and assumption of liability; and (4) The subcontract provides the same (6) Must be certified as just and reasonable rights and duties, the same provisions for no- by the Secretary of the department or des- tice, furnishing of paper and the like, be- ignated representative. tween the Contractor and the subcontractor, (d) A reduction of the insurance coverage as exist between the Government and the maintained by the Contractor on the date of the execution of this contract shall not in- Contractor under this clause. crease the Government’s liability under this (j) The Government may discharge its obli- clause unless the Contracting Officer con- gations under paragraph (i) of this clause by sents, and the contract price is equitably ad- making payments directly to subcontractors justed, if appropriate, to reflect the Contrac- or to persons to whom the subcontractors tor’s consideration for the Government’s as- may be liable. sumption of increased liability. (k) The rights and obligations of the par- (e) Notice. The Insurance—Liability to ties under this clause shall survive the ter- Third Persons clause of this contract applies mination, expiration, or completion of this also to claims under this clause. In addition, contract. the Contractor shall—
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(End of clause) FREQUENCY AUTHORIZATION (DEC 1991) (a) The Contractor shall obtain authoriza- 252.235–7002 Animal welfare. tion for radio frequencies required in support As prescribed in 235.071(a), use the of this contract. following clause: (b) For any experimental, developmental, or operational equipment for which the ap- ANIMAL WELFARE (DEC 1991) propriate frequency allocation has not been made, the Contractor shall provide the tech- (a) The Contractor shall register its re- nical operating characteristics of the pro- search facility with the Secretary of Agri- posed electromagnetic radiating device to culture in accordance with 7 U.S.C. 2316 and the Contracting Officer during the initial 9 CFR subpart C, and § 2.30, and furnish evi- planning, experimental, or developmental dence of such registration to the Contracting phase of contract performance. Officer before beginning work under this (c) The Contracting Officer shall furnish contract. the procedures for obtaining radio frequency (b) The Contractor shall acquire animals authorization. only from dealers licensed by the Secretary (d) The Contractor shall include this of Agriculture under 7 U.S.C. 2133 and 9 CFR clause, including this paragraph (d), in all subpart A, §§ 2.1 through 2.11, or from sources subcontracts requiring the development, pro- that are exempt from licensing under those duction, construction, testing, or operation sections. of a device for which a radio frequency au- (c) The Contractor agrees that the care and thorization is required. use of animals will conform with the perti- nent laws of the United States and regula- tions of the Department of Agriculture (see 7 (End of clause) U.S.C. 2131 et seq. and 9 CFR subchapter A, ALTERNATE I (DEC 1991) parts 1 through 4). (d) The Contracting Officer may imme- Substitute the following paragraph diately suspend, in whole or in part, work (c) for paragraph (c) of the basic clause and further payments under this contract for if agency procedures authorize use of failure to comply with the requirements of DD Form 1494, Application for Fre- paragraphs (a) through (c) of this clause. quency Authorization: (1) The suspension will stay in effect until the Contractor complies with the require- (c) The Contractor shall use DD Form 1494, ments. Application for Frequency Authorization, to obtain radio frequency authorization. (2) Failure to complete corrective action within the time specified by the Contracting Officer may result in termination of this 252.235–7004—252.235–7009 [Reserved] contract and removal of the Contractor’s name from the list of contractors with ap- 252.235–7010 Acknowledgment of sup- proved Public Health Service Welfare Assur- port and disclaimer. ances. As prescribed in 235.071(c), use the (e) The Contractor may request registra- following clause: tion of its facility and a current listing of li- censed dealers from the Regional Office of ACKNOWLEDGMENT OF SUPPORT AND the Animal and Plant Health Inspection DISCLAIMER (MAY 1995) Service (APHIS), United States Department of Agriculture (USDA), for the region in (a) The Contractor shall include an ac- which its research facility is located. The lo- knowledgment of the Government’s support cation of the appropriate APHIS regional of- in the publication of any material based on fice, as well as information concerning this or developed under this contract, stated in program may be obtained by contacting the the following terms: This material is based Senior Staff Officer, Animal Care Staff, upon work supported by the (name of con- USDA/APHIS, Federal Center Building, Hy- tracting agency(ies)) under Contract No. attsville, MD 20782. (Contracting agency(ies) contract num- (f) The Contractor shall include this ber(s)). clause, including this paragraph (f), in all (b) All material, except scientific articles subcontracts involving research of live or papers published in scientific journals, vertebrate animals. must, in addition to any notices or dis- claimers by the Contractor, also contain the (End of clause) following disclaimer: Any opinions, findings and conclusions or recommendations ex- 252.235–7003 Frequency authorization. pressed in this material are those of the au- thor(s) and do not necessarily reflect the As prescribed in 235.071(b), use the views of the (name of contracting agen- following clause: cy(ies)).
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(End of clause) (End of clause)
[60 FR 29503, June 5, 1995] 252.236–7001 Contract drawings and specifications. 252.235–7011 Final scientific or tech- As prescribed in 236.570(a), use the nical report. following clause:
As prescribed in 235.071(d), use the CONTRACT DRAWINGS AND SPECIFICATIONS following clause: (AUG 2000)
FINAL SCIENTIFIC OR TECHNICAL REPORT (SEP (a) The Government will provide to the 1999) Contractor, without charge, one set of con- tract drawings and specifications, except The Contractor shall submit two copies of publications incorporated into the technical the approved scientific or technical report provisions by reference, in electronic or delivered under this contract to the Defense paper media as chosen by the Contracting Technical Information Center (DTIC), Attn: Officer. DTIC–OC, 8725 John J. Kingman Road, Suite (b) The Contractor shall— 0944, Fort Belvoir, VA 22060–6218. The Con- (1) Check all drawings furnished imme- tractor shall include a completed Standard diately upon receipt; Form 298, Report Documentation Page, with (2) Compare all drawings and verify the fig- each copy of the report. For submission of ures before laying out the work; reports in other than paper copy, contact the (3) Promptly notify the Contracting Officer Defense Technical Information Center, Attn: of any discrepancies; DTIC–OC, 8725 John J. Kingman Road, Suite (4) Be responsible for any errors that might 0944, Fort Belvoir, VA 22060–6218. have been avoided by complying with this paragraph (b); and (End of clause) (5) Reproduce and print contract drawings and specifications as needed. (c) In general— [60 FR 29503, June 5, 1995, as amended at 64 (1) Large-scale drawings shall govern FR 51077, Sept. 21, 1999] small-scale drawings; and (2) The Contractor shall follow figures 252.236–7000 Modification proposals— marked on drawings in preference to scale price breakdown. measurements. As prescribed in 236.570(a), use the (d) Omissions from the drawings or speci- following clause: fications or the misdescription of details of work that are manifestly necessary to carry out the intent of the drawings and specifica- MODIFICATION PROPOSALS—PRICE BREAKDOWN (DEC 1991) tions, or that are customarily performed, shall not relieve the Contractor from per- (a) The Contractor shall furnish a price forming such omitted or misdescribed details breakdown, itemized as required and within of the work. The Contractor shall perform the time specified by the Contracting Offi- such details as if fully and correctly set cer, with any proposal for a contract modi- forth and described in the drawings and spec- fication. ifications. (b) The price breakdown— (e) The work shall conform to the speci- (1) Must include sufficient detail to permit fications and the contract drawings identi- fied on the following index of drawings: an analysis of profit, and of all costs for— (i) Material; Title File Drawing No. (ii) Labor; (iii) Equipment; (End of Clause) (iv) Subcontracts; and (v) Overhead; and [65 FR 50152, Aug. 17, 2000] (2) Must cover all work involved in the modification, whether the work was deleted, 252.236–7002 Obstruction of navigable waterways. added, or changed. (c) The Contractor shall provide similar As prescribed in 236.570(b)(1), use the price breakdowns to support any amounts following clause: claimed for subcontracts. (d) The Contractor’s proposal shall include OBSTRUCTION OF NAVIGABLE WATERWAYS (DEC 1991) a justification for any time extension pro- posed. (a) The Contractor shall—
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(1) Promptly recover and remove any ma- (1) An account of the Contractor’s actual terial, plant, machinery, or appliance which expenditures; the contractor loses, dumps, throws over- (2) Supporting documentation, including board, sinks, or misplaces, and which, in the receipted bills or copies of payrolls and opinion of the Contracting Officer, may be freight bills; and dangerous to or obstruct navigation; (3) The Contractor’s documentation— (2) Give immediate notice, with description (i) Showing that it has acquired the con- and locations of any such obstructions, to struction plant, equipment, and material the Contracting Officer; and free from all encumbrances; (3) When required by the Contracting Offi- (ii) Agreeing that the construction plant, cer, mark or buoy such obstructions until equipment, and material will not be removed the same are removed. from the site without the written permission (b) The Contracting Officer may— of the Contracting Officer; and (1) Remove the obstructions by contract or (iii) Agreeing that structures and facilities otherwise should the Contractor refuse, ne- prepared or erected for the prosecution of glect, or delay compliance with paragraph the contract work will be maintained and (a) of this clause; and not dismantled prior to the completion and (2) Deduct the cost of removal from any acceptance of the entire work, without the monies due or to become due to the Con- written permission of the Contracting Offi- tractor; or cer. (d) Upon receiving a request for payment, (3) Recover the cost of removal under the the Government will make payment, less Contractor’s bond. any prescribed retained percentage, if— (c) The Contractor’s liability for the re- (1) The Contracting Officer finds the— moval of a vessel wrecked or sunk without (i) Construction plant, material, equip- fault or negligence is limited to that pro- ment, and the mobilization and preparatory vided in sections 15, 19, and 20 of the River work performed are suitable and necessary and Harbor Act of March 3, 1899 (33 U.S.C. 410 to the efficient prosecution of the contract; et seq.). and (ii) Preparatory work has been done with (End of clause) proper economy and efficiency. (2) Payments for construction plant, equip- 252.236–7003 Payment for mobilization ment, material, and structures and facilities and preparatory work. prepared or erected for prosecution of the As prescribed in 236.570(b)(2), use the contract work do not exceed— following clause: (i) The Contractor’s cost for the work per- formed less the estimated value upon com- PAYMENT FOR MOBILIZATION AND pletion of the contract; and PREPARATORY WORK (JAN 1997) (ii) 100 percent of the cost to the con- tractor of any items having no appreciable (a) The Government will make payment to salvage value; and the Contractor under the procedures in this (iii) 75 percent of the cost to the contractor clause for mobilization and preparatory of items which do have an appreciable sal- work under item no. lllll. vage value. (b) Payments will be made for actual pay- (e) (1) Payments will continue to be made ments by the Contractor on work pre- for item no. llll, and all payments will paratory to commencing actual work on the be deducted from the contract price for this construction items for which payment is pro- item, until the total deductions reduce this vided under the terms of this contract, as item to zero, after which no further pay- follows— ments will be made under this item. (1) For construction plant and equipment (2) If the total of payments so made does exceeding $25,000 in value per unit (as ap- not reduce this item to zero, the balance will praised by the Contracting Officer at the be paid to the Contractor in the final pay- work site) acquired for the execution of the ment under the contract. work; (3) The retained percentage will be paid in (2) Transportation of all plant and equip- accordance with the Payments to Contractor ment to the site; clause of this contract. (3) Material purchased for the prosecution (f) The Contracting Officer shall determine of the contract, but not to be incorporated in the value and suitability of the construction the work; plant, equipment, materials, structures and (4) Construction of access roads or rail- facilities. The Contracting Officer’s deter- roads, camps, trailer courts, mess halls, dor- minations are not subject to appeal. mitories or living quarters, field head- quarters facilities, and construction yards; (End of clause) (5) Personal services; and (6) Hire of plant. [56 FR 36479, July 31, 1991, as amended at 62 (c) Requests for payment must include— FR 2614, Jan. 17, 1997]
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252.236–7004 Payment for mobilization the taxiways (the outer edge of each lateral and demobilization. clearance zone is laterally 250 feet from the far or opposite edge of the taxiway, e.g., a 75- As prescribed in 236.570(b)(2), use the foot-wide taxiway would have a combined following clause: width of taxiway and lateral clearance zones of 425 feet); and PAYMENT FOR MOBILIZATION AND (iv) All aircraft parking aprons, plus the DEMOBILIZATION (DEC 1991) area 125 feet in width extending beyond each (a) The Government will pay all costs for edge all around the aprons. the mobilization and demobilization of all of (2) Safety precaution areas means those por- the Contractor’s plant and equipment at the tions of approach-departure clearance zones contract lump sum price for this item. and transitional zones where placement of (1) llll percent of the lump sum price objects incident to contract performance upon completion of the contractor’s mobili- might result in vertical projections at or zation at the work site. above the approach-departure clearance, or (2) The remaining llll percent upon the transitional surface. completion of demobilization. (i) The approach-departure clearance surface (b) The Contracting Officer may require is an extension of the primary surface and the Contractor to furnish cost data to justify the clear zone at each end of each runway, this portion of the bid if the Contracting Of- for a distance of 50,000 feet, first along an in- ficer believes that the percentages in para- clined (glide angle) and then along a hori- graphs (a) (1) and (2) of this clause do not zontal plane, both flaring symmetrically bear a reasonable relation to the cost of the about the runway centerline extended. work in this contract. (A) The inclined plane (glide angle) begins (1) Failure to justify such price to the sat- in the clear zone 200 feet past the end of the isfaction of the Contracting Officer will re- runway (and primary surface) at the same sult in payment, as determined by the Con- elevation as the end of the runway. It con- tracting Officer, of— tinues upward at a slope of 50:1 (1 foot (i) Actual mobilization costs at completion vertically for each 50 feet horizontally) to an of mobilization; elevation of 500 feet above the established (ii) Actual demobilization costs at comple- airfield elevation. At that point the plane be- tion of demobilization; and comes horizontal, continuing at that same (iii) The remainder of this item in the final uniform elevation to a point 50,000 feet longi- payment under this contract. tudinally from the beginning of the inclined (2) The Contracting Officer’s determina- plane (glide angle) and ending there. tion of the actual costs in paragraph (b)(1) of (B) The width of the surface at the begin- this clause is not subject to appeal. ning of the inclined plane (glide angle) is the same as the width of the clear zone. It then (End of clause) flares uniformly, reaching the maximum width of 16,000 feet at the end. 252.236–7005 Airfield safety pre- (ii) The approach-departure clearance zone is cautions. the ground area under the approach-depar- ture clearance surface. As prescribed in 236.570(b)(3), use the (iii) The transitional surface is a sideways following clause. At some airfields, the extension of all primary surfaces, clear width of the primary surface is 1,500 zones, and approach-departure clearance sur- feet (750 feet on each side of the run- faces along inclined planes. way centerline). In such instances, sub- (A) The inclined plane in each case begins at the edge of the surface. stitute the proper width in the clause. (B) The slope of the incline plane is 7:1 (1 foot vertically for each 7 feet horizontally). AIRFIELD SAFETY PRECAUTIONS (DEC 1991) It continues to the point of intersection with (a) Definitions. As used in this clause— the— (1) Landing areas means— (1) Inner horizontal surface (which is the (i) The primary surfaces, comprising the horizontal plane 150 feet above the estab- surface of the runway, runway shoulders, and lished airfield elevation); or lateral safety zones. The length of each pri- (2) Outer horizontal surface (which is the mary surface is the same as the runway horizontal plane 500 feet above the estab- length. The width of each primary surface is lished airfield elevation), whichever is appli- 2,000 feet (1,000 feet on each side of the run- cable. way centerline); (iv) The ‘‘transitional zone’’ is the ground (ii) The clear zone beyond the ends of each area under the transitional surface. (It ad- runway, i.e., the extension of the primary joins the primary surface, clear zone, and ap- surface for a distance of 1,000 feet beyond proach-departure clearance zone.) each end of each runway; (b) General. (1) The Contractor shall com- (iii) All taxiways, plus the lateral clear- ply with the requirements of this clause ance zones along each side for the length of while—
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(i) Operating all ground equipment (mobile and white squares of 1 foot on each side (ex- or stationary); cept that the flag may vary up to ten per- (ii) Placing all materials; and cent from each of these dimensions); (iii) Performing all work, upon and around (5) Mark all other equipment and materials all airfields. in the landing areas, using the same marking (2) The requirements of this clause are in devices as in paragraph (d)(2) of this clause; addition to any other safety requirements of and this contract. (6) Perform work so as to leave that por- (c) The Contractor shall— tion of the landing area which is available to (1) Report to the Contracting Officer before aircraft free from hazards, holes, piles of ma- initiating any work; terial, and projecting shoulders that might (2) Notify the Contracting Officer of pro- damage an airplane tire. posed changes to locations and operations; (e) Safety precaution areas. The Contractor (3) Not permit either its equipment or per- shall— sonnel to use any runway for purposes other (1) Place nothing upon the safety pre- than aircraft operation without permission caution areas without authorization of the of the Contracting Officer, unless the runway Contracting Officer; is— (2) Mark all equipment and materials in (i) Closed by order of the Contracting Offi- safety precaution areas, using (unless other- cer; and wise authorized by the Contracting Officer) (ii) Marked as provided in paragraph (d)(2) red flags by day, and electric, battery-oper- of this clause; (4) Keep all paved surfaces, such as run- ated, low-intensity red flasher lights by ways, taxiways, and hardstands, clean at all night; and times and, specifically, free from small (3) Provide all objects placed in safety pre- stones which might damage aircraft propel- caution areas with a red light or red lantern lers or jet aircraft; at night, if the objects project above the ap- (5) Operate mobile equipment according to proach-departure clearance surface or above the safety provisions of this clause, while ac- the transitional surface. tually performing work on the airfield. At all other times, the Contractor shall remove (End of clause) all mobile equipment to locations— (i) Approved by the Contracting Officer; 252.236–7006 Cost limitation. (ii) At a distance of at least 750 feet from As prescribed in 236.570(b)(4), use the the runway centerline, plus any additional following provision: distance; and (iii) Necessary to ensure compliance with COST LIMITATION (JAN 1997) the other provisions of this clause; and (6) Not open a trench unless material is on (a) Certain items in this solicitation are hand and ready for placing in the trench. As subject to statutory cost limitations. The soon as practicable after material has been limitations are stated in the Schedule. placed and work approved, the Contractor (b) An offer which does not state separate shall backfill and compact trenches as re- prices for the items identified in the Sched- quired by the contract. Meanwhile, all haz- ule as subject to a cost limitation may be ardous conditions shall be marked and light- considered nonresponsive. ed in accordance with the other provisions of (c) Prices stated in offers for items subject this clause. to cost limitations shall include an appro- (d) Landing areas. The Contractor shall— priate apportionment of all costs, direct and (1) Place nothing upon the landing areas indirect, overhead, and profit. without the authorization of the Contracting (d) Offers may be rejected which— Officer; (1) Are materially unbalanced for the pur- (2) Outline those landing areas hazardous pose of bringing items within cost limita- to aircraft, using (unless otherwise author- tions; or ized by the Contracting Officer) red flags by (2) Exceed the cost limitations, unless the day, and electric, battery-operated low-in- limitations have been waived by the Govern- tensity red flasher lights by night; ment prior to award. (3) Obtain, at an airfield where flying is controlled, additional permission from the (End of provision) control tower operator every time before en- tering any landing area, unless the landing [56 FR 36479, July 31, 1991, as amended at 62 area is marked as hazardous in accordance FR 2615, Jan. 17, 1997] with paragraph (d)(2) of this clause; (4) Identify all vehicles it operates in land- 252.236–7007 Additive or deductive ing areas by means of a flag on a staff at- items. tached to, and flying above, the vehicle. The flag shall be three feet square, and consist of As prescribed in 236.570(b)(5), use the a checkered pattern of international orange following provision:
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ADDITIVE OR DEDUCTIVE ITEMS (DEC 1991) constitute full compensation to the Con- tractor for— (a) The low offeror and the items to be awarded shall be determined as follows— (1) Furnishing all plant, labor, equipment, (1) Prior to the opening of bids, the Gov- appliances, and materials; and ernment will determine the amount of funds (2) Performing all operations required to available for the project. complete the work in conformity with the (2) The low offeror shall be the Offeror drawings and specifications. that— (b) The Contractor shall include in the (i) Is otherwise eligible for award; and prices for the items listed in the Bidding (ii) Offers the lowest aggregate amount for Schedule all costs for work in the specifica- the first or base bid item, plus or minus (in tions, whether or not specifically listed in the order stated in the list of priorities in the Bidding Schedule. the bid schedule) those additive or deductive items that provide the most features within (End of provision) the funds determined available. (3) The Contracting Officer shall evaluate 252.236–7009 Option for supervision all bids on the basis of the same additive or and inspection services. deductive items. As prescribed in 236.609–70, use the (i) If adding another item from the bid schedule list of priorities would make the following clause: award exceed the available funds for all OPTION FOR SUPERVISION AND INSPECTION offerors, the Contracting Officer will skip SERVICES (DEC 1991) that item and go to the next item from the bid schedule of priorities; and (a) The Government may— (ii) Add that next item if an award may be (1) At its option, direct the Contractor to made that includes that item and is within perform any part or all of the supervision the available funds. and inspection services for the construction (b) The Contracting Officer will use the list contract as provided under appendix A of of priorities in the bid schedule only to de- this contract; and termine the low offeror. After determining (2) Exercise its option, by written order, at the low offeror, an award may be made on any time prior to six months after satisfac- any combination of items if— tory completion and acceptance of the work (1) It is in the best interest of the Govern- under this contract. ment; (b) Upon receipt of the Contracting Offi- (2) Funds are available at the time of cer’s written order, the Contractor shall pro- award; and ceed with the supervision and inspection (3) The low offeror’s price for the combina- services. tion to be awarded is less than the price of- fered by any other responsive, responsible of- (End of clause) feror. (c) Example. The amount available is 252.236–7010 Overseas military con- $100,000. Offeror A’s base bid and four addi- struction—Preference for United tives (in the order stated in the list of prior- States firms. ities in the bid Schedule) are $85,000, $10,000, $8,000, $6,000, and $4,000. Offeror B’s base bid As prescribed in 236.570(c)(1), use the and four additives are $80,000, $16,000, $9,000, following provision: $7,000, and $4,000. Offeror A is the low offeror. The aggregate amount of offeror A’s bid for OVERSEAS MILITARY CONSTRUCTION—PREF- purposes of award would be $99,000, which in- ERENCE FOR UNITED STATES FIRMS (JAN cludes a base bid plus the first and fourth ad- 1997) ditives. The second and third additives were skipped because each of them would cause (a) Definition. the aggregate bid to exceed $100,000. ‘‘United States firm,’’ as used in this provi- sion, means a firm incorporated in the (End of provision) United States that complies with the fol- lowing: 252.236–7008 Contract prices—bidding (1) The corporate headquarters are in the schedules. United States; (2) The firm has filed corporate and em- As prescribed in 236.570(b)(6), use the ployment tax returns in the United States following provision: for a minimum of 2 years (if required), has filed State and Federal income tax returns CONTRACT PRICES—BIDDING SCHEDULES (DEC (if required) for 2 years, and has paid any 1991) taxes due as a result of these filings; and (a) The Government’s payment for the (3) The firm employs United States citizens items listed in the Bidding Schedule shall in key management positions.
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(b) Evaluation. Offers from firms that do (A) The firm has done business in the Mar- not qualify as United States firms will be shall Islands on a continuing basis for not evaluated by adding 20 percent to the offer. less than 3 years prior to the date of issuance (c) Status. The offeror lll is, lll is not of this solicitation; a United States firm. (B) Substantially all of the firm’s directors of local operations, senior staff, and oper- (End of provision) ating personnel are resident in the Marshall Islands or are U.S. citizens; and [62 FR 2857, Jan. 17, 1997, as amended at 63 (C) Most of the operating equipment and FR 11549, Mar. 9, 1998] physical plant are in the Marshall Islands. (2) United States firm means a firm incor- 252.236–7011 Overseas architect-engi- porated in the United States that complies neer services—Restriction to United with the following: States firms. (i) The corporate headquarters are in the United States; As prescribed in 236.609–70(b), use the (ii) The firm has filed corporate and em- following provision: ployment tax returns in the United States for a minimum of 2 years (if required), has OVERSEAS ARCHITECT-ENGINEER SERVICES— filed State and Federal income tax returns RESTRICTION TO UNITED STATES FIRMS (JAN (if required) for 2 years, and has paid any 1997) taxes due as a result of these filings; and (a) Definition. (iii) The firm employs United States citi- United States firm, as used in this provision, zens in key management positions. means a firm incorporated in the United (b) Evaluation. Offers from firms that do States that complies with the following: not qualify as United States firms or (1) The corporate headquarters are in the Marshallese firms will be evaluated by add- United States; ing 20 percent to the offer, unless application (2) The firm has filed corporate and em- of the factor would not result in award to a ployment tax returns in the United States United States firm. for a minimum of 12 years (if required), has (c) Status. The offeror is llll a United filed State and Federal income tax returns States firm; llll a Marshallese firm; (if required) for 2 years, and has paid any llll Other. taxes due as a result of these filings; and (3) The firm employs United States citizens (End of provision) in key management positions. (b) Restriction. Military construction ap- [63 FR 11549, Mar. 9, 1998] propriations acts restrict award of a con- tract, resulting from this solicitation, to a 252.237–7000 Notice of special stand- United States firm or a joint venture of ards of responsibility. United States and host nation firms. (c) Status. The offeror confirms, by submis- As prescribed in 237.270(d)(1), use the sion of its offer, that it is a United States following provision: firm or a joint venture of United States and NOTICE OF SPECIAL STANDARDS OF host nation firms. RESPONSIBILITY (DEC 1991) (End of provision) (a) To be determined responsible, the Offer- or must meet the general standards of re- [62 FR 2858, Jan. 17, 1997] sponsibility set forth at FAR 9.104–1 and the following criteria, as described in Chapter 3, 252.236–7012 Military construction on General Standards, of ‘‘Government Audit- Kwajalein Atoll—evaluation pref- ing Standards.’’ erence. (1) Qualifications; (2) Independence; and As prescribed in 236.570(c)(2), use the (3) Quality Control. following provision: (b) ‘‘Government Auditing Standards’’ is issued by the Comptroller General of the MILITARY CONSTRUCTION ON KWAJALEIN United States and is available for sale from ATOLL—EVALUATION PREFERENCE (MAR 1998) the: Superintendent of Documents, U.S. Gov- (a) Definitions. As used in this provision— ernment Printing Office. Washington, DC (1) Marshallese firm means a local firm in- 20401, Stock number 020–000–00243–3. corporated in the Marshall Islands, or other- (c) The apparently successful Offeror, be- wise legally organized under the laws of the fore award, shall give the Contracting Officer Marshall Islands, that— evidence that it is licensed by the cognizant (i) Is more than 50 percent owned by citi- licensing authority in the state or other po- zens of the Marshall Islands; or litical jurisdiction where the Offeror oper- (ii) Complies with the following: ates its professional practice.
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(End of provision) (2) The quantities to be furnished; (3) Delivery or performance dates; [56 FR 36479, July 31, 1991, as amended at 66 (4) Place of delivery or performance; FR 49861, Oct. 1, 2001] (5) Packing and shipping instructions; (6) The address to send invoices; and 252.237–7001 Compliance with audit (7) The funds from which payment will be standards. made. (c) The Government may elect not to order As prescribed in 237.270(d)(2), use the supplies and services under this contract in following clause: instances where the body is removed from the area for medical, scientific, or other rea- COMPLIANCE WITH AUDIT STANDARDS (MAY son. 2000) (d) In an epidemic or other emergency, the The Contractor, in performance of all audit contracting activity may obtain services be- services under this contract, shall comply yond the capacity of the Contractor’s facili- with ‘‘Government Auditing Standards’’ ties from other sources. issued by the Comptroller General of the (e) Contracting Officers of the following United States. activities may order services and supplies under this contract— (End of clause) llllllllllllllllllllllll llllllllllllllllllllllll [65 FR 32041, May 22, 2000] llllllllllllllllllllllll 252.237–7002 Award to single offeror. (End of clause) As prescribed in 237.7004(a), use the following provision: 252.237–7004 Area of performance. AWARD TO SINGLE OFFEROR (DEC 1991) As prescribed in 237.7004(b), use the (a) Award shall be made to a single offeror. following clause: (b) Offerors shall include unit prices for AREA OF PERFORMANCE (DEC 1991) each item. Failure to include unit prices for each item will be cause for rejection of the (a) The area of performance is as specified entire offer. in the contract. (c) The Government will evaluate offers on (b) The Contractor shall take possession of the basis of the estimated quantities shown. the remains at the place where they are lo- (d) Award will be made to that responsive, cated, transport them to the Contractor’s responsible offeror whose total aggregate place of preparation, and later transport offer is the lowest price to the Government. them to a place designated by the Con- tracting Officer. (End of provision) (c) The Contractor will not be reimbursed for transportation when both the place ALTERNATE I (DEC 1991) where the remains were located and the de- As prescribed in 237.7004(a), substitute the livery point are within the area of perform- following paragraph (d) for paragraph (d) of ance. the basic provision: (d) If remains are located outside the area (d) Award will be made to that responsive, of performance, the Contracting Officer may responsible offeror whose total aggregate place an order with the Contractor under offer is in the best interest of the Govern- this contract or may obtain the services ment. elsewhere. If the Contracting Officer requires the Contractor to transport the remains into 252.237–7003 Requirements. the area of performance, the Contractor shall be paid the amount per mile in the As prescribed in 237.7004(b), use the schedule for the number of miles required to following clause: transport the remains by a reasonable route from the point where located to the bound- REQUIREMENTS (DEC 1991) ary of the area of performance. (a) Except as provided in paragraphs (c) (e) The Contracting Officer may require and (d) of this clause, the Government will the Contractor to deliver remains to any order from the Contractor all of its require- point within 100 miles of the area of perform- ments in the area of performance for the sup- ance. In this case, the Contractor shall be plies and services listed in the schedule of paid the amount per mile in the schedule for this contract. the number of miles required to transport (b) Each order will be issued as a delivery the remains by a reasonable route from the order and will list— boundary of the area of performance to the (1) The supplies or services being ordered; delivery point.
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(End of clause) ceased voluntarily request, select, and pay for them.); 252.237–7005 Performance and deliv- (3) The services or any part of the services ery. are performed by anyone other than the Con- tractor or the Contractor’s employees with- As prescribed in 237.7004(b), use the out the written authorization of the Con- following clause: tracting Officer; (4) The Contractor refuses to perform the PERFORMANCE AND DELIVERY (DEC 1991) services required for any particular remains; (a) The Contractor shall furnish the mate- or rial ordered and perform the services speci- (5) The Contractor mentions or otherwise fied as promptly as possible but not later uses this contract in its advertising in any than 36 hours after receiving notification to way. remove the remains, excluding the time nec- essary for the Government to inspect and (End of clause) check results of preparation. (b) The Government may, at no additional 252.237–7008 Group interment. charge, require the Contractor to hold the As prescribed in 237.7004(b), use the remains for an additional period not to ex- ceed 72 hours from the time the remains are following clause: casketed and final inspection completed. GROUP INTERMENT (DEC 1991) (End of clause) The Government will pay the Contractor for supplies and services provided for re- 252.237–7006 Subcontracting. mains interred as a group on the basis of the number of caskets furnished, rather than on As prescribed in 237.7004(b), use the the basis of the number of persons in the following clause: group.
SUBCONTRACTING (DEC 1991) (End of clause) The Contractor shall not subcontract any work under this contract without the Con- 252.237–7009 Permits. tracting Officer’s written approval. This As prescribed in 237.7004(b), use the clause does not apply to contracts of employ- ment between the Contractor and its per- following clause: sonnel. PERMITS (DEC 1991) (End of clause) The Contractor shall meet all State and local licensing requirements and obtain and 252.237–7007 Termination for default. furnish all necessary health department and shipping permits at no additional cost to the As prescribed in 237.7004(b), use the Government. The Contractor shall ensure following clause: that all necessary health department per- mits are in order for disposition of the re- TERMINATION FOR DEFAULT (DEC 1991) mains. (a) This clause supplements and is in addi- tion to the Default clause of this contract. (End of clause) (b) The Contracting Officer may terminate this contract for default by written notice 252.237–7010 Facility requirements. without the ten day notice required by para- As prescribed in 237.7004(b), use the graph (a)(2) of the Default clause if— (1) The Contractor, through circumstances following clause: reasonably within its control or that of its FACILITY REQUIREMENTS (DEC 1991) employees, performs any act under or in con- nection with this contract, or fails in the (a) The Contractor’s building shall have performance of any service under this con- complete facilities for maintaining the high- tract and the act or failures may reasonably est standards of solemnity, reverence, assist- be considered to reflect discredit upon the ance to the family, and prescribed ceremo- Department of Defense in fulfilling its re- nial services. sponsibility for proper care of remains; (b) The Contractor’s preparation room (2) The Contractor, or its employees, solic- shall be clean, sanitary, and adequately its relatives or friends of the deceased to equipped. purchase supplies or services not under this (c) The Contractor shall have, or be able to contract. (The Contractor may furnish sup- get, catafalques, church trucks, and equip- plies or arrange for services not under this ment for Protestant, Catholic, and Jewish contract, only if representatives of the de- services.
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(d) The Contractor’s funeral home, fur- (c) Award generally will be made to a sin- nishings, grounds, and surrounding area gle offeror for all lots. However, the Con- shall present a clean and well-kept appear- tracting Officer may award by individual lot ance. when it is more advantageous to the Govern- ment. (End of clause) (d) Prospective offerors may inspect the types of articles to be serviced. Contact the 252.237–7011 Preparation history. Contracting Officer to make inspection ar- As prescribed in 237.7004(b), use the rangements. following clause: (End of provision) PREPARATION HISTORY (DEC 1991) 252.237–7014 Loss or damage (count- For each body prepared, or for each casket of-articles). handled in a group interment, the Con- tractor shall state briefly the results of the As prescribed in 237.7102(c), use the embalming process on a certificate furnished following clause: by the Contracting Officer. LOSS OR DAMAGE (COUNT-OF-ARTICLES) (DEC (End of clause) 1991) (a) The count-of-articles will be— 252.237–7012 Instruction to offerors (1) The count of the Contracting Officer; or (count-of-articles). (2) The count agreed upon as a result of a joint count by the Contractor and the Con- As prescribed in 237.7102(a), use the tracting Officer at the time of delivery to following provision: the Contractor. (b) The Contractor shall— INSTRUCTION TO OFFERORS (COUNT-OF- (1) Be liable for return of the number and ARTICLES) (DEC 1991) kind of articles furnished for service under (a) The Offeror shall include unit prices for this contract; and each item in a lot. Unit prices shall include (2) Shall indemnify the Government for all costs to the Government of providing the any loss or damage to such articles. services, including pickup and delivery (c) The Contractor shall pay to the Govern- charges. ment the value of any lost or damaged prop- (b) Failure to offer on any item in a lot erty using Federal supply schedule price shall be cause for rejection of the offer on lists. If the property is not on these price that lot. The Contracting Officer will evalu- lists, the Contracting Officer shall determine ate offers based on the estimated quantities a fair and reasonable price. in the solicitation. (d) The Contracting Officer will allow cred- (c) Award generally will be made to a sin- it for any depreciation in the value of the gle offeror for all lots. However, the Con- property at the time of loss or damage. The tracting Officer may award by individual lot Contracting Officer and the Contractor shall when it is more advantageous to the Govern- mutually determine the amount of the al- ment. lowable credit. (d) Prospective offerors may inspect the (e) Failure to agree upon the value of the types of articles to be serviced. Contact the property or on the amount of credit due will Contracting Officer to make inspection ar- be treated as a dispute under the Disputes rangements. clause of this contract. (f) In case of damage to any property that (End of provision) the Contracting Officer and the Contractor agree can be satisfactorily repaired, the Con- 252.237–7013 Instruction to offerors tractor may repair the property at its ex- (bulk weight). pense in a manner satisfactory to the Con- As prescribed in 237.7102(b), use the tracting Officer, rather than make payment under paragraph (c) of this clause. following provision:
INSTRUCTION TO OFFERORS (BULK WEIGHT) (End of clause) (DEC 1991) 252.237–7015 Loss or damage (weight (a) Offers shall be submitted on a unit of articles). price per pound of serviced laundry. Unit prices shall include all costs to the Govern- As prescribed in 237.7102(d), use the ment of providing the service, including following clause: pickup and delivery charges. LOSS OR DAMAGE (WEIGHT OF ARTICLES) (DEC (b) The Contracting Officer will evaluate 1991) bids based on the estimated pounds of serv- iced laundry stated in the solicitation. (a) The Contractor shall—
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(1) Be liable for return of the articles fur- (e) At the time of delivery, the Contractor nished for service under this contract; and shall record the weight and bag type of serv- (2) Indemnify the Government for any arti- iced laundry on the delivery ticket. The Con- cles delivered to the Contractor for servicing tracting Officer will ensure that this weight under this contract that are lost or damaged, and bag type are verified at time of delivery. and in the opinion of the Contracting Officer, cannot be repaired satisfactorily. ALTERNATE II (DEC. 1991) (b) The Contractor shall pay to the Gov- ernment llll per pound for lost or dam- As prescribed in 237.7102(e)(2), add the aged articles. The Contractor shall pay the following paragraphs (c), (d), and (e) to Government only for losses which exceed the the basic clause— maximum weight loss in paragraph (e) of this clause. (c) Before the Contractor picks up articles (c) Failure to agree on the amount of cred- for service under this contract, the Con- it due will be treated as a dispute under the tracting Officer will ensure that each bag is Disputes clause of this contract. weighed and that the weight is identified on (d) In the case of damage to any articles the bag. that the Contracting Officer and the Con- (d) The Contractor, at time of pickup, shall tractor agree can be satisfactorily repaired, verify and record the weight on the delivery the Contractor shall repair the articles at its ticket and shall provide the Contracting Of- expense in a manner satisfactory to the Con- ficer, or representative, a copy of the deliv- tracting Officer. ery ticket. (e) The maximum weight loss allowable in (e) At the time of delivery, the Contractor servicing the laundry is llll percent of shall record the weight of serviced laundry the weight recorded on delivery tickets when on the delivery ticket. The Contracting Offi- the laundry is picked up. Any weight loss in cer will ensure that this weight is verified at excess of this amount shall be subject to the time of delivery. loss provisions of this clause. (End of clause) 252.237–7017 Individual laundry. As prescribed in 237.7102(f), use the 252.237–7016 Delivery tickets. following clause: As prescribed in 237.7102(e), use the following clause: INDIVIDUAL LAUNDRY (DEC 1991) (a) The Contractor shall provide laundry DELIVERY TICKETS (DEC 1991) service under this contract on both a unit (a) The Contractor shall complete delivery bundle and on a piece-rate bundle basis for tickets in the number of copies required and individual personnel. in the form approved by the Contracting Of- (b) The total number of pieces listed in the ficer, when it receives the articles to be serv- ‘‘Estimated Quantity’’ column in the sched- iced. ule is the estimated amount of individual (b) The Contractor shall include one copy laundry for this contract. The estimate is for of each delivery ticket with its invoice for information only and is not a representation payment. of the amount of individual laundry to be or- dered. Individuals may elect whether or not (End of clause) to use the laundry services. ALTERNATE I (DEC 1991) (c) Charges for individual laundry will be on a per unit bundle or a piece-rate basis. As prescribed in 237.7102(e)(1), add the The Contractor shall provide individual following paragraphs (c), (d), and (e) to laundry bundle delivery tickets for use by the basic clause: the individuals in designating whether the laundry is a unit bundle or a piece-rate bun- (c) Before the Contractor picks up articles dle. An individual laundry bundle will be ac- for service under this contract, the Con- companied by a delivery ticket listing the tracting Officer will ensure that— contents of the bundle. (1) Each bag contains only articles within a single bag type as specified in the schedule; (d) The maximum number of pieces to be and allowed per bundle is as specified in the (2) Each bag is weighed and the weight and schedule and as follows— bag type are identified on the bag. (1) Bundle consisting of 26 pieces, including (d) The Contractor shall, at time of pick- laundry bag. This bundle will contain ap- up— proximately llll pieces of outer gar- (1) Verify the weight and bag type and ments which shall be starched and pressed. record them on the delivery ticket; and Outer garments include, but are not limited (2) Provide the Contracting Officer, or rep- to, shirts, trousers, jackets, dresses, and resentative, a copy of the delivery ticket. coats.
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(2) Bundle consisting of 13 pieces, including nations Laboratory Test Standard, laundry bag. This bundle will contain ap- Electromagnetics (U)); or proximately llll pieces of outer gar- (2) Other standard specified by this con- ments which shall be starched and pressed. tract. Outer garments include, but are not limited (b) Upon request of the Contracting Offi- to, shirts, trousers, jackets, dresses, and cer, the Contractor shall provide documenta- coats. tion supporting the accreditation. (c) The Government may, as part of its in- (End of clause) spection and acceptance, conduct additional tests to ensure that equipment or systems 252.237–7018 Special definitions of delivered under this contract satisfy the se- Government property. curity standards specified. The Government As prescribed in 237.7102(g), use the may conduct additional tests— following clause: (1) At the installation site or contractor’s facility. SPECIAL DEFINITIONS OF GOVERNMENT (2) Notwithstanding the existence of valid PROPERTY (DEC 1991) accreditations of equipment prior to the award of this contract. Articles delivered to the Contractor to be (d) Unless otherwise provided in this con- laundered or dry-cleaned, including any arti- tract under the Warranty of Supplies or War- cles which are actually owned by individual ranty of Systems and Equipment clauses, the Government personnel, are Government- Contractor shall correct or replace accepted owned property, not Government-furnished equipment or systems found to be deficient property. Government-owned property does within one year after proper installations. not fall under the requirements of any Gov- (1) The correction or replacement shall be ernment-furnished property clause of this at no cost to the Government. contract. (2) Should a modification to the delivered (End of clause) equipment be made by the Contractor, the one year period applies to the modification upon its proper installation. 252.237–7019—252.237–7021 [Reserved] (3) This paragraph (d) applies regardless of 252.237–7022 Services at installations f.o.b. point or the point of acceptance of the being closed. deficient equipment/systems. As prescribed in 237.7402, use the fol- (End of clause) lowing clause: [56 FR 36479, July 31, 1991, as amended at 56 SERVICES AT INSTALLATIONS BEING CLOSED FR 67222, Dec. 30, 1991; 66 FR 49861, Oct. 1, (MAY 1995) 2001] Professional employees shall be used by the local government to provide services 52.239–7001 [Reserved] under this contract to the extent that pro- fessionals are available in the area under the 252.239–7002 Access. jurisdiction of such government. As prescribed in 239.7411(a), use the (End of clause) following clause: ACCESS (DEC 1991) [59 FR 36090, July 15, 1994, as amended at 60 FR 29503, June 5, 1995] (a) Subject to military security regula- tions, the Government shall permit the Con- 252.239–7000 Protection against com- tractor access at all reasonable times to promising emanations. Contractor furnished facilities. However, if the Government is unable to permit access, As prescribed in 239.7102–3, use the the Government at its own risk and expense following clause: shall maintain these facilities and the Con- tractor shall not be responsible for the serv- PROTECTION AGAINST COMPROMISING ice involving any of these facilities during EMANATIONS (DEC 1991) the period of nonaccess, unless the service (a) The Contractor shall provide or use failure results from the Contractor’s fault or only computer equipment, as specified by negligence. the Government, that has been accredited to (b) During periods when the Government meet the appropriate security requirements does not permit Contractor access, the Gov- of— ernment will reimburse the Contractor at (1) The National Security Agency National mutually acceptable rates for the loss of or TEMPEST Standards (NACSEM No. 5100 or damage to the equipment due to the fault or NACSEM No. 5100A, Compromising Ema- negligence of the Government. Failure to
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agree shall be a dispute concerning a ques- any body with less than statewide jurisdic- tion of fact within the meaning of the Dis- tion when operating under the state author- putes clause of this contract. ity. Regulatory bodies whose decisions are not subject to judicial appeal and regulatory (End of clause) bodies which regulate a company owned by the same entity which creates the regulatory 252.239–7003 Facilities and services to body are not ‘‘governmental regulatory bod- be furnished—common carriers. ies.’’ (b) The Contractor shall furnish the serv- As prescribed in 239.7411(a), use the ices and facilities under this agreement/con- following clause: tract in accordance with— (1) All applicable tariffs, rates, charges, FACILITIES AND SERVICES TO BE FURNISHED— rules, regulations, or requirements; COMMON CARRIERS (DEC 1991) (i) Lawfully established by a governmental (a) The Contractor shall furnish any class- regulatory body; and es of services or facilities that the Con- (ii) Applicable to service and facilities fur- tractor offers or furnishes under published nished or offered by the Contractor to the tariffs. general public or the Contractor’s sub- (b) When it is mutually agreed that the scribers; Contractor shall furnish nontariffed services, (2) Rates, terms, and conditions of service the Government shall order them under the and facilities furnished or offered by the Ordering of Facilities and Services clause of Contractor to the general public or the Con- this agreement/contract. These nontariffed tractor’s subscribers; or services may include the engineering, instal- (3) Rates, terms, and conditions of service lation, alteration, or maintenance of facili- as may be agreed upon, subject, when appro- ties owned either by the Contractor or the priate, to jurisdiction of a governmental reg- Government, wherever located. ulatory body. (c) Upon request of the Contracting Officer, (c) The Government shall not prepay for the Contractor agrees to interconnect its fa- services. cilities with any Government-owned or fur- (d) For nontariffed services, the Contractor nished telecommunications equipment, fa- shall charge the Government at the lowest cilities, or transmission media. The Con- rate and under the most favorable terms and tractor shall use established technical cri- conditions for similar service and facilities teria for ensuring continuity of service and offered to any other customer. traffic without damage to or degradation of (e) Recurring charges for services and fa- commercial facilities. cilities shall, in each case, start with the satisfactory beginning of service or provision (End of clause) of facilities or equipment and are payable monthly in arrears. 252.239–7004 Orders for facilities and (f) Subject to the Cancellation or Termi- services—common carriers. nation of Orders—Common Carriers clause, of this agreement/contract, the Government As prescribed in 239.7411(a), use the may stop the use of any service or facilities following clause: furnished under this agreement/contract at any time. The Government shall pay the ORDERS FOR FACILITIES AND SERVICES— contractor all charges for services and facili- COMMON CARRIERS (DEC 1991) ties adjusted to the effective date of dis- The Contractor shall acknowledge a com- continuance. munication service authorization or other (g) Expediting charges are costs necessary type order for supplies and facilities by— to get services earlier than normal. Exam- (a) Commencing performance; or ples are overtime pay or special shipment. (b) Written acceptance by a duly author- When authorized, expediting charges shall be ized representative. the additional costs incurred by the Con- tractor and the subcontractor. The Govern- (End of clause) ment shall pay expediting charges only when— 252.239–7005 Rates, charges, and serv- (1) They are provided for in the tariff es- ices—common carriers. tablished by a governmental regulatory body; or As prescribed in 239.7411(a), use the (2) They are authorized in a communica- following clause: tion service authorization or other contrac- tual document. RATES, CHARGES, AND SERVICES—COMMON (h) When services normally provided are CARRIERS (DEC 1991) technically unacceptable and the develop- (a) Definition—Governmental regulatory body ment, fabrication, or manufacture of special means the Federal Communications Com- equipment is required, the Government mission, any statewide regulatory body, or may—
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(1) Provide the equipment; or CANCELLATION OR TERMINATION OF ORDERS— (2) Direct the Contractor to acquire the COMMON CARRIERS (JAN 1997) equipment or facilities. If the Contractor ac- (a) If the Government cancels any of the quires the equipment or facilities, the acqui- services ordered under this agreement/con- sition shall be competitive, if practicable. tract, before the services are made available (i) If at any time the Government defers or to the Government, or terminates any of changes its orders for any of the services but these services after they are made available does not cancel or terminate them, the to the Government, the Government shall re- amount paid or payable to the Contractor for imburse the Contractor for the actual non- the services deferred or modified shall be eq- recoverable costs the Contractor has reason- uitably adjusted under applicable tariffs ably incurred in providing facilities and filed by the Contractor with the regulatory equipment for which the Contractor has no commission in effect at the time of deferral foreseeable reuse. or change. If no tariffs are in effect, the Gov- (b) The amount of the Government’s liabil- ernment and the Contractor shall equitably ity upon cancellation or termination of any adjust the rates by mutual agreement. Fail- of the services ordered under this agreement/ ure to agree on any adjustment shall be a contract will be determined under applicable dispute concerning a question of fact within tariffs governing cancellation and termi- the meaning of the Disputes clause of this nation charges which— contract. (1) Are filed by the Contractor with a gov- ernmental regulatory body, as defined in the (End of clause) Rates, Charges, and Services—Common Car- riers clause of this agreement/contract; 252.239–7006 Tariff information. (2) Are in effect on the date of termination; and As prescribed in 239.7411(a), use the (3) Provide specific cancellation or termi- following clause: nation charges for the facilities and equip- ment involved or show how to determine the TARIFF INFORMATION (JUL 1997) charges. (a) The Contractor shall provide to the (c) The amount of the Government’s liabil- Contracting Officer— ity upon cancellation or termination of any (1) Upon request, a copy of the Contrac- of the services ordered under this agreement/ tor’s current existing tariffs (including contract, which are not subject to a govern- changes); mental regulatory body, will be determined under a mutually agreed schedule in the (2) Before filing, any application to a Fed- communication services authorization (CSA) eral, State, or any other regulatory agency or other contractual document. for new or changes to, rates, charges, serv- (d) If no applicable tariffs are in effect on ices, or regulations relating to any tariff or the date of cancellation or termination or any of the facilities or services to be fur- set forth in the applicable CSA or other con- nished solely or primarily to the Govern- tractual document, the Government’s liabil- ment; and ity will be determined under the following (3) Upon request, a copy of all information, settlement procedures— material, and data developed or prepared in (1) The Contractor agrees to provide the support of or in connection with an applica- Contracting Officer, in such reasonable de- tion under paragraph (a)(2) of this clause. tail as the Contracting Officer may require, (b) The Contractor shall notify the Con- inventory schedules covering all items of tracting Officer of any application that any- property or facilities in the Contractor’s pos- one other than the Contractor files with a session, the cost of which is included in the governmental regulatory body which affects Basic Cancellation or Termination Liability or will affect the rate or conditions of serv- for which the Contractor has no foreseeable ices under this agreement/contract. These re- reuse. quirements also apply to applications pend- (2) The Contractor shall use its best efforts ing on the effective date of this agreement/ to sell property or facilities when the Con- contract. tractor has no foreseeable reuse or when the Government has not exercised its option to (End of clause) take title under the title to Telecommuni- cations Facilities and Equipment clause of [56 FR 36479, July 31, 1991, as amended at 62 this agreement/contract. The Contractor FR 40473, July 29, 1997] shall apply any proceeds of the sale to reduce any payments by the Government to the 252.239–7007 Cancellation or termi- Contractor under a cancellation or termi- nation of orders—common carriers. nation settlement. (3) The Contractor shall record actual non- As prescribed in 239.7411(a), use the recoverable costs under established account- following clause: ing procedures prescribed by the cognizant
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governmental regulatory authority or, if no (ii) Charges not ordinarily made by the such procedures have been prescribed, under Contractor for similar facilities or equip- generally accepted accounting procedures ment, furnished under similar cir- applicable to the provision of telecommuni- cumstances. cation services for public use. (e) The Government may, under such terms (4) The actual nonrecoverable costs are the and conditions as it may prescribe, make installed costs of the facilities and equip- partial payments and payments on account ment, less cost of reusable materials, and against costs incurred by the Contractor in less net salvage value. Installed costs shall connection with the canceled or terminated include the actual cost of equipment and ma- portion of this agreement/contract. The Gov- terials specifically provided or used, plus the ernment may make these payments if in the actual cost of installing (including engineer- opinion of the Contracting Officer the total ing, labor, supervision, transportation, of the payments is within the amount the rights-of-way, and any other items which are Contractor is entitled. If the total of the chargeable to the capital accounts of the payments is in excess of the amount finally Contractor) less any costs the Government agreed or determined to be due under this may have directly reimbursed the Con- clause, the Contractor shall pay the excess tractor under the Special Construction and to the Government upon demand. Equipment Charges clause of this agreement/ (f) Failure to agree shall be a dispute con- contract. Deduct from the Contractor’s in- cerning a question of fact within the mean- stalled cost, the net salvage value (salvage ing of the Disputes clause. value less cost of removal). In determining net salvage value, give consideration to fore- (End of clause) seeable reuse of the facilities and equipment by the Contractor. Make allowance for the cost of dismantling, removal, reconditioning, [56 FR 36479, July 31, 1991, as amended at 62 and disposal of the facilities and equipment FR 2615, Jan. 17, 1997] when necessary either to the sale of facilities or their reuse by the Contractor in another 252.239–7008 Reuse arrangements. location. As prescribed in 239.7411(a), use the (5) The Basic Cancellation Liability is de- following clause: fined as the actual nonrecoverable cost which the Government shall reimburse the REUSE ARRANGEMENTS (DEC 1991) Contractor at the time services are can- celled. The Basic Termination Liability is (a) When feasible, the Contractor shall defined as the nonrecoverable cost amortized reuse canceled or terminated facilities or in equal monthly increments throughout the equipment to minimize the charges to the liability period. Upon termination of serv- Government. ices, the Government shall reimburse the (b) If at any time the Government requires Contractor for the nonrecoverable cost less that telecommunications facilities or equip- such costs amortized to the date services are ment be relocated within the Contractor’s terminated. Establish the liability period as service area, the Government shall have the mutually agreed to but not to exceed ten option of paying the costs of relocating the years. facilities or equipment in lieu of paying any (6) When the Basic Cancellation or Termi- termination or cancellation charge under nation Liability established by the CSA or the Cancellation or Termination of Orders- other contractual document is based on esti- Common Carriers clause of this agreement/ mated costs, the Contractor agrees to settle contract. The Basic Termination Liability on the basis of actual cost at the time of ter- applicable to the facilities or equipment in mination or cancellation. their former location shall continue to apply (7) The Contractor agrees that, if after set- to the facilities and equipment in their new tlement but within the termination liability location. Monthly rental charges shall con- period of the services, should the Contractor tinue to be paid during the period. make reuse of equipment or facilities which (c) When there is another requirement or were treated as nonreusable or foreseeable reuse in place of canceled or ter- nonsalvagable in the settlement, the Con- minated facilities or equipment, no charge tractor shall reimburse the Government for shall apply and the Basic Cancellation or the value of the equipment or facilities. Termination Liability shall be appropriately (8) The Contractor agrees to exclude— reduced. When feasible, the Contractor shall (i) Any costs which are not included in de- promptly reuse discontinued channels or fa- termining cancellation and termination cilities, including equipment for which the charges under the Contractor’s standard Government is obligated to pay a minimum practices or procedures; and service charge.
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(End of clause) (3) The need for replacement was due to circumstances beyond the control and with- 252.239–7009—252.239–7010 [Reserved] out the fault of the Contractor. (g) Before incurring any costs under para- 252.239–7011 Special construction and graph (f) of this clause, the Government equipment charges. shall have the right to terminate the service under the Cancellation or Termination of Or- As prescribed in 239.7411(b), use the ders clause of this contract. following clause: (End of clause) SPECIAL CONSTRUCTION AND EQUIPMENT CHARGES (DEC 1991) 252.239–7012 Title to telecommuni- (a) The Government will not directly reim- cation facilities and equipment. burse the Contractor for the cost of con- structing any facilities or providing any As prescribed in 239.7411(b), use the equipment, unless the Contracting Officer following clause: authorizes direct reimbursement. (b) If the Contractor stops using facilities TITLE TO TELECOMMUNICATION FACILITIES AND or equipment which the Government has, in EQUIPMENT (DEC 1991) whole or part, directly reimbursed, the Con- (a) Title to all Contractor furnished facili- tractor shall allow the Government credit ties and equipment used under this agree- for the value of the facilities or equipment ment/contract shall remain with the Con- attributable to the Government’s contribu- tractor even if the Government paid the tion. Determine the value of the facilities costs of constructing the facilities or equip- and equipment on the basis of their foresee- ment. A mutually accepted communications able reuse by the Contractor at the time service authorization may provide for excep- their use is discontinued or on the basis of tions. the net salvage value, whichever is greater. (b) The Contractor shall operate and main- The Contractor shall promptly pay the Gov- ernment the amount of any credit. tain all telecommunication facilities and equipment used under this agreement/con- (c) The amount of the direct special con- tract whether the Government or the Con- struction charge shall not exceed— tractor has title. (1) The actual costs to the Contractor; and (2) An amount properly allocable to the (End of clause) services to be provided to the Government. (d) The amount of the direct special con- struction charge shall not include costs in- 252.239–7013 Obligation of the Govern- curred by the Contractor which are covered ment. by— As prescribed in 239.7411(c), use the (1) A cancellation or termination liability; following clause: or (2) The Contractor’s recurring or other OBLIGATION OF THE GOVERNMENT (DEC 1991) nonrecurring charges. (a) This basic agreement is not a contract. (e) The Contractor represents that— The Government incurs no monetary liabil- (1) Recurring charges for the services, fa- ity under this agreement. cilities, and equipment do not include in the rate base any costs that have been reim- (b) The Government incurs liability only bursed by the Government to the Contractor; upon issuance of a communications service and authorization under the terms of this agree- (2) Depreciation charges are based only on ment. the cost of facilities and equipment paid by the Contractor and not reimbursed by the (End of clause) Government. (f) If it becomes necessary for the Con- 252.239–7014 Term of agreement. tractor to incur costs to replace any facili- As prescribed in 239.7411(c), use the ties or equipment, the Government shall as- following clause: sume those costs or reimburse the Con- tractor for replacement costs at mutually TERM OF AGREEMENT (DEC 1991) acceptable rates under the following cir- cumstances— (a) This agreement shall continue in force (1) The Government paid direct special from year to year, unless terminated by ei- construction charges; or ther party by 60 days written notice. (2) The Government reimbursed the Con- (b) Termination of this agreement does not tractor for those facilities or equipment as a cancel any communication service author- part of the recurring charges; and izations previously issued.
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(End of clause) (b) This solicitation/contract identifies classified or sensitive information that re- 252.239–7015 Continuation of commu- quires securing during telecommunications nication service authorizations. and requires the Contractor to secure tele- communications systems. The Contractor As prescribed in 239.7411(c), use the agrees to secure information and systems at following clause: the following location: (Identify the loca- tion.) CONTINUATON OF COMMUNICATION SERVICE (c) To provide the security, the Contractor AUTHORIZATIONS (DEC 1991) shall use Government-approved tele- (a) All communication service authoriza- communications equipment, devices, tech- tions (CSAs) issued by lll under Basic niques, or services. A list of the approved Agreement Number ll, dated ll , are equipment, etc. may be obtained from (iden- transferred to this basic agreement. The tify where list can be obtained). Equipment, CSAs shall continue in full force and effect devices, techniques, or services used by the as though placed under this agreement. Contractor must be compatible or interoper- (b) Communication service authorizations able with (list and identify the location of currently in effect which were issued by the any telecommunications security equip- activity in paragraph (a) of this clause under ment, device, technique, or service currently other agreements with the Contractor may being used by the technical or requirements also be transferred to this agreement. organization or other offices with which the Contractor must communicate). (End of clause) (d) Except as may be provided elsewhere in this contract, the Contractor shall furnish 252.239–7016 Telecommunications se- all telecommunications security equipment, curity equipment, devices, tech- devices, techniques, or services necessary to niques, and services. perform this contract. The Contractor must meet ownership eligibility conditions for As prescribed in 239.7411(d), use the communications security equipment des- following clause: ignated as controlled cryptographic items. (e) The Contractor agrees to include this TELECOMMUNICATIONS SECURITY EQUIPMENT, clause, including this paragraph (e), in all DEVICES, TECHNIQUES, AND SERVICES (DEC subcontracts which require securing tele- 1991) communications. (a) Definitions. As used in this clause— (1) Securing means the application of Gov- (End of clause) ernment-approved telecommunications secu- rity equipment, devices, techniques, or serv- 252.241–7000 Superseding contract. ices to contractor telecommunications sys- As prescribed in 241.501–70(a), use the tems. (2) Sensitive information means any informa- following clause: tion the loss, misuse, or modification of SUPERSEDING CONTRACT (DEC 1991) which, or unauthorized access to, could ad- versely affect the national interest or the This contract supersedes contract No. conduct of Federal programs, or the privacy lll, dated ll which provided similar to which individuals are entitled under 5 services. Any capital credits accrued to the U.S.C. 552a (the Privacy Act), but which has Government, any remaining credits due to not been specifically authorized under cri- the Government under the connection teria established by an Executive Order or charge, or any termination liability are Act of Congress to be kept secret in the in- transferred to this contract, as follows: terest of national defense or foreign policy. (3) Telecommunications systems means voice, CAPITAL CREDITS record, and data communications, including (List years and accrued credits by year and management information systems and local separate delivery points.) data networks that connect to external transmission media, when employed by Gov- OUTSTANDING CONNECTION CHARGE CREDITS ernment agencies, contractors, and sub- contractors to transmit— (List by month and year the amount cred- (i) Classified or sensitive information; ited and show the remaining amount of out- (ii) Matters involving intelligence activi- standing credits due the Government.) ties, cryptologic activities related to na- TERMINATION LIABILITY CHARGES tional security, the command and control of military forces, or equipment that is an inte- (List by month and year the amount of gral part of a weapon or weapons system; or monthly facility cost recovered and show the (iii) Matters critical to the direct fulfill- remaining amount of facility cost to be re- ment of military or intelligence missions. covered.)
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(End of clause) MATERIAL MANAGEMENT AND ACCOUNTING SYSTEM (DEC 2000) [56 FR 36479, July 31, 1991, as amended at 63 (a) Definitions. As used in this clause— FR 11549, Mar. 9, 1998] (1) Material management and accounting sys- tem (MMAS) means the Contractor’s system 252.241–7001 Government access. or systems for planning, controlling, and ac- counting for the acquisition, use, issuing, As prescribed in 241.501–70(b), use the and disposition of material. Material man- following clause: agement and accounting systems may be manual or automated. They may be stand- GOVERNMENT ACCESS (DEC 1991) alone systems or they may be integrated Authorized representatives of the Govern- with planning, engineering, estimating, pur- ment may have access to the Contractor’s chasing, inventory, accounting, or other sys- on-base facilities upon reasonable notice or tems. in case of emergency. (2) Valid time-phased requirements means material that is— (End of clause) (i) Needed to fulfill the production plan, in- cluding reasonable quantities for scrap, shrinkage, yield, etc.; and [56 FR 36479, July 31, 1991, as amended at 63 (ii) Charged/billed to contracts or other FR 11549, Mar. 9, 1998] cost objectives in a manner consistent with the need to fulfill the production plan. 252.242–7000 Postaward conference. (3) ‘‘Contractor’’ means a business unit as As prescribed in 242.570, use the fol- defined in section 31.001 of the Federal Ac- quisition Regulation (FAR). lowing clause: (b) General. The Contractor shall— (1) Maintain an MMAS that— POSTAWARD CONFERENCE (DEC 1991) (i) Reasonably forecasts material require- The Contractor agrees to attend any ments; postaward conference convened by the con- (ii) Ensures that costs of purchased and tracting activity or contract administration fabricated material charged or allocated to a office in accordance with Federal Acquisi- contract are based on valid time-phased re- tion Regulation subpart 42.5. quirements; and (iii) Maintains a consistent, equitable, and (End of clause) unbiased logic for costing of material trans- actions; and 252.242–7001—252.242–7002 [Reserved] (2) Assess its MMAS and take reasonable action to comply with the MMAS standards 252.242–7003 Application for U.S. Gov- in paragraph (e) of this clause. ernment shipping documentation/ (c) Disclosure and maintenance requirements. instructions. The Contractor shall— (1) Have policies, procedures, and operating As prescribed in 242.1404–2–70, use the instructions that adequately described its following clause: MMAS; (2) Provide to the Administrative Con- APPLICATION FOR U.S. GOVERNMENT SHIPPING tracting Officer (ACO), upon request, the re- DOCUMENTATION/INSTRUCTIONS (DEC 1991) sults of the internal reviews that it has con- ducted to ensure compliance with estab- The Contractor shall request Government lished MMAS policies, procedures, and oper- bills of lading by submitting a DD Form 1659, ating instructions; and Application for U.S. Government Shipping (3) Disclose significant changes in its Documentation/Instructions, to the— MMAS to the ACO at least 30 days prior to (a) Transportation Officer, if named in the implementation. contract schedule; or (d) Deficiencies. (1) If the Contractor re- (b) Contract administration office. ceives a report from the ACO that identifies any deficiencies in its MMAS, the Con- (End of clause) tractor shall respond as follows: (i) If the Contractor agrees with the report [56 FR 36479, July 31, 1991, as amended at 62 findings and recommendations, the Con- FR 34135, June 24, 1997] tractor shall— (A) Within 30 days (or such other date as 252.242–7004 Material management may be mutually agreed to by the ACO and and accounting system. the Contractor), state its agreement in writ- ing; and As prescribed in 242.7204, use the fol- (B) Within 60 days (or such other date as lowing caluse: may be mutually agreed to by the ACO and
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the Contractor), correct the deficiencies or ation of recorded inventory quantities to submit a corrective action plan showing physical inventory by part number on a peri- milestones and actions to eliminate the defi- odic basis. A 95 percent accuracy level is de- ciencies. sirable. If systems have an accuracy level (ii) If the Contractor disagrees with the re- below 95 percent, the Contractor shall pro- port findings and recommendations, the Con- vide adequate evidence that— tractor shall, within 30 days (or such other (i) There is no material harm to the Gov- date as may be mutually agreed to by the ernment due to lower accuracy levels; and ACO and the Contractor), state its rationale (ii) The cost to meet the accuracy goal is for each area of disagreement. excessive in relation to the impact on the (2) The ACO will evaluate the Contractor’s Government; response and will notify the Contractor in (6) Provide detailed descriptions of cir- writing of the— cumstances that will result in manual or (i) Determination concerning any remain- system generated transfers of parts; ing deficiencies; (7) Maintain a consistent, equitable, and (ii) Adequacy of any proposed or completed unbiased logic for costing of material trans- corrective action plan; and actions as follows: (iii) Need for any new or revised corrective (i) The Contractor shall maintain and dis- action plan. close written policies describing the transfer (3) When the ACO determines the MMAS methodology and the loan/pay-back tech- deficiencies have a material impact on Gov- nique. ernment contract costs, the ACO must re- (ii) The costing methodology may be duce progress payments by an appropriate standard or actual cost, or any of the inven- percentage based on affected costs (in ac- tory costing methods in 48 CFR 9904.411– cordance with FAR 32.503–6) and/or disallow 50(b). The Contractor shall maintain consist- costs on vouchers (in accordance with FAR ency across all contract and customer types, 42.803) until the ACO determines that— and from accounting period to accounting (i) The deficiencies are corrected; or period for initial charging and transfer (ii) The amount of the impact is immate- charging. rial. (iii) The system should transfer parts and (e) MMAS standards. The MMAS shall have associated costs within the same billing pe- adequate internal controls to ensure system riod. In the few instances where this may not and data integrity, and shall— be appropriate, the Contractor may accom- (1) Have an adequate system description plish the material transaction using a loan/ including policies, procedures, and operating pay-back technique. The ‘‘loan/pay-back instructions that comply with the FAR and technique’’ means that the physical part is Defense FAR Supplement; moved temporarily from the contract, but (2) Ensure that costs of purchased and fab- the cost of the part remains on the contract. ricated material charged or allocated to a The procedures for the loan/pay-back tech- contract are based on valid time-phased re- nique must be approved by the ACO. When quirements as impacted by minimum/eco- the technique is used, the Contractor shall nomic order quantity restrictions. have controls to ensure— (i) A 98 percent bill of material accuracy (A) Parts are paid back expeditiously; and a 95 percent master production schedule (B) Procedures and controls are in place to accuracy are desirable as a goal in order to correct any overbilling that might occur; ensure that requirements are both valid and (C) Monthly, at a minimum, identification appropriately time-phased. of the borrowing contract and the date the (ii) If systems have accuracy levels below part was borrowed; and these, the Contractor shall provide adequate (D) The cost of the replacement part is evidence that— charged to the borrowing contract; (A) There is no material harm to the Gov- (8) Where allocations from common inven- ernment due to lower accuracy levels; and tory accounts are used, have controls (in ad- (B) The cost to meet the accuracy goals is dition to those in paragraphs (e)(2) and (7) of excessive in relation to the impact on the this clause) to ensure that— Government; (i) Reallocations and any credit due are (3) Provide a mechanism to identify, re- processed no less frequently than the routine port, and resolve system control weaknesses billing cycle; and manual override. Systems should iden- (ii) Inventories retained for requirements tify operational exceptions such as excess/re- that are not under contract are not allocated sidual inventory as soon as known; to contracts; and (4) Provide audit trails and maintain (iii) Algorithms are maintained based on records (manual and those in machine read- valid and current data; able form) necessary to evaluate system (9) Regardless of the provisions of FAR logic and to verify through transaction test- 45.505–3(f)(1)(ii), have adequate controls to ing that the system is operating as desired; ensure that physically commingled inven- (5) Establish and maintain adequate levels tories that may include material for which of record accuracy, and include reconcili- costs are charged or allocated to fixed-price,
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cost-reimbursement, and commercial con- value management system criteria provided tracts do not compromise requirements of in DoD 5000.2–R, Mandatory Procedures for any of the standards in paragraphs (e)(1) Major Defense Acquisition Programs through (8) of this clause. Government-fur- (MDAPs) and Major Automated Information nished material shall not be— System (MAIS) Acquisition Programs. (i) Physically commingled with other ma- (d) The Government may require inte- terial; or grated baseline reviews. Such reviews shall (ii) Used on commercial work; and be scheduled as early as practicable and (10) Be subjected to periodic internal re- should be conducted within 180 calendar days views to ensure compliance with established after (1) contract award, (2) the exercise of policies and procedures. significant contract options, or (3) the incor- poration of major modifications. The objec- (End of clause) tive of the integrated baseline review is for the Government and the Contractor to joint- [65 FR 77834, Dec. 13, 2000] ly assess areas, such as the Contractor’s planning, to ensure complete coverage of the 252.242–7005 Cost/Schedule Status Re- statement of work, logical scheduling of the port. work activities, adequate resourcing, and As prescribed in 242.1107–70(a), use identification of inherent risks. the following clause: (e) The Contractor shall provide access to all pertinent records, company procedures, COST/SCHEDULE STATUS REPORT (MAR 1998) and data requested by the ACO, or author- ized representative, to— (a) The Contractor shall use management procedures in the performance of this con- (1) Show proper implementation of the pro- tract that provide for— cedures generating the cost and schedule in- (1) Planning and control of costs; formation being used to satisfy the C/SSR (2) Measurement of performance (value for contractual data requirements to the Gov- completed tasks); and ernment; and (3) Generation of timely and reliable infor- (2) Ensure continuing application of the ac- mation for the cost/schedule status report (C/ cepted company procedures in satisfying the SSR). C/SSR data item. (b) As a minimum, these procedures must (f) The Contractor shall submit any sub- provide for— stantive changes to the procedures and their (1) Establishing the time-phased budgeted impact to the ACO for review. cost of work scheduled (including work au- (g) The Contractor shall require a subcon- thorization, budgeting, and scheduling), the tractor to furnish C/SSR in each case where budgeted cost for work performed, the actual the subcontract is other than firm-fixed- cost of work performed, the budget at com- price, is 12 months or more in duration, and pletion, the estimate at completion, and pro- has critical or significant tasks related to visions for subcontractor performance meas- the prime contract. Critical or significant urement and reporting; tasks shall be defined by mutual agreement (2) Applying all direct and indirect costs between the Government and Contractor. and provisions for use and control of man- Each subcontractor’s reported cost and agement reserve and undistributed budget; schedule information shall be incorporated (3) Incorporating changes to the contract into the Contractor’s C/SSR. budget base for both Government directed changes and internal replanning; (End of clause) (4) Establishing constraints to preclude subjective adjustment of data to ensure that performance measurement remains realistic. [62 FR 9992, Mar. 5, 1997, as amended at 62 FR The total allocated budget may exceed the 34135, June 24, 1997; 63 FR 11549, Mar. 9, 1998] contract budget base only after consultation with the Contracting Officer. For cost-reim- 252.242–7006 Cost/Schedule Status Re- bursement contracts, the contract budget port Plans. base shall exclude changes for cost growth As prescribed in 242.1107–70(b), use increase, other than for authorized changes the following provision: to the contract scope; and (5) Establishing the capability to accu- COST/SCHEDULE STATUS REPORT PLANS (MAR rately identify and explain significant cost 1997) and schedule variances, both on a cumu- lative basis and projected at completion (a) The offeror shall submit a written sum- basis. mary of the management procedures it will (c) The Contractor may use a cost/schedule establish, maintain, and use in the perform- control system that has been recognized by ance of any resultant contract to comply the cognizant Administrative Contracting with the requirements of the clause at Officer (ACO) as complying with the earned 252.242–7005, Cost/Schedule Status Report.
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(b) If the offeror proposes to use a cost/ cuted by an individual authorized to certify schedule control system that has been recog- the request on behalf of the Contractor: nized by the cognizant Administrative Con- I certify that the request is made in good tracting Officer as complying with the faith, and that the supporting data are accu- earned value management system criteria of rate and complete to the best of my knowl- DoD 5000.2–R, Mandatory Procedures for edge and belief. Major Defense Acquisition Programs llllllllllllllllllllllll (MDAPs) and Major Automated Information (Official’s Name) System (MAIS) Acquisition Programs, the llllllllllllllllllllllll offeror may submit a copy of the documenta- (Title) tion of such recognition instead of the writ- (c) The certification in paragraph (b) of ten summary required by paragraph (a) of this clause requires full disclosure of all rel- this provision. evant facts, including— (1) Cost or pricing data if required in ac- (End of provision) cordance with subsection 15.403–4 of the Fed- eral Acquisition Regulation (FAR); and [62 FR 9992, Mar. 5, 1997, as amended at 62 FR (2) Information other than cost or pricing 34135, June 24, 1997] data, in accordance with subsection 15.403–3 of the FAR, including actual cost data and 252.243–7000 [Reserved] data to support any estimated costs, even if cost or pricing data are not required. 252.243–7001 Pricing of contract modi- (d) The certification requirement in para- graph (b) of this clause does not apply to— fications. (1) Requests for routine contract pay- As prescribed in 243.205–70, use the ments; for example, requests for payment for following clause: accepted supplies and services, routine vouchers under a cost-reimbursement type PRICING OF CONTRACT MODIFICATIONS (DEC contract, or progress payment invoices; or 1991) (2) Final adjustment under an incentive provision of the contract. When costs are a factor in any price ad- justment under this contract, the contract (End of clause) cost principles and procedures in FAR part 31 and DFARS part 231, in effect on the date [63 FR 11549, Mar. 9, 1998, as amended at 66 of this contract, apply. FR 49865, Oct. 1, 2001]
(End of clause) 252.244–7000 Subcontracts for com- mercial items and commercial com- [56 FR 36479, July 31, 1991, as amended at 66 ponents (DoD contracts). FR 49865, Oct. 1, 2001] As prescribed in 244.403, use the fol- 252.243–7002 Requests for equitable lowing clause: adjustment. SUBCONTRACTS FOR COMMERCIAL ITEMS AND As prescribed in 243.205–71, use the COMMERCIAL COMPONENTS (DOD CON- following clause: TRACTS) (MAR 2000) In addition to the clauses listed in para- REQUESTS FOR EQUITABLE ADJUSTMENT (MAR graph (c) of the Subcontracts for Commer- 1998) cial Items and Commercial Components (a) The amount of any request for equi- clause of this contract (Federal Acquisition table adjustment to contract terms shall ac- Regulation 52.244–6), the Contractor shall in- curately reflect the contract adjustment for clude the terms of the following clauses, if which the Contractor believes the Govern- applicable, in subcontracts for commercial ment is liable. The request shall include only items or commercial components, awarded costs for performing the change, and shall at any tier under this contract: not include any costs that already have been 252.225–7014 Preference for Domestic Spe- reimbursed or that have been separately cialty Metals, Alternate I (10 U.S.C. 2241 claimed. All indirect costs included in the note). request shall be properly allocable to the 252.247–7023 Transportation of Supplies by change in accordance with applicable acqui- Sea (10 U.S.C. 2631). sition regulations. 252.247–7024 Notification of Transpor- (b) In accordance with 10 U.S.C. 2410(a), tation of Supplies by Sea (10 U.S.C. 2631). any request for equitable adjustment to con- tract terms that exceeds the simplified ac- (End of clause) quisition threshold shall bear, at the time of submission, the following certificate exe- [65 FR 14401, Mar. 16, 2000]
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252.245–7000 Government-furnished MATERIAL INSPECTION AND RECEIVING REPORT mapping, charting, and geodesy (DEC 1991) property. At the time of each delivery of supplies or As prescribed in 245.310–70, use the services under this contract, the Contractor following clause: shall prepare and furnish to the Government a material inspection and receiving report in GOVERNMENT-FURNISHED MAPPING, CHARTING, the manner and to the extent required by ap- AND GEODESY PROPERTY (DEC 1991) pendix F, Material Inspection and Receiving Report, of the Defense FAR Supplement. (a) Definition—Mapping, charting, and geod- esy (MC&G) property means geodetic, geo- (End of clause) magnetic, gravimetric, aeronautical, topo- graphic, hydrographic, cultural, and 252.246–7001 Warranty of data. toponymic data presented in the form of topographic, planimetric, relief, or thematic As prescribed in 246.710 (1), use the maps and graphics; nautical and aero- following clause: nautical charts and publications; and in sim- ulated, photographic, digital, or computer- WARRANTY OF DATA (DEC 1991) ized formats. (a) Definition—Technical data has the same (b) The Contractor shall not duplicate, meaning as given in the clause in this con- copy, or otherwise reproduce MC&G property tract entitled, Rights in Technical Data and for purposes other than those necessary for Computer Software. performance of the contract. (b) Warranty. Notwithstanding inspection (c) At the completion of performance of and acceptance by the Government of tech- the contract, the Contractor, as directed by nical data furnished under this contract, and the Contracting Officer, shall either destroy notwithstanding any provision of this con- or return to the Government all Govern- tract concerning the conclusiveness of ac- ment-furnished MC&G property not con- ceptance, the Contractor warrants that all sumed in the performance of this contract. technical data delivered under this contract will at the time of delivery conform with the (End of clause) specifications and all other requirements of this contract. The warranty period shall ex- 252.245–7001 Reports of Government tend for three years after completion of the property. delivery of the line item of data (as identi- As prescribed in 245.505–14(a), use the fied in DD Form 1423, Contract Data Re- quirements List) of which the data forms a following clause: part; or any longer period specified in the contract. REPORTS OF GOVERNMENT PROPERTY (MAY 1994) (c) Contractor notification. The Contractor agrees to notify the Contracting Officer in (a) The Contractor shall provide an annual writing immediately of any breach of the report— above warranty which the Contractor dis- (1) For all DoD property for which the Con- covers within the warranty period. tractor is accountable under the contract; (d) Remedies. The following remedies shall (2) Prepared in accordance with the re- apply to all breaches of the warranty, wheth- quirements of DD Form 1662, DoD Property er the Contractor notifies the Contracting in the Custody of Contractors, or approved Officer in accordance with paragraph (c) of substitute, including instructions on the re- this clause or if the Government notifies the verse side of the form; Contractor of the breach in writing within (3) In duplicate, to the cognizant Govern- the warranty period: ment property administrator, no later than (1) Within a reasonable time after such no- October 31. tification, the Contracting Officer may— (b) The Contractor is responsible for re- (i) By written notice, direct the Contractor porting all Government property account- to correct or replace at the Contractor’s ex- able to this contract, including that at sub- pense the nonconforming technical data contractor and alternate locations. promptly; or (ii) If the Contracting Officer determines (End of clause) that the Government no longer has a re- quirement for correction or replacement of [59 FR 27677, May 27, 1994] the data, or that the data can be more rea- sonably corrected by the Government, in- 252.246–7000 Material inspection and form the Contractor by written notice that receiving report. the Government elects a price or fee adjust- ment instead of correction or replacement. As prescribed in 246.370, use the fol- (2) If the Contractor refuses or fails to lowing clause: comply with a direction under paragraph (d)
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(1)(i) of this clause, the Contracting Officer Lists Drawings, provided that the data fur- may, within a reasonable time of the refusal nished by the Contractor was current, accu- or failure— rate at time of submission, and did not in- (i) By contract or otherwise, correct or re- volve a significant omission of data nec- place the nonconforming technical data and essary to comply with the requirements; or charge the cost to the Contractor; or (B) To defects the Contractor discovers and (ii) Elect a price or fee adjustment instead gives written notice to the Government be- of correction or replacement. fore the Government discovers the error. (3) The remedies in this clause represent the only way to enforce the Government’s ALTERNATE II (DEC 1991) rights under this clause. (e) The provisions of this clause apply As prescribed at 246.710(3), substitute anew to that portion of any corrected or re- the following paragraph for paragraph placed technical data furnished to the Gov- (d)(3) of the basic clause: ernment under paragraph (d)(1)(i) of this clause. (3) In addition to the remedies under para- graphs (d)(1) and (2) of this clause, the Con- (End of clause) tractor shall be liable to the Government for all damages to the Government as a result of ALTERNATE I (DEC 1991) the breach of the warranty. As prescribed in 246.710(2), substitute (i) The additional liability under para- the following for paragraph (d)(3) of the graph (d)(3) of this clause shall not exceed basic clause: ten percent of the total contract price. (3) In addition to the remedies under para- (ii) If the breach of the warranty is with graphs (d)(1) and (2) of this clause, the Con- respect to the data supplied by an equipment tractor shall be liable to the Government for subcontractor, the limit of the Contractor’s all damages to the Government as a result of liability shall be— the breach of warranty. (A) Ten percent of the total subcontract (i) The additional liability under para- price in a firm fixed-price subcontract; graph (d)(3) of this clause shall not exceed 75 (B) Seventy-five percent of the total sub- percent of the target profit. contract fee in a cost-plus-fixed-fee or cost- (ii) If the breach of the warranty is with plus-award-fee subcontract; or respect to the data supplied by an equipment subcontractor, the limit of the Contractor’s (C) Seventy-five percent of the total sub- liability shall be— contract target profit or fee in a fixed-price (A) Ten percent of the total subcontract or cost-plus-incentive-type contract. price in a firm fixed price subcontract; (iii) The additional liability specified in (B) Seventy-five percent of the total sub- paragraph (d)(3) of this clause shall not contract fee in a cost-plus-fixed-fee or cost- apply— plus-award-fee subcontract; or (A) With respect to the requirements for (C) Seventy-five percent of the total sub- product drawings and associated lists, spe- contract target profit or fee in a fixed-price cial inspection equipment (SIE) drawings or cost-plus-incentive-type contract. and associated lists, special tooling drawings (iii) Damages due the Government under and associated lists, SIE operating instruc- the provisions of this warranty are not an al- tions, SIE descriptive documentation, and lowable cost. SIE calibration procedures under MIL–T– (iv) The additional liability in paragraph 31000, General Specification for Technical (d)(3) of this clause shall not apply— Data Packages, Amendment 1, or MIL–T– (A) With respect to the requirements for 47500, General Specification for Technical product drawings and associated lists, spe- Data Packages, Supp 1, or drawings and as- cial inspection equipment (SIE) drawings sociated lists under level 2 or level 3 of MIL– and associated lists, special tooling drawings D–1000A, Engineering and Associated Data and associated lists, SIE operating instruc- Drawings, or DoD–D–1000B, Engineering and tions, SIE descriptive documentation, and Associated Lists Drawings (Inactive for New SIE calibration procedures under MIL–T– Design) Amendment 4, Notice 1; or drawings 31000, General Specification for Technical Data Packages, Amendment 1, or MIL–T– and associated lists under category E or I of 47500, General Specification for Technical MIL–D–1000, Engineering and Associated Data Packages, Supp 1, or drawings and as- Lists Drawings, provided that the data fur- sociated lists under level 2 or level 3 of MIL– nished by the Contractor was current, accu- D–1000A, Engineering and Associated Data rate at time of submission, and did not in- Drawings, or DoD–D–1000B, Engineering and volve a significant omission of data nec- Associated Lists Drawings (Inactive for New essary to comply with the requirements; or Design) Amendment 4, Notice 1; or drawings (B) To defects the Contractor discovers and and associated lists under category E or I of gives written notice to the Government be- MIL–D–1000, Engineering and Associated fore the Government discovers the error.
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252.246–7002 Warranty of construction expense to enforce a subcontractor’s, manu- (Germany). facturer’s, or supplier’s warranty. (i) Unless a defect is caused by the Con- As prescribed in 246.710(4), use the tractor’s negligence, or the negligence of a following clause: subcontractor or supplier at any tier, the Contractor shall not be liable for the repair WARRANTY OF CONSTRUCTION (GERMANY) (JUNE 1997) of any defects of material or design furnished by the Government or for the repair of any (a) In addition to any other representa- damage resulting from any defeat in Govern- tions in this contract, the Contractor war- ment-furnished material or design. rants, except as provided in paragraph (j) of (j) This warranty shall not limit the Gov- this clause, that the work performed under ernment’s right under the Inspection clause this contract conforms to the contract re- of this contract, with respect to latent de- quirements and is free of any defect of equip- fects, gross mistakes, or fraud. ment, material, or design furnished or work- manship performed by the Contractor or any (End of clause) subcontractor or supplier at any tier. (b) This warranty shall continue for the pe- riod(s) specified in Section 13, VOB, Part B, [62 FR 34135, June 24, 1997; 62 FR 49306, Sept. commencing from the date of final accept- 19, 1997] ance of the work under this contract. If the Government takes possession of any part of 252.247–7000 Hardship conditions. the work before final acceptance, this war- ranty shall continue for the period(s) speci- As prescribed in 247.270–6(a), use the fied in Section 13, VOB, Part B, from the following clause: date the Government takes possession. (c) The Contractor shall remedy, at the HARDSHIP CONDITIONS (AUG 2000) Contractor’s expense, any failure to conform (a) If the Contractor finds unusual ship, or any defect. In addition, the Contractor dock, or cargo conditions associated with shall remedy, at the Contractor’s expense, loading or unloading a particular cargo, that any damage to Government-owned or -con- will work a hardship on the Contractor if trolled real or personal property when that loaded or unloaded at the basic commodity damage is the result of— rates, the Contractor shall— (1) The Contractor’s failure to conform to contract requirements; or (1) Notify the Contracting Officer before (2) Any defect of equipment, material, or performing the work, if feasible, but no later design furnished or workmanship performed. than the vessel sailing time; and (d) The Contractor shall restore any work (2) Submit any associated request for price damaged in fulfilling the terms and condi- adjustment to the Contracting Officer within tions of this clause. 10 working days of the vessel sailing time. (e) The Contracting Officer shall notify the (b) Unusual conditions include, but are not Contractor, in writing, within a reasonable limited to, inaccessibility of place of stow- period of time after the discovery of any fail- age to the ship’s cargo gear, side port oper- ure, defect, or damage. ations, and small quantities of cargo in any (f) If the Contractor fails to remedy any one hatch. failure, defect, or damage within a reason- (c) The Contracting Officer will investigate able period of time after receipt of notice, the conditions promptly after receiving the the Government shall have the right to re- notice. If the Contracting Officer finds that place, repair, or otherwise remedy the fail- the conditions are unusual and do materially ure, defect, or damage at the Contractor’s affect the cost of loading or unloading, the expense. Contracting Officer will authorize payment (g) With respect to all warranties, express at the applicable man-hour rates set forth in or implied, from subcontractors, manufac- the schedule of rates of this contract. turers, or suppliers for work performed and materials furnished under this contract, the (End of clause) Contractor shall— (1) Obtain all warranties that would be given in normal commercial practice; [65 FR 50147, Aug. 17, 2000] (2) Require all warranties to be executed in writing, for the benefit of the Government, if 252.247–7001 Price adjustment. directed by the Contracting Officer; and As prescribed in 247.270–6(b), use the (3) Enforce all warranties for the benefit of following clause: the Government as directed by the Con- tracting Officer. PRICE ADJUSTMENT (JAN 1997) (h) In the event the Contractor’s warranty under paragraph (b) of this clause has ex- (a) The Contractor warrants that the pired, the Government may bring suit at its prices set forth in this contract—
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(1) Are based upon the wage rates, allow- (e) There will be no adjustment for any ances, and conditions set forth in the collec- changes in the quantities of labor that the tive bargaining agreements between the Con- Contractor contemplated for each specific tractor and its employees, in effect as of commodity, except as may result from modi- (insert date), and which are generally applica- fications of the collective bargaining agree- ble to the ports where work under this con- ments. For the purpose of administering this tract is performed; clause, the Contractor shall submit to the (2) Apply to operations by the Contractor Contracting Officer, within five days after on non-Government work as well as under award, the accounting data and computa- this contract; and tions the Contractor used to determine its (3) Do not include any allowance for cost estimated efficiency rate in the performance increases that may— of this contract, to include the Contractor’s (i) Become effective under the terms of the computation of the costs apportioned for collective bargaining agreements after the each rate set forth in the schedule of rates. date in paragraph (a)(1) of this clause; or (f) Failure of the parties to agree to an ad- (ii) Result from modification of the collec- justment under this clause will be deemed to tive bargaining agreements after the date in be a dispute concerning a question of fact paragraph (a)(1). within the meaning of the Disputes clause of (b) The Contractor shall notify the Con- this contract. The Contractor shall continue tracting Officer within 60 days of receipt of performance pending agreement on, or deter- notice of any changes (increase or decrease) mination of, any such adjustment and its ef- in the wage rates, allowances, fringe bene- fective date. fits, and conditions that apply to its direct (g) The Contractor shall include with the labor employees, if the changes— final invoice submitted under this contract a (1) Are pursuant to the provisions of the statement that the Contractor has not expe- collective bargaining agreements; or rienced a decrease in rates of pay for labor, (2) Are a result of effective modifications or that the Contractor has given notice of all to the agreements; and (3) Would change the Contractor’s costs to such decreases in compliance with paragraph perform this contract. (b) of this clause. (c) The Contractor shall include in its noti- fication— (End of clause) (1) A proposal for an adjustment in the contract commodity, activity, or work-hour [56 FR 36479, July 31, 1991, as amended at 62 prices; and FR 2615, Jan. 17, 1997; 65 FR 50147, Aug. 17, (2) Data, in such form as the Contracting 2000] Officer may require, explaining the— (i) Causes; 252.247–7002 Revision of prices. (ii) Effective date; and (iii) Amount of the increase or decrease in As prescribed in 247.270–6(c), use the the Contractor’s proposal for the adjust- following clause: ment. (d) Promptly upon receipt of any notice REVISION OF PRICES (DEC 1991) and data described in paragraph (c), the Con- (a) Definition. Wage adjustment, as used in tractor and the Contracting Officer shall ne- this clause, means a change in the wages, gotiate an adjustment in the existing con- salaries, or other terms or conditions of em- tract commodity, activity, or man-hour ployment which— prices. However, no upward adjustment of the existing commodity, activity, or work- (1) Substantially affects the cost of per- hour prices will be allowed in excess of forming this contract; llll percent per year, except as provided (2) Is generally applicable to the port in the Changes clause of this contract. where work under this contract is performed; (1) Changes in the contract prices shall re- and flect, in addition to the direct and variable (3) Applies to operations by the Contractor indirect labor costs, the associated changes on non-Government work as well as to work in the costs for social security, unemploy- under this contract. ment compensation, taxes, and workman’s (b) General. The prices fixed in this con- compensation insurance. tract are based on wages and working condi- (2) There will be no adjustment to increase tions established by collective bargaining the dollar amount allowances of the Contrac- agreements, and on other conditions in effect tor’s profit. on the date of this contract. The Contracting (3) The agreed upon adjustment, its effec- Officer and the Contractor may agree to in- tive date, and the revised commodity, activ- crease or decrease such prices in accordance ity, or work-hour prices for services set forth with this clause. in the schedule of rates, shall be incor- (c) Demand for negotiation. (1) At any time, porated in the contract by supplemental subject to the limitations specified in this agreement. clause, either the Contracting Officer or the
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Contractor may deliver to the other a writ- (f) Disagreements. If, within 30 days after ten demand that the parties negotiate to re- the date on which statements and data are vise the prices under this contract. required pursuant to paragraph (c) of this (2) No such demand shall be made before 90 clause, the Contracting Officer and the Con- days after the date of this contract, and tractor fail to agree to revised prices, the thereafter neither party shall make a de- failure to agree shall be resolved in accord- mand having an effective date within 90 days ance with the Disputes clause of this con- of the effective date of any prior demand. tract. The prices fixed by the Contracting Of- However, this limitation does not apply to a ficer will remain in effect for the balance of wage adjustment during the 90 day period. the contract, and the Contractor shall con- (3) Each demand shall specify a date (the tinue performance. same as or subsequent to the date of the de- (g) Retroactive changes in wages or working livery of the demand) as to when the revised conditions. (1) In the event of a retroactive prices shall be effective. This date is the ef- wage adjustment, the Contractor or the Con- fective date of the price revision. tracting Officer may request an equitable ad- (i) If the Contractor makes a demand under justment in the prices in this contract. this clause, the demand shall briefly state (2) The Contractor shall request a price ad- the basis of the demand and include the justment within 30 days of any retroactive statements and data referred to in paragraph wage adjustment. The Contractor shall sup- (d) of this clause. port its request with— (ii) If the demand is made by the Con- (i) An estimate of the changes in cost re- tracting Officer, the Contractor shall furnish sulting from the retroactive wage adjust- the statements and data within 30 days of ment; the delivery of the demand. (ii) Complete information upon which the (d) Submission of data. At the times speci- estimate is based; and fied in paragraphs (c)(3)(i) and (ii) of this (iii) A certified copy of the collective bar- clause, the Contractor shall submit— gaining agreement, arbitration award, or (1) A new estimate and breakdown of the other document evidencing the retroactive unit cost and the proposed prices for the wage adjustment. services the Contractor will perform under (3) Subject to the limitation in paragraph this contract after the effective date of the (g)(2) of this clause as to the time of making price revision, itemized to be consistent with a request, completion or termination of this the original negotiations of the contract; contract shall not affect the Contractor’s (2) An explanation of the difference be- right under paragraph (g) of this clause. tween the original (or last preceding) esti- (4) In case of disagreement concerning any mate and the new estimate; question of fact, including whether any ad- (3) Such relevant operating data, cost justment should be made, or the amount of records, overhead absorption reports, and ac- such adjustment, the disagreement will be counting statements as may be of assistance resolved in accordance with the Disputes in determining the accuracy and reliability clause of this contract. of the new estimate; (5) The Contractor shall notify the Con- (4) A statement of the actual costs of per- tracting Officer in writing of any request by formance under this contract to the extent or on behalf of the employees of the Con- that they are available at the time of the ne- tractor which may result in a retroactive gotiation of the revision of prices under this wage adjustment. The notice shall be given clause; and within 20 days after the request, or if the re- (5) Any other relevant data usually fur- quest occurs before contract execution, at nished in the case of negotiations of prices the time of execution. under a new contract. The Government may examine and audit the Contractor’s ac- (End of clause) counts, records, and books as the Con- tracting Officer considers necessary. [56 FR 36479, July 31, 1991, as amended at 65 (e) Negotiations. (1) Upon the filing of the FR 50147, Aug. 17, 2000] statements and data required by paragraph (d) of this clause, the Contractor and the 252.247–7003 [Reserved] Contracting Officer shall negotiate promptly in good faith to agree upon prices for serv- 252.247–7004 Indefinite quantities— ices the Contractor will perform on and after fixed charges. the effective date of the price revision. (2) If the prices in this contract were estab- As prescribed in 247.270–6(d), use the lished by competitive negotiation, they shall following clause: not be revised upward unless justified by INDEFINITE QUANTITIES—FIXED CHARGES changes in conditions occurring after the (DEC 1991) contract was awarded. (3) The agreement reached after each nego- The amount of work and services the Con- tiation will be incorporated into the con- tractor may be ordered to furnish shall be tract by supplemental agreement. the amount the Contracting Officer may
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order from time to time. In any event, the (2) Responsible for, and hold the Govern- Government is obligated to compensate the ment harmless from, loss of or damage to Contractor the monthly lump sum specified property not included in paragraph (a)(1); in the Schedule entitled Fixed Charges, for and each month or portion of a month the con- (3) Responsible for, and hold the Govern- tract remains in effect. ment harmless from, bodily injury and death of persons, resulting either in whole or in (End of clause) part from the negligence or fault of the Con- tractor, its officers, agents, or employees in [56 FR 36479, July 31, 1991, as amended at 65 the performance of work under this contract. FR 50147, Aug. 17, 2000] (b) For the purpose of this clause, all cargo loaded or unloaded under this contract is 252.247–7005 Indefinite quantities—no agreed to be property owned by the Govern- fixed charges. ment or property for which the Government As prescribed in 247.270–6(e), use the is liable. following clause: (1) The amount of the loss or damage as de- termined by the Contracting Officer will be INDEFINITE QUANTITIES—NO FIXED CHARGES withheld from payments otherwise due the (DEC 1991) Contractor. The amount of work and services the Con- (2) Determination of liability and responsi- tractor may be ordered to furnish shall be bility by the Contracting Officer will con- the amount the Contracting Officer may stitute questions of fact within the meaning order from time to time. In any event, the of the Disputes clause of this contract. Government shall order, during the term of (c) The general liability and responsibility this contract, work or services having an ag- of the Contractor under this clause are sub- gregate value of not less than $100. ject only to the following specific limita- tions. The Contractor is not responsible to (End of clause) the Government for, and does not agree to hold the Government harmless from, loss or [56 FR 36479, July 31, 1991, as amended at 65 damage to property or bodily injury to or FR 50148, Aug. 17, 2000] death of persons if— (1) The unseaworthiness of the vessel, or 252.247–7006 Removal of contractor’s failure or defect of the gear or equipment employees. furnished by the Government, contributed jointly with the fault or negligence of the As prescribed in 247.270–6(f), use the Contractor in causing such damage, injury, following clause: or death; and REMOVAL OF CONTRACTOR’S EMPLOYEES (DEC (i) The Contractor, his officers, agents, and 1991) employees, by the exercise of due diligence, could not have discovered such The Contractor agrees to use only experi- unseaworthiness or defect of gear or equip- enced, responsible, and capable people to per- ment; or form the work. The Contracting Officer may (ii) Through the exercise of due diligence require that the Contractor remove from the could not otherwise have avoided such dam- job, employees who endanger persons or age, injury, or death. property, or whose continued employment (2) The damage, injury, or death resulted under this contract is inconsistent with the interest of military security. solely from an act or omission of the Govern- ment or its employees, or resulted solely (End of clause) from proper compliance by officers, agents, or employees of the Contractor with specific directions of the Contracting Officer. [56 FR 36479, July 31, 1991, as amended at 65 (d) The Contractor shall at its own expense FR 50148, Aug. 17, 2000] acquire and maintain insurance during the 252.247–7007 Liability and insurance. term of this contract, as follows— (1) Standard workmen’s compensation and As prescribed in 247.270–6(g), use the employer’s liability insurance and long- following clause: shoremen’s and harbor workers’ compensa- tion insurance, or such of these as may be LIABILITY AND INSURANCE (DEC 1991) proper under applicable state or Federal (a) The Contractor shall be— statutes. (1) Liable to the Government for loss or (i) The Contractor may, with the prior ap- damage to property, real and personal, proval of the Contracting Officer, be a self- owned by the Government or for which the insurer against the risk of this paragraph Government is liable; (d)(1).
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(ii) This approval will be given upon re- 252.247–7008 Evaluation of bids. ceipt of satisfactory evidence that the Con- tractor has qualified as a self-insurer under As prescribed in 247.271–4(a), use the applicable provision of law. following provision: (2) Bodily injury liability insurance in an EVALUATION OF BIDS (DEC 1991) amount of not less than $300,000 on account of any one occurrence. (a) The Government will evaluate bids on (3) Property damage liability insurance the basis of total aggregate price of all items within an area of performance under a given (which shall include any and all property, schedule. whether or not in the care, custody, or con- (1) An offeror must bid on all items within trol of the Contractor) in an amount of not a specified area of performance for a given less than $300,000 for any one occurrence. schedule. Failure to do so shall be cause for (e) Each policy shall provide, by appro- rejection of the bid for that area of perform- priate endorsement or otherwise, that can- ance of that Schedule. If there is to be no cellation or material change in the policy charge for an item, an entry such as ‘‘No shall not be effective until after a 30 day Charge,’’ or the letters ‘‘N/C’’ or ‘‘0,’’ must be written notice is furnished the Contracting made in the unit price column of the Sched- Officer. ule. (f) The Contractor shall furnish the Con- (2) Any bid which stipulates minimum tracting Officer with satisfactory evidence of charges or graduated prices for any or all the insurance required in paragraph (d) be- items shall be rejected for that area of per- fore performance of any work under this con- formance within the Schedule. tract. (b) In addition to other factors, the Con- tracting Officer will evaluate bids on the (g) The Contractor shall, at its own cost basis of advantages or disadvantages to the and expense, defend any suits, demands, Government that might result from making claims, or actions, in which the United more than one award (multiple awards). States might be named as a co-defendant of (1) In making this evaluation, the Con- the Contractor, resulting from the Contrac- tracting Officer will assume that the admin- tor’s performance of work under this con- istrative cost to the Government for issuing tract. This requirement is without regard to and administering each contract awarded whether such suit, demand, claim, or action under this solicitation would be $500. was the result of the Contractor’s neg- (2) Individual awards will be for the items ligence. The Government shall have the and combinations of items which result in right to appear in such suit, participate in the lowest aggregate cost to the Govern- defense, and take such actions as may be ment, including the administrative costs in necessary to protect the interest of the paragraph (b)(1). United States. (c) When drayage is necessary for the ac- (h) It is expressly agreed that the provi- complishment of any item in the bid sched- sions in paragraphs (d) through (g) of this ule, the Offeror shall include in the unit clause shall not in any manner limit the li- price any costs for bridge or ferry tolls, road ability or extend the liability of the Con- use charges or similar expenses. tractor as provided in paragraphs (a) through (d) Unless otherwise provided in this solici- (c) of this clause. tation, the Offeror shall state prices in amounts per hundred pounds on gross or net (i) The Contractor shall— weights, whichever is applicable. All charges (1) Equitably reimburse the Government if shall be subject to, and payable on, the basis the Contractor is indemnified, reimbursed, of 100 pounds minimum weight for unaccom- or relieved of any loss or damage to Govern- panied baggage and a 500 pound minimum ment property; weight for household goods, net or gross (2) Do nothing to prevent the Govern- weight, whichever is applicable. ment’s right to recover against third parties for any such loss or damage; and (End of provision) (3) Furnish the Government, upon the re- quest of the Contracting Officer, at the Gov- ALTERNATE I (DEC 1991) ernment’s expense, all reasonable assistance As prescribed in 247.271–4(a), add the fol- and cooperation in obtaining recovery, in- lowing paragraph (e) to the basic clause: cluding the prosecution of suit and the exe- (e) Notwithstanding paragraph (a), when cution of instruments of assignment in favor ‘‘additional services’’ are added to any sched- of the Government. ule, such ‘‘additional services’’ items will not be considered in the evaluation of bids. (End of clause) 252.247–7009 Award. [56 FR 36479, July 31, 1991, as amended at 65 As prescribed in 247.271–4(b), use the FR 50148, Aug. 17, 2000] following provision:
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AWARD (DEC 1991) PERIOD OF CONTRACT (OCT 2001) (a) The Government shall make award by (a) This contract begins January 1, ll, area to the qualified low bidder under each of and ends December 31, ll, both dates inclu- the specified schedules to the extent of the sive. Any work ordered before, and not com- bidder’s stated guaranteed daily capability pleted by the expiration date shall be gov- as provided in this solicitation and the Esti- erned by the terms of this contract. mated Quantities Schedule. (b) The Government will not place new or- (b) The Government reserves the right to ders under this contract that require that make an award of two or more areas to a sin- performance commence more than 15 days gle bidder if such award will result in an after the expiration date. overall lower estimated cost to the Govern- (c) The Government may place orders re- ment. quired for the completion of services (for shipments in the Contractor’s possession) for (c) The Government also reserves the right 180 days past the expiration date. to award additional contracts, as a result of this solicitation, to the extent necessary to (End of clause) meet its estimated maximum daily require- ments. [56 FR 36479, July 31, 1991, as amended at 66 (End of provision) FR 49861, Oct. 1, 2001] 252.247–7012 Ordering limitation. 252.247–7010 Scope of contract. As prescribed in 247.271–4(g), use the As prescribed in 247.271–4(d), use the following clause: following clause: ORDERING LIMITATION (DEC 1991) SCOPE OF CONTRACT (DEC 1991) (a) The Government will place orders for (a) The Contractor shall furnish services items of supplies or services with the con- and materials for the preparation of personal tractor awarded the initial contract to the property (including servicing of appliances) extent of the contractor’s guaranteed max- for movement or storage, drayage and re- imum daily capability. However, the con- lated services. Unless otherwise indicated in tractor may accept an additional quantity in the Schedule, the Contractor shall— excess of its capability to accommodate a (1) Furnish all materials except Govern- single order. ment-owned containers (Federal Specifica- (b) Orders for additional requirements will tion PPP–B–580), all equipment, plant and be placed in a like manner with the next labor; and higher contractor to the extent of its guar- (2) Perform all work in accomplishing anteed maximum daily capability. The Gov- containerization of personal property for ernment will repeat this procedure until its overseas or domestic movement or storage, total daily requirement is fulfilled. including— (c) In the event the procedure in para- graphs (a) and (b) does not fulfill the Govern- (i) Stenciling; ment’s total daily requirement, the Govern- (ii) Cooperage; ment may offer additional orders under the (iii) Drayage of personal property in con- contract to contractors without regard to nection with other services; their guaranteed maximum daily capability. (iv) Decontainerization of inbound ship- ments of personal property; and (End of clause) (v) The handling of shipments into and out of the Contractor’s facility. 252.247–7013 Contract areas of per- (b) Excluded from the scope of this con- formance. tract is the furnishing of like services or ma- As prescribed in 247.271–4(h), use the terials which are provided incident to com- following clause and complete para- plete movement of personal property when purchased by the Through Government Bill graph (b) by defining each area of per- of Lading or other method/mode of shipment formance as required (see 247.271–2(b)): or property to be moved under the Do-It- CONTRACT AREAS OF PERFORMANCE (DEC 1991) Yourself moving program or otherwise moved by the owner. (a) The Government will consider all areas of performance described in paragraph (b) as (End of clause) including the Contractor’s facility, regard- less of geographical location. 252.247–7011 Period of contract. (b) The Contractor shall perform services within the following defined areas of per- As prescribed in 247.271–4(e), use the formance, which include terminals identified following clause: therein: llll.
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(End of clause) demnification shall be at a rate not to ex- ceed sixty cents per pound per article. 252.247–7014 Demurrage. (ii) Negligent damage. When loss or damage As prescribed in 247.271–4(i), use the is caused by the negligence of the Con- tractor, the liability is for the full cost of following clause: satisfactory repair or for the current re- DEMURRAGE (DEC 1991) placement value of the article. (2) The Contractor shall make prompt pay- The Contractor shall be liable for all de- ment to the owner of the property for any murrage, detention, or other charges as a re- loss or damage for which the Contractor is sult of its failure to load or unload trucks, liable. freight cars, freight terminals, vessel piers, (3) In the absence of evidence or supporting or warehouses within the free time allowed under applicable rules and tariffs. documentation which places liability on a carrier or another contractor, the destina- (End of clause) tion contractor shall be presumed to be lia- ble for the loss or damage, if timely notified. 252.247–7015 Requirements. (c) For shipments picked up or delivered under Schedule III, Intra-City and Intra- As prescribed in 216.506(d), substitute Area— the following paragraph (f) for para- (1) If notified of loss or damage within 75 graph (f) of the basic clause at FAR days following delivery, the Contractor 52.216–21. agrees to indemnify the Government for loss or damage to the owner’s property. ALTERNATE I (DEC 1991) (2) The Contractor’s liability shall be for (f) Orders issued during the effective period the full cost of satisfactory repair, or for the of this contract and not completed within current replacement value of the article less that time shall be completed by the Con- depreciation, up to a maximum liability of tractor within the time specified in the $1.25 per pound times the net weight of the order. The rights and obligations of the Con- shipment. tractor and the Government for those orders (3) The Contractor has full salvage rights shall be governed by the terms of this con- to damaged items which are not repairable tract to the same extent as if completed dur- and for which the Government has received ing the effective period. compensation at replacement value. [56 FR 36479, July 31, 1991, as amended at 65 FR 63805, Oct. 25, 2000] (End of clause)
252.247–7016 Contractor liability for 252.247–7017 Erroneous shipments. loss or damage. As prescribed in 247.271–4(l), use the As prescribed in 247.271–4(k), use the following clause: following clause: ERRONEOUS SHIPMENTS (DEC 1991) CONTRACTOR LIABILITY FOR LOSS OR DAMAGE (DEC 1991) (a) The Contractor shall— (1) Forward to the rightful owner, articles (a) Definitions. of personal property inadvertently packed As used in this clause— with goods of other than the rightful owner. Article means any shipping piece or pack- (2) Ensure that all shipments are stenciled age and its contents. correctly. When a shipment is sent to an in- Schedule means the level of service for correct address due to incorrect stenciling which specific types of traffic apply as de- by the Contractor, the Contractor shall for- scribed in DoD 4500.34–R, Personal Property ward it to its rightful owner. Traffic Management Regulation. (3) Deliver to the designated air or surface (b) For shipments picked up under Sched- terminal all pieces of a shipment, in one lot, ule I, Outbound Services, or delivered under at the same time. The Contractor shall for- Schedule II, Inbound Services— ward to the owner any pieces of one lot not (1) If notified within one year after deliv- included in delivery, and remaining at its fa- ery that the owner has discovered loss or cility after departure of the original ship- damage to the owner’s property, the Con- tractor agrees to indemnify the Government ment. for loss or damage to the property which (b) Forwarding under paragraph (a) shall arises from any cause while it is in the Con- be— tractor’s possession. The Contractor’s liabil- (1) With the least possible delay; ity is— (2) By a mode of transportation selected by (i) Non-negligent damage. For any cause, the Contracting Officer; and other than the Contractor’s negligence, in- (3) At the Contractor’s expense.
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(End of clause) (End of clause)
252.247–7018 Subcontracting. [65 FR 50148, Aug. 17, 2000] As prescribed in 247.271–4(m), use the following clause: 252.247–7021 Returnable containers other than cylinders. SUBCONTRACTING (DEC 1991) As prescribed in 247.305–70, use the The Contractor shall not subcontract with- following clause: out the prior written approval of the Con- RETURNABLE CONTAINERS OTHER THAN tracting Officer. The facilities of any ap- CYLINDERS (MAY 1995) proved subcontractor shall meet the min- imum standards required by this contract. (a) Returnable container, as used in this clause, includes reels, spools, drums, car- (End of clause) boys, liquid petroleum gas containers, and other returnable containers when the Con- 252.247–7019 Drayage. tractor retains title to the container. (b) Returnable containers shall remain the As prescribed in 247.271–4(n), use the Contractor’s property but shall be loaned following clause: without charge to the Government for a pe- riod of lll(insert number of days) calendar DRAYAGE (DEC 1991) days after delivery to the f.o.b. point speci- (a) Drayage included for Schedule I, Out- fied in the contract. Beginning with the first bound, applies in those instances when a day after the loan period expires, to and in- shipment requires drayage to an air, water, cluding the day the containers are delivered or other terminal for onward movement to the Contractor (if the original delivery after completion of shipment preparation by was f.o.b. origin) or are delivered or are made the Contractor. Drayage not included is available for delivery to the Contractor’s when it is being moved from a residence or designated carrier (if the original delivery other pickup point to the Contractor’s ware- was f.o.b. destination), the Government shall house for onward movement by another pay the Contractor a rental of $lll (insert freight company, carrier, etc. dollar amount for rental) per container per (b) Drayage included for Schedule II, In- day, computed separately for containers for bound, applies in those instances when ship- each type, size, and capacity, and for each ment is delivered, as ordered, from a destina- point of delivery named in the contract. No tion Contractor’s facility or other destina- rental shall accrue to the Contractor in ex- tion point to the final delivery point. cess of the replacement value per container Drayage not included is when shipment or specified in paragraph (c) of this clause. partial removal of items from shipment is (c) For each container lost or damaged be- performed and prepared for member’s pickup yond repair while in the Government’s pos- at destination delivery point. session, the Government shall pay to the (c) The Contractor will reposition empty Contractor the replacement value as follows, Government containers— less the allocable rental paid for that con- tainer: (1) Within the area of performance; (2) As directed by the Contracting Officer; llllllllllllllllllllllll and (Insert the container types, sizes, capacities, (3) At no additional cost to the Govern- and associated replacement values.) ment. These containers shall become Govern- ment property. (End of clause) (d) If any lost container is located within lll (insert number of days) calendar days 252.247–7020 Additional services. after payment by the Government, it may be returned to the Contractor by the Govern- As prescribed in 247.271–4(o), use the ment, and the Contractor shall pay to the following clause: Government the replacement value, less rental computed in accordance with para- ADDITIONAL SERVICES (AUG 2000) graph (b) of this clause, beginning at the ex- The Contractor shall provide additional piration of the loan period specified in para- services not included in the Schedule, but re- graph (b) of this clause, and continuing to quired for satisfactory completion of the the date on which the container was deliv- services ordered under this contract, at a ered to the Contractor. rate comparable to the rate for like services as contained in tenders on file with the Mili- (End of clause) tary Traffic Management Command in effect at time of order. [60 FR 29503, June 5, 1995]
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252.247–7022 Representation of extent contract and who is performing any part of of transportation by sea. the work or other requirement of the prime contract. As prescribed in 247.573(a), use the (6) Supplies means all property, except land following provision: and interests in land, that is clearly identifi- able for eventual use by or owned by the DoD REPRESENTATION OF EXTENT OF at the time of transportation by sea. (i) An TRANSPORTATION BY SEA (AUG 1992) item is clearly identifiable for eventual use (a) The Offeror shall indicate by checking by the DoD if, for example, the contract doc- the appropriate blank in paragraph (b) of umentation contains a reference to a DoD this provision whether transportation of sup- contract number or a military destination. plies by sea is anticipated under the result- (ii) Supplies includes (but is not limited to) ant contract. The term supplies is defined in public works; buildings and facilities; ships; the Transportation of Supplies by Sea clause floating equipment and vessels of every char- of this solicitation. acter, type, and description, with parts, sub- (b) Representation. The Offeror represents assemblies, accessories, and equipment; ma- that it— chine tools; material; equipment; stores of all kinds; end items; construction materials; Does anticipate that supplies will be llll and components of the foregoing. transported by sea in the performance of (7) U.S.-flag vessel means a vessel of the any contract or subcontract resulting United States or belonging to the United from this solicitation. States, including any vessel registered or llll Does not anticipate that supplies having national status under the laws of the will be transported by sea in the per- United States. formance of any contract or subcontract (b)(1) The Contractor shall use U.S.-flag resulting from this solicitation. vessels when transporting any supplies by (c) Any contract resulting from this solici- sea under this contract. tation will include the Transportation of (2) A subcontractor transporting supplies Supplies by Sea clause. If the Offeror rep- by sea under this contract shall use U.S.-flag resents that it will not use ocean transpor- vessels if— tation, the resulting contract will also in- (i) This contract is a construction con- clude the Defense FAR Supplement clause at tract; or 252.247–7024, Notification of Transportation (ii) The supplies being transported are— of Supplies by Sea. (A) Noncommercial items; or (B) Commercial items that— (End of provision) (1) The Contractor is reselling or distrib- uting to the Government without adding [56 FR 67222, Dec. 30, 1991, as amended at 57 value (generally, the Contractor does not add FR 42633, Sept. 15, 1992] value to items that it contracts for f.o.b. des- tination shipment); 252.247–7023 Transportation of sup- (2) Are shipped in direct support of U.S. plies by sea. military contingency operations, exercises, As prescribed in 247.573(b)(1), use the or forces deployed in humanitarian or peace- keeping operations; or following clause: (3) Are commissary or exchange cargoes transported outside of the Defense Transpor- TRANSPORTATION OF SUPPLIES BY SEA (MAR 2000) tation System in accordance with 10 U.S.C. 2643. (a) Definitions. As used in this clause— (c) The Contractor and its subcontractors (1) Components means articles, materials, may request that the Contracting Officer au- and supplies incorporated directly into end thorize shipment in foreign-flag vessels, or products at any level of manufacture, fab- designate available U.S.-flag vessels, if the rication, or assembly by the Contractor or Contractor or a subcontractor believes any subcontractor. that— (2) Department of Defense (DoD) means the (1) U.S.-flag vessels are not available for Army, Navy, Air Force, Marine Corps, and timely shipment; defense agencies. (2) The freight charges are inordinately ex- (3) Foreign flag vessel means any vessel that cessive or unreasonable; or is not a U.S.-flag vessel. (3) Freight charges are higher than charges (4) Ocean transportation means any trans- to private persons for transportation of like portation aboard a ship, vessel, boat, barge, goods. or ferry through international waters. (d) The Contractor must submit any re- (5) Subcontractor means a supplier, quest for use of other than U.S.-flag vessels materialman, distributor, or vendor at any in writing to the Contracting Officer at least level below the prime contractor whose con- 45 days prior to the sailing date necessary to tractual obligation to perform results from, meet its delivery schedules. The Contracting or is conditioned upon, award of the prime Officer will process requests submitted after
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such date(s) as expeditiously as possible, but (g) If the final invoice does not include the the Contracting Officer’s failure to grant ap- required representation, the Government provals to meet the shipper’s sailing date will reject and return it to the Contractor as will not of itself constitute a compensable an improper invoice for the purposes of the delay under this or any other clause of this Prompt Payment clause of this contract. In contract. Requests shall contain at a min- the event there has been unauthorized use of imum— non-U.S.-flag vessels in the performance of (1) Type, weight, and cube of cargo; this contract, the Contracting Officer is enti- (2) Required shipping date; tled to equitably adjust the contract, based (3) Special handling and discharge require- on the unauthorized use. ments; (h) The Contractor shall include this (4) Loading and discharge points; clause, including this paragraph (h), in all (5) Name of shipper and consignee; subcontractors under this contract that— (6) Prime contract number; and (1) Exceed the simplified acquisition (7) A documented description of efforts threshold in Part 2 of the Federal Acquisi- made to secure U.S.-flag vessels, including tion Regulation; and points of contact (with names and telephone (2) Are for a type of supplies described in numbers) with at least two U.S.-flag carriers paragraph (b)(3) of this clause. contacted. Copies of telephone notes, tele- graphic and facsimile message or letters will (End of clause) be sufficient for this purpose. (e) The Contractor shall, within 30 days ALTERNATE I (MAR 2000) after each shipment covered by this clause, As prescribed in 247.573(b)(2), substitute the provide the Contracting Officer and the Divi- following paragraph (b) for paragraph (b) of sion of National Cargo, Office of Market De- the basic clause: velopment, Maritime Administration, U.S. (b)(1) The Contractor shall use U.S.-flag Department of Transportation, Washington, vessels when transporting any supplies by DC 20590, one copy of the rated on board ves- sea under this contract. sel operating carrier’s ocean bill of lading, (2) A subcontractor transporting supplies which shall contain the following informa- by sea under this contract shall use U.S.-flag tion— vessels if the supplies being transported (1) Prime contract number; are— (2) Name of vessel; (i) Noncommercial items; or (3) Vessel flag of registry; (ii) Commercial items that— (4) Date of loading; (A) The Contractor is reselling or distrib- (5) Port of loading; uting to the Government without adding (6) Port of final discharge; value (generally, the Contractor does not add (7) Description of commodity; value to items that it subcontracts for f.o.b. (8) Gross weight in pounds and cubic feet if destination shipment); available; (B) Are shipped in direct support of U.S. (9) Total ocean freight in U.S. dollars; and military contingency operations, exercises, (10) Name of the steamship company. or forces deployed in humanitarian or peace- (f) The Contractor agrees to provide with keeping operations (Note: This contract re- its final invoice under this contract a rep- quires shipment of commercial items in di- resentation that to the best of its knowledge rect support of U.S. military contingency op- and belief— erations, exercises, or forces deployed in hu- (1) No ocean transportation was used in the manitarian or peacekeeping operations); or performance of this contract; (C) Are commissary or exchange cargoes (2) Ocean transportation was used and only transported outside of the Defense Transpor- U.S.-flag vessels were used for all ocean ship- tation System in accordance with 10 U.S.C. ments under the contract; 2643. (3) Ocean transportation was used, and the Contractor had the written consent of the ALTERNATE II (MAR 2000) Contracting Officer for all non-U.S.-flag ocean transportation; or As prescribed in 247.573(b)(3), substitute the (4) Ocean transportation was used and following paragraph (b) for paragraph (b) of some or all of the shipments were made on the basic clause: non-U.S.-flag vessels without the written (b)(1) The Contractor shall use U.S.-flag consent of the Contracting Officer. The Con- vessels when transporting any supplies by tractor shall describe these shipments in the sea under this contract. following format: (2) A subcontractor transporting supplies by sea under this contract shall use U.S.-flag vessels if the supplies being transported Item Descrip- Contract Line Quantity tion Items are— (i) Noncommercial items; or Total. (ii) Commercial items that—
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(A) The Contractor is reselling or distrib- (End of clause) uting to the Government without adding value (generally, the Contractor does not add [56 FR 36479, July 31, 1991, as amended at 60 value to items that it subcontracts for f.o.b. FR 61603, Nov. 30, 1995; 65 FR 14402, Mar. 16, destination shipment), 2000] (B) Are shipped in direct support of U.S. military contingency operations, exercises, 252.247–7025 Reflagging or repair or forces deployed in humanitarian or peace- work. keeping operations; or (C) Are commissary or exchange cargoes As prescribed in 247.573(d), use the transported outside of the Defense Transpor- following clause: tation System in accordance with 10 U.S.C. 2643 (Note: This contract requires transpor- REFLAGGING OR REPAIR WORK (MAY 1995) tation of commissary or exchange cargoes (a) Definition. outside of the Defense Transportation Sys- Reflagging or repair work, as used in this tem in accordance with 10 U.S.C. 2643). clause, means work performed on a vessel— [56 FR 36479, July 31, 1991, as amended at 60 (1) To enable the vessel to meet applicable FR 61602, Nov. 30, 1995; 65 FR 14401, Mar. 16, standards to become a vessel of the United 2000] States; or (2) To convert the vessel to a more useful 252.247–7024 Notification of transpor- military configuration. tation of supplies by sea. (b) Requirement. Unless the Secretary of Defense waives this requirement, reflagging As prescribed in 247.573(c), use the or repair work shall be performed in the following clause: United States or its territories, if the reflag- ging or repair work is performed— NOTIFICATION OF TRANSPORTATION OF (1) On a vessel for which the Contractor SUPPLIES BY SEA (MAR 2000) submitted an offer in response to the solici- (a) The Contractor has indicated by the re- tation for this contract; and sponse to the solicitation provision, Rep- (2) Prior to acceptance of the vessel by the resentation of Extent of Transportation by Government. Sea, that it did not anticipate transporting by sea any supplies. If, however, after the (End of clause) award of this contract, the Contractor learns that supplies, as defined in the Transpor- [60 FR 29503, June 5, 1995] tation of Supplies by Sea clause of this con- tract, will be transported by sea, the Con- 252.249–7000 Special termination tractor— costs. (1) Shall notify the Contracting Officer of that fact; and As prescribed in 249.501–70, use the (2) Hereby agrees to comply with all the following clause: terms and conditions of the Transportation SPECIAL TERMINATION COSTS (DEC 1991) of Supplies by Sea clause of this contract. (b) The Contractor shall include this (a) Definition.— Special termination costs, as clause; including this paragraph (b), revised used in this clause, means only costs in the as necessary to reflect the relationship of following categories as defined in part 31 of the contracting parties— the Federal Acquisition Regulation (FAR)— (1) In all subcontracts under this contract, (1) Severance pay, as provided in FAR if this contract is a construction contract; or 31.205–6(g); (2) If this contract is not a construction (2) Reasonable costs continuing after ter- contract, in all subcontracts under this con- mination, as provided in FAR 31.205–42(b); tract that are for— (3) Settlement of expenses, as provided in (i) Noncommercial items; or FAR 31.205–42(g); (ii) Commercial items that— (4) Costs of return of field service personnel (A) The Contractor is reselling or distrib- from sites, as provided in FAR 31.205–35 and uting to the Government without adding FAR 31.205–46(c); and value (generally, the Contractor does not add (5) Costs in paragraphs (a) (1), (2), (3), and value to items that it subcontracts for f.o.b. (4) of this clause to which subcontractors destination shipment); may be entitled in the event of termination. (B) Are shipped in direct support of U.S. (b) Notwithstanding the Limitation of military contingency operations, exercises, Cost/Limitation of Funds clause of this con- or forces deployed in humanitarian or peace- tract, the Contractor shall not include in its keeping operations; or estimate of costs incurred or to be incurred, (C) Are commissary or exchange cargoes any amount for special termination costs to transported outside of the Defense Transpor- which the Contractor may be entitled in the tation System in accordance with 10 U.S.C. event this contract is terminated for the 2643. convenience of the Government.
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(c) The Contractor agrees to perform this Training Partnership Act (29 U.S.C. contract in such a manner that the Contrac- 1661(b)(2)); and tor’s claim for special termination costs will (4) The chief elected official of the unit of not exceed $llll. The Government shall general local government within which the have no obligation to pay the Contractor any adverse effect may occur. amount for the special termination costs in (d) Notice to subcontractors. Not later than excess of this amount. 60 days after the Contractor receives the (d) In the event of termination for the con- Contracting Officer’s notice of the antici- venience of the Government, this clause pated termination or reduction, the Con- shall not be construed as affecting the allow- tractor shall— ability of special termination costs in any (1) Provide notice of the anticipated termi- manner other than limiting the maximum nation or reduction to each first-tier subcon- amount of the costs payable by the Govern- tractor with a subcontract of $500,000 or ment. more; and (e) This clause shall remain in full force (2) Require that each such subcontractor— and effect until this contract is fully funded. (i) Provide notice to each of its subcontrac- tors with a subcontract of $100,000 or more; (End of clause) and (ii) Impose a similar notice and flowdown 252.249–7001 [Reserved] requirement to subcontractors with sub- contracts of $100,000 or more. 252.249–7002 Notification of antici- (e) The notice provided an employee under pated contract termination or re- paragraph (c) of this clause shall have the duction. same effect as a notice of termination to the As prescribed in 249.7003(c), use the employee for the purposes of determining following clause: whether such employee is eligible for train- ing, adjustment assistance, and employment NOTIFICATION OF ANTICIPATED CONTRACT services under section 325 or 325A of the Job TERMINATION OR REDUCTION(DEC 1996) Training Partnership Act (29 U.S.C. 1662d, 1662d-1). If the Contractor has specified that (a) Definitions. the anticipated contract termination or re- Major defense program means a program duction is not likely to result in plant clo- that is carried out to produce or acquire a sure or mass layoff, as defined in 29 U.S.C. major system (as defined in 10 U.S.C. 2302(5)) 2101, the employee shall be eligible only for (see also DoD 5000.2–R, Mandatory Proce- services under section 314(b) and paragraphs dures for Major Defense Acquisition Pro- (1) through (14), (16), and (18) of section 314(c) grams (MDAPs) and Major Automated Infor- of the Job Training Partnership Act (29 mation System (MAIS) Acquisition Pro- U.S.C. 1661c(b) and paragraphs (1) through grams). (14), (16), and (18) of section 1661c(c)). Substantial reduction means a reduction of 25 percent or more in the total dollar value (End of clause) of funds obligated by the contract. (b) Section 1372 of the National Defense Authorization Act for Fiscal Year 1994 (Pub. [61 FR 64637, Dec. 6, 1996] L. 103–160) and Section 824 of the National Defense Authorization Act for Fiscal Year 252.251–7000 Ordering from Govern- 1997 (Pub. L. 104–201) are intended to help es- ment supply sources. tablish benefit eligibility under the Job As prescribed in 251.107, use the fol- Training Partnership Act (29 U.S.C. 1661 and lowing clause: 1662) for employees of DoD contractors and subcontractors adversely affected by con- ORDERING FROM GOVERNMENT SUPPLY tract terminations or substantial reductions SOURCES (MAY 1995) under major defense programs. (c) Notice to employees and state and local of- (a) When placing orders under Federal Sup- ficials. Within 2 weeks after the Contracting ply Schedules or Personal Property Rehabili- Officer notifies the Contractor that contract tation Price Schedules, the Contractor shall funding will be terminated or substantially follow the terms of the applicable schedule reduced, the Contractor shall provide notice and authorization. Include in each order: of such anticipated termination or reduction (1) A copy of the authorization (unless a to— copy was previously furnished to the Federal (1) Each employee representative of the Supply Schedule or Personal Property Reha- Contractor’s employees whose work is di- bilitation Price Schedule contractor). rectly related to the defense contract; or (2) The following statement: This order is (2) If there is no such representative, each placed under written authorization from such employee; llllll dated llllll. (3) The State dislocated worker unit or of- In the event of any inconsistency between fice described in section 311(b)(2) of the Job the terms and conditions of this order and
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those of your Federal Supply Schedule con- tractor shall be solely responsible for any in- tract or Personal Property Rehabilitation creased costs. Price Schedule contract, the latter will gov- (e) Only the Contractor may request au- ern. thorization for subcontractor use of Govern- (3) The completed address(es) to which the ment supply sources. The Contracting Offi- Contractor’s mail, freight, and billing docu- cer will not grant authorizations for subcon- ments are to be directed. tractor use without approval of the Con- (b) If a Federal Supply Schedule contractor tractor. refuses to honor an order placed by a Gov- (f) Government invoices shall be submitted ernment contractor under an agency author- to the Contractor’s billing address, and Con- ization, the Contractor shall report the cir- tractor payments shall be sent to the Gov- cumstances to the General Services Admin- ernment remittance address specified below: istration, FFN, Washington, DC 20406, with a Contractor’s Billing Address (include point copy to the authorizing office. of contact and telephone number): (c) When placing orders under nonmanda- tory schedule contracts and requirements Government Remittance Address (include contracts, issued by the General Services Ad- point of contact and telephone number): ministration (GSA) Office of Information Re- sources Management, for automated data (End of clause) processing equipment, software and mainte- nance, communications equipment and sup- [56 FR 36479, July 31, 1991, as amended at 60 plies, and teleprocessing services, the Con- FR 29503, June 5, 1995] tractor shall follow the terms of the applica- ble contract and the procedures in paragraph 252.251–7001 Use of Interagency Fleet (a) of this clause. Management System (IFMS) vehi- (d) When placing orders for Government cles and related services. stock, the Contractor shall— As prescribed in 251.205, use the fol- (1) Comply with the requirements of the Contracting Officer’s authorization, using lowing clause: FEDSTRIP or MILSTRIP procedures, as ap- USE OF INTERAGENCY FLEET MANAGEMENT propriate; SYSTEM (IFMS) VEHICLES AND RELATED (2) Use only the GSA Form 1948–A, Retail SERVICES (DEC 1991) Services Shopping Plate, when ordering from GSA Self-Service Stores; (a) The Contractor, if authorized use of (3) Order only those items required in the IFMS vehicles, shall submit requests for five performance of Government contracts; and or fewer vehicles and related services in (4) Pay invoices from Government supply writing to the appropriate General Services sources promptly. For purchases made from Administration (GSA) Regional Customer DoD supply sources, this means within 30 Service Bureau, Attention: Motor Equipment days of the date of a proper invoice (see also Activity. Submit requests for more than five Defense Federal Acquisition Regulation Sup- vehicles to GSA headquarters: General Serv- plement (DFARS) 251.105). For purposes of ices Administration, FTM, Washington, DC computing interest for late Contractor pay- 20406. Include the following in each request: ments, the Government’s invoice is deemed (1) Two copies of the agency authorization to be a demand for payment in accordance to obtain vehicles and related services from with the Interest clause of this contract. The GSA. Contractor’s failure to pay may also result (2) The number of vehicles and related in the DoD supply source refusing to honor services required and the period of use. the requisition (see DFARS 251.102(f)) or in (3) A list of the Contractor’s employees au- the Contracting Officer terminating the Con- thorized to request vehicles and related serv- tractor’s authorization to use DoD supply ices. sources. In the event the Contracting Officer (4) A list of the makes, models, and serial decides to terminate the authorization due numbers of Contractor-owned or leased to the Contractor’s failure to pay in a timely equipment authorized to be serviced. manner, the Contracting Officer shall pro- (5) Billing instructions and address. vide the Contractor with prompt written no- (b) The Contractor should make requests tice of the intent to terminate the authoriza- for any unusual quantities of vehicles as far tion and the basis for such action. The Con- in advance as possible. tractor shall have 10 days after receipt of the (c) The Contractor shall establish and en- Government’s notice in which to provide ad- force suitable penalties for employees who ditional information as to why the author- use or authorize the use of Government vehi- ization should not be terminated. Such ter- cles for other than performance of Govern- mination shall not provide the Contractor ment contracts. with an excusable delay for failure to per- (d) The Contractor shall assume, without form or complete the contract in accordance the right of reimbursement from the Govern- with the terms of the contract, and the Con- ment, the cost or expense of any use of IFMS
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vehicles and services not related to the per- in accordance with departmental data formance of the contract. collection point instructions. (e) Only the Contractor may request au- (iii) Code 2—Correcting. A correcting thorization for subcontractor use of IFMS action corrects an existing DD Form vehicles. The Contracting Officer will not grant authorization for subcontractor use 350 action in accordance with depart- without approval of the Contractor. mental data collection point instruc- tions. (End of clause) (2) LINE A2, REPORT NUMBER. Enter the six-position local control PART 253—FORMS number (see 204.670–3(a)(5)). If Line A1 is coded 1 or 2, use the prior report Subpart 253.2—Prescription of Forms number rather than a new one. (3) LINE A3, CONTRACTING OF- Sec. FICE. 253.204 Administrative matters. (i) LINE A3A, REPORTING AGENCY 253.204–70 DD Form 350, Individual Con- FIPS 95 CODE. Enter one of the fol- tracting Action Report. lowing codes: 2100 (Army); 1700 (Navy), 253.204–71 DD Form 1057, Monthly Summary of Contracting Actions. 5700 (Air Force); 96CE (Army Civil 253.208 Required sources of supplies and Works); 97AS (DLA); 9700 (all other de- services. fense agencies). 253.208–1 DD Form 448, Military Inter- (ii) LINE A3B, CONTRACTING OF- departmental Purchase Request. FICE CODE. Enter the code assigned 253.208–2 DD Form 448–2, Acceptance of by the departmental data collection MIPR. point in 204.670–1(c). 253.209 Contractor qualifications. (4) LINE A4, NAME OF CON- 253.209–1 Responsible prospective contrac- tors. TRACTING OFFICE. Enter sufficient 253.213 Simplified acquisition procedures detail to establish the identity of the (SF’s 18, 30, 44, 1165, 1449, and OF’s 336, contracting office. 347, and 348). (b) Part B of the DD Form 350. Part B 253.213–70 Instructions for completion of DD identifies the transaction. Form 1155. (1) LINE B1, CONTRACT IDENTI- 253.215 Contracting by negotiation. FICATION INFORMATION. Do not 253.215–70 DD Form 1547, Record of Weighted leave any parts of Line B1 blank. Guidelines Application. (i) LINE B1A, CONTRACT NUMBER. AUTHORITY: 41 U.S.C. 421 and 48 CFR chap- (A) Enter— ter 1. (1) The DoD contract number; or SOURCE: 56 FR 36554, July 31, 1991, unless (2) For orders under contracts award- otherwise noted. ed by other Federal agencies, the con- tract number of that Federal agency as Subpart 253.2—Prescription of it appears in the contractual instru- Forms ment. (B) Do not leave spaces between char- 253.204 Administrative matters. acters, and do not enter dashes, slants, or any other punctuation marks. 253.204–70 DD Form 350, Individual (C) The DoD contract number is the Contracting Action Report. basic (13-position alphanumeric char- Policy on use of a DD Form 350 is in acter) procurement instrument identi- 204.670–2. This subsection contains in- fication number (PIIN) that was as- structions for completion of the DD signed in accordance with 204.7003 or Form 350. constructed under an exception per- (a) Part A of the DD Form 350. Part A mitted by 204.7000. Do not enter any identifies the report and the reporting supplementary procurement instru- activity. Complete all four lines. ment identification numbers as part of (1) LINE A1, TYPE OF REPORT. the contract number (these go on Line Enter one of the following codes: B2). (i) Code 0—Original. Enter code 0 un- (ii) LINE B1B, ORIGIN OF CON- less code 1 or code 2 applies. TRACT. Enter the code that indicates (ii) Code 1—Canceling. A canceling ac- the agency that assigned the contract tion cancels an existing DD Form 350 number.
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(A) Code A—DoD. sition modification number (see (B) Code B—NASA. 204.7004(e)). When reporting modifica- (C) Code C—Other Non-DoD Agency. tions to calls and orders, enter both (iii) LINE B1C, BUNDLED CON- the call or order number and the modi- TRACT. Enter one of the following fication number. codes: (3) LINE B3, ACTION DATE. (A) Code Y—Yes. Enter code Y when (i) Enter the year, month, and day of the contract meets the definition of the effective date for fiscal obligation ‘‘bundled contract’’ at FAR 2.101 and purposes. the contract value exceeds $5 million. (ii) Enter four digits for the year, two (B) Code N—No. Enter code N when digits for the month, and two digits for code Y does not apply. the day. Use 01 through 12 for January (iv) LINE B1D, BUNDLED CON- through December. For example, enter TRACT EXCEPTION. If Line B1C is January 2, 2003, as 20030102. coded Y, enter one of the following (4) LINE B4, COMPLETION DATE. codes. Otherwise, leave Line B1D (i) Enter the year, month, and day of blank. the last contract delivery date or the (A) Code A—Mission Critical. Enter end of the performance period. If the code A if the agency has determined contract is incrementally funded, re- that the consolidation of requirements port the completion date for the entire is critical to the agency’s mission, but contract. Report the completion date the measurably substantial benefits do associated with an option quantity not meet the thresholds set forth in when the option is exercised. FAR 7.107 to determine that the con- (ii) Enter four digits for the year, two solidation is necessary and justified. digits for the month, and two digits for (B) Code B—OMB Circular A–76. Enter the day. Use 01 through 12 for January code B if the agency used the OMB Cir- through December. For example, enter cular A–76 process to determine that January 2, 2003, as 20030102. the consolidation of requirements is (5) LINE B5, CONTRACTOR IDENTI- necessary and justified rather than ap- FICATION INFORMATION. plying the substantial benefits analysis required by FAR 7.107. (i) Use data that relates to the con- (C) Code C—Other. Enter code C when tractor whose name and address appear codes A and B do not apply. in the contract document (Block 7 of (v) LINE BIE, PERFORMANCE- the SF 26, Award/Contract; Block 8 of BASED SERVICE CONTRACT (see the SF 30, Amendment of Solicitation/ FAR Subpart 37.6). Enter one of the fol- Modification of Contract; Block 15A of lowing codes: the SF 33, Solicitation, Offer and (A) Code Y—Yes. Enter code Y when— Award; or Block 9 of the DD Form 1155, (1) The contract value exceeds Order for Supplies or Services), ex- $100,000; and cept— (2) At least 80 percent of the contract (A) For contracts placed with the value is for work that is performance Small Business Administration under based. Section 8(a) of the Small Business Act, (B) Code N—No. Enter code N when use data that relates to the company code Y does not apply. that will be performing the work; (2) LINE B2, MODIFICATION, (B) For Federal schedule orders, use ORDER, OR OTHER ID NUMBER. data that applies to the contractor Enter the supplementary procurement whose name appears on the schedule instrument identification number (if (not the data for the agent to whom or- there is one) that was assigned in ac- ders may be sent); and cordance with 204.7004 or as permitted (C) For contracts with the Canadian by 204.7000. It can be up to 19 char- Commercial Corporation (CCC), use acters. Usually calls and orders have a data for the appropriate CCC office. four-position number (see 204.7004(d)); (ii) Some of the parts of Line B5 may modifications to contracts and agree- not apply to the action being reported. ments have a six-position modification Follow the instructions for each part. number (see 204.7004(c)); and modifica- (A) LINE B5A, CONTRACTOR IDEN- tions to calls and orders have a two-po- TIFICATION NUMBER (DUNS).
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(1) Enter the contractor’s 9-position (H) LINE B5H, PARENT NAME. If a Data Universal Numbering System parent company TIN is entered on Line (DUNS) number (see FAR 4.602(d) and B5G, enter the name of the parent com- 4.603 and DFARS subpart 204.73). pany (common parent) on Line B5H. (2) For U.S. Army Contracting Com- Leave Line B5H blank if there is no mand, Europe, consolidated reporting parent company or the parent company of vouchers for utilities from munici- is exempted from the requirement to palities, use DUNS number 15–390–6193 have a TIN. (see 204.670–6(b)(1)). (6) LINE B6, PRINCIPAL PLACE OF (B) LINE B5B, GOVERNMENT PERFORMANCE. AGENCY. Enter one of the following (i) The place, or places, where the codes: contract will be performed may be (1) Code Y—Yes. Enter code Y when specified by the Government or listed the contractor is a Federal, State, or by the contractor in response to the so- local government agency of the United licitation provision at FAR 52.214–14, States and outlying areas (see 204.670– Place of Performance—Sealed Bidding, 1(d)). Do not use code Y when the gov- or FAR 52.215–6, Place of Performance. ernment agency is an educational in- Use data for the contractor’s principal stitution. place of performance, which is gen- (2) Code N—No. Enter code N when erally the— code Y does not apply. (A) Final assembly point for items manufactured under supply contracts; (C) LINE B5C, Reserved. (B) Location from where shipments (D) LINE B5D, CONTRACTOR NAME from stock are made under supply con- AND DIVISION NAME. Enter the con- tracts; tractor’s name as stated in the offer (C) Actual construction site for con- and resultant contract. Include its di- struction contracts; vision name. (D) Planned construction site for ar- (E) LINE B5E, CONTRACTOR AD- chitect-engineer contracts; DRESS. Enter the contractor’s address (E) Place of mining for mined sup- as stated in the offer and resultant plies; or contract. Include street address or P.O. (F) Place (including military instal- Box, city or town, state or country, lations) where a service is performed and ZIP code, if applicable. Do not for service contracts. enter foreign postal codes. (ii) When there is more than one lo- (F) LINE B5F, TAXPAYER IDENTI- cation for any of paragraphs (b)(6)(i)(A) FICATION NUMBER. Enter the con- through (F) of this subsection (e.g., tractor’s taxpayer identification num- more than one construction site), use ber (TIN) (see FAR subpart 4.9). Leave the location involving the largest dol- Line B5F blank if the contractor is— lar amount of the acquisition. Do not (1) A nonresident alien, foreign cor- show more than one location on Line poration, or foreign partnership that B6. does not have income effectively con- (iii) If places of performance are too nected with the trade or business in varied or not known, enter the contrac- the United States; and does not have tor’s home office location. However, if an office or place of business or a fiscal the contractor is a domestic concern paying agent in the United States; and the entire contract will be per- (2) An agency or instrumentality of a formed outside the United States, foreign government; or enter the most frequent place of per- (3) An agency or instrumentality of formance. the Federal Government. (iv) Follow the instructions for each (G) LINE B5G, PARENT TAXPAYER part of Line B6 that applies to the ac- IDENTIFICATION NUMBER. Enter the tion being reported. contractor’s parent company (common (A) LINE B6A, CITY OR PLACE parent) TIN (see FAR subpart 4.9 and CODE. 52.204–3). If the contractor does not (1) For places in the United States have a parent company or the parent and outlying areas, enter the numeric company meets the exemption for Line place code from FIPS PUB 55, Guide- B5F, leave Line B5G blank. line: Codes for Named Populated
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Places, Primary Country Divisions, (i) Code Y—Yes. Enter code Y when and Other Locational Entities of the the action is under a foreign military United States and Outlying Areas. sales arrangement, or under any other Leave Line B6A blank for places out- arrangement when a foreign country or side the United States and outlying international organization is bearing areas. the cost of the acquisition. (2) If the city or locality is not listed, (ii) Code N—No. Enter code N when look in FIPS PUB 55 for the county code Y does not apply. code of the principal place of perform- (10) LINE B10, MULTIYEAR CON- ance. Enter that code on Line B6A. Use TRACT. Enter one of the following 50000 for Washington, DC, with a State codes: code of 11. (i) Code Y—Yes. Enter code Y when (3) Paragraph 5.2, Entry Selection the action is a multiyear contract as With the Aid of the Class Code, of FIPS defined at FAR 17.103. Do not report PUB 55 will help in selecting the cor- contracts containing options as rect code. Sometimes, a class code multiyear unless the definition at FAR should be used in addition to a place 17.103 applies to the contract. code to accurately identify the place of (ii) Code N—No. Enter code N when performance. Do not use place codes code Y does not apply. when the first position of the class (11) LINE B11, TOTAL ESTIMATED code is X or Z. CONTRACT VALUE. Enter the total (B) LINE B6B, STATE OR COUNTRY estimated contract value (in whole dol- CODE. lars) only at the time of initial place- (1) For places in the United States ment of the contract, including place- and outlying areas, enter the numeric ment of an indefinite-delivery or State code from FIPS PUB 55 or FIPS multiyear contract. Include the total PUB 5, Codes for the Identification of estimated value of orders and options the States, the District of Columbia anticipated to be placed over the life of and the Outlying Areas of the United the contract. States and Associated Areas. (12) LINE B12, PRINCIPAL PROD- (2) For places outside the United UCT OR SERVICE. Line B12 has five States and outlying areas, enter the parts. Do not leave any parts of Line alpha country code from FIPS PUB 10, B12 blank. Codes for Line B12 can be Countries, Dependencies, Areas of Spe- found in the DoD Procurement Coding cial Sovereignty, and Their Principal Manual (MN02) under ‘‘PRODUCT AND Administrative Divisions. SERVICE CODE ASCII FILE (C) LINE B6C, CITY OR PLACE AND DOWNLOADS’’ at the bottom of the STATE OR COUNTRY NAME. Enter following web page: http:// the name of the principal place of per- web1.whs.osd.mil/peidhome/guide/mn02/ formance. Do not leave Line B6C blank. mn02.htm. (7) LINE B7, TYPE OBLIGATION. (i) LINE B12A, FEDERAL SUPPLY Enter one of the following codes: CLASS OR SERVICE CODE. Enter the (i) Code 1—Obligation. Enter code 1 if 4-character Federal supply class (FSC) the action obligates funds. or service code that describes the con- (ii) Code 2—Deobligation. Enter code 2 tract effort. There are three categories if the action deobligates funds. of codes to choose from. If more than (iii) Code 3—No Dollars Obligated or one category or code applies to the ac- Deobligated. Enter code 3 if the action tion, enter the one that best identifies neither obligates nor deobligates funds. the product or service representing the (8) LINE B8, OBLIGATED OR largest dollar value. DEOBLIGATED DOLLARS. Enter the (A) Supplies. If the action is for the net amount of funds (whole dollars purchase (not lease or rental) of sup- only) obligated or deobligated by the plies, enter an FSC code on Line B12A. action. Enter zero if Line B7 is coded 3. FSC codes are all numeric. The Depart- (9) LINE B9, FOREIGN MILITARY ment of Defense Federal Supply Classi- SALE. Enter one of the following fication Cataloging Handbook (H2) may codes. If only part of the action is a also help with the correct 4-digit code. foreign military sale, separately report (B) Services. If the action is for serv- the parts (see 204.670–6(c)). ices (except research, development,
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test, and evaluation), construction, the action, enter three zeros. If more equipment lease or rental, or facilities than one code applies to the action, lease or rental, enter a service code on enter the one that best identifies the Line B12A. product or service representing the (C) Research, Development, Test, and largest dollar value. Evaluation (RDT&E). If the action is for (B) If the action is funded by the Bal- RDT&E (as defined in FAR 35.001 and listic Missile Defense Organization, 235.001), enter an RDT&E code on Line enter code CAA. B12A. All RDT&E codes should begin (C) If the action supports environ- with the letter ‘‘A.’’ Do not use an mental cleanup programs, enter one of RDT&E code for— the codes listed in Section II of the (1) Purchase, lease, or rental of DoD Procurement Coding Manual equipment, supplies, or services sepa- (MN02) under the heading ‘‘Environ- rately purchased in support of RDT&E mental Cleanup Programs’’ at http:// work, even if RDT&E funds are cited. web1.whs.osd.mil/peidhome/guide/mn02/ Instead, use an FSC or Service code SECT2.HTM. under the instructions in paragraph (D) Defense Logistics Agency and De- (b)(12)(i)(A) or (B) of this subsection; or fense Contract Management Agency ac- (2) Orders under Federal schedule tivities must use the code assigned by contracts. Instead, use an FSC or Serv- the sponsoring military department. ice code under the instructions in para- (iv) LINE B12D, NAICS CODE. Enter graph (b)(12)(i)(A) or (B) of this sub- the North American Industry Classi- section. fication System (NAICS) code for the (ii) LINE B12B, DOD CLAIMANT acquisition. Use the NAICS code in ef- PROGRAM CODE. Enter a code that fect at the time of award. These codes identifies the commodity described on are in the 1997 U.S. NAICS Manual Line B12E. If more than one code ap- (http://www.census.gov/pub/epcd/www/ plies to the action, enter the one that naics.html). If more than one code ap- best identifies the product or service plies to the action, enter the code that representing the largest dollar value. If best identifies the product or service the description on Line B12E is for— representing the largest dollar value. (A) Research and development (R&D), (v) LINE B12E, NAME OR DESCRIP- enter the code that best represents the TION. Enter the name or a brief de- objective of the R&D. For example, if scription of the commodity or service. the objective of the R&D is a guided If the description is classified, enter missile, enter code A20. If the R&D only the word ‘‘Classified.’’ Do not use cannot be identified to any particular ‘‘Classified’’ when a code name (e.g., objective, enter code S10; Minuteman, Polaris, Trident, Pershing) (B) Ship repair, inspect and repair as or an identifying program number (e.g., necessary (IRAN), modification of air- WS–107A) can be used. craft, overhaul of engines, or similar (vi) LINE B12F, EPA-DESIGNATED maintenance, repair, or modification PRODUCT(S). Enter one of the fol- services, enter the code that best iden- lowing codes: tifies the program; (1) Code A—EPA-Designated Product(s) (C) Equipment rental (including rent- with Minimum Recovered Material Con- al of automatic data processing equip- tent. Enter code A if Environmental ment), enter code S10; Protection Agency (EPA)-designated (D) Utility services, enter code S10; product(s) were acquired and all con- (E) Services that cannot be identified tained the required minimum recov- to any listed program, enter code S10; ered material content. See the EPA or Comprehensive Procurement Guide- (F) Supplies or equipment that can- lines program list at http:// not be identified to any listed program, www.epa.gov/cpg/. enter code C9E. (2) Code B—FAR 23.405(c)(1) Justifica- (iii) LINE B12C, PROGRAM, SYS- tion. Enter code B if EPA-designated TEM, OR EQUIPMENT CODE. product(s) were acquired without the (A) Enter a code that describes the required minimum recovered material program, weapons system, or equip- content and a justification was com- ment. If there is no code that applies to pleted based on inability to acquire the
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product(s) competitively within a rea- (ii) Notices of award. sonable period of time. (iii) Lease agreements. (3) Code C—FAR 23.405(c)(2) Justifica- (iv) Indefinite-delivery-definite-quan- tion. Enter code C if EPA-designated tity contracts (FAR 52.216–20). product(s) were acquired without the (v) Indefinite-delivery-indefinite- required minimum recovered material quantity contracts (FAR 52.216–22) content and a justification was com- when funds are obligated by the con- pleted based on inability to acquire the tract itself. product(s) at a reasonable price. (2) Code 3 excludes orders from the (4) Code D—FAR 23.405(c)(3) Justifica- Procurement List (see codes 6 and 8). tion. Enter code D if EPA-designated (C) Code 4—Order under an Agreement. product(s) were acquired without the Enter code 4 when the action is an required minimum recovered material order or definitization of an order content and a justification was com- under an agreement other than a blan- pleted based on inability to acquire the ket purchase agreement. Examples in- product(s) to reasonable performance standards in the specifications. clude an order exceeding $25,000 under a (5) Code E—No EPA-Designated Prod- basic ordering agreement or a master uct(s) Acquired. Enter code E if no EPA- ship repair agreement and a job order designated products were acquired. when the contract is created by issuing (vii) LINE B12G, RECOVERED MA- the order. An order under a blanket TERIAL CLAUSES. When Line B12F is purchase agreement established under coded A, B, C, or D, enter one of the a Federal schedule (see FAR 8.404(b)(4)) following codes. Otherwise, leave Line is coded 7. An order under other blan- B12G blank. ket purchase agreements, pursuant to (1) Code A—FAR 52.223–4. Enter code FAR 13.303, is coded 9. When the action A if the solicitation included the provi- is a modification to an order described sion at FAR 52.223–4, Recovered Mate- in code 4 instructions, enter code 4 on rial Certification. Line B13A. (2) Code B—FAR 52.223–4 and FAR (D) Code 5—Order under Indefinite-De- 52.223–9. Enter code B if the solicitation livery Contract. Enter code 5 when the included the provision at FAR 52.223–4, action is an order, including a task or Recovered Material Certification, and delivery order, under an indefinite-de- the contract includes the clause at livery contract awarded by a Federal FAR 52.223–9, Estimate of Percentage agency. For example, enter code 5 for of Recovered Material Content for an order under a GSA indefinite-deliv- EPA-Designated Products. ery contract, such as a GSA area-wide (13) LINE B13, KIND OF ACTION. contract for utility services, that is Some of the parts of Line B13 may not not a Federal schedule. When the ac- apply to the action being reported. Fol- tion is a modification to an order de- low instructions for each part. When scribed in code 5 instructions, enter the action is a modification, complete code 5 on Line B13A. Lines B13A and B13D. (E) Code 6—Order under Federal Sched- (i) LINE B13A, CONTRACT OR ule. Enter code 6 if the action is an ORDER. Enter one of the following order under a Federal schedule. An codes: order under a blanket purchase agree- (A) Code 1—Letter Contract. Enter ment established under a Federal code 1 when the action is a letter con- schedule is coded 7. Code 6 includes or- tract or a modification to a letter con- ders under Federal schedules for items tract that has not been definitized. on the Procurement List. When the ac- (B) Code 3—Definitive Contract. tion is a modification to an order de- (1) Enter code 3 when the action is scribed in code 6 instructions, enter the award or modification of a defini- code 6 on Line B13A. tive contract or a modification that de- (F) Code 7—BPA Order under Federal finitizes a contract. Code 3 includes the Schedule. Enter code 7 if the action is following: an order under a blanket purchase (i) Definitive contract awards under agreement established under a Federal the Small Business Administration 8(a) schedule (see FAR 8.404(b)(4)). When program. the action is a modification to an order
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described in code 7 instructions, enter tional work requiring a justification code 7 on Line B13A. and approval (J&A). (G) Code 8—Order from Procurement (B) Code B—Additional Work (other). List. Enter code 8 if the action is an Enter code B when the action is a order placed with Federal Prison Indus- modification of an existing contract tries (UNICOR) or a JWOD Partici- (including a letter contract) that is not pating Nonprofit Agency in accordance covered by code A or by codes C with FAR subpart 8.6 or 8.7. Use code 6 through H (see code H for exercise of an for orders from the Procurement List option). Code B includes actions that— under Federal schedules. When the ac- (1) Initiate an incremental yearly tion is a modification to an order de- buy under a multiyear contract; scribed in code 8 instructions, enter code 8 on Line B13A. (2) Amend a letter or other contract (H) Code 9—Award under FAR Part 13. to add work that does not require a Enter code 9 if the action, including an J&A; or action in a designated industry group (3) Order under a priced exhibit or under the Small Business Competitive- production list. ness Demonstration Program (see FAR (C) Code C—Funding Action. Enter subpart 19.10), is an award pursuant to code C when the action is a modifica- FAR part 13, except when the action is tion (to a letter or other contract) for a blanket purchase agreement order the sole purpose of obligating or pursuant to FAR 8.404(b)(4) (see code 7). deobligating funds. This includes— When the action is a modification to an (1) Incremental funding (other than award described in code 9 instructions, incremental yearly buys under enter code 9 on Line B13A. multiyear contracts, which are coded (ii) LINE B13B, TYPE OF INDEFI- B); NITE-DELIVERY CONTRACT. If Line (2) Changes to the estimated cost on B13A is coded 3 and the ninth position cost-reimbursement contracts; of B1A is coded D, complete Line B13B. Repricing actions covering incen- If Line B13A is coded 5, complete Line (3) B13B. Otherwise, leave Line B13B tive price revisions; blank. (4) Economic price adjustments; and (A) Code A—Requirements Contract (5) Initial citation and obligation of (FAR 52.216–21). funds for a contract awarded in one fis- (B) Code B—Indefinite-Quantity Con- cal year but not effective until a subse- tract (FAR 52.216–22). quent fiscal year. (C) Code C—Definite-Quantity Contract (D) Code D—Change Order. Enter code (FAR 52.216–20). D if the action is a change order issued (iii) LINE B13C, MULTIPLE OR SIN- under the ‘‘Changes,’’ ‘‘Differing Site GLE AWARD INDEFINITE-DELIVERY Conditions,’’ or similar clauses in ex- CONTRACT. If Line B13B is coded A, B, isting contracts. or C, complete Line B13C. Otherwise, (E) Code E—Termination for Default. leave Line B13C blank. Enter code E if the action is a modi- (A) Code M—Multiple Award. Enter fication that terminates all or part of code M if the action is a task or deliv- the contract for default. ery order under a multiple award in- (F) Code F—Termination for Conven- definite-delivery contract. ience. Enter code F if the action is a (B) Code S—Single Award. Enter code S if the action is a task or delivery modification that terminates all or order under a single award indefinite- part of the contract for convenience. delivery contract. (G) Code G—Cancellation. Enter code (iv) LINE B13D, MODIFICATION. If G if the action is a modification that the action is a modification, enter one cancels the contract. Do not use code G of the following codes. Otherwise, leave to cancel a prior DD Form 350 (see Line Line B13D blank. A1). (A) Code A—Additional Work (new (H) Code H—Exercise of an Option. agreement). Enter code A when the ac- Enter code H if the action is an exer- tion is a bilateral supplemental agree- cise of an option. ment that obligates funds for addi-
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(I) Code J—Definitization. Enter code (vii) LINE B13G—INDEFINITE–DE- J if the action is a definitization modi- LIVERY CONTRACT ORDERING PE- fication. For the definitization of a let- RIOD ENDING DATE. If Line B13F is ter contract, enter code 3 on Line coded A, B, C, or D, enter the date the B13A. ordering period ends. Otherwise, leave (v) LINE B13E, MULTIPLE AWARD Line B13G blank. Enter four digits for CONTRACT FAIR OPPORTUNITY. If the year, two digits for the month, and Line B13C is coded M, enter one of the two digits for the day. Use 01 through following codes. Otherwise, leave Line 12 for January through December. For B13E blank. example, enter January 2, 2003, as (A) Code A—Fair Opportunity Process. 20030102. Enter code A if the delivery or task (14) LINE B14, CICA APPLICA- order was issued pursuant to a process BILITY. Enter one of the following that permitted each contract awardee codes: a fair opportunity to be considered (see (i) Code A—Pre-CICA. Enter code A if FAR 16.505(b)(1)). the action resulted from a solicitation (B) Code B—Urgency. Enter code B if issued before April 1, 1985. Modifica- the agency need is so urgent that pro- tions within the original scope of work viding a fair opportunity would result of such awards and orders under pre- in unacceptable delays (see FAR CICA indefinite-delivery type contracts 16.505(b)(2)(i)). also are coded A. (C) Code C—One/Unique Source. Enter (ii) Code B—CICA Applicable. Enter code C if only one contract awardee is code B if— capable of providing the supplies or (A) The action resulted from a solici- services at the level or quality required tation issued on or after April 1, 1985, because the supplies or services are or is a modification coded A on Line unique or highly specialized (see FAR B13D issued on or after April 1, 1985; 16.505(b)(2)(ii)). and (B) Neither code C nor code D applies. (D) Code D—Follow-On Contract. (iii) Code C—Simplified Acquisition Enter code D if the order was issued on Procedures Other than FAR Subpart 13.5. a sole-source basis in the interest of Enter code C if the action resulted economy and efficiency as a logical fol- from use of the procedures in FAR part low-on to an order already issued under 13, other than those in subpart 13.5. the contract, provided that all award- (iv) Code D—Simplified Acquisition Pro- ees were given a fair opportunity to be cedures Pursuant to FAR Subpart 13.5. considered for the original order (see Enter code D if the action resulted FAR 16.505(b)(2)(iii)). from use of the procedures in FAR sub- (E) Code E—Minimum Guarantee. part 13.5. Enter code E if it was necessary to (15) LINE B15, INFORMATION TECH- place an order to satisfy a minimum NOLOGY PRODUCTS OR SERVICES. amount guaranteed to the contractor If the action is for information tech- (see FAR 16.505(b)(2)(iv)). nology products or services, enter one (vi) LINE B13F, INDEFINITE–DE- of the following codes. Otherwise, leave LIVERY CONTRACT USE. If Line B13B Line B15 blank. is coded A, B, or C, and the action is (i) Code A—Commercially Available Off- the initial placement of an indefinite- the-Shelf Item. Enter code A if the ac- delivery contract, enter one of the fol- tion is for an item of supply that meets lowing codes to indicate if the indefi- the definition of commercial item in nite-delivery contract can be used Gov- FAR 2.101, does not require any modi- ernment-wide, within DoD only, within fication, and is available in the com- the department or agency only, or by mercial marketplace. the contracting office only. Otherwise, (ii) Code B—Other Commercial Item of leave Line B13F blank. Supply. Enter code B if the action is for (A) Code A—Government-Wide. an item of supply that meets the defi- (B) Code B—DoD-Wide. nition of commercial item in FAR (C) Code C—DoD Department or Agency 2.101, but requires minor modifications, Only. or is not yet available in the commer- (D) Code D—Contracting Office Only. cial marketplace, but will be available
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in time to meet the Government’s Part C to describe the original con- needs. tract. (iii) Code C—Nondevelopmental Item (C) Otherwise, code the lines in Part Other than Commercial Item. Enter code C to describe the original contract. C if the action is for an item of supply, (ii) If there are no codes for the origi- other than a commercial item, that nal contract because a DD Form 350 meets the definition of nondevelop- was not required at the time, the origi- mental item in FAR 2.101. nal action is no longer available, the (iv) Code D—Other Noncommercial Item definition of the original code has of Supply. Enter code D if the action is changed, or a data element has been for an item of supply that does not added to the system after the original meet the definition of commercial item contract report, use codes that best de- or nondevelopmental item in FAR scribe the original action. 2.101. (4) Complete Part C as follows: (v) Code E—Commercial Service. Enter (i) LINE C1, SYNOPSIS. Enter one of code E if the action is for a service that the following codes: meets the definition of commercial (A) Code A—Synopsis Only. Enter code item in FAR 2.101. A only if a synopsis of the proposed ac- (vi) Code F—Noncommercial Service. tion was prepared and transmitted in Enter code F for all other services. accordance with FAR subpart 5.2. (16) LINE B16, CLINGER-COHEN ACT (B) Code B—Combined Synopsis/Solici- PLANNING COMPLIANCE. Enter one tation. Enter code B if a combined syn- of the following codes: opsis/solicitation of the proposed ac- (i) Code Y—Yes. Enter code Y if the tion was prepared and transmitted in action is for information technology accordance with FAR subpart 5.2 and products or services acquired in com- 12.603. pliance with the planning requirements (C) Code N—Not Synopsized. Enter of sections 5122 and 5123 of the Clinger- code N if a synopsis was not prepared. Cohen Act of 1996 (40 U.S.C. 1422 and (ii) LINE C2, REASON NOT SYNOP- 1423). SIZED. Enter one of the following (ii) Code N—No. Enter code N if code codes if Line C1 is coded N. Otherwise, Y does not apply. leave Line C2 blank. (c) Part C of the DD Form 350. (1) Part C gathers data concerning (A) Code A—Urgency. Enter code A if contracting procedures, use of competi- the action was not synopsized due to tion, financing, and statutory require- urgency (see FAR 6.302–2). ments other than socioeconomic (B) Code B—FAR 5.202(a)(13). Enter (which are in Part D). code B if the action was not synopsized (2) Do not complete Part C if the ac- because the acquisition did not exceed tion is with a government agency, i.e., the simplified acquisition threshold Line B5B (Government Agency) is and was made through FACNET or an- coded Y (Yes). If Line B13A is coded 6, other means that provided access to complete only the following lines in the notice of proposed action through Part C: Line C3, and Lines C13A and the Governmentwide point of entry C13B (when applicable). (see FAR 5.202(a)(13)). (3) In completing Part C, use codes (C) Code Z—Other Reason. Enter code that describe either the current action Z if the action was not synopsized due or the original contract, depending on to some other reason. the codes reported on Lines B13A and (iii) LINE C3, EXTENT COMPETED. B13D. Enter one of the following codes: (i)(A) If Line B13A is coded 1, 3, 4, 6, (A) Code A—Competed Action. Enter or 9 and Line B13D is coded A or is code A when— blank, code the lines in Part C to de- (1) The action is an order under a scribe the current action. Federal schedule (Line B13A is coded (B) If Line B13A is coded 5 and the 6); current action is an order under a mul- (2) Competitive procedures were used tiple award contract (Line B13C is to fulfill the requirement for full and coded M), code Lines C6 and C7 to de- open competition (see FAR subpart scribe the order and code the rest of 6.1);
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(3) Full and open competition proce- augment a specific competed program, dures after exclusion of sources were if such placement was necessitated by used in order to establish or maintain prior acquisition decisions. Code C ap- alternative sources, to set aside an ac- plies to contracts that meet the statu- quisition for small business or tory criteria for Phase III follow-on HUBZone small business, or to compete under the Small Business Innovation Section 8(a) awards (see FAR subpart Research Program. 6.2); (D) Code D—Not Competed. Enter code (4) Statutory authorities for other D when codes A, B, and C do not apply. than full and open competition were (iv) LINE C4, SEA TRANSPOR- used (see FAR subpart 6.3) and more TATION. Enter one of the following than one offer was received (if only one codes when Line B1B is coded A, Line offer was received, use code D); B5B is coded N, and Line B13A is coded (5) The action resulted from a con- other than 9. Otherwise, leave Line C4 tract awarded prior to the Competition blank. in Contracting Act that used two-step (A) Code Y—Yes—Positive Response to sealed bidding or other sealed bidding, DFARS 252.247–7022 or 252.212–7000(c)(2). or that was negotiated competitively; Enter code Y when the contractor’s re- or sponse to the provision at 252.247–7022, (6) Simplified acquisition procedures Representation of Extent of Transpor- were used and competition was ob- tation by Sea, or 252.212–7000(c)(2), Of- tained. feror Representations and Certifi- (B) Code B—Not Available for Competi- cations—Commercial Items, indicates tion. Enter code B for— that the contractor anticipates that (1) Awards for utilities or utility sys- some of the supplies being provided tems, excluding long distance tele- may be transported by sea. communications services, when only (B) Code N—No—Negative Response to one supplier can furnish the service DFARS 252.247–7022 or 252.212–7000(c)(2). (see FAR 6.302–1(b)(3)); Enter code N when the contractor’s re- (2) Brand name commercial products sponse to the provision at 252.247–7022 for authorized resale; or 252.212–7000(c)(2) indicates that the (3) Acquisitions authorized or re- contractor anticipates that none of the quired by statute to be awarded to a supplies being provided will be trans- specific source pursuant to FAR 6.302– ported by sea. 5(b)(2) or (4), e.g., qualified nonprofit (C) Code U—Unknown—No Response or agencies employing people who are Provision Not Included in Solicitation. blind or severely disabled (see FAR Enter code U when the contractor did subpart 8.7) or 8(a) program (see FAR not complete the representation at subpart 19.8); 252.247–7022 or 252.212–7000(c)(2) or the (4) International agreements and solicitation did not include either pro- Foreign Military Sales when the acqui- vision. sition is to be reimbursed by a foreign (v) LINE C5, TYPE OF CONTRACT. country that requires that the product (A) If the action is a letter contract, or services be obtained from a par- including modifications and amend- ticular firm as specified in official ments to letter contracts, enter the written direction such as a Letter of code that describes the anticipated Offer and Acceptance; and type of contract the letter contract (5) Other contracting actions when will become when it is definitized. the Director of Defense Procurement (B) If there is more than one type of has determined that there is no oppor- contract involved in the action, enter tunity for competition. the code that matches the type with NOTE: Even though Part C is not completed for actions with a government agency, the the most dollars. If the type with the database will automatically include these least dollars exceeds $500,000, fill out actions in the category of not available for separate DD Forms 350 (with different competition. report numbers) for each type. (C) Code C—Follow-On to Competed Ac- (C) Enter one of the following codes: tion. Enter code C when the action per- (1) Code A—Fixed-Price Redetermina- tains to an acquisition placed with a tion. particular contractor to continue or (2) Code J—Firm-Fixed-Price.
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(3) Code K—Fixed-Price Economic Price if the action resulted from an award Adjustment. pursuant to FAR 6.102(b). (4) Code L—Fixed-Price Incentive. (3) Code C—Full and Open Competi- (5) Code M—Fixed-Price-Award-Fee. tion—Combination. Enter code C if the (6) Code R—Cost-Plus-Award-Fee. action resulted from an award using a (7) Code S—Cost Contract. combination of competitive procedures (8) Code T—Cost-Sharing. (e.g., two-step sealed bidding) pursuant (9) Code U—Cost-Plus-Fixed-Fee. to FAR 6.102(c). (10) Code V—Cost-Plus-Incentive-Fee. (4) Code D—Architect-Engineer. Enter (11) Code Y—Time-and-Materials. code D if the action resulted from se- (12) Code Z—Labor-Hour. lection of sources for architect-engi- (vi) LINE C6, NUMBER OF OFFERORS SOLICITED. neer contracts pursuant to FAR (A) Leave Line C6 blank if— 6.102(d)(1). (1) The original contract resulted (5) Code E—Basic Research. Enter code from a solicitation issued before April E if the action resulted from competi- 1, 1985 (i.e., before the effective date of tive selection of basic research pro- the Competition in Contracting Act); posals pursuant to FAR 6.102(d)(2). (2) Line B1B is coded B or C and Line (6) Code F—Multiple Award Schedule. B13A is coded 5; or Enter code F if the action is an award (3) Line B13A is coded 6. of a multiple award schedule pursuant (B) Otherwise, enter— to FAR 6.102(d)(3) or an order against (1) Code 1—One. Enter code 1 if only such a schedule. one offeror was solicited; or (7) Code G—Alternative Sources. Enter (2) Code 2—More than One. Enter code code G if the action resulted from use 2 if more than one offeror was solicited. of competitive procedures but excluded (vii) LINE C7, NUMBER OF OFFERS a particular source pursuant to FAR RECEIVED. 6.202(a). (A) Leave Line C7 blank if— (8) Code K—Set-Aside. Enter code K if (1) The original contract resulted the action resulted from any— from a solicitation issued before April 1, 1985 (i.e., before the effective date of (i) Set-aside for small business con- the Competition in Contracting Act); cerns (see FAR subpart 19.5), including or small business innovation research (2) Line B13A is coded 6, Order or Call (SBIR) actions; under Federal Schedule. (ii) Set-aside for small disadvantaged (B) Otherwise, enter the specific business concerns; number of offers received (001–999). (iii) Set-aside for HUBZone small (viii) LINE C8, SOLICITATION PRO- business concerns (see FAR 19.1305); CEDURES. (iv) Set-aside for very small business (A) Leave Line C8 blank if— concerns (see FAR 19.904); (1) The original contract resulted (v) Set-aside (including portions of from a solicitation issued before April broad agency announcements) for his- 1, 1985 (i.e., before the effective date of torically black colleges and univer- the Competition in Contracting Act); sities or minority institutions (see (2) The action is pursuant to sim- 226.7003 and 235.016); plified acquisition procedures (Line (vi) Set-aside for emerging small B13A is coded 9); or business concerns (see FAR 19.1006(c)); (3) The action is an order or call under a Federal schedule (Line B13A is or coded 6). (vii) Competition among Section 8(a) (B) Otherwise, enter one of the fol- firms under FAR 19.805 (report non- lowing codes: competitive 8(a) awards as code N). (1) Code A—Full and Open Competi- (9) Code N—Other than Full and Open tion—Sealed Bid. Enter code A if the ac- Competition. Enter code N if the action tion resulted from an award pursuant resulted from use of other than full and to FAR 6.102(a). open competition pursuant to FAR (2) Code B—Full and Open Competi- subpart 6.3. This includes awards to tion—Competitive Proposal. Enter code B qualified nonprofit agencies employing
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people who are blind or severely dis- (13) Code 6A—National Security. Enter abled (see FAR subpart 8.7) or non- code 6A if the action was justified pur- competitive awards to the Small Busi- suant to FAR 6.302–6. ness Administration under Section 8(a) (14) Code 7A—Public Interest. Enter of the Small Business Act (see FAR code 7A if the action was taken pursu- 6.302–5(b)). ant to FAR 6.302–7. (ix) LINE C9, AUTHORITY FOR (x) LINE C10, SUBJECT TO LABOR OTHER THAN FULL AND OPEN COM- STANDARDS STATUTES. Enter one of PETITION. the following codes. When Line B13A is (A) Leave Line C9 blank if the origi- coded 6, leave Line C10 blank. nal contract resulted from a solicita- (A) Code A—Walsh-Healey Act. Enter tion issued before April 1, 1985 (i.e., be- code A when the action is subject to fore the effective date of the Competi- the provisions of FAR subpart 22.6. tion in Contracting Act). (B) Code C—Service Contract Act. (B) Enter one of the following codes Enter code C when the action is subject if Line C8 is coded N. Otherwise, leave to the provisions of the Service Con- Line C9 blank. tract Act (see FAR part 37). (1) Code 1A—Unique Source. Enter (C) Code D—Davis-Bacon Act. Enter code 1A if the action was justified pur- code D when the action is subject to suant to FAR 6.302–1(b)(1). the Davis-Bacon Act (see FAR 22.403–1). (2) Code 1B—Follow-On Contract. (D) Code Z—Not Applicable. Enter Enter code 1B if the action was justi- code Z when codes A, C, and D do not fied pursuant to FAR 6.302–1(a)(2)(ii) or apply. (iii). (xi) LINE C11, COST OR PRICING (3) Code 1C—Unsolicited Research Pro- DATA. Enter one of the following codes posal. Enter code 1C if the action was when Line B1B is coded A. Otherwise, justified pursuant to FAR 6.302– leave Line C11 blank. 1(a)(2)(i). (A) Code Y—Yes—Obtained. Enter code Y when cost or pricing data were (4) Code 1D—Patent or Data Rights. obtained (see FAR 15.403–4) and cer- Enter code 1D if the action was justi- tified in accordance with FAR 15.406–2. fied pursuant to FAR 6.302–1(b)(2). (B) Code N—No—Not Obtained. Enter (5) Code 1E—Utilities. Enter code 1E if code N when neither code Y nor code W the action was justified pursuant to applies. FAR 6.302–1(b)(3). (C) Code W—Not Obtained—Waived. . Enter (6) Code 1F—Standardization Enter code W when cost or pricing data code 1F if the action was justified pur- were not obtained because the head of suant to FAR 6.302–1(b)(4). the contracting activity waived the re- (7) Code 1G—Only One Source—Other. quirement (see FAR 15.403–1(c)(4)). Enter code 1G if the action was justi- (xii) LINE C12, CONTRACT FINANC- fied pursuant to FAR 6.302–1 in a situa- ING. Enter one of the following codes tion other than the examples cited in identifying whether or not progress codes 1A through 1F. payments, advance payments, or other (8) Code 2A—Urgency. Enter code 2A if financing methods were used. the action was justified pursuant to (A) Code A—FAR 52.232–16. Enter code FAR 6.302–2. A if the contract contains the clause at (9) Code 3A—Particular Sources. Enter FAR 52.232–16, Progress Payments. code 3A if the action was justified pur- (B) Code C—Percentage of Completion suant to FAR 6.302–3(a)(2). Progress Payments. Enter code C if the (10) Code 4A—International Agreement. contract provides for progress pay- Enter code 4A if the action was justi- ments based on percentage or stage of fied pursuant to FAR 6.302–4. completion, which is only permitted on (11) Code 5A—Authorized by Statute. contracts for construction, for ship- Enter code 5A if the action was justi- building, or for ship conversion, alter- fied pursuant to FAR 6.302–5(a)(2)(i). ation, or repair (see 232.102(e)(2)). (12) Code 5B—Authorized Resale. Enter (C) Code D—Unusual Progress Pay- code 5B if the action was justified pur- ments or Advance Payments. Enter code suant to FAR 6.302–5(a)(2)(ii). D if the contract provides unusual
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progress payments or advance pay- (xiv) LINE C14, COMMERCIAL ITEM. ments (see FAR subpart 32.4 and 32.501– Enter one of the following codes: 2). (A) Code Y—Yes—FAR 52.212–4 In- (D) Code E—Commercial Financing. cluded. Enter code Y if the contract Enter code E if the contract provides contains the clause at FAR 52.212–4, for commercial financing payments Contract Terms and Conditions—Com- (see FAR Subpart 32.2). mercial Items. (E) Code F—Performance-Based Fi- (B) Code N—No—FAR 52.212–4 Not In- nancing. Enter code F if the contract cluded. Enter code N if code Y does not provides for performance-based financ- apply. ing payments (see FAR subpart 32.10). (d) Part D of the DD Form 350. (F) Code Z—Not Applicable. Enter code (1) Do NOT complete Part D if the ac- Z when codes A through F do not tion is— apply. (i) With a government agency, i.e., (xiii) LINE C13, FOREIGN TRADE Line B5B is coded Y; or DATA. (ii) An order or call under a Federal (A) The term ‘‘United States (U.S.),’’ schedule. as used on Line C13, excludes the Trust (2) Use the codes on Lines B13A and Territory of Palau (see 204.670–1 for def- B13D to determine whether the codes inition of United States and outlying in Part D will describe the current ac- areas). tion or the original contract. (B) LINE C13A, PLACE OF MANU- (i) Code Part D to describe the cur- FACTURE. Complete Line C13A only if rent action when— the action is for a foreign end product (A) Line B13A is coded 1, 3, 4, or 9 and or a service provided by a foreign con- Line B13D is coded A or is blank; or cern. Otherwise, leave Line C13A blank. (B) Line B5B is coded N, Line B13A is (1) Code A—U.S. Enter code A if the coded 8, and Line B13D is coded A or is action is for— blank. (i) A foreign end product that is man- (ii) Otherwise, code Part D to de- ufactured in the United States but still scribe the original contract. If there determined to be foreign because 50 are no codes for the original contract percent or more of the cost of its com- because a DD Form 350 was not re- ponents is not mined, produced, or quired at the time, the original action manufactured inside the United States is no longer available, the definition of or inside qualifying countries; or the original code has changed, or a (ii) Services performed in the United data element has been added to the States by a foreign concern. system after the original contract re- (2) Code B—Foreign. Enter code B if port, use codes that best describe the the action is for— original action. (i) Any other foreign end product; or (3) Determine the status of the con- (ii) Services performed outside the cern (e.g., size and ownership) in ac- United States by a foreign concern. cordance with FAR part 19 and DFARS (C) LINE C13B, COUNTRY OF ORI- part 219. GIN CODE. (4) Complete Part D as follows: (1) Complete Line C13B only if Line (i) LINE D1, TYPE OF CON- C13A is coded A or B. Otherwise, leave TRACTOR. Line C13B blank. (A) LINE D1A, TYPE OF ENTITY. (2) Enter the code from FIPS PUB 10, Enter one of the following codes: Countries, Dependencies, Areas of Spe- (1) Code A—Small Disadvantaged Busi- cial Sovereignty, and Their Principal ness (SDB) Performing in U.S. Enter Administrative Divisions, that identi- code A if the contractor is a small dis- fies the country where the foreign advantaged business concern as defined product is coming from or where the in 219.001 and the place of performance foreign company providing the services is within the United States and out- is located. If more than one foreign lying areas. country is involved, enter the code of (2) Code B—Other Small Business (SB) the foreign country with the largest Performing in U.S. Enter code B if the dollar value of work under the con- contractor is a small business concern tract. as defined in FAR 19.001, other than a
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small disadvantaged business concern, 52.212–3(c), or 52.219–1(b) indicates that and the place of performance is within it is a women-owned business. the United States and outlying areas. (2) Code N—No. Enter code N if the (3) Code C—Large Business Performing contractor’s response to FAR 52.204–5, in U.S. Enter code C if the contractor is 52.212–3(c), or 52.219–1(b) indicates that a domestic large business concern and it is not a women-owned business. the place of performance is within the (3) Code U—Uncertified. Enter code U United States and outlying areas. if the information is not available be- (4) Code D—JWOD Participating Non- cause the contractor did not complete profit Agency. Enter code D if the con- the representation in FAR 52.204–5, tractor is a qualified nonprofit agency 52.212–3(c), or 52.219–1(b). employing people who are blind or se- (C) LINE D1C, HUBZONE REP- verely disabled (see FAR 8.701) and the RESENTATION. Enter one of the fol- place of performance is within the lowing codes when Line D1A is coded A United States and outlying areas. or B. Otherwise, leave Line D1C blank. (5) Code F—Hospital. Enter code F if (1) Code Y—Yes. Enter code Y if the the contractor is a hospital and the contractor represented that it is a place of performance is within the HUBZone small business concern (see United States and outlying areas. FAR 19.1303). (6) Code L—Foreign Concern or Entity. (2) Code N—No. Enter code N if code Y Enter code L if the contractor is a for- does not apply. eign concern, the Canadian Commer- (D) LINE D1D, ETHNIC GROUP. cial Corporation, or a non-U.S.-char- (1) Complete Line D1D if the action is tered nonprofit institution. with a small disadvantaged business. (7) Code M—Domestic Firm Performing Otherwise, leave Line D1D blank. Enter code M if the con- Outside U.S. (2) Enter the code from the following tractor is a domestic concern or a do- list that corresponds to the ethnic mestic nonprofit institution and the group that the contractor marked in place of performance is outside the the solicitation provision at FAR United States and outlying areas. 52.219–1, Small Business Program Rep- (8) Code T—Historically Black College resentations, or FAR 52.212–3(c). or University (HBCU). Enter code T if (i) Code A—Asian-Indian American. the contractor is an HBCU as defined at 252.226–7000 and the place of perform- (ii) Code B—Asian-Pacific American. ance is within the United States and (iii) Code C—Black American. outlying areas. (iv) Code D—Hispanic American. (9) Code U—Minority Institution (MI). (v) Code E—Native American. Enter code U if the contractor is an MI (vi) Code F—Other SDB Certified or De- as defined at 252.226–7000 and the place termined by SBA. of performance is within the United (vii) Code Z—No Representation. States and outlying areas. (E) LINE D1E, VETERAN-OWNED (10) Code V—Other Educational. Enter SMALL BUSINESS. Enter one of the code V if the contractor is an edu- following codes if the contractor is a cational institution that does not qual- veteran-owned small business. Other- ify as an HBCU or MI and the place of wise, leave Line D1E blank. performance is within the United (1) Code A—Service-Disabled Veteran. States and outlying areas. Enter code A if the contractor rep- (11) Code Z—Other Nonprofit. Enter resented that it is a service-disabled code Z if the contractor is a nonprofit veteran-owned small business. organization (as defined in FAR 31.701) (2) Code B—Other Veteran. Enter code that does not meet any of the criteria B if the contractor represented that it in codes D, F, T, U, or V and the place is a veteran-owned small business, of performance is within the United other than a service-disabled veteran- States and outlying areas. owned small business. (B) LINE D1B, WOMEN-OWNED (ii) LINE D2, REASON NOT AWARD- BUSINESS. Enter one of the following ED TO SDB. Enter one of the following codes: codes when Line D1A is coded B or C. (1) Code Y—Yes. Enter code Y if the Otherwise, leave Line D2 blank. contractor’s response to FAR 52.204–5, (A) Code A—No Known SDB Source.
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(B) Code B—SDB Not Solicited. Enter (1) Code A—None. Enter code A if code B when there was a known SDB there was no set-aside (i.e., codes B source, but it was not solicited. through L do not apply). (C) Code C—SDB Solicited and No Offer (2) Code B—Total SB Set-Aside. Enter Received. Enter code C when an SDB code B if the action was a total set- was solicited but it did not submit an aside for small business (see FAR offer, or its offer was not sufficient to 19.502–2), including actions reserved ex- cover the total quantity requirement clusively for small business concerns so it received a separate award for the pursuant to FAR 13.003(b)(1), or if the quantity offered. action resulted from the Small Busi- (D) Code D—SDB Solicited and Offer ness Innovation Research Program. Was Not Low. Enter code D when an (3) Code C—Partial SB Set-Aside. Enter SDB offer was not the low or most ad- code C if the action was a partial set- vantageous offer or an SDB was not aside for small business (see FAR willing to accept award of a partial 19.502–3). small business set-aside portion of an (4) Code D—Section 8(a) Set-Aside or action at the price offered by the Gov- Sole Source. Enter code D if the con- ernment. tract was awarded to— (E) Code Z—Other Reason. Enter code (i) The Small Business Administra- Z when an SDB did not receive the tion under Section 8(a) of the Small award for any other reason or when Business Act (see FAR subpart 19.8); or Line B1B is coded B or C and Line B13A (ii) An 8(a) contractor under the di- is coded 5. rect award procedures at 219.811. (iii) LINE D3, REASON NOT (5) Code E—Total SDB Set-Aside. Enter AWARDED TO SB. Enter one of the code E if the action was a total set- following codes when Line D1A is coded aside for small disadvantaged busi- C. Otherwise, leave Line D3 blank. (The nesses. term ‘‘small business’’ includes all cat- (6) Code F—HBCU or MI—Total Set- egories of small businesses.) Aside. Enter code F if the action was a total set-aside for HBCU or MI (see (A) Code A—No Known SB Source. 226.7003). (B) Code B—SB Not Solicited. Enter (7) Code G—HBCU or MI—Partial Set- code B when there was a known small Aside. Enter code G if the action was a business source, but it was not solic- partial set-aside for HBCU or MI under ited. a broad agency announcement (see (C) Code C—SB Solicited and No Offer 235.016). Received. Enter code C when a small (8) Code H—Very Small Business Set- business concern was solicited but it Aside. Enter code H if the action was a did not submit an offer, or its offer was set-aside for very small businesses (see not sufficient to cover the total quan- FAR subpart 19.9). tity requirement so it received a sepa- (9) Code J—Emerging Small Business rate award for the quantity offered. Set-Aside. Enter code J if the action (D) Code D—SB Solicited and Offer Was was an emerging small business set- Not Low. Enter code D when a small aside within a designated industry business offer was not the low or most group under the Small Business Com- advantageous offer or a small business petitiveness Demonstration Program concern was not willing to accept (see FAR subpart 19.10). award of a set-aside portion of an ac- (10) Code K—HUBZone Set-Aside or tion at the price offered by the Govern- Sole Source. Enter code K if the action ment. was— (E) Code Z—Other Reason. Enter code (i) A set-aside for HUBZone small Z when a small business did not receive business concerns (see FAR 19.1305); or the award for any other reason or when (ii) A sole source award to a Line B1B is coded B or C and Line B13A HUBZone small business concern (see is coded 5. FAR 19.1306). (iv) LINE D4, SET-ASIDE OR PREF- (11) Code L—Combination HUBZone ERENCE PROGRAM. and 8(a). Enter code L if the action was (A) LINE D4A, TYPE OF SET-ASIDE. a combination HUBZone set-aside and Enter one of the following codes: 8(a) award.
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(B) LINE D4B, TYPE OF PREF- lated to a Phase II contract in support ERENCE. Enter one of the following of the SBIR Program. codes, even if Line D4A is coded E: (D) Code D—SBIR Program Phase III (1) Code A—None. Enter code A if no Action. Enter code D if the action is re- preference was given. lated to a Phase III contract in support (2) Code B—SDB Price Evaluation Ad- of the SBIR Program. justment—Unrestricted. Enter code B if (vii) LINE D8, SUBCONTRACTING the action was unrestricted but an SDB PLAN—SB, SDB, HBCU, OR MI. Enter received an award as a result of a price one of the following codes: evaluation adjustment (see FAR sub- (A) Code A—Plan Not Included—No part 19.11). Subcontracting Possibilities. Enter code (3) Code C—SDB Preferential Consider- A if a subcontracting plan was not in- ation—Partial SB Set-Aside. Enter code cluded in the contract because subcon- C if the action was a partial set-aside tracting possibilities do not exist (see for small business and preferential con- FAR 19.705–2(c)). sideration resulted in an award to an (B) Code B—Plan Not Required. Enter SDB. code B if no subcontracting plan was (4) Code D—HUBZone Price Evaluation required (e.g., because the action did Preference. Enter code D if the con- not meet the dollar thresholds in FAR tractor received the award as a result 19.702(a)). of a HUBZone price evaluation pref- (C) Code C—Plan Required—Incentive erence (see FAR 19.1307). Not Included. Enter code C if the action (5) Code E—Combination HUBZone includes a subcontracting plan, but Price Evaluation Preference and SDB does not include additional incentives Price Evaluation Adjustment. Enter code (see FAR 19.708(c)). E if the contractor received the award (D) Code D—Plan Required—Incentive as a result of both a HUBZone price Included. Enter code D if the action in- evaluation preference and an SDB price cludes a subcontracting plan and also evaluation adjustment (see FAR includes additional incentives (see 19.1307). FAR 19.708(c) and 219.708(c)). (C) LINE D4C, PREMIUM PERCENT. (viii) LINE D9, SMALL BUSINESS (1) Complete Line D4C if Line B1B is COMPETITIVENESS DEMONSTRA- coded A, and— TION PROGRAM. When Line B13A is (i) Line D4A is coded E, F, or G; or coded 5 or Line B13D is coded B, C, D, (ii) Line D4B is coded B, C, D, or E. E, F, or G and the original action was (2) Otherwise, leave Line D4C blank. awarded before the demonstration pro- (3) Calculate the premium percentage gram began, enter code N on Line D9. per 219.202–5 and enter it as a three- When Line B1B is coded B or C and digit number rounded to the nearest Line B13A is coded 5, enter code N on tenth, e.g., enter 7.55% as 076. If no pre- Line D9. Otherwise, code Line D9 as mium was paid, enter three zeros (000). follows: (v) LINES D5—D6. Reserved. (A) Code Y—Yes. Enter code Y if this (vi) LINE D7, SMALL BUSINESS IN- is an action with a U.S. business con- NOVATION RESEARCH (SBIR) PRO- cern, in either the four designated in- GRAM. Enter one of the following dustry groups or the ten targeted in- codes. When Line B1B is coded B or C dustry categories under the Small and Line B13A is coded 5, leave Line D7 Business Competitiveness Demonstra- blank. tion Program (see FAR subpart 19.10 (A) Code A—Not a SBIR Program Phase and DFARS subpart 219.10), where the I, II, or III. Enter code A if the action principal place of performance is in the is not in support of a Phase I, II, or III United States or outlying areas. SBIR Program. (B) Code N—No. Enter code N if code (B) Code B—SBIR Program Phase I Ac- Y does not apply. tion. Enter code B if the action is re- (ix) LINE D10, SIZE OF SMALL lated to a Phase I contract in support BUSINESS. of the SBIR Program. (A) Complete Line D10 only when (C) Code C—SBIR Program Phase II Ac- Line D9 is coded Y and the contractor tion. Enter code C if the action is re- is a small business (Line D1A is coded
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A or B). Otherwise, leave Line D10 (B) A humanitarian or peacekeeping blank. operation as defined in 10 U.S.C. 2302(8). (B) Enter one of the following codes (ii) Otherwise, leave Line E1 blank. for the size of the business (number of (2) LINE E2, COST ACCOUNTING employees or average annual gross rev- STANDARDS CLAUSE. Enter code Y enue) as represented by the contractor on Line E2 if the contract includes a in the solicitation provision at FAR Cost Accounting Standards clause (see 52.219–19, Small Business Concern Rep- FAR part 30). Otherwise, leave Line E2 resentation for the Small Business blank. Competitiveness Demonstration Pro- (3) LINE E3, NON-DOD REQUESTING gram: (1) Code A—50 or fewer employees. AGENCY CODE (FIPS 95). If making a (2) Code B—51–100 employees. purchase on behalf of a non-DoD agen- (3) Code C—101–250 employees. cy, enter the four-position code from (4) Code D—251–500 employees. FIPS PUB 95 that identifies the non- (5) Code E—501–750 employees. DoD agency. Otherwise, leave Line E3 (6) Code F—751–1,000 employees. blank. (7) Code G—Over 1,000 employees. (4) LINE E4, REQUESTING ACTIV- (8) Code M—$1 million or less. ITY CODE. If making a purchase on be- (9) Code N—Over $1 million—$2 million. half of a non-DoD agency, enter the (10) Code P—Over $2 million—$3.5 mil- non-DoD agency’s office code. If mak- lion. ing a purchase on behalf of a DoD ac- (11) Code R—Over $3.5 million—$5 mil- tivity, enter the DoDAAC of the activ- lion. ity for whom the purchase was made. (12) Code S—Over $5 million—$10 mil- DoDAACs can be found at: http:// lion. daynt6c.daas.dla.mil/dodaac/ (13) Code T—Over $10 million—$17 mil- dodaac.htm. If multiple requesting ac- lion. tivities are involved, enter the (14) Code U—Over $17 million. DoDAAC of the activity that provided (x) LINE D11, EMERGING SMALL the largest portion of funding for the BUSINESS. action. (A) Complete this line only if Line D9 (5) LINE E5, NUMBER OF ACTIONS. is coded Y and the action is in one of the four designated industry groups, If submitting a consolidated DD Form not one of the targeted industry cat- 350, enter the number of actions in- egories. Otherwise, leave Line D11 cluded in the consolidated report (see blank. 204.670–6(b)). Otherwise, enter 1 on Line (B) Enter one of the following codes: E5. (1) Code Y—Yes. Enter code Y if the (f) Part F of the DD Form 350. Part F contractor represents in the provision identifies the reporting official. at FAR 52.219–19, Small Business Con- (1) LINE F1, NAME OF CON- cern Representation for the Small TRACTING OFFICER OR REP- Business Competitiveness Demonstra- RESENTATIVE. Enter the name (Last, tion Program, that it is an emerging First, Middle Initial) of the con- small business concern. tracting officer or representative. (2) Code N—No. Enter code N if code Y (2) LINE F2, SIGNATURE. The per- does not apply. son identified on Line F1 must sign. (e) Part E of the DD Form 350. Part E (3) LINE F3, TELEPHONE NUMBER. gathers data on specialized items that Enter the telephone number (with area may not become permanent reporting code) for the individual on Line F1. In- elements. stallations with Defense Switched Net- (1) LINE E1, CONTINGENCY, HU- MANITARIAN, OR PEACEKEEPING work (DSN) must enter the DSN num- OPERATION. ber. (i) Enter code Y on Line E1 if the ac- (4) LINE F4, DATE. Enter the date tion exceeds $200,000 and is in support that the DD Form 350 Report is sub- of— mitted. Enter four digits for the year, (A) A contingency operation as de- two digits for the month, and two dig- fined in 10 U.S.C. 101(a)(13); or its for the day. Use 01 through 12 for
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January through December. For exam- (b) Definitions. For purposes of this ple, enter January 2, 2003, as 20030102. subsection’ ‘‘All Other Orders’’ means orders, and modifications of such or- [66 FR 47097, Sept. 11, 2001; 66 FR 48622, Sept. 21, 2001, as amended at 66 FR 50504, Oct. 3, ders, under basic ordering agreements 2001] or indefinite-delivery contracts. GSA Schedule Orders means only or- 253.204–71 DD Form 1057, Monthly ders or calls, and modifications of such Summary of Contracting Actions. orders or calls, under Federal schedules (a) Scope of subsection. Policy on use awarded by GSA. of a DD Form 1057 is in 204.670. This Other Contracting Actions means all subsection contains instructions on actions that do not meet the defini- completion of the DD Form 1057. tions, in this paragraph (b), of an order. (1) Report actions in the month they Other Federal Schedule Orders means are awarded, issued, executed, or only orders, and modifications of such placed, except— orders, under Federal schedules award- (i) When the price of an order or call ed by an agency other than GSA, e.g., cannot be determined when it is placed, awarded by VA or OPM. count the action and its dollars when it Simplified Acquisition Procedures is paid. means purchase orders, calls under (ii) Count the following actions when blanket purchase agreements (BPAs) the voucher is paid (count each vouch- (except BPAs written under Federal er as one action): schedules), and modifications to those (A) Meals and lodging. actions. (B) Automatic deliveries, e.g., bread, (c) Section A, General Information. milk, and ice cream. (1) LINE A1, REPORT MONTH. Enter (iii) The Navy Facilities Engineering four digits for the year and two digits Command will report vouchers it proc- for the month. Use 01 through 12 for esses on Naval shore establishment January through December. For exam- contracts for electricity and gas in ac- ple, enter January 2003 as 200301. cordance with departmental proce- (2) LINE A2, NAME OF CON- dures. TRACTING OFFICE. Enter sufficient (2) Enter all dollar amounts in whole detail to establish the identity of the dollars only. Do not enter cents. If the contracting office submitting the re- net amount is a decrease, enter a port on Lines 2a and b. minus sign (¥) immediately preceding the amount to indicate a credit entry. (3) LINE A3, CONTRACTING OFFICE Do not enter parentheses. CODES. (3) Report actions of $25,000 or less in (i) Line A3a, Reporting Agency FIPS support of a contingency operation as 95 Code. Enter one of the following defined in 10 U.S.C. 101(a)(13), or a hu- codes: 2100 (Army); 1700 (Navy); 5700 manitarian or peacekeeping operation (Air Force); 96CE (Army Civil Works); as defined in 10 U.S.C. 2302(8), in ac- 97AS (DLA); 9700 (all other defense cordance with the instructions in para- agencies). graphs (c) through (j) of this sub- (ii) Line A3b, Contracting Office section. Report actions exceeding Code. Enter the code assigned by the $25,000 but not exceeding $200,000 that departmental data collection point in support a contingency, humanitarian, 204.670–1(c). or peacekeeping operation, and actions (d) Section B, Contracting Actions. exceeding $25,000 but not exceeding (1) LINE B1, TARIFF OR REGU- $200,000 that are placed by a con- LATED ACQUISITIONS. Enter the tracting officer on a Navy vessel, on number and dollar value of contracting the monthly DD Form 1057 as follows: actions (including modifications that (i) Section B; the applicable lines are will also be reported on Line B9) with 5 through 5e and 8 through 8e. tariff or regulated industries (indus- (ii) Section C; the applicable lines are tries with sole source and service rates 1 and 1c, 2 and 2c, and 3 and 3c. that are fixed or adjusted by a Federal, (iii) Sections D, E, and F are not ap- State, or other public regulatory body). plicable. (2) LINE B2, FOREIGN OR INTER- (iv) Section G; complete fully. AGENCY.
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(i) Enter the total number and dollar modifications that will also be re- value of contracting actions (including ported on Line B9) where the— modifications that will also be re- (A) Contractor is a large business ported on Line B9)— concern; and (A) For foreign military sales (FMS) (B) Place of performance is in the or other arrangement where the for- United States and outlying areas. eign government or international orga- (ii) Enter the subtotals for the num- nization is paying all or part of the ber and dollar value of contracting ac- cost of the action. tions (including modifications that will (B) Placed directly with foreign gov- also be reported on Line B9) for— ernments under the terms of an inter- (A) Line B4a, Simplified Acquisition national agreement, e.g., base mainte- Procedures; nance performed with the foreign gov- (B) Line B4b, GSA Schedule Orders; ernment acting as the contractor (any (C) Line B4c, Other Federal Schedule other actions directly with foreign gov- Orders; ernments go on Line B5). (D) Line B4d, All Other Orders; and (C) With another Federal agency or (E) Line B4e, Other Contracting Ac- Government corporation, e.g., Federal tions. Prison Industries (UNICOR). (5) LINE B5, DOMESTIC OR FOR- (ii) Enter the subtotals for the num- EIGN ENTITIES PERFORMING OUT- ber and dollar value of contracting ac- SIDE THE UNITED STATES. tions (including modifications that will (i) Enter the total number and dollar also be reported on Line B9) for— value of contracting actions (including (A) Line B2a, FMS or International modifications that will also be re- Agreements. Enter subtotals for para- ported on Line B9) where the place of graphs (d)(2)(i)(A) and (B) of this sub- performance is outside the United section. States and outlying areas (see 204.670– (B) Line B2b, Actions with UNICOR. 1(c)). This includes actions placed di- Enter subtotal for contracting actions rectly with a foreign government that with UNICOR. are not under international agreements (C) Line B2c, Actions with Other (see paragraph (d)(2)(i)(B) of this sub- Government Agencies. Enter subtotal section). It does not matter whether for actions with government agencies the contractor is domestic or foreign. other than UNICOR. (ii) Enter the subtotals for the num- (3) LINE B3, SMALL BUSINESS. ber and dollar value of contracting ac- (i) Enter the total number and dollar tions (including modifications that will value of contracting actions (including also be reported on Line B9) for— modifications that will also be re- ported on Line B9) where the— (A) Line B5a, Simplified Acquisition (A) Contractor is a small business Procedures; concern; and (B) Line B5b, GSA Schedule Orders; (B) Place of performance is in the (C) Line B5c, Other Federal Schedule United States and outlying areas (see Orders; 204.670–1). (D) Line B5d, All Other Orders; and (ii) Enter the subtotals for the num- (E) Line B5e, Other Contracting Ac- ber and dollar value of contracting ac- tions. tions (including modifications that will (6) LINE B6, EDUCATIONAL. also be reported on Line B9) for— (i) Enter the total number and dollar (A) Line B3a, Simplified Acquisition value of contracting actions with edu- Procedures; cational institutions (including modi- (B) Line B3b, GSA Schedule Orders; fications that will also be reported on (C) Line B3c, Other Federal Schedule Line B9). Orders; (ii) Enter the subtotals for the num- (D) Line B3d, All Other Orders; and ber and dollar value of contracting ac- (E) Line B3e, Other Contracting Ac- tions (including modifications that will tions. also be reported on Line B9) for— (4) LINE B4, LARGE BUSINESS. (A) Line B6a, Simplified Acquisition (i) Enter the total number and dollar Procedures; value of contracting actions (including (B) Line B6b, GSA Schedule Orders;
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(C) Line B6c, Other Federal Schedule (1) LINE C1, COMPETED. Orders; (i) Enter the total number and dollar (D) Line B6d, All Other Orders; and value of contracting actions that were (E) Line B6e, Other Contracting Ac- competed. tions. (A) Include on Line C1— (7) LINE B7, NONPROFIT AND (1) Actions not subject to Competi- OTHER. tion in Contracting Act (CICA) (see (i) Enter the total number and dollar FAR 6.001) when at least two value of contracting actions (including quotations or offers were received; modifications that will also be re- (2) Actions when competitive proce- ported on Line B9) with— dures were used to fulfill the require- (A) Nonprofit organizations as de- ment for full and open competition (see fined in FAR 31.701; FAR Subpart 6.1); (B) Qualified nonprofit agencies em- (3) Actions when full and open com- ploying people who are blind or se- petition was provided for after exclu- verely disabled; and sion of sources, to establish or main- (C) Any other entities not listed on tain alternative sources or to set aside Lines B1 through B6. an acquisition exceeding the micro- (ii) Enter the subtotals for the num- purchase threshold for small business ber and dollar value of contracting ac- (see FAR subpart 6.2); tions (including modifications that will (4) Actions when statutory authori- also be reported on Line B9) for— ties for other than full and open com- (A) Line B7a, Simplified Acquisition petition (see FAR subpart 6.3) were Procedures; used and more than one offer was re- (B) Line B7b, GSA Schedule Orders; ceived, except as provided in para- (C) Line B7c, Other Federal Schedule graphs (e)(1)(i)(B)(2) and (3) of this sub- Orders; section; (D) Line B7d, All Other Orders; and (5) Actions resulting from a contract (E) Line B7e, Other Contracting Ac- awarded competitively before CICA (in- tions. cluding two-step formal advertising); (8) LINE B8, TOTAL CONTRACTING (6) Orders, calls, and modifications ACTIONS. under a Federal schedule; and (i) Add the amounts on Lines B1 (7) Section 8(a) awards competed through B7 and enter the totals on under FAR 6.204. Line B8. (B) Do not include— (ii) If directed by data collection (1) Actions that meet the criteria for point procedures, also enter the sub- Section C, Line C2; totals for the number and dollar value (2) Actions awarded under the au- of contracting actions for— thority of FAR 6.302–5(b)(2) or (4), au- (A) Line B8a, Simplified Acquisition thorized or required by statute (report Procedures, sum of Lines 3a + 4a + 5a + these in Section C, Line C2); or 6a + 7a. (3) Actions reported in Section B, (B) Line B8b, GSA Schedule Orders, Lines B1 and B2, including actions with sum of Lines 3b + 4b + 5b + 6b + 7b. the Federal Prison Industries (C) Line B8c, Other Federal Schedule (UNICOR). These actions are treated as Orders, sum of Lines 3c + 4c + 5c + 6c not available for competition in pub- + 7c. lished competition reports. (D) Line B8d, All Other Orders, sum (ii) Enter the subtotals for the num- of Lines 3d + 4d + 5d + 6d + 7d. ber and dollar value of contracting ac- (E) Line B8e, Other Contracting Ac- tions for— tions, sum of Lines 3e + 4e + 5e + 6e + (A) Line C1a, Small Business Con- 7e. cerns; (9) LINE B9, TOTAL MODIFICA- (B) Line C1b, Large Business Con- TIONS EXCLUDING SIMPLIFIED AC- cerns; QUISITION PROCEDURES. Enter the (C) Line C1c, Domestic or Foreign total number and dollar value of modi- Entities Performing Outside the United fication actions, excluding simplified States; acquisition procedures. (D) Line C1d, Educational; and (e) Section C, Extent Competed. (E) Line C1e, Nonprofit and Other.
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(2) LINE C2, NOT AVAILABLE FOR (B) Line C3b, Large Business Con- COMPETITION. cerns; (i) Enter the total number and dollar (C) Line C3c, Domestic or Foreign value of contracting actions that were Entities Performing Outside the United not available for competition. States; (A) Include on Line C2— (D) Line C3d, Educational; and (1) Actions for brand name commer- (E) Line C3e, Nonprofit and Other. cial products for authorized resale; (f) Section D, RDT&E Actions. Do not (2) Actions authorized or required by include actions for supplies or services statute to be awarded to a specific in support of research, development, source or through another agency in test, and evaluation (RDT&E) work accordance with FAR 6.302–5(b)(2) or that do not require the contractor to (4); e.g., actions with qualified non- perform RDT&E. profit agencies employing people who (1) LINE D1, SMALL BUSINESS. are blind or severely disabled, and non- Enter the total number and dollar val- competitive 8(a) actions; ues of RDT&E actions with small busi- (3) Actions (including modifications) ness concerns. at or below the micro-purchase thresh- (2) LINE D2, LARGE BUSINESS. old at FAR 2.101; and Enter the total number and dollar (4) Other contracting actions when value of RDT&E actions with large the Director of Defense Procurement business concerns. has determined that there is no oppor- (3) LINE D3, DOMESTIC OR FOR- tunity for competition. EIGN ENTITIES PERFORMING OUT- (B) Do not include any actions re- SIDE THE UNITED STATES. Enter ported in Section B, Line B1 or B2 (e.g., the total number and dollar value of actions with regulated monopolies, ac- RDT&E actions where the principal tions under foreign military sales or place of performance is outside the international agreements, and actions United States and outlying areas (see with another Federal agency or Gov- 204.670–1). ernment corporation). These actions are treated as not available for com- (4) LINE D4, HISTORICALLY BLACK petition in published competition re- COLLEGES AND UNIVERSITIES ports. (HBCU). Enter the total number and (ii) Enter the subtotals for the num- dollar value of RDT&E actions with ber and dollar value of contracting ac- HBCUs. tions for— (5) LINE D5, MINORITY INSTITU- (A) Line C2a, Small Business Con- TIONS (MI). Enter the total number cerns; and dollar value of RDT&E actions (B) Line C2b, Large Business Con- with MIs. cerns; (6) LINE D6, OTHER EDUCATIONAL. (C) Line C2c, Domestic or Foreign Enter the total number and dollar Entities Performing Outside the United value of RDT&E actions with edu- States; cational institutions other than HBCUs (D) Line C2d, Educational; and or MIs. (E) Line C2e, Nonprofit and Other. (7) LINE D7, OTHER ENTITIES. (3) LINE C3, NOT COMPETED. Enter the total number and dollar (i) Enter the total number and dollar value of RDT&E actions that were not value of contracting actions that were reported on Lines D1 through D6. not competed, i.e., any actions not re- (g) Section E, Selected Socioeconomic ported on Line B1 or B2. Do not include Statistics. actions reported in Section B, Line B1 (1) LINE E1, SMALL BUSINESS (SB) or B2. These actions are treated as not SET-ASIDE. available for competition in published (i) Enter the total number and dollar competition reports. value of contracting actions that were (ii) Enter the subtotals for the num- small business set-aside actions, in- ber and dollar value of contracting ac- cluding awards to SDBs reported on tions for— Lines E2c and E2d. Do not include or- (A) Line C3a, Small Business Con- ders under Federal schedules that are cerns; reported on Line E3 or E5.
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(ii) If the action is an emerging small actions with women-owned small busi- business set-aside (see FAR 19.1006(c)), nesses (see FAR 19.001). Do not include use the most appropriate line. orders under Federal schedules that are (iii) Enter the subtotals for the num- reported on Line E5. ber and dollar value of contracting ac- (5) LINE E5, WOMEN-OWNED tions for— SMALL BUSINESS FEDERAL SCHED- (A) Line E1a, SB Set-Aside Using ULE ORDERS. Enter the total number Simplified Acquisition Procedures. and dollar value of contracting actions Enter actions pursuant to FAR that were orders under Federal sched- 13.003(b)(1). ules with women-owned small busi- (B) Line E1b, SB Set-Aside. Enter ac- nesses. tions pursuant to FAR 19.502. (6) LINE E6, HBCU. Enter the total (C) Line E1c, Reserved. number and dollar value of contracting (2) LINE E2, SMALL DISADVAN- actions with HBCUs pursuant to sub- TAGED BUSINESS (SDB) ACTIONS. part 226.70. (i) Enter the total number and dollar (7) LINE E7, MI. Enter the total num- value of contracting actions that were ber and dollar value of contracting ac- SDB actions. Do not include orders tions with MIs pursuant to subpart under Federal schedules that are re- 226.70. ported on Line E3 or E5. (8) LINE E8, JWOD PARTICIPATING (ii) Enter the subtotals for the num- NONPROFIT AGENCIES. Enter the ber and dollar value of contracting ac- total number and dollar value of con- tions for— tracting actions with qualified non- (A) Line E2a, Through SBA—Section profit agencies employing people who 8(a). Enter actions with the Small are blind or severely disabled for sup- Business Administration pursuant to plies or services from the Procurement Section 8(a) of the Small Business Act List pursuant to FAR subpart 8.7. (see FAR subpart 19.8) or under the 8(a) (9) LINE E9, EXEMPT FROM SMALL direct award procedures at 219.811. BUSINESS ACT REQUIREMENTS. (B) Line E2b, SDB Set-Aside, SDB Enter the total number and dollar Preference, or SDB Evaluation Adjust- value of contracting actions exempt ment. Enter actions resulting from— from the set-aside requirements of the (1) A set-aside for SDB concerns; Small Business Act (see FAR 19.502–1). (2) Application of an SDB price pref- (10) LINE E10, HUBZONE. erence or evaluation adjustment (see (i) Enter the total number and dollar FAR subpart 19.11); or value of contracting actions that were (3) SDB preferential consideration. awarded to HUBZone small business (C) Line E2c, SB Set-Aside Using concerns. Simplified Acquisition Procedures. Enter actions pursuant to FAR (ii) Enter the subtotals for the num- 13.003(b)(1) when award is to an SDB, ber and dollar value of contracting ac- but a preference or evaluation adjust- tions for— ment was not applied. (A) Line E10a, HUBZone Set-Aside; (D) Line E2d, SB Set-Aside. Enter ac- (B) Line E10b, HUBZone Price Eval- tions under FAR 19.502 when award is uation Preference; to an SDB, but a preference or evalua- (C) Line E10c, HUBZone Sole Source; tion adjustment was not applied nor and was preferential consideration given. (D) Line E10d, HUBZone Concern— (E) Line E2e, Other. Enter awards to Other. Use this category when the SDB concerns that are not reported on award is to a HUBZone small business Lines E2a through E2d. concern and Lines E10a, E10b, and E10c (3) LINE E3, SDB FEDERAL SCHED- do not apply. ULE ORDERS. Enter the total number (11) LINE E11, SERVICE-RELATED and dollar value of contracting actions DISABLED VETERAN-OWNED that were orders under Federal sched- SMALL BUSINESS. Enter the total ules with SDBs. number and dollar value of contracting (4) LINE E4, WOMEN-OWNED actions that were awarded to service- SMALL BUSINESS. Enter the total disabled veteran-owned small business number and dollar value of contracting concerns.
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(12) LINE E12, OTHER VETERAN- cember. For example, enter January 2, OWNED SMALL BUSINESS. Enter the 2003, as 20030102. total number and dollar value of con- [65 FR 39718, June 27, 2000, as amended at 66 tracting actions that were awarded to FR 47107, Sept. 11, 2001] veteran-owned small business concerns, other than those reported on Line E11. 253.208 Required sources of supplies (h) Section F, Simplified Acquisition and services. Procedures—Ranges. Enter in each of 253.208–1 DD Form 448, Military Inter- the dollar ranges the total number and departmental Purchase Request. dollar value of contracting actions that (a) Use the DD Form 448 as prescribed used simplified acquisition procedures in subpart 208.70. (FAR part 13). The total of Section F is (b) Prepare MIPR information in uni- normally the sum of Lines B3a, B4a, form contract format when possible. B5a, B6a, and B7a. Overprint of fixed repetitive informa- (i) Section G, Contingency Actions. tion is authorized. LINE G1, TOTAL ACTIONS. (c) Instructions for completion of DD (1) Enter the total number and dollar Form 448. (1) BLOCK 5—MIPR Number. value of contracting actions that were Number the MIPR by using— awarded in support of a contingency (i) The requiring department identi- operation as defined in 10 U.S.C. fication code as prescribed in DoD 101(a)(13) or a humanitarian or peace- 4000.25–6–M, Department of Defense Ac- keeping operation as defined in 10 tivity Address Directory (DoDAAD); U.S.C. 2302(8). The numbers entered (ii) The last digit of the fiscal year; here are a breakout of the numbers al- and ready entered in Sections B and C. (iii) The number of the particular (2) Enter the subtotals based on the MIPR (numbered consecutively by the instructions for completion of Section requiring activity). C for the number and dollar value of (2) Block 6—Amend No. Assign a suf- contracting actions for— fix number. Assign amendments of the same MIPR consecutive suffix num- (i) Line G1a, Competed; bers. (ii) Line G1b, Not Available for Com- (3) Block 9. (i) Conduct interdepart- petition; and mental screening of items in accord- (iii) Line G1c, Not Competed. ance with FAR 8.001. Requisition items (j) Section H, Remarks and Authentica- which are available from stocks of tion. other departments as follows: (1) LINE H1, REMARKS. Enter any (A) Obtain items within the scope of remarks applicable to this report. MILSTRIP (see DoD 4000.25–1–M, Mili- (2) LINE H2, CONTRACTING OFFI- tary Standard Requisitioning and Issue CER. Procedures (MILSTRIP)) by use of DD (i) Line H2a, Name. Enter the name Form 1348 (Single Line Item Requisi- (last, first, middle initial) of the con- tion System Document (Manual), tracting officer or representative. DoD))/1348M (Single Line Item Requisi- (ii) Line H2b, Signature. The person tion System Document, DoD (Mechan- identified on Line H2a must sign. ical)). (B) Obtain items not covered by (iii) Line H2c, Telephone Number. MILSTRIP using DD Form 1149, Req- Enter the telephone number (with area uisition and Invoice/Shipping Docu- code) of the person identified on Line ment. H2a. Installations with Defense (C) If, after receipt of a MIPR, it is Switched Network (DSN) must enter determined the requested items are their DSN number. available from stock, the acquiring de- (3) LINE H3, DATE REPORT SUB- partment shall use the MIPR to obtain MITTED. Enter the date that the DD the item. Form 1057 is submitted. Enter four dig- (ii) Normally restrict a MIPR to one its for the year, two digits for the major end item, including its required month, and two digits for the day. Use spare parts, ground support equipment, 01 through 12 for January through De- and similar related items. For other
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than major end items, limit MIPRs to (A) The resulting contract is not to items within a single Federal supply be paid by the Defense Finance and Ac- class when possible. counting Service; and (4) Block 10—(i) Delivery Schedules. (A) (B) The office to receive invoices and The requiring department must clearly make payment is known at the time of state the required time of delivery or preparation of the MIPR. performance in each MIPR, taking into (ii) If payment is to be made by an of- consideration the normal administra- fice designated to receive invoices, also tive lead time of the particular com- enter the DoDAAD code of that office. modity. Delivery and performance (iii) If payment is to be made by an schedules on MIPRs must be realistic office other than the office to which (see FAR 12.1). If the acquiring depart- the invoice is to be mailed, include the name, address, and DoDAAD code of ment cannot accept the delivery sched- the payment office as an attachment to ule in the MIPR, the acquiring depart- the MIPR. ment will note that on DD Form 448–2, (iv) If multiple offices are to receive Acceptance of MIPR. Changes in the invoices and make payment, include requested delivery schedule must be the names and addresses of those of- made by MIPR amendment. fices as an attachment to the MIPR. (B) When a short delivery schedule is Also include the DoDAAD code of each mandatory, the requiring department payment office. shall mark the MIPR ‘‘URGENT’’ in (v) Whenever the payment office is bold letters and provide justification included in an attachment, include a for the marking. reference to the attachment in this (ii) Requiring activities must provide block. MILSTRIP requisition data prescribed (vi) If the names and addresses of in appendix B of the MILSTRIP Man- invoicing and payment offices are pro- ual for each line item which is to be de- vided the acquiring department after livered to each ‘‘ship to’’ address. Re- submission of the MIPR, the requiring petitive data applicable to all lines on department also must provide the the MIPR may be overprinted. DoDAAD code for each payment office. (iii) The requiring activity will fur- (7) Block 14. Enter allotment data for nish estimated weight, cube, and di- the acquisition of supplies. Enter each mensions for each line item or a state- citation in Item 14 in the appropriate ment explaining why these data are space as follows— not available. (i) Accounting classification reference (iv) The requiring activity shall in- number (ACRN). If the ACRN proce- clude the name and telephone number dures of 204.7108 are used in the MIPR of an individual who is thoroughly fa- to relate allotment data to the MIPR miliar with the MIPR, its attachments, item or delivery, enter the ACRN for and technical requirements. each fund citation. (The acquiring de- partment, when preparing the con- (v) Prepare attachments to MIPRs in tract, is not required to use the ACRN sufficient numbers so that each copy of assigned to a fund citation in the a MIPR submitted to the acquiring de- MIPR.) partment is complete with a copy of all (ii) Appropriation. Enter the ten posi- attachments. ‘‘Ship To and Mark For’’ tions as follows: addresses in shipping instructions must (A) First and second—Treasury De- include the clear text identification partment number identifying the de- and DoDAAD code if assigned. partment or agency to which the ap- (5) Block 12—transportation allotment. propriation applies or has been trans- Enter allotment data for transpor- ferred. tation of supplies at Government ex- (B) Third and fourth—Treasury De- pense if appropriate. partment number identifying the de- (6) Block 13—mail invoices to. Use this partment or agency from which an ap- block to identify the name and address propriation has been transferred; leave of the office to receive invoices and blank if no transfer is involved. make payment. (C) Fifth and sixth—Identify the ap- (i) Complete the block only if— propriation fiscal year. For multiple-
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year appropriations, the fifth position cable blocks.) (1) Block 6. Check the shall be the last digit of the first year specific terms under which the MIPR is of availability, and the sixth position being accepted. shall be the last digit of the final year (2) Block 7. If any one of the MIPR of availability. For annual appropria- line items is not accepted, check Block tions, the fifth position shall be blank, 7 and record the affected MIPR line and the sixth position shall be the last item number and reason in Block 13. digit of the fiscal year. For no-year (3) Blocks 8 and 9. Use Blocks 8 and 9 (continuing) appropriations, the fifth only— position shall be blank, and the sixth (i) When Block 6c acceptance is indi- position shall be ‘‘X.’’ cated (indicate the MIPR line item (D) Seventh through tenth—Treasury numbers that will be provided under Department appropriation serial num- each method of financing in Blocks 8a ber. and 9a, respectively); or (iii) Limit/Subhead. Up to four char- (ii) If quantities or estimated costs acters; if less than four characters, cited in a MIPR require adjustment leave empty spaces blank. (list the affected MIPR line item num- (iv) Supplemental accounting classifica- bers together with the adjusted quan- tion data. Not to exceed 36 characters. tities or estimated costs in the col- Enter in accordance with departmental umns provided under Blocks 8 and 9, as or agency regulations. appropriate). (v) Accounting station. Enter the six (4) Block 10. Whenever a MIPR is ac- character DoDAAD code of the ac- cepted in part or in total under Cat- counting station (not used with Navy egory II funding, forecast the esti- and Marine Corps funds). mated date of contract award. (vi) Amount. Enter the amount for each fund citation if more than one al- (5) Block 11. Enter the total amount lotment is cited. of funds required to fund the MIPR (vii) Additional citations. If space is items, as accepted. required for additional fund citations, (6) Block 12. (i) Complete this block include as an attachment and reference only in those cases where the amount the attachment on the form. recorded in Block 11 is not in agree- (d) When preparing a MIPR amend- ment with the amount recorded in ment, always fill out the basic infor- Block 5. This will serve either— mation in Blocks 1 through 8. Fill out (A) As a request to the requiring de- only those other blocks which vary partment to issue a MIPR amendment from the data shown on the basic MIPR to provide the additional funds; or or a prior amendment. Insert ‘‘n/c’’ in (B) Authority for the requiring de- items where there is no change. partment to withdraw the available ex- (e) Change of a disbursing office cited cess funds. on a DoD funded MIPR does not require (ii) When funds of two or more appro- a MIPR amendment when the resultant priations are involved, provide proper contract is assigned for administration breakdown information in Block 13. to the Defense Contract Management (7) Block 13. Use this block to Agency. The administrative con- record— tracting office may issue an adminis- (i) Justification, by MIPR line item, trative change order, copies of which for any additional funds required; will be provided to the contracting offi- (ii) Explanation for rejection of cer for transmittal to the requiring ac- MIPR whether in part or in total; tivity. (iii) Appropriation and subhead data [56 FR 36554, July 31, 1991, as amended at 65 cited on the MIPR; and FR 52953, Aug. 31, 2000] (iv) Other pertinent data. (c) Complete a DD Form 448–2 for all 253.208–2 DD Form 448–2, Acceptance MIPR amendments involving an ad- of MIPR. justment of funds or delivery schedule, (a) Use the DD Form 448–2 as pre- or if requested by the requiring depart- scribed in subpart 208.70. ment. (b) Instructions for completion of DD (d) Unless otherwise agreed, provide Form 448–2. (Complete only the appli- the requiring department an original
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and three copies of each DD Form 448– (ii) The factors in section III, Block 2. 20, generally mean— (A) Government property control. An 253.209 Contractor qualifications. assessment of the prospective contrac- tor’s capability to manage and control 253.209–1 Responsible prospective Government property. contractors. (B) Transportation. An assessment of (a) SF 1403, Preaward Survey of Pro- the prospective contractor’s capability spective Contractor (General). (i) The fac- to follow the laws and regulations ap- tors in Section III, Block 19, generally plicable to the movement of Govern- mean— ment material, or overweight, over- (A) Technical capability. An assess- sized, hazardous cargo, etc. ment of the prospective contractor’s (C) Packaging. An assessment of the key management personnel to deter- prospective contractor’s ability to mine if they have the basic technical meet all contractual packaging re- knowledge, experience, and under- quirements including preservation, standing of the requirements necessary unit pack, packing, marking, and unit- to produce the required product or pro- izing for shipment. vide the required service. (D) Security clearance. A determina- (B) Production capability. An evalua- tion that the prospective contractor’s tion of the prospective contractor’s facility security clearance is adequate ability to plan, control, and integrate and current. (When checked, the sur- manpower, facilities, and other re- veying activity will refer this factor to sources necessary for successful con- the Defense Security Service (DSS)). tract completion. This includes— (E) Plant safety. An assessment of the (1) An assessment of the prospective prospective contractor’s ability to contractor’s possession of, or the abil- meet the safety requirements in the so- ity to acquire, the necessary facilities, licitation. material, equipment, and labor; and (F) Environmental/energy consider- (2) A determination that the prospec- ation. An evaluation of the prospective tive contractor’s system provides for contractor’s ability to meet specific timely placement of orders and for ven- environmental and energy require- dor follow-up and control. ments in the solicitation. (C) Quality assurance capability. An (G) Flight operations and flight safety. assessment of the prospective contrac- An evaluation of the prospective con- tor’s capability to meet the quality as- tractor’s ability to meet flight oper- surance requirements of the proposed ation and flight safety requirements on contract. It may involve an evaluation solicitations involving the overhaul of the prospective contractor’s quality and repair of aircraft. assurance system, personnel, facilities, (H) Other. If the contracting officer and equipment. wants an assessment of other than (D) Financial capability. A determina- major factors A–E and other factors A– tion that the prospective contractor G, check this factor. Explain the de- has or can get adequate financial re- sired information in the Remarks sec- sources to obtain needed facilities, tions. equipment, materials, etc. [56 FR 36554, July 31, 1991, as amended at 60 (E) Accounting system and related in- FR 29504, June 5, 1995; 64 FR 51077, Sept. 21, ternal controls. An assessment by the 1999] auditor of the adequacy of the prospec- tive contractor’s accounting system 253.213 Simplified acquisition proce- and related internal controls as defined dures (SF’s 18, 30, 44, 1165, 1449, in 242.7501, Definition. Normally, a con- and OF’s 336, 347, and 348). tracting officer will request an ac- (f) DoD uses the DD Form 1155, Order counting system review when soliciting for Supplies or Services, instead of OF and awarding cost-reimbursement or 347; and OF 336, Continuation Sheet, in- incentive type contracts, or contracts stead of OF 348. which provide for progress payments (i) Use the DD Form 1155 as pre- based on costs or on a percentage or scribed in 213.307(b)(i) and in accord- stage of completion. ance with the instructions at 253.213–70.
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(ii) Use the OF 336, or a sheet of contracts, purchase orders, and agreements paper, as a continuation sheet for the as prescribed in Subpart 204.70. DD Form 1155. Continuation sheets 2 Delivery Order/Call No.— may be printed on the reverse of the DD Form 1155. Enter the PII number for delivery orders/ (iii) DD Form 1155c–1, Order for Sup- calls, when applicable, as prescribed in Sub- part 204.70. plies or Services (Commissary Continu- ation Sheet) may be used for com- 3 Date of Order/Call— missary acquisitions. Enter the four position numeric year, [56 FR 36554, July 31, 1991, as amended at 64 three position alpha month, and two position FR 2599, Jan. 15, 1999] numeric day.
253.213–70 Instructions for completion 4 Requisition/Purch Request No.— of DD Form 1155. Enter the number authorizing the pur- (a) These instructions are mandatory chase. When the number differs by line item, if— list it in the schedule and annotate this block, ‘‘see schedule.’’ (1) Contract administration has been assigned outside the purchasing office; 5 Priority— or Enter the appropriate Program Identifica- (2) The contractor is located in the tion Code as identified in Schedule I to the continental United States or Canada. Defense Priorities and Allocations System (b) The entity codes (address codes) Regulation. referenced in this subsection are codes published in— 6 Issued by— (1) DoD Activity Address Directory Enter the name and address of the issuing (DODAAD), DoD 4000.25–6–M. office. In the code block, enter the DODAAD (2) Military Assistance Program Address code for the issuing office. Directly below Directory System (MAPAD), DoD 4000.25– the address, enter: Buyer/Symbol: followed by the buyer’s name and routing symbol. Di- 8–M. rectly below the buyer/symbol, enter: Phone: (3) Commercial and Government Entity followed by the buyer’s phone number and (CAGE) Codes Handbook H4/H8. extension. (c) For orders requiring payment in Canadian currency— 7 Administered by— (1) State the contract price in terms Enter the name and address of the contract of Canadian dollars, followed by the administration activity. On purchase orders initials CN; e.g., $1,647.23CN. retained by purchasing offices for adminis- (2) Indicate on the face of the order— tration, mark this block, ‘‘see block 6.’’ (i) The U.S./Canadian conversion rate Enter in the code block the DODAAD code of the contract administration activity. In the in effect at the time of the award; and lower right or left-hand corner, enter the (ii) The U.S. dollar equivalent of the criticality designator code from FAR 42.1105. Canadian dollar amount. (d) When the DD Form 1155 includes 8 Delivery FOB— FMS requirements, clearly mark FMS Check the applicable box. requirement on its face. Specify within the order each FMS case identifier 9 Contractor— code by line or subline item number. (i) Enter the full business name and ad- (e) Instructions for DD Form 1155 en- dress of the contractor. Enter in the first tries. (Instructions apply to purchase code block, the CAGE code of the contractor. orders, delivery orders, and calls, ex- (ii) If it is known that all the work covered cept Block 2, which applies only to de- by the order is to be performed at an address different from the address represented by the livery orders and calls, and Block 12, contractor’s code, and any contract adminis- which applies only to purchase orders.) tration function will be required at that fa- cility, enter in the facility code block the or- BLOCK ganizational entity code for that facility, i.e., H8–1/H8–2 code for a non-Government en- 1 Contract/Purch Order/Agreement No.— tity or DODAAD code for a Government enti- Enter the Procurement Instrument Identi- ty. (Use DODAAD codes only to indicate fication (PII) number and, when applicable, ‘‘performed at’’ locations for orders speci- the supplementary identification number for fying services at a Government location.) If
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it is known that multiple facilities are in- BLOCK volved, enter the codes for all facilities at which work is to be performed, including the 18 Item No.— contractor’s code if work is performed at Enter an item number for each item of sup- that address, in the Optional Form 336 Con- ply or service in accordance with subpart tinuation Sheet and mark the facility code 204.71. block with ‘‘see schedule.’’ 19 Schedule of Supplies/Services— 10 Deliver to FOB Point by (Date)— The schedule contains several elements of If a single date of delivery applies to the data. The order and arrangement of data in entire order, enter date in this block. List the schedule is mandatory for purchase and multiple delivery dates in the schedule and delivery orders assigned to the Defense Con- mark this block ‘‘see schedule.’’ tract Management Agency or the military departments for administration and is en- 11 Mark if Business— couraged for all orders. Check all applicable blocks. (1) National Stock Number (NSN)— Total item quantity for the line or subline 12 Discount Terms— item number followed by the appropriate na- tional stock number or the word ‘‘none’’ if Enter the discount for prompt payment in an NSN has not been assigned. On the same terms of percentages and corresponding line and adjacent to NSN, enter the words days. Express the percentages in whole num- ‘‘Total Item Quantity.’’ This phrase is used bers and decimals, e.g., 3.25%—10 days; in conjunction with the total quantity, unit 0.50%—20 days. of issue, unit price, and dollar amount of the stock number or item cited (see entries for 13 Mail Invoices to the Address in Block— Blocks 20, 21, 22, and 23). Enter a reference to the block number con- (2) Item Identification— taining the address to which invoices are to Enter first the most descriptive noun or be mailed. When not in Block 6, 7, 14, or 15, verb of the supplies or services to be fur- insert in Block 13, ‘‘see schedule.’’ nished, supplemented by additional descrip- tion as prescribed in FAR part 10. If multiple 14 Ship to— accounting classifications apply to the con- tract, enter the accounting classification If a single ship-to point applies to the en- reference number. tire order, enter the name and address of (3) Quantity Variance— that point in this block and a DODAAD code Enter the quantity variance permitted for in the code block. For FMS shipments, enter the line item in terms of percentages, indi- the MAPAD code in the code block and an cating whether the percentage is plus or instruction for the contractor to contact the minus and if applicable to each destination. transportation office of the administering (4) Inspection/Acceptance— activity to obtain a name and shipping ad- Enter the point at which inspection/accept- dress. Enter multiple ship-to points in the ance will take place. schedule and mark this block, ‘‘See Sched- (5) Preservation and Packaging— ule.’’ Enter the preservation requirements for the item described. These requirements may 15 Payment Will be Made by— be expressed in terms of MIL–STD–2073–1, Enter the name and address of the activity DoD Material Procedures for Development making payment. Enter in the code block, and Application of Packaging Requirements, the DODAAD code of the paying activity. and MIL–STD–2073–2, Packaging Require- ments, codes. They may also be expressed by 16 Type of Order— reference to applicable specifications. (6) Packing— Check the appropriate box. If a purchase When required, enter the packing level des- order: ignator and specification, standard, or docu- (i) Identify the type of quotation, i.e., oral, ment in which the requirements are stated letter or TWX, on which the order is based. or state the specific requirements. (ii) Check the box when acceptance of the (7) Unitization— purchase order is required and enter the When desired by the requiring activity, a number of copies of the order to be returned requirement for cargo unitization for a par- to the issuing office. ticular destination should be specified for 17 Accounting and Appropriation Data/ shipments involving two or more shipping Local Use— containers having an aggregate total of not less than 20 cubic feet or 200 pounds. Enter the accounting classification and the (8) Ship To— accounting classification reference num- Enter the DODAAD or MILSCAP H8–1/H8– ber(s) in accordance with 204.7107. 2 (cage) as appropriate for the entity code of
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the ship-to point on the first line and the funding status (e.g., amounts obli- corresponding name and address on suc- gated). ceeding lines. If multiple accounting classi- (2) Express all dollar values to the fications apply to the same line or subline item, enter the accounting classification ref- nearest whole value (e.g., erence number. When several items are to be $200,008.55=$200,009). shipped to the same point, the code will be (3) Express all percentages to the listed; but it will not be necessary to repeat nearest hundredth or thousandth as ap- the address. propriate (e.g., interest rate—8.25% or (9) Delivery Date— When multiple delivery dates apply, enter 8.257%). the required date of delivery on the same (4) If the contracting office is exempt line with ship-to code. from reporting to the DoD manage- (10) Mark For— ment information system on profit and Enter the DODAAD or MILSCAP H8–1/H8– fee statistics (see 215.404–76), do not 2 (cage) as appropriate for the entity code on complete Block 1, 4, 5, 6, 7, 8, 9, 10, 11, the first line and name and address of the ul- timate recipient of the supplies and services or 12. on succeeding lines. (5) Report an option amount for addi- tional quantities as a separate contract 20 Quantity Ordered/Accepted— action when exercised. Enter the total quantity ordered for the (6) Even though fixed-price type con- line item. If applicable, enter the breakdown tract actions are negotiated on the on quantities for each ship-to point within basis of total price, prepare the nego- the line item. tiation summary portion of the DD 21 Unit— Form 1547 showing the contracting offi- cer’s best estimates of cost and profit. Enter the unit of measure applicable to the line item. (7) For indefinite-delivery type con- tracts, prepare a consolidated DD Form 22 Unit Price— 1547 for annual requirements expected Enter the unit price applicable to the line to exceed the cost or pricing data item. threshold. 23 Amount— (8) Prepare a consolidated DD Form 1547, if possible, when multiple profit Enter the extended dollar amount (quan- rates apply to a single negotiation. tity x unit price) for each line item. (c) Specific instructions for completion 24 Contracting/Ordering Officer— of DD Form 1547—(1) Block 1—report no. Enter the contracting/ordering officer’s Enter the four-digit local control num- signature. ber followed by a dash and the last two digits of the fiscal year (e.g., 0004–90 for 25 Total Amount— 4th action in fiscal year 1990). Each Enter the total dollar amount for all line field contracting office participating in items on the order. profit reporting shall establish a con- trol system for consecutively num- 26 thru 42 These blocks are used in the re- ceiving and payment functions. Procedures bering completed DD Forms 1547. Al- for making entries are prescribed by the ways start with 0001 at the beginning of respective departments. each fiscal year and always use four digits. This number will identify the [56 FR 36554, July 31, 1991, as amended at 61 specific DD Form 1547 in DoD’s man- FR 7751, Feb. 29, 1996; 64 FR 2600, Jan. 15, agement information system and will 1999; 65 FR 39707, June 27, 2000; 65 FR 52953, be used for follow-up actions. Aug. 31, 2000] (2) Block 2—basic procurement instru- 253.215 Contracting by negotiation. ment identification no. Enter the identi- fying contract number assigned per 253.215–70 DD Form 1547, Record of 204.70 (Block B1A of the DD 350). Weighted Guidelines Application. (3) Block 3—SPIIN. Enter the supple- (a) Use the DD Form 1547 as pre- mental procurement instrument iden- scribed in 215.404–70. tification number for supplemental (b) General instructions. (1) Report agreements or other modifications, as- amounts as they relate to the price of signed per 204.70, (Block B2 of the DD the contract action without regard to 350).
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(4) Block 4—date of action—(i) Year. (14) Blocks 21 through 29—weighted Enter the last two digits of the year guidelines profit factors. Enter the the action was negotiated (e.g., 90 for amounts determined in 215.404–71 or 1990). 215.404–72. This section is not required (ii) Month. Enter the two digit num- to be completed when using an alter- ber for the month the action was nego- nate structured approach (215.404–73). tiated (e.g., 09 for September). (15) Block 30—total profit objective. (5) Block 5—contracting office code. Enter the total of Blocks 24, 25, 26, 28, Enter the code assigned the con- and 29. This section is not required to tracting office per DoD Procurement be completed when using an alternate Coding Manual, Volume III, (Block A3 structured approach (215.404–73). of the DD 350). (16) Blocks 31 through 35—negotiation (6) Block 6—name of contractor. Enter summary. Complete as indicated on the the contractor’s name (including divi- form. For fixed-price type contracts sion name), (Block B5D of the DD 350). negotiated on a total price basis, enter (7) Block 7—DUNS number. Enter the the contracting officer’s best estimates contractor establishment code number, of cost and profit. When using an alter- (Block B5A of the DD 350). nate structured approach, see 215.404– (8) Block 8—federal supply code. Enter 73(b)(2) for offsets. the code used in Block B12A of the DD (17) Blocks 36 through 39—contracting 350. officer approval. The contracting officer (9) Block 9—DOD claimant program. shall sign the form. Include a complete Enter the code used in Block B12B of (with area code) commercial telephone the DD 350. number to facilitate any follow-up ac- (10) Block 10—contract type code. Enter tions. the appropriate code— (18) Blocks 96 through 99—optional use. Complete in accordance with depart- Description Code ment/agency procedures, if any. FPR (all types) ...... A NOTE: Department of Defense Acquisition FPI (all types) ...... L Forms are not published in the FEDERAL FFP ...... J REGISTER or the Code of Federal Regula- FP(E) ...... K tions. For the convenience of the user, the CPFF ...... U list set forth below includes section num- CPIF (all types) ...... V bers, form numbers, and titles. (11) Block 11—type effort. Enter the 253.303–250 Material Inspection and Receiv- ing Report. appropriate code— 253.303–250c Material Inspection and Receiv- ing Report-Continuation Sheet. Description Code 253.303–250–1 Tanker/Barge Material Inspec- Manufacturing ...... 1 tion and Receiving Report. Research and Development ...... 2 253.303–350 Individual Contracting Action Services ...... 3 Report. 253.303–416 Purchase Request for Coal, Coke (12) Block 12—use code. Enter the ap- or Briquettes. propriate code for use of the weighted 253.303–428 Communication Service Author- guidelines method— ization. 253.303–448 Military Interdepartmental Pur- Description Code chase Request. 253.303–448–2 Acceptance of MIPR. Standard weighted guidelines method (215.404–71) ... 2 253.303–879 Statement of Compliance. Alternate performance risk, no facilities employed 253.303–882 Report of Inventions and Sub- (215.404–71–2(c)(2)) ...... 1 contracts. Alternate facilities capital employed (215.404–71– 4(c)(2)) ...... 3 253.303–1057 Monthly Summary of Con- Alternate structure approach (215.404–73) ...... 4 tracting Actions. Modified weighted guidelines approach, (215.404–72) 5 253.303–1114 Instructions for Use of Contract Termination Settlement and Inventory (13) Blocks 13 through 20—cost category Schedule Forms. objective. Enter the prenegotiation ob- 253.303–1131 Cash Collection Voucher. jectives. Include contractor inde- 253.303–1149 Requisition and Invoice/Ship- ping Document. pendent research and development/bid 253.303–1155 Order for Supplies or Services. and proposal in the general and admin- 253.303–1155c–1 Order for Supplies or Serv- istrative expenses in Block 19. ices (Commissary Continuation Sheet).
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253.303–1342 Property Record. 253.303–1640 Request for Plant Clearance. 253.303–1348 Single Line Item Requisition 253.303–1641 Disposal Determination Ap- System Document (Manual). proval. 253.303–1348m Single Line Item Requisition 253.303–1653 Transportation Data for Solici- System Document (Mechanical). tations. 253.303–1348–1A Issue Release/Receipt Docu- 253.303–1654 Evaluation of Transportation ment. Cost Factors. 253.303–1348–2 Issue Release/Receipt Docu- 253.303–1659 Application for U.S. Govern- ment with Address Label. ment Shipping Documentation/Instruc- 253.303–1384 Transportation Control and tions. Movement Document. 253.303–1662 Property in the Custody of Con- 253.303–1391 FY lll Military Construction tractors. Project Data. 253.303–1664 Data Item Description. 253.303–1391c FY lll Military Construction 253.303–1707 Information to Offerors or Project Data (continuation). Quoters. 253.303–1419 Industrial Plant Equipment 253.303–1861 Contract Facilities Capital Cost Requisition. of Money. 253.303–1423 Contract Data Requirements 253.303–1921 Cost Data Summary Report. List. 253.303–1921–1 Functional Cost-Hour Report. 253.303–1423–1 Contract Data Requirements 253.303–2025 Packaging Change Rec- List (1 Data Item). ommendation/Approval. 253.303–1423–2 Contract Data Requirements 253.303–2051 Request for Assignment of a List (2 Data Items). Commercial and Government Entity 253.303–1484 Post-Award Conference Record. (CAGE) Code. 253.303–1547 Record of Weighted Guidelines 253.303–2051–1 Request for Information/ Application. Verification of Commercial and Govern- 253.303–1568 Labor Standards Investigation ment Entity (CAGE) Code. Summary Sheet. 253.303–2139 Report of Contract Performance 253.303–1592 Contract Cross Reference Data. Outside the United States. 253.303–1593 Contract Administration Com- 253.303–2579 Small Business Coordination pletion Record. Record. 253.303–1594 Contract Completion State- 253.303–2626 Performance Evaluation (Con- ment. struction). 253.303–1597 Contract Closeout Check-List. 253.303–2631 Performance Evaluation (Archi- 253.303–1598 Contract Termination Status tect-Engineer). Report. [56 FR 36554, July 31, 1991] 253.303–1635 Plant Clearance Case Register. 253.303–1637 Notice of Acceptance of Inven- EDITORIAL NOTE: For FEDERAL REGISTER ci- tory Schedules. tations affecting section 253.215–70, see the 253.303–1638 Report of Disposition of Con- List of CFR Sections Affected, which appears tractor Inventory. in the Finding Aids section of the printed 253.303–1639 Scrap Warranty. volume and on GPO Access.
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APPENDIX A—ARMED SERVICES BOARD will also designate the order in which the OF CONTRACT APPEALS vice-chairmen will act for the chairman in his absence. In the absence of a vice-chair- Sec. man, the chairman or acting chairman may PART 1—CHARTER designate a member of the Board to serve as PART 2—RULES a temporary vice-chairman. 3. It shall be the duty and obligation of the AUTHORITY; 41 U.S.C. 421 and 48 CFR chap- members of the Armed Services Board of ter 1. Contract Appeals to decide appeals on the ARMED SERVICES BOARD OF CONTRACT record of the appeal to the best of their APPEALS knowledge and ability in accordance with applicable contract provisions and in accord- Approved 1 May 1962. ance with law and regulation pertinent Revised 1 May 1969. thereto. Revised 1 September 1973. 4. The chairman of the Board shall be re- Revised 1 July 1979. sponsible for establishing appropriate divi- Part 1—Charter sions of the Board to provide for the most ef- fective and expeditous handling of appeals. 1. There is created the Armed Services He shall be reponsible for assigning appeals Board of Contract Appeals which is hereby to the divisions for decision without regard designated as the authorized representative to the military department or other pro- of the Secretary of Defense, the Secretary of curing agency which entered into the con- the Army, the Secretary of the Navy and the tract. A division may consist of one or more Secretary of the Air Force, in hearing, con- members of the Board. The chairman shall sidering and determining appeals by contrac- designate one member of each division as the tors from decisions of contracting officers or division head. The division heads and the their authorized representatives or other au- chairman and vice-chairmen shall constitute thorities on disputed questions. These ap- the senior deciding group of the Board. A peals may be taken (a) pursuant to the Con- majority of the members of a division or of tract Disputes Act of 1978 (41 U.S.C. Sec. 601, the senior deciding group shall constitute a et seq.), (b) pursuant to the provisions of con- quorum for the transaction of the business of tracts requiring the decision by the Sec- each, respectively. Decisions of the Board retary of Defense or by a Secretary of a Mili- shall be by majority vote of the members of tary Department or their duly authorized a division participating and the chairman representative or board, or (c) pursuant to and a vice-chairman, unless the chairman re- the provisions of any directive whereby the fers the appeal for decision by the senior de- Secretary of Defense or the Secretary of a ciding group. The decision of the Board in Military Department has granted a right of cases so referred to the senior deciding group appeal not contained in the contract on any shall be by majority vote of the partici- matter consistent with the contract appeals pating members of that group. The chairman procedure. The Board may determine con- may refer an appeal of unusual difficulty, tract disputes for other departments and significant precedential importance, or seri- agencies by agreement. The Board shall op- ous dispute within the normal decision proc- erate under general policies established or ess for decision by the senior deciding group. approved by the Under Secretary of Defense An appeal involving $50,000 or less may be de- (Research and Engineering). cided by a single member or fewer members 2. Membership of the Board shall consist of of the Board than hereinbefore provided for attorneys at law who have been qualified in cases of unlimited dollar amount, under ac- the manner prescribed by the Contract Dis- celerated or expedited procedures as pro- putes Act of 1978. Members of the Board are vided in the Rules of the Board and the Con- hereby designated Administrative Judges. tract Disputes Act of 1978. There shall be appointed from members of 5. The Board shall have all powers nec- the Board a chairman and two or more vice- essary and incident to the proper perform- chairmen. Appointment of the chairman and ance of its duties. Subject to the approval of vice-chairmen and other members of the the Under Secretary of Defense (Research Board shall be made by the Under Secretary and Engineering) and the Assistant Secre- of Defense (Research and Engineering) and taries of the Military Departments respon- the Assistant Secretaries of the Military De- sible for procurement, the Board shall adopt partments responsible for procurement. The its own methods of procedure, and rules and chairman and vice-chairmen shall serve in regulations for its conduct and for the prepa- that capacity for a two-year term unless ration and presentation of appeals and sooner removed or reappointed for an addi- issuance of opinions. The Military Depart- tional term or terms. The Under Secretary ments and other procuring agencies shall
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provide legal personnel to prepare and cases heard, opinions rendered, current re- present the contentions of the departments serve of pending matters, and such other in- or agencies in relation to appeals filed with formation as may be required. the Board. It shall not be necessary for the 10. The Board shall have a seal bearing the Board, unless it otherwise desires, to com- following inscription: ‘‘Armed Services municate with more than one trial attorney Board of Contract Appeals.’’ This seal shall in each of the departments or agencies con- be affixed to all authentications of copies of cerning the preparation and presentation of records and to such other instruments as the appeals and the obtaining of all records Board may determine. deemed by the Board to be pertinent thereto. 11. This revised charter is effective April 6. Any member of the Board or any exam- 21, 1980. iner, designated by the chairman, shall be Approved: authorized to hold hearings, examine wit- W. Graham Claytor, Jr. nesses, and receive evidence and argument Deputy Secretary of Defense for consideration and determination of the Clifford L. Alexander, Jr. appeal by the designated division. A member Secretary of the Army of the Board shall have authority to admin- E. Hidalgo ister oaths and issue subpoenas as specified Secretary of the Navy in section 11 of the Contract Disputes Act of Hans M. Mark 1978. The chairman may request orders of the Secretary of the Air Force court in cases of contumacy or refusal to obey a subpoena in the manner prescribed in Part 2—Rules that section. 7. The chairman shall be responsible for Approved 15 July 1963. the internal organization of the Board and Revised 1 May 1969. for its administration. He shall provide with- Revised 1 September 1973. in approved ceilings for the staffing of the Revised 30 June 1980. Board with non-member personnel, including Preface hearing examiners, as may be required for the performance of the functions of the I. Jurisdiction for Considering Appeals Board. The chairman shall appoint a re- corder of the Board. Such personnel shall be The Armed Services Board of Contract Ap- responsible to and shall function under the peals (referred to herein as the Board) shall direction, supervision and control of the consider and determine appeals from deci- chairman. sions of contracting officers pursuant to the 8. The Board will be serviced by the De- Contract Disputes Act of 1978 Pub. L. 95–563, partment of the Army for administrative 41 U.S.C. 601–613) relating to contracts made support for its operations as required. Ad- by (i) the Departments of Defense, Army, ministrative support will include budgeting, Navy and Air Force or (ii) any other execu- funding, fiscal control, manpower control tive agency when such agency or the Admin- and utilization, personnel administration, istrator for Federal Procurement Policy has security administration, supplies, and other designated the Board to decide the appeal. administrative services. The Departments of II. Location and Organization of the Board the Army, Navy, Air Force and the Office of the Secretary of Defense will participate in (a) The Board’s address is Skyline Six, 5109 financing the Board’s operations on an equal Leesburg Pike, 7th Floor, Falls Church, VA basis and to the extent determined by the 22041–3217, telephone (703) 681–8500 (recep- Assistant Secretary of Defense (Comp- tionist), (703) 681–8502 (recorder). troller). The cost of processing appeals for (b) The Board consists of a chairman, two departments and agencies other than those or more vice chairmen, and other members, in the Department of Defense will be reim- all of whom are attorneys at law duly li- bursed. censed by a state, commonwealth, territory, 9. The chairman of the Board will furnish or the District of Columbia. Board members the Secretary of Defense and to the Secre- are designated Administrative Judges. taries of the Military Departments by Octo- (c) There are a number of divisions of the ber 31 of each year a report containing an ac- Armed Services Board of Contract Appeals, count of the Board’s transactions and pro- established by the Chairman of the Board in ceedings for the preceding fiscal year. Within such manner as to provide for the most effec- 30 days following the close of a calendar tive and expeditious handling of appeals. The quarter, the chairman shall forward a report Chairman and a Vice Chairman of the Board of the Board’s proceedings for the quarter to act as members of each division. Appeals are the Under Secretary of Defense (Research assigned to the divisions for decision without and Engineering), the Assistant Secretaries regard to the military department or other of the Military Departments responsible for procuring agency which entered into the procurement, and to the Director of the De- contract involved. Hearing may be held by a fense Logistics Agency. Such reports shall designated member (Administrative Judge), disclose the number of appeals received, or by a duly authorized examiner. Except for
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appeals processed under the expedited or ac- should be signed personally by the appellant celerated procedure, the decision of a major- (the contractor taking the appeal), or by the ity of a division constitutes the decision of appellant’s duly authorized representative or the Board, unless the chairman refers the ap- attorney. The complaint referred to in rule 6 peal to the Board’s Senior Deciding Group may be filed with the notice of appeal, or the (consisting of the chairman, vice chairmen appellant may designate the notice of appeal and all division heads), in which event a de- as a complaint, if it otherwise fulfills the re- cision of a majority of that group con- quirements of a complaint. stitutes the decision of the Board. Appeals 3. Docketing of Appeals. When a notice of referred to the Senior Deciding Group are appeal in any form has been received by the those of unusual difficulty, significant prece- Board, it shall be docketed promptly. Notice dential importance, or serious dispute within in writing shall be given to the appellant the normal division decision process. For de- with a copy of these rules, and to the con- cisions of appeals processed under the expe- tracting officer. dited or accelerated procedure, see rules 4. Preparation, Content, Organization, For- 12.2(c) and 12.3(b). warding, and Status of Appeal File— (a) Duties of Contracting Officer— Within 30 days of re- Preliminary Procedures ceipt of an appeal, or notice that an appeal 1. Appeals, How Taken. (a) Notice of an ap- has been filed, the contracting officer shall peal shall be in writing and mailed or other- assemble and transmit to the Board an ap- wise furnished to the Board within 90 days peal file consisting of all documents perti- from the date of receipt of a contracting offi- nent to the appeal, including: cer’s decision. A copy thereof shall be fur- (1) The decision from which the appeal is nished to the contracting officer from whose taken; decision the appeal is taken. (2) The contract, including pertinent speci- (b) Where the contractor has submitted a fications, amendments, plans and drawings; claim of $50,000 or less to the contracting of- (3) All correspondence between the parties ficer and has requested a written decision relevant to the appeal, including the letter within 60 days from receipt of the request, or letters of claim in response to which the and the contracting officer has not done so, decision was issued; the contractor may file a notice of appeal as (4) Transcripts of any testimony taken provided in subparagraph (a) above, citing during the course of proceedings, and affida- the failure of the contracting officer to issue vits or statements of any witnesses on the a decision. matter in dispute made prior to the filing of (c) Where the contractor has submitted a the notice of appeal with the Board; and properly certified claim over $50,000 to the (5) Any additional information considered contracting officer or has requested a deci- relevant to the appeal. sion by the contracting officer which pres- ently involves no monetary amount pursu- Within the same time above specified the ant to the Disputes clause, and the con- contracting officer shall furnish the appel- tracting officer has failed to issue a decision lant a copy of each document he transmits within a reasonable time, taking into ac- to the Board, except those in subparagraph count such factors as the size and com- (a)(2) above. As to the latter, a list furnished plexity of the claim, the contractor may file appellant indicating specific contractual a notice of appeal as provided in subpara- documents transmitted will suffice. graph (a) above, citing the failure of the con- (b) Duties of the Appellant— Within 30 days tracting officer to issue a decision. after receipt of a copy of the appeal file as- (d) Upon docketing of appeals filed pursu- sembled by the contracting officer, the ap- ant to (b) or (c) hereof, the Board may, at its pellant shall transmit to the Board any doc- option, stay further proceedings pending uments not contained therein which he con- issuance of a final decision by the con- siders relevant to the appeal, and furnish tracting officer within such period of time as two copies of such documents to the govern- is determined by the Board. ment trial attorney. (e) In lieu of filing a notice of appeal under (c) Organization of Appeal File— Documents (b) or (c) hereof, the contractor may request in the appeal file may be originals or legible the Board to direct the contracting officer to facsimiles or authenticated copies, and shall issue a decision in a specified period of time, be arranged in chronological order where as determined by the Board, in the event of practicable, numbered sequentially, tabbed, undue delay on the part of the contracting and indexed to identify the contents of the officer. file. 2. Notice of Appeal, Contents of. A notice of (d) Lengthy Documents— Upon request by appeal should indicate that an appeal is either party, the Board may waive the re- being taken and should identify the contract quirement to furnish to the other party cop- (by number), the department and/or agency ies of bulky, lengthy, or out-of-size docu- involved in the dispute, the decision from ments in the appeal file when inclusion which the appeal is taken, and the amount in would be burdensome. At the time a party dispute, if known. The notice of appeal files with the Board a document as to which
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such a waiver has been granted he shall no- ceipt of the answer, the Board shall serve a tify the other party that the document or a copy upon appellant. Should the answer not copy is available for inspection at the offices be received within 30 days, the Board may, in of the Board or of the party filing same. its discretion, enter a general denial on be- (e) Status of Documents in Appeal File— Doc- half of the Government, and the appellant uments contained in the appeal file are con- shall be so notified. sidered, without further action by the par- (c) A party who intends to raise an issue ties, as part of the record upon which the concerning the law of a foreign country shall Board will render its decision. However, a give notice in his pleadings or other reason- party may object, for reasons stated, to con- able written notice. The Board, in deter- sideration of a particular document or docu- mining foreign law, may consider any rel- ments reasonably in advance of hearing or, if evant material or source, including testi- there is no hearing, of settling the record. If mony, whether or not submitted by a party such objection is made, the Board shall re- or admissible under Rules 11, 13 or 20. The move the document or documents from the determination of foreign law shall be treated appeal file and permit the party offering the as a ruling on a question of law. document to move its admission as evidence 7. Amendments of Pleadings or Record. The in accordance with rules 13 and 20. Board upon its own initiative or upon appli- (f) Notwithstanding the foregoing, the fil- cation by a party may order a party to make ing of the rule 4 (a) and (b) documents may a more definite statement of the complaint be dispensed with by the Board either upon or answer, or to reply to an answer. The request of the appellant in his notice of ap- Board may, in its discretion, and within the peal or thereafter upon stipulation of the proper scope of the appeal, permit either parties. party to amend its pleading upon conditions 5. Motions. (a) Any motion addressed to the fair to both parties. When issues within the jurisdiction of the Board shall be promptly filed. Hearing on the motion shall be af- proper scope of the appeal, but not raised by forded on application of either party. How- the pleadings, are tried by express or implied ever, the Board may defer its decision on the consent of the parties, or by permission of motion pending hearing on both the merits the Board, they shall be treated in all re- and the motion. The Board shall have the spects as if they had been raised therein. In right at any time and on its own initiative such instances, motions to amend the plead- to raise the issue of its jurisdiction to pro- ings to conform to the proof may be entered, ceed with a particular case, and shall do so but are not required. If evidence is objected by an appropriate order, affording the par- to at a hearing on the ground that it is not ties an opportunity to be heard thereon. within the issues raised by the pleadings, it (b) The Board may entertain and rule upon may be admitted within the proper scope of other appropriate motions. the appeal, provided, however, that the ob- 6. Pleadings—(a) Appellant— Within 30 days jecting party may be granted a continuance after receipt of notice of docketing of the ap- if necessary to enable it to meet such evi- peal, the appellant shall file with the Board dence. an original and two copies of a complaint 8. Hearing Election. After filing of the Gov- setting forth simple, concise and direct ernment’s answer or notice from the Board statements of each of its claims. Appellant that it has entered a general denial on behalf shall also set forth the basis, with appro- of the Government, each party shall advise priate reference to contract provisions, of whether it desires a hearing as prescribed in each claim and the dollar amount claimed, Rules 17 through 25, or whether it elects to to the extent known. This pleading shall ful- submit its case on the record without a hear- fill the generally recognized requirements of ing, as prescribed in Rule 11. a complaint, although no particular form is 9. Prehearing Briefs. Based on an examina- required. Upon receipt of the complaint, the tion of the pleadings, and its determination Board shall serve a copy of it upon the Gov- of whether the arguments and authorities ernment. Should the complaint not be re- addressed to the issues are adequately set ceived within 30 days, appellant’s claim and forth therein, the Board may, in its discre- appeal may, if in the opinion of the Board tion, require the parties to submit pre- the issues before the Board are sufficiently hearing briefs in any case in which a hearing defined, be deemed to set forth its complaint has been elected pursuant to Rule 8. If the and the Government shall be so notified. Board does not require prehearing briefs ei- (b) Government— Within 30 days from re- ther party may, in its discretion and upon ceipt of the complaint, or the aforesaid no- appropriate and sufficient notice to the tice from the Board, the Government shall other party, furnish a prehearing brief to the prepare and file with the Board an original Board. In any case where a prehearing brief and two copies of an answer thereto. The an- is submitted, it shall be furnished so as to be swer shall set forth simple, concise and di- received by the Board at least 15 days prior rect statements of Government’s defenses to to the date set for hearing, and a copy shall each claim asserted by appellant, including simultaneously be furnished to the other any affirmative defenses available. Upon re- party as previously arranged.
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10. Prehearing or Presubmission Conference. CLAIMS (EXPEDITED) procedure for any (a) Whether the case is to be submitted pur- appeal eligible for the SMALL CLAIMS (EX- suant to Rule 11, or heard pursuant to Rules PEDITED) procedure. 17 through 25, the Board may upon its own (b) In appeals where the amount in dispute initiative, or upon the application of either is $50,000 or less, the appellant may elect to party, arrange a telephone conference or call have the appeal processed under an ACCEL- upon the parties to appear before an admin- ERATED procedure requiring decision of the istrative judge or examiner of the Board for appeal, whenever possible, within 180 days a conference to consider: after the Board receives written notice of the (1) Simplification, clarification, or sev- appellant’s election to utilize this procedure. ering of the issues; The details of this procedure appear in sec- (2) The possibility of obtaining stipula- tion 12.3 of this Rule. tions, admissions, agreements and rulings on (c) The appellant’s election of either the admissibility of docments, understandings SMALL CLAIMS (EXPEDITED) procedure or on matters already of record, or similar the ACCELERATED procedure may be made agreements that will avoid unnecessary by written notice within 60 days after receipt proof; of notice of docketing, unless such period is (3) Agreements and rulings to facilitate extended by the Board for good cause. The discovery; election may not be withdrawn except with (4) Limitation of the number of expert wit- permission of the Board and for good cause. nesses, or avoidance of similar cumulative 12.2 The Small Claims (Expedited) Proce- evidence; dure. (a) In cases proceeding under the (5) The possibility of agreement disposing SMALL CLAIMS (EXPEDITED) procedure, of any or all of the issues in dispute; and (6) Such other matters as may aid in the the following time periods shall apply: disposition of the appeal. (1) Within 10 days from the Government’s (b) The administrative judge or examiner first receipt from either the appellant or the of the Board shall make such rulings and or- Board of a copy of the appellant’s notice of ders as may be appropriate to aid in the dis- election of the SMALL CLAIMS (EXPE- position of the appeal. The results of pretrial DITED) procedure, the Government shall conferences, including any rulings and or- send the Board a copy of the contract, the ders, shall be reduced to writing by the ad- contracting officer’s final decision, and the ministrative judge or examiner and this appellant’s claim letter or letters, if any; re- writing shall thereater constitute a part of maining documents required under Rule 4 the record. shall be submitted in accordance with times 11. Submission Without a Hearing. Either specified in that rule unless the Board other- party may elect to waive a hearing and to wise directs. submit its case upon the record before the (2) Within 15 days after the Board has ac- Board, as settled pursuant to Rule 13. Sub- knowledged receipt of appellant’s notice of mission of a case without hearing does not election, the assigned administrative judge relieve the parties from the necessity of shall take the following actions, if feasible, proving the facts supporting their allega- in an informal meeting or a telephone con- tions or defenses. Affidavits, depositions, ad- ference with both parties: (i) Identify and missions, answers to interrogatories, and simplify the issues; (ii) establish a simplified stipulations may be employed to supplement procedure appropriate to the particular ap- other documentary evidence in the Board peal involved; (iii) determine whether either record. The Board may permit such submis- party wants a hearing, and if so, fix a time sions to be supplemented by oral argument and place therefor; (iv) require the Govern- (transcribed if requested), and by briefs ar- ment to furnish all the additional documents ranged in accordance with Rule 23. relevant to the appeal; and (v) establish an 12. Optional SMALL CLAIMS (EXPEDITED) expedited schedule for resolution of the ap- and ACCELERATED Procedures. These proce- peal. dures are available solely at the election of (b) Pleadings, discovery, and other pre- the appellant. hearing activity will be allowed only as con- 12.1 Elections to Utilize SMALL CLAIMS sistent with the requirement to conduct the (EXPEDITED) and ACCELERATED Proce- hearing on the date scheduled, or if no hear- dures. (a) In appeals where the amount in dis- ing is scheduled, to close the record on a pute is $10,000 or less, the appellant may date that will allow decisions within the 120- elect to have the appeal processed under a day limit. The Board, in its discretion, may SMALL CLAIMS (EXPEDITED) procedure impose shortened time periods for any ac- requiring decision of the appeal, whenever tions prescribed or allowed under these rules, possible, within 120 days after the Board re- as necessary to enable the Board to decide ceives written notice of the appellant’s elec- the appeal within the 120-day limit, allowing tion to utilize this procedure. The details of whatever time, up to 30 days, that the Board this procedure appear in section 12.2 of this considers necessary for the preparation of Rule. An appellant may elect the ACCELER- the decision after closing the record and the ATED procedure rather than the SMALL filing of briefs, if any.
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(c) Written decision by the Board in cases ATED procedure need not be decided within processed under the SMALL CLAIMS (EX- the original 120-day or 180-day limit, but all PEDITED) procedure will be short and con- such motions shall be processed and decided tain only summary findings of fact and con- rapidly so as to fulfill the intent of this clusions. Decisions will be rendered for the Rule. Board by a single administrative judge. If 13. Settling the Record. (a) The record upon there has been a hearing, the administrative which the Board’s decision will be rendered judge presiding at the hearing may, in the consists of the documents furnished under judge’s discretion, at the conclusion of the Rules 4 and 12, to the extent admitted in evi- hearing and after entertaining such oral ar- dence, and the following items, if any: plead- guments as deemed appropriate, render on ings, prehearing conference memoranda or the record oral summary findings of fact, orders, prehearing briefs, depositions or in- conclusions, and a decision of the appeal. terrogatories received in evidence, admis- Whenever such an oral decision is rendered, sions, stipulations, transcripts of con- the Board will subsequently furnish the par- ferences and hearings, hearing exhibits, post- ties a typed copy of such oral decision for hearing briefs, and documents which the record and payment purposes and to estab- Board has specifically designated be made a lish the starting date for the period for filing part of the record. The record will, at all rea- a motion for reconsideration under rule 29. sonable times, be available for inspection by (d) A decision against the Government or the parties at the office of the Board. the contractor shall have no value as prece- (b) Except as the Board may otherwise dent, and in the absence of fraud shall be order in its discretion, no proof shall be re- final and conclusive and may not be appealed ceived in evidence after completion of an or set aside. oral hearing or, in cases submitted on the 12.3 The Accelerated Procedure. (a) In cases record, after notification by the Board that proceeding under the Accelerated procedure, the case is ready for decision. the parties are encouraged, to the extent (c) The weight to be attached to any evi- possible consistent with adequate presen- dence of record will rest within the sound tation of their factual and legal positions, to waive pleadings, discovery, and briefs. The discretion of the Board. The Board may in Board, in its discretion, may shorten time any case require either party, with appro- periods prescribed or allowed elsewhere in priate notice to the other party, to submit these rules, including rule 4, as necessary to additional evidence on any matter relevant enable the Board to decide the appeal within to the appeal. 180 days after the Board has received the ap- 14. Discovery—Depositions—(a) General Pol- pellant’s notice of election of the ACCELER- icy and Protective Orders— The parties are en- ATED procedure, and may reserve 30 days for couraged to engage in voluntary discovery preparation of the decision. procedures. In connection with any deposi- (b) Written decision by the Board in cases tion or other discovery procedure, the Board processed under the ACCELERATED proce- may make any order required to protect a dure will normally be short and contain only party or person from annoyance, embarrass- summary findings of fact and conclusions. ment, or undue burden or expense. Those or- Decisions will be rendered for the Board by a ders may include limitations on the scope, single administrative judge with the concur- method, time and place for discovery, and rence of a vice chairman, or by a majority provisions for protecting the secrecy of con- among these two and the chairman in case of fidential information or documents. disagreement. Alternatively, in cases where (b) When Depositions Permitted—After an the amount in dispute is $10,000 or less as to appeal has been docketed and complaint which the ACCELERATED procedure has filed, the parties may mutually agree to, or been elected and in which there has been a the Board may, upon application of either hearing, the single administrative judge pre- party, order the taking of testimony of any siding at the hearing may, with the concur- person by deposition upon oral examination rence of both parties, at the conclusion of or written interrogatories before any officer the hearing and after entertaining such oral authorized to administer oaths at the place arguments as deemed appropriate, render on of examination, for use as evidence or for the record oral summary findings of fact, purpose of discovery. The application for conclusions, and a decision of the appeal. order shall specify whether the purpose of Whenever such an oral decision is rendered, the deposition is discovery or for use as evi- the Board will subsequently furnish the par- dence. ties a typed copy of such oral decision for (c) Orders on Depositions—The time, place, record and payment purposes, and to estab- and manner of taking depositions shall be as lish the starting date for the period of filing mutually agreed by the parties, or failing a motion for reconsideration under Rule 29. such agreement, governed by order of the 12.4 Motions for Reconsideration in Rule 12 Board. Cases. Motions for Reconsideration of cases (d) Use as Evidence—No testimony taken by decided under either the SMALL CLAIMS depositions shall be considered as part of the (EXPEDITED) procedure or the ACCELER- evidence in the hearing of an appeal until
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such testimony is offered and received in evi- place set for hearings. In scheduling hear- dence at such hearing. It will not ordinarily ings, the Board will consider the desires of be received in evidence if the deponent is the parties and the requirement for just and present and can testify at the hearing. In inexpensive determination of appeals with- such instances, however, the deposition may out unnecessary delay. Notices of hearings be used to contradict or impeach the testi- shall be promptly acknowledged by the par- mony of the deponent given at the hearing. ties. In cases submitted on the record, the Board 19. Unexcused Absence of a Party. The unex- may, in its discretion, receive depositions to cused absence of a party at the time and supplement the record. place set for hearing will not be occasion for (e) Expenses—Each party shall bear its own delay. In the event of such absence, the hear- expenses associated with the taking of any ing will proceed and the case will be re- deposition. garded as submitted by the absent party as (f) Subpoenas—Where appropriate, a party provided in Rule 11. may request the issuance of a subpoena 20. Hearings: Nature, Examination of Wit- under the provisions of Rule 21. nesses—(a) Nature of Hearings—Hearings 15. Interrogatories to Parties, Admission of shall be as informal as may be reasonable Facts, and Production and Inspection of Docu- and appropriate under the circumstances. ments. After an appeal has been docketed and Appellant and the Government may offer complaint filed with the Board, a party may such evidence as they deem appropriate and serve on the other party: (a) Written inter- as would be admissible under the Federal rogatories to be answered separately in writ- Rules of Evidence or in the sound discretion ing, signed under oath and answered or ob- of the presiding administrative judge or ex- jected to within 45 days after service; (b) a aminer. Stipulations of fact agreed upon by request for the admission of specified facts the parties may be regarded and used as evi- and/or the authenticity of any documents, to dence at the hearing. The parties may stipu- be answered or objected to within 45 days late the testimony that would be given by a after service; the factual statements and the witness if the witness were present. The authenticity of the documents to be deemed Board may require evidence in addition to admitted upon failure of a party to respond that offered by the parties. to the request; and (c) a request for the pro- (b) Examination of Witnesses—Witnesses be- duction, inspection and copying of any docu- fore the Board will be examined orally under ments or objects not privileged, which rea- oath or affirmation, unless the presiding ad- sonably may lead to the discovery of admis- ministrative judge or examiner shall other- sible evidence, to be answered or objected to wise order. If the testimony of a witness is within 45 days after service. The Board may not given under oath, the Board may advise allow a shorter or longer time. Any dis- the witness that his statements may be sub- covery engaged in under this Rule shall be ject to the provisions of title 18, United subject to the provisions of Rule 14(a) with States Code, sections 287 and 1001, and any respect to general policy and protective or- other provision of law imposing penalties for ders, and of Rule 35 with respect to sanc- knowingly making false representations in tions. connection with claims against the United 16. Service of Papers Other Than Subpoenas. States or in any matter within the jurisdic- Papers shall be served personally or by mail, tion of any department or agency thereof. addressed to the party upon whom service is 21. Subpoenas—(a) General— Upon written to be made. Copies of complaints, answers request of either party filed with the re- and briefs shall be filed directly with the corder, or on his own initiative, the adminis- Board. The party filing any other paper with trative judge to whom a case is assigned or the Board shall send a copy thereof to the who is otherwise designated by the chairman opposing party, noting on the paper filed may issue a subpoena requiring: with the Board that a copy has been so fur- (i) Testimony at a deposition—the depos- nished. Subpoenas shall be served as pro- ing of a witness in the city or county where vided in Rule 21. he resides or is employed or transacts his business in person, or at another location Hearings convenient for him that is specifically deter- 17. Where and When Held. Hearings will be mined by the Board; held at such places determined by the Board (ii) Testimony at a hearing—the attend- to best serve the interests of the parties and ance of a witness for the purpose of taking the Board. Hearings will be scheduled at the testimony at a hearing; and discretion of the Board with due consider- (iii) Production of books and papers—in ad- ation to the regular order of appeals, Rule 12 dition to (i) or (ii), the production by the requirements, and other pertinent factors. witness at the deposition or hearing of books On request or motion by either party and for and papers designated in the subpoena. good cause, the Board may, in its discretion, (b) Voluntary Cooperation—Each party is adjust the date of a hearing. expected (i) to cooperate and make available 18. Notice of Hearings. The parties shall be witnesses and evidence under its control as given at least 15 days notice of the time and requested by the other party, without
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issuance of a subpoena, and (ii) to secure vol- is issued on behalf of the Government, untary attendance of desired third-party wit- money payments need not be tendered in ad- nesses and production of desired third-party vance of attendance. books, papers, documents, or tangible things (3) The party at whose instance a subpoena whenever possible. is issued shall be responsible for the payment (c) Requests for Subpoenas—(1) A request for of fees and mileage of the witness and of the subpoena shall normally be filed at least: officer who serves the subpoena. The failure (i) 15 days before a scheduled deposition to make payment of such charges on demand where the attendance of a witness at a depo- may be deemed by the Board as a sufficient sition is sought; or ground for striking the testimony of the wit- (ii) 30 days before a scheduled hearing ness and the books or papers the witness has where the attendance of a witness at a hear- produced. ing is sought. (g) Contumacy or Refusal to Obey a Sub- In its discretion the Board may honor re- poena— In case of contumacy or refusal to quests for subpoenas not made within these obey a subpoena by a person who resides, is time limitations. found, or transacts business within the juris- (2) A request for a subpoena shall state the diction of a United States District Court, the reasonable scope and general relevance to Board will apply to the Court through the the case of the testimony and of any books Attorney General of the United States for an and papers sought. order requiring the person to appear before (d) Requests to Quash or Modify— Upon the Board or a member thereof to give testi- written request by the person subpoenaed or mony or produce evidence or both. Any fail- by a party, made within 10 days after service ure of any such person to obey the order of but in any event not later than the time the Court may be punished by the Court as a specified in the subpoena for compliance, the contempt thereof. Board may (i) quash or modify the subpoena 22. Copies of Papers. When books, records, if it is unreasonable and oppressive or for papers, or documents have been received in other good cause shown, or (ii) require the evidence, a true copy thereof or of such part person in whose behalf the subpoena was thereof as may be material or relevant may issued to advance the reasonable cost of pro- be substituted therefor, during the hearing ducing subpoenaed books and papers. Where or at the conclusion thereof. circumstances require, the Board may act 23. Post-Hearing Briefs. Post-hearing briefs upon such a request at any time after a copy may be submitted upon such terms as may has been served upon the opposing party. be directed by the presiding administrative (e) Form; Issuance—(1) Every subpoena judge or examiner at the conclusion of the shall state the name of the Board and the hearing. title of the appeal, and shall command each 24. Transcript of Proceedings. Testimony and person to whom it is directed to attend and argument at hearings shall be reported ver- give testimony, and if appropriate, to batim, unless the Board otherwise orders. produce specified books and papers at a time Waiver of transcript may be especially suit- and place therein specified. In issuing a sub- able for hearings under Rule 12.2. Transcripts poena to a requesting party, the administra- of the proceedings shall be supplied to the tive judge shall sign the subpoena and may, parties at such rates as may be established in his discretion, enter the name of the wit- by contract between the Board and the re- ness and otherwise leave it blank. The party porter, provided that ordinary copy of tran- to whom the subpoena is issued shall com- script shall be supplied to the appellant at plete the subpoena before service. an amount no greater than the cost of dupli- (2) Where the witness is located in a for- cation. eign country, a letter rogatory or subpoena 25. Withdrawal of Exhibits. After a decision may be issued and served under the cir- has become final the Board may, upon re- cumstances and in the manner provided in 28 quest and after notice to the other party, in U.S.C. 1781–1784. its discretion permit the withdrawal of origi- (f) Service—(1) The party requesting nal exhibits, or any part thereof, by the issuance of a subpoena shall arrange for serv- party entitled thereto. The substitition of ice. true copies of exhibits or any part thereof (2) A subpoena requiring the attendance of may be required by the Board in its discre- a witness at a deposition or hearing may be tion as a condition of granting permission served at any place. A subpoena may be for such withdrawal. served by a United States marshal or deputy marshal, or by any other person who is not Representation a party and not less than 18 years of age. 26. The Appellant. An individual appellant Service of a subpoena upon a person named may appear before the Board in person, a therein shall be made by personally deliv- corporation by one of its officers; and a part- ering a copy to that person and tendering nership or joint venture by one of its mem- the fees for one day’s attendance and the bers; or any of these by an attorney at law mileage provided by 28 U.S.C. 1821 or other duly licensed in any state, commonwealth, applicable law; however, where the subpoena territory, the District of Columbia, or in a
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foreign country. An attorney representing an dismissed without prejudice, the dismissal appellant shall file a written notice of ap- shall be deemed with prejudice. pearance with the Board. 31. Dismissal or Default for Failure to Pros- 27. The Government. Government counsel ecute or Defend. Whenever a record discloses may, in accordance with their authority, the failure of either party to file documents represent the interest of the Government be- required by these rules, respond to notices or fore the Board. They shall file notices of ap- correspondence from the Board, comply with pearance with the Board, and notice thereof orders of the Board, or otherwise indicates will be given appellant or appellant’s attor- an intention not to continue the prosecution ney in the form specified by the Board from or defense of an appeal, the Board may, in time to time. the case of a default by the appellant, issue an order to show cause why the appeal Decisions should not be dismissed or, in the case of a 28. Decisions. (a) Decisions of the Board will default by the Government, issue an order to be made in writing and authenticated copies show cause why the Board should not act of the decision will be forwarded simulta- thereon pursuant to Rule 35. If good cause is neously to both parties. The rules of the not shown, the Board may take appropriate Board and all final orders and decisions (ex- action. cept those required for good cause to be held 32. Remand from Court. Whenever any court confidential and not cited as precedents) remands a case to the Board for further pro- shall be open for public inspection at the of- ceedings, each of the parties shall, within 20 fices of the Board. Decisions of the Board days of such remand, submit a report to the will be made solely upon the record, as de- Board recommending procedures to be fol- scribed in Rule 13. lowed so as to comply with the court’s order. (b) Any monetary award to a contractor by The Board shall consider the reports and the Board shall be promptly paid in accord- enter special orders governing the handling ance with the procedures provided by section of the remanded case. To the extent the 1302 of the Act of July 27, 1956 (70 Stat. 694, court’s directive and time limitations per- as amended; 31 U.S.C. 724a). To assure mit, such orders shall conform to these prompt payment the Recorder will forward a rules. waiver form to each party with the decision. Time, Computation and Extensions If the parties do not contemplate an appeal or motion for reconsideration, they will exe- 33. Time, Computation and Extensions. (a) cute waivers which so state, and return them Where possible, procedural actions should be to the Recorder. The Recorder will forward taken in less time than the maximum time the waivers and a certified copy of the award allowed. Where appropriate and justified, decision to the General Accounting Office for however, extensions of time will be granted. certification for payment. All requests for extensions of time shall be in writing. Motion for Reconsideration (b) In computing any period of time, the 29. Motion for Reconsideration. A motion for day of the event from which the designated reconsideration may be filed by either party. period of time begins to run shall not be in- It shall set forth specifically the grounds re- cluded, but the last day of the period shall be lied upon to sustain the motion. The motion included unless it is a Saturday, Sunday, or shall be filed within 30 days from the date of a legal holiday, in which event the period the receipt of a copy of the decision of the shall run to the end of the next business day. Board by the party filing the motion. Ex Parte Communications Suspensions, Dismissals and Defaults: Remands 34. Ex parte Communications. No member of 30. Suspensions; Dismissal Without Prejudice. the Board or the Board’s staff shall enter- The Board may suspend the proceedings by tain, nor shall any person directly or indi- agreement of counsel for settlement discus- rectly involved in an appeal, submit to the sions, or for good cause shown. In certain Board or the Board’s staff, off the record, cases, appeals docketed before the Board are any evidence, explanation, analysis, or ad- required to be placed in a suspense status vice, whether written or oral, regarding any and the Board is unable to proceed with dis- matter at issue in an appeal. This provision position thereof for reasons not within the does not apply to consultation among Board control of the Board. Where the suspension members or to ex parte communications con- has continued, or may continue, for an inor- cerning the Board’s administrative functions dinate length of time, the Board may, in its or procedures. discretion, dismiss such appeals from its Sanctions docket without prejudice to their restoration when the cause of suspension has been re- 35. Sanctions. If any party fails or refuses to moved. Unless either party or the Board acts obey an order issued by the Board, the Board within three years to reinstate any appeal may then make such order as it considers
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necessary to the just and expeditious con- Federal supply duct of the appeal. class code Commodity Effective Date and Applicability This partial assignment applies to guns, through 30mm, and parts and equipment 36. Effective Date. These rules shall apply (i) therefor, as listed in Department of Army mandatorily, to all appeals relating to con- Supply Manuals/Catalogs. It does not tracts entered into on or after 1 March 1979, apply to Navy ordnance type guns; MK 11 and (ii) at the contractor’s election, to ap- and MK 12, 20mm gun; and aircraft gun peals relating to earlier contracts, with re- mounts. 1 spect to claims pending before the con- 1010 P ...... Guns, over 30mm up to 75mm. This partial assignment applies to guns, over tracting officer on 1 March 1979 or initiated 30mm and up to 75mm, and parts and thereafter. equipment therefor, as listed in Depart- Pursuant to the Charter of the Armed ment of the Army Supply Manuals/Cata- Services Board of Contract Appeals, the at- logs. It does not apply to Naval ordnance tached rules are hereby approved for use and type guns and aircraft gun mounts. application to appeals to the Armed Services 1015 P 1 ...... Guns, 75mm through 125mm. Board of Contract Appeals under the Con- This partial assignment applies to guns, tract Disputes Act of 1978. 75mm through 125mm, and parts and equipment therefor, as listed in Depart- (signed) William J. Perry (30 JUN 1980), ment of Army Supply Manuals/Catalogs. It Under Secretary of Defense for Research and does not apply to Naval ordnance type Engineering. guns. (signed) Percy A. Pierre, 1020 P 1 ...... Guns over 125mm through 150mm. 1 Assistant Secretary of the Army (Research, De- 1025 P ...... Guns over 150mm through 200mm. 1030 P 1 ...... Guns over 200mm through 300mm. velopment and Acquisition). 1035 P 1 ...... Guns over 300mm. (signed) J.A. Doyle, These partial assignments apply to guns, Assistant Secretary of the Navy (Manpower, Re- over 125mm, and parts and equipment serve Affairs and Logistics). therefor, as listed in Department of Army (signed) Eugene H. Kopf, Supply Manuals/ Catalogs. They do not (Acting) Assistant Secretary of the Air Force apply to Naval ordnance type guns. (Research, Development and Logistics). 1040 ...... Chemical Weapons and Equipment. 1055 P 1 ...... Launchers, Rocket and Pyrotechnic. [56 FR 36572, July 31, 1991, as amended at 58 This partial assignment applies to launchers, FR 37868, July 14, 1993; 65 FR 39707, June 27, rocket and pyrotechnic, as listed in De- 2000] partment of Army Supply Manuals/Cata- logs. It does not apply to Naval ordnance type and airborne type, with the exception PPENDIX OORDINATED CQUISITION A B—C A of 2.75 inch rocket launchers which are in- ASSIGNMENTS cluded in this partial FSC assignment to the Department of the Army. Part 1—Army Assignments 1090 P ...... Assemblies Interchangeable Between Weap- ons in Two or More Classes. Part 2—Navy Assignments This partial assignment applies to the fol- lowing items: Part 3—Air Force Assignments NOTE: (‘‘P’’ after the FSC number indicates a partial FSC Part 4—Defense Logistics Agency assignment) Assignments National stock number nomenclature. Part 5—Defense Threat Reduction Agency 1090–563–7232 Staff Section, Class. Assignments 1090–699–0633 Staff Section. 1090–796–8760 Power Supply. Part 6—General Services Administration 1090–885–8451 Wrench Corrector. Assignments 1090–986–9707 Reticle Assembly. 1095 P 1 ...... Miscellaneous Weapons. AUTHORITY; 41 U.S.C. 421 and 48 CFR chap- This partial assignment applies to miscella- ter 1. neous weapons, and parts and equipment therefor, as listed in Department of Army PART 1—ARMY ASSIGNMENTS Supply Manuals/Catalogs. It does not apply to Naval ordnance type; line throw- Federal supply ing guns (which are under DoD Coordi- class code Commodity nated Acquisition assignment to the De- partment of the Navy); and aircraft type Electronic Equipment. miscellaneous weapons. Each department is assigned acquisition re- 1210 P 1 ...... Fire Control Directors. sponsibility for those items which the de- 1220 P 1 ...... Fire Control Computing Sights and Devices. partment either designed or for which it 1230 P 1 ...... Fire Control Systems, Complete. sponsored development. See FSC 5821 1240 P 1 ...... Optical Sighting and Ranging Equipment. under Navy listings for assignment of cer- 1250 P 1 ...... Fire Control Stabilizing Mechanisms. tain commercially developed radio sets 1260 P 1 ...... Fire Control Designating and Indicating (i.e., developed without the use of Gov- Equipment. ernment funds). 1265 P 1 ...... Fire Control Transmitting and Receiving 1005 P 1 ...... Guns, through 30mm. Equipment, Except Airborne.
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Federal supply Federal supply class code Commodity class code Commodity
1285 P 1 ...... Fire Control Radar Equipment, Except Air- MK40 and Mods (Low Performance Air- borne. craft). 1290 P 1 ...... Miscellaneous Fire Control Equipment. 3.5 inch Rocket Heat, M35. The above nine partial FSC assignments Practice, M36. apply to fire control equipment, as listed in Smoke, WP, M30. Department of the Army Supply Manuals/ 4.5 inch Motor, Drill, M24. Catalogs. They do not apply to Naval ord- HE, M32. nance type and aircraft type. Practice, M33. 1 1305 P ...... Ammunition, through 30mm. Incendiary and toxicological rockets, as list- This partial assignment applies to ammuni- ed in Army Supply Bulletins. It does not tion through 30mm as listed in Depart- apply to Navy assigned rockets as shown ment of Army Supply Manuals/Catalogs. It in the list of assignments to the Navy. does not apply to Naval ordnance type However, the Department of the Army is and ammunition for the MK 11 and MK responsible for acquisition of filler and for 12, 20mm gun. filling of all smoke and toxicological rock- 1 1310 P ...... Ammunition, over 30mm up to 75mm. ets. This partial assignment applies to ammuni- 1345 ...... Land Mines. tion, over 30mm up to 75mm, as listed in 1365 ...... Military Chemical Agents. Department of Army Supply Manuals/ 1370 P ...... Pyrotechnics. Catalogs. It does not apply to Naval ord- This partial assignment does not apply to nance type and to 40mm ammunition shipboard and aircraft pyrotechnics. (which is under DoD Coordinated Acquisi- tion assignment to the Navy). The Army is 1375 P ...... Demolition Materials. responsible for the acquisition of fillers This partial assignment applies to Blasting and the loading, assembling, and packing Agents and supplies such as: of toxicological, incapacitating riot control, Bangalore torpedo. smoke and incendiary munitions. Blocks, demolition. 1315 P 1 ...... Ammunition, 75mm through 125mm. Caps, blasting, electric and non-electric. This partial assignment applies to ammuni- Charge, cratering. tion, 75mm through 125mm, as listed in Charge, shaped and demolition. Department of Army Supply Manuals/ Chests, demolition platoon and squad. Catalogs. It does not apply to Naval ord- Cord detonating. nance type. The Army is responsible for Demolition equipment sets, with ancillary the acquisition of fillers and the loading, items. assembling, and packing of toxicological, Detonators, all types. incapacitating riot control, smoke and in- Dynamite. cendiary munitions. Firing devices. 1320 P 1 ...... Ammunition, over 125mm. Fuze, safety. This partial assignment applies to ammuni- Kit, demolition. tion over 125mm, as listed in Department Lighter, fuse. of Army Supply Manuals/Catalogs. It does Machine, blasting. not apply to Naval ordnance type. The Primer, percussion cap. Army is responsible for the acquisition of It does not apply to Navy underwater demo- fillers and the loading, assembling, and lition requirements. packing of toxicological, incapacitating riot 1376 P ...... Bulk Explosives. control, smoke and incendiary munitions. This partial assignment applies to solid pro- 1325 P ...... Bombs. pellants and explosives such as: This partial assignment applies to bombs as Ammonium Picrate (Explosive D) JAN–A– listed in Department of Army Supply 166A. Manuals/Catalogs. It does not apply to Trinitrotoluene (TNT) MIL–T–248A. Navy assigned bombs as shown in list of Tetryl JAN–T–339. assignments to the Navy; however, the Pantaerythrite Tetranitrate (PETN) JAN– Department of the Army is responsible for P–387. the acquisition of fillers and the loading, assembling, and packing of toxicological, RDX. incapacitating riot control, smoke and in- Composition B. cendiary munitions, and for other loading, Composition B–3. assembling, and packing in excess of Pentolite, 50. Navy owned capacity. Composition C–3. 1330 ...... Grenades. Composition A–3. 1340 P ...... Rockets and Rocket Ammunition. Composition A–4. This partial assignment applies to: Nitroguanidine (Picrate). 66mm Rocket, HEAT, M72. It does not apply to production capacity for 2.75’’ Rocket FFAR, Service and Practice. any of the above listed explosives at the Heads MK5 and Mods (HEAT). U.S. Naval Propellant Plant, Indian Head, HE, M151. Maryland. HE, XM229 (17 lb Warhead) 1377 P ...... Cartridge and Propellant Actuated Devices HE, XM157 (Spotting Red). and Components. HE, XM158 (Spotting Yellow). This partial assignment is reserved pending MK61 Practice (5 lb Slug). Services agreement as to items to be in- XM230 Practice (10 lb). cluded in the assignment. Motors MK4 and Mods (High Performance 1380 ...... Military Biological Agents. Aircraft). 1390 P 1 ...... Fuzes and Primers.
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Federal supply Federal supply class code Commodity class code Commodity
This partial assignment applies to Fuzes and This partial assignment applies only to Primers for Army assigned ammunition. It equipment developed by or under the does not apply to Naval ordnance type, sponsorship of the Department of the which is under DoD Coordinated Acquisi- Army. tion assignment to the Department of the 4230 P ...... Decontaminating and Impregnating Equip- Navy; and guided missile fuzes. ment. 2210 ...... Locomotives. This partial assignment applies only to items 2220 ...... Rail Cars. peculiar to chemical warfare. 2240 ...... Locomotive and Rail Car Accessories and 4240 P ...... Safety and Rescue Equipment. Components. This partial assignment applies only to mili- 2250 ...... Track Materials, Railroad. tary respiratory protective equipment for 2310 P ...... Passenger Motor Vehicles. chemical warfare. 2320 P ...... Trucks and Truck Tractors. 5805 P ...... Telephone and Telegraph Equipment. These two partial assignments apply to tac- This partial assignment applies only to mili- tical vehicles and the following types of tary (wire) equipment, field type. vehicles: 5815 P ...... Teletype and Facsimile Equipment. Bus, convertible to ambulance. This partial assignment applies only to mili- × Truck, 4 4, convertible to ambulance tary (wire) equipment, field type. × Truck 4 4, dump, 9,000 GVW, with cut- 5830 P ...... Intercommunication and Public Address Sys- down cab. tems; except Airborne. These assignments do not apply to tracked This partial assignment applies only to mili- landing vehicles which are not under DoD tary (wire) equipment, field type. Coordinated Acquisition assignment, and 6135 P ...... Batteries, Primary. airport crash rescue vehicles, which are This partial assignment applies to MIL type, under DoD Coordinated Acquisition as- dry cell batteries, only. signment to the Department of the Air Force. With the exception of the types 6625 P ...... Electrical and Electronic Properties Meas- enumerated above, these assignments do uring and Testing Instruments. not apply to commercial, non-tactical, pas- This partial assignment applies only to in- senger carrying vehicles and trucks which struments for testing military (wire) equip- are assigned for DoD Coordinated Acqui- ment, field type. sition to the General Services Administra- 6645 P ...... Time Measuring Instruments. tion. This partial assignment applies to the fol- 2330 P ...... Trailers. lowing watches; aircraft instrument panel This partial assignment does not apply to clocks; cases and spare parts therefor: two wheel lubrication trailers, two wheel Master navigation watches; pocket watch- steam cleaning trailers, and troop trans- es; stop watches; second setting wrist porter semitrailers which are not under watches; wrist watches; athletic timers; DoD Coordinated Acquisition assignment, aircraft clocks; aircraft panel clocks; me- and airport crash rescue trailer units which chanical aircraft clocks; navigation watch are under DoD Coordinated Acquisition cases; pocket watch cases; watch hold- assignment to the Department of the Air ers; watch case assemblies and watch Force. movements. 2340 P ...... Motorcycles, Motor Scooters, and Bicycles. 6660 P ...... Meteorological Instruments and Apparatus. This partial assignment does not apply to bi- Each department is assigned acquisition re- cycles and tricycles. sponsibility for those systems, instruments 2350 ...... Tanks and Self-propelled Weapons. and end items in FSC 6660 which the de- 2430 ...... Tractors, Track Laying, High-Speed. partment either designed or sponsored 2510 P 2 ...... Vehicular Cab, Body, and Frame Structural development. For purposes of this assign- Components. ment, the developing department is the 2520 P 2 ...... Vehicular Power Transmission Components. department which awarded the develop- 2530 P 2 ...... Vehicular Brake, Steering, Axle, Wheel, and mental contract, notwithstanding that other Track Components. departments may have provided funds for 2540 P 2 ...... Vehicular Furniture and Accessories. the development. 2590 P 2 ...... Miscellaneous Vehicular Components. 6665 P...... Hazard-Detecting Instruments and Appa- 2610 ...... Tires and Tubes, Pneumatic, except Aircraft. ratus. 2630 ...... Tires, solid and cushion. This partial assignment applies only to items 2640 ...... Tire Rebuilding and Tire and Tube Repair peculiar to chemical warfare. Materials. 6695 P ...... Combination and Miscellaneous Instruments. 2805 P 2 ...... Gasoline Reciprocating Engines, except Air- This partial assignment applies to jewel craft and Components. bearings only. 2910 P 2 ...... Engine Fuel System Components, Nonair- 6820 P ...... Dyes. craft. This partial assignment applies only to items 2920 P 2 ...... Engine Electrical System peculiar to chemical warfare. 2930 P 2 ...... Engine Cooling System Components, Non- 6910 P ...... Training Aids. aircraft. This partial assignment applies only to items 2940 P 2 ...... Engine Air and Oil Filters, Strainers and peculiar to Army assignments under Cleaners, Nonaircraft. weapons, fire control equipment, ammuni- 2990 P 2 ...... Miscellaneous Engine Accessories, Nonair- tion and explosives, and chemical and bi- craft. ological warfare. 4210 P ...... Fire Fighting Equipment. 6920 P ...... Armament Training Devices.
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Federal supply Federal supply class code Commodity class code Commodity
This partial assignment applies to armament Fuze, Rocket, V.T., MK93–0. training devices as listed in Department of 2.25 inch Rocket SCAR, Practice. Army Catalogs SC 6910, ML/IL and SC Heads MK3 and Mods. 6920 ML/IL. It does not apply to clay pi- Motors MK15 and Mods. geons in Department of Army Catalogs MK16 and Mods. SC 6910, ML/IL and SC 6920 ML/IL. It 5 inch Rocket HVAR, service and practice. does not apply to clay pigeons. Heads MK2 and Mods (common) MK6 6940 P ...... Communication Training Devices. and Mods (GP). This partial assignment applies only to code MK4 and Mods (smoke) MK25 and Mods training sets, code practice equipment, (ATAR). and other telephone and telegraph training Motors MK10 and Mods. devices. 5 inch Rocket FFAR service and practice. 8130 P ...... Reels and Spools. Heads MK24 and Mods (General Pur- This partial assignment applies only to reels poses). and spools for military (wire) equipment, field type. NOTE: (‘‘P’’ after the FSC number indicates a partial FSC 8140 P ...... Ammunition Boxes, Packages, and Special assignment). Containers. This partial assignment applies only to MK32 and Mods (Shaped Charged). boxes, packages, and containers peculiar MK26 and Mods (Illum). to Army assignments under ammunitions, Motor MK16 and Mods. explosives, and chemical and biological The Department of the Army is responsible warfare as listed in Department of Army for acquisition of filler and for filling of all Catalog SC 8140 IL and SC 8140 ML. smoke and toxicological rockets. 1390 P ...... Fuzes and Primers. 1 For contracting purposes, Naval ordnance comprises all This partial assignment applies to fuzes and arms, armor, and armament for the Department of the Navy primers for Navy assigned ammunition. and includes all offensive and defensive weapons, together 1550 P ...... Drones. with their components, controlling devices and ammunition used in executing the Navy’s mission in National Defense (ex- This partial assignment applies only to cept small arms and those items of aviation ordnance ac- Drone, Model BQM34E. quired from the Army). 1905 P ...... Combat Ships and Landing Vessels. 2 These partial FSC assignments apply only to repair parts This partial assignment applies to landing peculiar to combat and tactical vehicles. In addition, the as- vessels only. signment in FSC 2805 applies to military standard engines 1.5 1910 P ...... Transport Vessels, Passenger and Troop. HP through 20 HP and parts peculiar therefor. Balance of these FSCs are assigned to the Defense Logistics Agency This partial assignment applies to ferryboats (Defense Construction Supply Center). only. 1920 ...... Fishing Vessels. PART 2—NAVY ASSIGNMENTS 1925 ...... Special Service Vessels. 1930 ...... Barges and Lighters, Cargo. Federal supply 1935 P ...... Barges and Lighters, Special Purpose. class code Commodity This partial assignment does not apply to derricks, pile drivers, rock cutters, con- Electronic Equipment. crete mixing plants, mechanical bank Each department is assigned acquisition re- grader barges, other bank revetment sponsibility for those items which the de- barges, and barge power plants. partment either designed or sponsored 1940 ...... Small Craft. development. See FSC 5821 for assign- 1945 P ...... Pontoons and Floating Docks. ment of certain commercially developed This partial assignment applies only to Naval radio sets to the Department of the Navy Facilities Engineering Command type pon- (i.e., developed without the use of Gov- toons. ernment funds). 1950 ...... Floating Drydocks. 1095 P ...... Miscellaneous Weapons. 1990 P ...... Miscellaneous Vessels. This partial assignment applies to line throw- This partial assignment applies to commer- ing guns only. cial sailing vessels only. 1310 P ...... Ammunition, over 30mm up to 75mm. 2010 ...... Ship and Boat Propulsion Components. This partial assignment applies only to reels 2020 ...... Rigging and Rigging Gear. and spools for military. 2030 ...... Deck Machinery. 1325 P ...... Bombs. 2040 ...... Marine Hardware and Hull Items. This partial assignment applies to armor- 2060 ...... Commercial Fishing Equipment. piercing; depth bombs; externally sus- 2090 ...... Miscellaneous Ship and Marine Equipment. pended low drag bombs; and components 2820 P ...... Steam Engines, Reciprocating and Compo- and practice bombs therefor, as listed in nents. Ord Pamphlets, and the MK 43, Target This partial assignment applies to marine Detecting Device. The Department of the main propulsion steam engines only. Army is responsible for the acquisition of 2825 P ...... Steam Turbines and Components. fillers and the loading, assembling, and This partial assignment applies to marine packing of toxicological, incapacitating riot steam turbines only. control, smoke and incendiary munitions, 4210 P ...... Fire Fighting Equipment. and for other loading, assembling, and This partial assignment applies only to fire packing in excess of Navy-owned capac- fighting equipment developed by or under ity. the sponsorship of the Department of 1340 P ...... Rockets and Rocket Ammunition. Navy. This partial assignment applies to: 4410 P ...... Industrial Boilers.
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VerDate 11
Federal supply Federal supply class code Commodity class code Commodity
This partial assignment applies only to boil- This partial assignment applies only to ers for use aboard those ships assigned stands, telescope, for use aboard ships to the Navy for coordinated acquisition. assigned to the Navy for coordinated ac- 4420 P ...... Heat Exchangers and Steam Condensers. quisition. This partial assignment applies only to heat 6660 P ...... Meteorological Instruments and Apparatus. exchangers for use aboard those ships Each department is assigned acquisition re- assigned to the Navy for coordinated ac- sponsibility for those systems, instru- quisition. ments, and end items in FSC 6660 for 4925 P ...... Ammunition Maintenance and Repair Shop which the department either designed or Specialized Equipment. sponsored development. For purposes of this assignment, the developing depart- This partial assignment applies to sets, kits, ment is the department which awarded and outfits of tools and equipment for ex- the developmental contract, notwith- plosive ordnance as defined in military standing that other departments may have service regulations and documents. provided funds for the development. 5821 P ...... Radio and Television Communication Equip- 6665 P...... Hazard-Detecting Instruments and Appa- ment, Airborne. ratus. This partial assignment applies only to the This partial assignment applies only to haz- following commercially developed radio ard determining safety devices, for use sets. (The term ‘‘commercially developed’’ aboard ships assigned to the Navy for co- means that no Government funds were ordinated acquisition. provided for development purposes.) HF– 8140 P ...... Ammunition Boxes, Packages, and Special 101, 102, 103, 104, 105, 106, 107, 108, Containers. 109, 111, 113, ARC–94, 102, 105, 110, This partial assignment applies only to 112, 119, 120; MRC–95, 108; VC–102, boxes, packages, and containers for 104, 105, 106, 109, 110; and components 40mm ammunition. of the foregoing including the 490T an- tenna coupler. 6125 P ...... Converters, Electrical, Rotating. PART 3—AIR FORCE ASSIGNMENTS This partial assignment applies only to Federal supply motor-generated sets for use aboard ships class code Commodity assigned to the Navy for coordinated ac- quisition. Electronic Equipment. 6320 P ...... Shipboard Alarm and Signal System. Each department is assigned acquisition re- This partial assignment applies only to alarm sponsibility for those items which the de- systems, fire alarm systems, indicating partment either designed or sponsored systems, telegraph systems (signal and development. See FSC 5821 under Navy signaling) (less electronic type) for use listing for assignment of certain commer- aboard ships assigned to the Navy for co- cially developed radio sets (i.e., developed ordinated acquisition. without the use of Government funds). 6605 P ...... Navigational Instruments. 1550 P ...... Drones. This partial assignment applies only to life- This partial assignment applies only to the boat and raft compasses, aircraft sextants, following model drones: hand leads (soundings), lead reels, Model 147. sounding machines and pelorus stands for Model 154. use aboard ships assigned to the Navy for BQM 34A. MQM 34D. coordinated acquisition. 2320 P ...... Trucks and Truck Tractors. 6645 P ...... Time Measuring Instruments. This partial assignment applies only to air- This partial assignment applies to the fol- port crash rescue vehicles. lowing instruments, cases, and spare 2330 P ...... Trailers. parts therefor: This partial assignment applies only to air- Chronometers including gimbal, padded and port crash rescue trailer units. make break circuit. 4210 P ...... Fire Fighting Equipment. Clocks, alarm, boat, deck, direct reading, This partial assignment applies only to fire electrical, floor, interval timer, marine, me- fighting equipment developed by or under chanical, master control, master program, the sponsorship of the Department of the master regulating, mechanical message Air Force. center, nurses, program, shelf, stop, wall, 6660 P ...... Meteorological Instruments and Apparatus. watchman’s. Each department is assigned acquisition re- Counters, time period. sponsibility for those systems, instru- Meters, engine running time, hour recording, ments, and end items in FSC 6660 for and electrical time totalizing. which the department either designed or Timers; bombing, engine hours, sequential, sponsored development. The developing stop, and program. department is the department which awarded the developmental contract, not- Program control instrument. withstanding that other departments may Cases; chronometer, including gimbal and have provided funds for the development. padded, chronometer carrying; makebreak 6710 P 1 ...... Cameras, Motion Picture. circuit chronometer. This partial assignment does not apply to Cans, chronometer shipping and storage. submarine periscope and underwater Clock keys; clock movements, clock motors. cameras. 6650 P ...... Optical Instruments. 6720 P 1 ...... Cameras, Still Picture.
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Federal supply Commodity Federal supply Commodity DLA cen- class code class code ter 6
This partial assignment does not apply to 2990 P 2 ...... Miscellaneous Engine Acces- DCSC submarine periscope and underwater sories, Nonaircraft. cameras. 3020 ...... Gears, Pulleys, Sprockets and DCSC 6730 P 1 ...... Photographic Projection Equipment. Transmission Chain. This partial assignment does not apply to 3030 ...... Belting, Drive Belts, Fan DCSC 35mm theater projectors. Belts, and Accessories. 6740 1 ...... Photographic Developing and Finishing 3040 ...... Miscellaneous Power Trans- DCSC Equipment. mission Equipment. 6760 1 ...... Photographic Equipment and Accessories. 3110 ...... Bearings, Antifriction, DISC 6780 1 ...... Photographic Sets, Kits, and Outfits. Unmounted. 3120 ...... Bearings, Plain Unmounted ... DISC 8820 P ...... Live Animals Not Raised for Food. 3130 ...... Bearings, Mounted ...... DISC This partial assignment applies only to the 3210 ...... Sawmill and Planing Mill Ma- DGSC following types of working dogs: chinery. Scout. 3220 ...... Woodworking Machines ...... DGSC Sentry. 3230 ...... Tools and Attachments for DGSC Patrol. Woodworking Machinery. Mine/tunnel. 3405 ...... Saws and Filing Machines ..... DGSC Tracker. 3408 ...... Machining Centers and Way- DGSC Detector-narcotic/contraband. Type Machines. 3410 ...... Electrical and Ultrasonic Ero- DGSC Sledge. sion Machines. Bloodhound. 3411 ...... Boring Machines ...... DGSC Water dog. 3412 ...... Broaching Machines ...... DGSC Patrol/detector. 3413 ...... Drilling and Tapping Machines DGSC 1 This partial FSC assignment does not apply to photo- 3414 ...... Gear Cutting and Finishing DGSC graphic equipment controlled by the Congressional Joint Com- Machines. mittee on Printing and Micro-Film Equipment and Supplies. 3415 ...... Grinding Machines ...... DGSC 3416 ...... Lathes ...... DGSC PART 4—DEFENSE LOGISTICS AGENCY 3417 ...... Milling Machines ...... DGSC ASSIGNMENTS 3418 ...... Planers and Shapers ...... DGSC 3419 ...... Miscellaneous Machine Tools DGSC 3422 ...... Rolling Mills and Drawing Ma- DGSC Federal supply Commodity DLA cen- class code ter 6 chines. 3424 ...... Metal Heat Treating Equip- DGSC 2230 ...... Right of Way Construction DCSC ment. and Maintenance Equip- 3426 ...... Metal Finishing Equipment ..... DGSC ment, Railroad. 3431 ...... Electric Arc Welding Equip- DGSC 2410 ...... Tractor, Full Track, Low- DCSC ment. Speed. 3432 ...... Electric Resistance Welding DGSC 2420 ...... Tractor, Wheeled ...... DCSC Equipment. 2510 P 2 ...... Vehicular Cab, Body, and DCSC 3433 ...... Gas Welding, Heat Cutting & DGSC Frame, Structural Compo- Metalizing Equipment. nents. 3436 ...... Welding Positioners and Ma- DGSC 2520 P 2 ...... Vehicular Power Transmission DCSC nipulators. Components. 3438 ...... Miscellaneous Welding Equip- DGSC 2530 P 2 ...... Vehicular Brake, Steering, DCSC ment. Axle, Wheel, and Track 3439 ...... Miscellaneous Welding, Sol- DGSC Components. dering and Brazing Sup- 2540 P 2 ...... Vehicular Furniture and Ac- DCSC plies and Accessories. cessories. 3441 ...... Bending and Forming Ma- DGSC 2590 P 2 ...... Miscellaneous Vehicular Com- DCSC chines. ponents. 3442 ...... Hydraulic and Pneumatic DGSC 2805 P 2 ...... Gasoline Reciprocating En- DCSC Presses, Power Driven. gines, Except Aircraft; and 3443 ...... Mechanical Presses, Power DGSC Components. Driven. 2815 ...... Diesel Engines and Compo- DCSC 3444 ...... Manual Presses ...... DGSC nents. 3445 ...... Punching and Shearing Ma- DGSC 2895 ...... Miscellaneous Engines and DCSC chines. Components. 3446 ...... Forging Machinery and Ham- DGSC 2910 P 2 ...... Engine Fuel System Compo- DCSC mers. nents, Nonaircraft. 3447 ...... Wire and Metal Ribbon Form- DGSC 2920 P 2 ...... Engine Electrical System DCSC ing Machinery. Components, Nonaircraft. 3448 ...... Riveting Machines ...... DGSC 2930 P 2 ...... Engine Cooling System Com- DCSC 3449 ...... Misc. Secondary Metal Form- DGSC ponents, Nonaircraft. ing and Cutting Machines. 3450 ...... Machine Tools, Portable ...... DGSC NOTE: (‘‘P’’ after the FSC number indicates a 3455 ...... Cutting Tools for Machine DGSC partial FSC assignment) Tools. 3456 ...... Cutting and Forming Tools for DGSC 2940 P 2 ...... Engine Air and Oil Filters, DCSC Secondary Metal Working Strainers and Cleaners, Machines. Nonaircraft. 3460 ...... Machine Tool Accessories ..... DGSC
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Federal supply Commodity DLA cen- Federal supply Commodity DLA cen- class code ter 6 class code ter 6
3461 ...... Accessories for Secondary DGSC 4020 ...... Fiber Rope, Cordage and DISC Metal Working Machinery. Twine. 3465 ...... Production Jigs, Fixtures and DGSC 4030 ...... Fittings for Rope, Cable, and DISC Templates. Chain. 3470 ...... Machine Shop Sets, Kits, and DGSC 4110 ...... Refrigeration Equipment ...... DGSC Outfits. 4120 ...... Air Conditioning Equipment ... DGSC 3510 ...... Laundry and Dry Cleaning DGSC 4130 ...... Refrigeration and Air Condi- DGSC Equipment. tioning Components. 3520 ...... Shoe Repairing Equipment .... DGSC 4140 ...... Fans, Air Circulators, and DGSC 3530 ...... Industrial Sewing Machines & DGSC Blower Equipment. Mobile Textile Repair 4210 P 3 ...... Fire Fighting Equipment ...... DCSC Shops. 4220 ...... Marine Lifesaving and Diving DCSC 3610 ...... Printing, Duplicating, and DGSC Equipment. Bookbinding Equipment. 4310 ...... Compressors and Vacuum DCSC 3611 P 9 ...... Industrial Marking Machines .. DGSC Pumps. 3620 P 9 ...... Rubber and Plastics Working DGSC 4320 ...... Power and Hand Pumps ...... DCSC Machinery. 4330 ...... Centrifugals, Separators, and DCSC 3635 P 9 ...... Crystal and Glass Industries DGSC Pressure and Vacuum Fil- Machinery. ters. 3650 P 9 ...... Chemical & Pharmaceutical DGSC 4440 ...... Driers, Dehydrators, and DCSC Products Manufacturing Anhydrators. Machinery. 4450 ...... Industrial Fan and Blower DCSC 3655 ...... Gas Generating and Dis- DGSC Equipment. pensing Systems, Fixed or 4460 ...... Air Purification Equipment ...... DCSC Mobile. 4510 ...... Plumbing Fixtures and Acces- DCSC 3660 P 9 ...... Industrial Size Reduction Ma- DGSC sories. chinery. 4520 ...... Space Heating Equipment DCSC 3680 P 9 ...... Foundry Machinery, Related DGSC and Domestic Water Heat- Equipment and Supplies. ers. 3685 P 9 ...... Specialized Metal Container DGSC 4530 ...... Fuel Burning Equipment Units DCSC Manufacturing Machinery 4540 ...... Miscellaneous Plumbing, DCSC and Related Equipment. Heating, and Sanitation 3693 P 9 ...... Industrial Assembly Machines DGSC Equipment. 3694 P 9 ...... Clean Work Stations, Con- DGSC 4610 ...... Water Purification Equipment DCSC trolled Environment & Re- 4620 ...... Water Distillation Equipment, DCSC lated Equipment. Marine and Industrial. 3695 ...... Miscellaneous Special Indus- DGSC 4630 ...... Sewage Treatment Equipment DCSC try Machinery. 4710 ...... Pipe and Tube ...... DCSC 3710 ...... Soil Preparation Equipment ... DCSC 4720 ...... Hose and Tubing, Flexible ..... DCSC 3720 ...... Harvesting Equipment ...... DCSC 4730 ...... Fittings and Specialities; DCSC 3740 ...... Pest, Disease, and Frost Con- DCSC Hose, Pipe, and Tube. trol Equipment. 4810 ...... Valves, Powered ...... DCSC 3770 ...... Saddlery, Harness, Whips DCSC 4820 ...... Valves, Nonpowered ...... DCSC and Related Animal Fur- 4930 ...... Lubrication and Fuel Dis- DCSC nishings. pensing Equipment. 3805 ...... Earth Moving and Excavating DCSC 5280 ...... Sets, Kits, and Outfits of DGSC Equipment. Measuring Tools. 3810 ...... Cranes and Crane-Shovels .... DCSC 5305 ...... Screws ...... DISC 3815 ...... Crane and Crane-Shovel At- DCSC 5306 ...... Bolts ...... DISC tachments. 5307 ...... Studs ...... DISC 3820 ...... Mining, Rock Drilling, Earth DCSC 5310 ...... Nuts and Washers ...... DISC Boring, and Related Equip- 5315 ...... Nails, Keys, and Pins ...... DISC ment. 5320 ...... Rivets ...... DISC 3825 ...... Road Clearing and Cleaning DCSC 5325 ...... Fastening Devices ...... DISC Equipment. 5330 ...... Packing and Gasket Materials DISC 3830 ...... Truck and Tractor Attach- DCSC 5335 ...... Metal Screening ...... DISC ments. 5340 ...... Miscellaneous Hardware ...... DISC 3835 ...... Petroleum Production and DCSC 5355 ...... Knobs and Pointers ...... DISC Distribution Equipment. 5360 ...... Coil, Flat and Wire Springs .... DISC 3895 ...... Miscellaneous Construction DCSC 5365 ...... Rings, Shims, and Spacers ... DISC Equipment. 5410 ...... Prefabricated and Portable DCSC 3910 ...... Conveyors ...... DCSC Buildings. 3920 ...... Materials Handling Equip- DGSC 5420 ...... Bridges, Fixed and Floating ... DCSC ment, Nonself-Propelled. 5430 ...... Storage Tanks ...... DCSC 3930 ...... Warehouse Trucks and Trac- DCSC 5440 ...... Scaffolding Equipment and DCSC tors, Self-Propelled. Concrete Forms. 3940 ...... Blocks, Tackle, Rigging, and DISC 5445 ...... Prefabricated Tower Struc- DCSC Slings. tures. 3950 ...... Winches, Hoists, Cranes, and DCSC 5450 ...... Miscellaneous Prefabricated DCSC Derricks. Structures. 3990 ...... Miscellaneous Materials Han- DGSC 5510 ...... Lumber and Related Basic DCSC dling Equipment. Wood Materials. 4010 ...... Chain and Wire Rope ...... DISC 5520 ...... Millwork ...... DCSC
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Federal supply Commodity DLA cen- Federal supply Commodity DLA cen- class code ter 6 class code ter 6
5530 ...... Plywood and Veneer ...... DCSC 6508 4 ...... Medicated Cosmetics and DPSC 5660 ...... Fencing, Fences and Gates ... DCSC Toiletries. 5680 P ...... Miscellaneous Construction DCSC 6510 4 ...... Surgical Dressing Materials ... DPSC Materials. 6515 4 ...... Medical and Surgical Instru- DPSC This partial assignment ap- ments, Equipment and Sup- plies only to airplane land- plies. ing mat. (Also, see footnote 6520 4 ...... Dental Instruments, Equip- DPSC 1 at end of list relative to ment and Supplies. purchase of DLA managed 6525 4 ...... X-Ray Equipment and Sup- DPSC items in GSA assigned plies; Medical, Dental and classes.). Veterinary. 5820 P 10 ...... Radio and Television Commu- T–ASA 6530 4 ...... Hospital Furniture, Equipment, DPSC nication Equipment, except Utensils, and Supplies. Airborne. 6532 ...... Hospital and Surgical Clothing DPSC 5905 ...... Resistors ...... DESC and Textile Special Purpose 5910 ...... Capacitors ...... DESC Items. 5915 ...... Filters and Networks ...... DESC 6540 4 ...... Opticians’ Instruments, Equip- DPSC 5920 ...... Fuses and Lightning Arrestors DESC ment and Supplies. 5925 ...... Circuit Breakers ...... DESC 6545 4 ...... Medical Sets, Kits, and Outfits DPSC 5930 ...... Switches ...... DESC 6630 ...... Chemical Analysis Instru- DPSC 5935 ...... Connectors, Electrical ...... DESC ments. 5940 ...... Lugs, Terminals, and Termi- DGSC 6635 ...... Physical Properties Testing DGSC nals Strips. Equipment. 5945 ...... Relays, Contractors, and So- DESC 6640 ...... Laboratory Equipment and DPSC lenoids. Supplies. 5950 ...... Coils and Transformers ...... DESC 6655 ...... Geophysical and Astronomical DGSC 5955 ...... Piezoelectric Crystals ...... DESC Instruments. 5960 ...... Electron Tubes and Associ- DESC 6670 ...... Scales and Balances ...... DGSC ated Hardware. 6675 ...... Drafting, Surveying, and Map- DGSC 5961 ...... Semiconductor Devices and DESC ping Instruments. Associated Hardware. 6680 ...... Liquid and Gas Flow, Liquid DGSC 5962 ...... Microelectronic Circuit De- DESC Level and Mechanical Mo- vices. tion Measuring Instruments. 5965 ...... Headsets, Handsets, Micro- DESC 6750 ...... Photographic Supplies ...... DGSC phones, and Speakers. 6810 7 ...... Chemicals ...... DFSC & 5970 ...... Electrical Insulators and Insu- DGSC DGSC lating Materials. 6820 ...... Dyes ...... DGSC 5975 ...... Electrical Hardware and Sup- DGSC 6830 ...... Gases; Compressed and DGSC plies. Liquified. 5977 ...... Electrical Contact Brushes DGSC 6840 ...... Pest Control Agents and Dis- DGSC and Electrodes. infectants. 5985 ...... Antennas, Waveguides, and DESC 6850 7 ...... Miscellaneous Chemical Spe- DFSC & Related Equipment. cialties. DGSC 5990 ...... Synchros and Resolvers ...... DESC 7210 ...... Household Furnishings ...... DPSC 5995 ...... Cable, Cord, and Wire As- DGSC 7310 ...... Food Cooking, Baking, and DGSC semblies; Communication Serving Equipment. Equipment. 7320 ...... Kitchen Equipment and Appli- DGSC 5999 ...... Miscellaneous Electrical and DESC ances. Electronic Components. 7360 ...... Sets, Kits, and Outfits; Food DGSC 6105 ...... Motors, Electrical ...... DGSC Preparation and Serving. 6110 ...... Electrical Control Equipment .. DGSC 7610 ...... Books and Pamphlets ...... DGSC 6115 P 8 ...... Generators and Generator DGSC 7660 ...... Sheet and Book Music ...... DGSC Sets, Electrical. 7690 ...... Miscellaneous Printed Matter DGSC 6120 ...... Transformers; Distribution and DGSC 8110 ...... Drums and Cans ...... DGSC Power Station. 8120 ...... Commercial and Industrial DGSC 6145 ...... Wire and Cable, Electrical ..... DISC Gas Cylinders. 6150 ...... Miscellaneous Electric Power DGSC 8125 ...... Bottles and Jars ...... DGSC and Distribution Equipment. 8305 ...... Textile Fabrics. 6210 ...... Indoor and Outdoor Electric DGSC FSC 8305 does not include DPSC Lighting Fixtures. laminated cloth used exclu- 6220 ...... Electric Vehicular Lights and DGSC sively in the repair of lighter Fixtures. than air envelopes. 6230 ...... Electric Portable and Hand DGSC 8310 ...... Yarn and Thread ...... DPSC Lighting Equipment. 8315 ...... Notions and Apparel Findings. 6240 ...... Electric Lamps ...... DGSC FSC 8315 does not include DPSC 6250 ...... Ballasts, Lampholders and DGSC coated cloth tape used ex- Starters. clusively in the repair of 6260 ...... Nonelectrical Lighting Fixtures DGSC lighter than air envelopes. 6350 ...... Miscellaneous Alarm and Sig- DGSC 8320 ...... Padding and Stuffing Mate- DPSC nal Systems. rials. 6505 4 ...... Drugs, Biologicals, and Offi- DPSC 8325 ...... Fur Materials ...... DPSC cial Reagents. 8330 ...... Leather ...... DPSC
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Federal supply Commodity DLA cen- Federal supply Commodity DLA cen- class code ter 6 class code ter 6
8335 ...... Shoe Findings and Soling Ma- DPSC 9510 ...... Bars and Rods, Iron and DISC terials. Steel. 8340 ...... Tents and Tarpaulins ...... DPSC 9515 ...... Plate, Sheet, and Strip, Iron DISC 8345 ...... Flags and Pennants ...... DPSC and Steel. 8405 ...... Outerwear, Men’s ...... DPSC 9520 ...... Structural Shapes, Iron and DISC 8410 ...... Outerwear, Women’s ...... DPSC Steel. 8415 ...... Clothing, Special Purpose. 9525 ...... Wire, Nonelectrical, Non- DISC FSC 8415 includes all sub- DPSC ferrous Base Metal. marine clothing. 9530 ...... Bars and Rods, Nonferrous DISC 8420 ...... Underwear and Nightwear, DPSC Base Metal. Men’s. 8425 ...... Underwear and Nightwear, DPSC 9535 ...... Plate, Sheet, Strip, and Foil, DISC Women’s. Nonferrous Base Metal. 8430 ...... Footwear, Men’s ...... DPSC 9540 ...... Structural Shapes, Nonferrous DISC 8435 ...... Footwear, Women’s ...... DPSC Base Metal. 8440 ...... Hosiery, Handwear, and DPSC 9545 ...... Plate, Sheet, Strip, Foil and DISC Clothing Accessories, Wire, Precious Metal. Men’s. 9620 P ...... Minerals, Natural and Syn- DFSC 8445 ...... Hosiery, Handwear, and DPSC thetic. Clothing Accessories, This partial assignment ap- Women’s. plies only to crude petro- 8450 ...... Children’s and Infant’s Ap- DPSC leum and crude shale oil. parel and Accessories. 9925 ...... Ecclesiastical Equipment, Fur- DGSC 8455 ...... Badges and Insignia ...... DPSC nishings and Supplies. 8460 ...... Luggage ...... DPSC 9930 ...... Memorials, Cemeterial and DGSC 8465 ...... Individual Equipment ...... DPSC Mortuary Equipment and 8470 ...... Armor, Personal ...... DPSC Supplies. 8475 ...... Specialized Flight Clothing DPSC and Accessories. 9999 ...... Miscellaneous Items ...... DGSC 5 8905 ...... Meat, Poultry, and Fish ...... DPSC Footnotes: 5 8910 ...... Dairy Foods and Eggs ...... DPSC 1 These assignments do not apply to items decentralized by 8915 5 ...... Fruits and Vegetables ...... DPSC the DLA Center Commander, i.e., designated for purchase by 8920 5 ...... Bakery and Cereal Products .. DPSC each military department, and to those items in DLA assigned 8925 5 ...... Sugar, Confectionery, and DPSC federal supply classes, which may be assigned to GSA for Nuts. supply management. In addition, see subpart 208.70 which 5 describes conditions under which a military service may pur- 8930 ...... Jams, Jellies, and Preserves DPSC chase (contract for) military service supply managed items in 8935 5 ...... Soups and Bouillons ...... DPSC DLA assigned federal supply classes. See notes 2 and 3 for 8940 5 ...... Special Dietary Foods and DPSC further exceptions pertaining to certain DLA assignments. Food Specialty Prepara- 2 DLA assignments in FSC 2510, 2520, 2530, 2540, 2590, tions. 2805, 2910, 2920, 2930, 2940, and 2990 do not apply to re- 8945 5 ...... Food Oils and Fats ...... DPSC pair parts peculiar to combat and tactical vehicles, which are 8950 5 ...... Condiments and Related DPSC assigned for coordinated acquisition to the Department of the Army. In addition, the assignment in FSC 2805 does not Products. apply to military standard engines 1.5 HP through 20 HP and 8955 5 ...... Coffee, Tea, and Cocoa ...... DPSC parts peculiar therefor, which are assigned for coordinated ac- 8960 5 ...... Beverages, Nonalcoholic ...... DPSC quisition to the Department of the Army. 8970 5 ...... Composite Food Packages .... DPSC 3 This partial FSC assignment in FSC 4210 does not apply 8975 5 ...... Tobacco Products ...... DPSC to Fire Fighting Equipment developed by or under the spon- 9110 ...... Fuels, Solid ...... DFSC sorship of a military department. The contracting responsibility 9130 ...... Liquid Propellants and Fuels, DFSC for such equipment is assigned to the department which de- veloped or sponsored its development. Petroleum Base. 4 DLA has contracting responsibility for all the items in the 9140 ...... Fuel Oils ...... DFSC classes of FS Group 65. In addition, DLA has contracting re- 9150 ...... Oils and Greases; Cutting, DFSC sponsibility for all equipment and supplies related to the med- Lubricating, and Hydraulic. ical, dental, veterinary professions in Non-group 65 classes 9160 ...... Miscellaneous Waxes, Oils, DFSC where the military medical services have the sole or prime in- and Fats. terest in such items. The specific item coverage of these Non- 9320 ...... Rubber Fabricated Materials .. DGSC group 65 items is published in the DoD section of the Federal Supply Catalog for medical material C3–1 through C3–12, in- 9330 ...... Plastic Fabricated Materials ... DGSC clusive. 9340 ...... Glass Fabricated Materials .... DGSC 5 This assignment includes health and comfort items listed 9350 ...... Refractories and Fire Sur- DGSC in AR 700–23. It also includes resale items for commissary facing Materials. stores (including brand name items). 9390 ...... Miscellaneous Fabricated DGSC 6 DLA centers are identified as follows—DCSC—Defense Nonmetallic Materials. Construction Supply Center; DESC—Defense Electronics 9420 P ...... Fibers; Vegetable, Animal, DPSC Supply Center; DFSC—Defense Fuel Supply Center; DGSC— Defense General Supply Center; DISC—Defense Industrial and Synthetic. Supply Center; DPSC—Defense Personnel Support Center. This partial FSC assignment DLA also serves as the head of the contracting activity for the applies only to raw cotton Television-Audio Support Activity (T–ASA). and raw wool. 7 DFSC is responsible for contracting for only petroleum 9430 P ...... Miscellaneous Crude Animal DPSC base items in FSC 6810 and 6850. Products, Inedible. This partial assignment ap- plies only to crude hides. 9505 ...... Wire, Nonelectrical, Iron and DISC Steel.
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8 This partial FSC assignment in FSC 6115 does not apply Federal supply to Mobile Electric Power Generating Sources (MEPGS). The class code Commodity contracting direction responsibility for MEPGS is assigned to the DoD Project Manager, Mobile Electric Power, by DoDD 4120.11. DoD components desiring to use other than the DoD (See Army Coordinated Acquisition assign- Standard Family of Generator Sets, contained in MIL–STD ments in FSC 2310 and 2320). 633, shall process a Request for Deviation in accordance with 3540 ...... Wrapping and Packaging Machinery. Joint Operating Procedures, AR 700–101, AFR 400–50, 3550 ...... Vending and Coin Operated Machines. NAVMATINST 4120.100A, MCO 11310.8c and DLAR 4120.7, 3590 ...... Miscellaneous Service and Trade Equip- Subject: Management and Standardization of Mobile Electric Power Generating Sources, prior to initiating an acquisition. ment. 9 This partial assignment applies only to secondary items 3750 ...... Gardening Implements and Tools. not otherwise assigned, as listed in the applicable Federal 5110 ...... Hand Tools, Edged, Nonpowered. Supply Catalog Management Data lists of each respective 5120 ...... Hand Tools, Nonedged, Nonpowered. service. 10 This partial assignment applies to broadcasting, visual in- 5130 ...... Hand Tools, Power Driven. formation, and graphics presentation communications equip- 5133 ...... Drill Bits, Counterbores, and Countersinks; ment used by the Armed Forces Radio and Television Serv- Hand and Machine. ices, centralized visual information support activities, media 5136 ...... Taps, Dies, and Collects; Hand and Ma- centers, closed circuit educational and training programs, lan- chine. guage training activities, combat camera units, and individual base visual information centers. This assignment does not 5140 ...... Tool and Hardware Boxes. apply to equipment with airborne applications. Examples of 5180 ...... Sets, Kits, and Outfits of Hand Tools. the types of equipment covered by this assignment include 5210 ...... Measuring Tools, Craftmen’s. radio and television transmitters, video recording and play- 5345 ...... Disks and Stones, Abrasive. back equipment, video cameras, editing and switching equip- ment, electronic imaging equipment, language training equip- 5350 ...... Abrasive Materials. ment, monitors, audio equipment, and other nontactical, off- 5610 ...... Mineral Construction Materials, Bulk. the-shelf, commercially available, nondevelopmental electronic 5620 ...... Building Glass, Tile, Brick, and Block. equipment used to support broadcast and visual information 5630 ...... Pipe and Conduit, Nonmetallic. missions. 5640 ...... Wallboard, Building Paper, and Thermal In- PART 5—DEFENSE THREAT REDUCTION AGENCY sulation Materials. 5650 ...... Roofing and Siding Materials. ASSIGNMENTS 5670 ...... Architectural and Related Metal Products. 1 Federal supply 5680 P ...... Miscellaneous Construction Materials. class code Commodity 7105 ...... Household Furniture. 7110 ...... Office Furniture. 1105 ...... Nuclear Bombs. 7125 ...... Cabinets, Lockers, Bins, and Shelving. 1110 ...... Nuclear Projectiles. 7195 ...... Miscellaneous Furniture and Fixtures. 1115 ...... Nuclear Warheads and Warhead Sections. 7220 ...... Floor Coverings. 1120 ...... Nuclear Depth Charges. 7230 ...... Draperies, Awnings, and Shades. 1125 ...... Nuclear Demolition Charges. 7240 ...... Household and Commercial Utility Con- 1127 ...... Nuclear Rockets. tainers. 1130 ...... Conversion Kits, Nuclear Ordnance. 1135 ...... Fuzing and Firing Devices, Nuclear Ord- NOTE: (‘‘P’’ after FSC number indicates partial FSC assign- nance. ment.) 1140 ...... Nuclear Components. 1145 ...... Explosive and Pyrotechnic Components, Nu- 7290 ...... Miscellaneous Household and Commercial clear Ordnance. Furnishings and Appliances. 1190 ...... Specialized Test and Handling Equipment, 7330 ...... Kitchen Hand Tools and Utensils. Nuclear Ordnance. 7340 ...... Cutlery and Flatware. 1195 ...... Miscellaneous Nuclear Ordnance. 7350 ...... Tableware. 7410 ...... Punched Card System Machines. In addition to the above, assignments to the 7420 ...... Accounting and Calculating Machines. Defense Threat Reduction Agency (DTRA) 7430 ...... Typewriters and Office-type Composing Ma- include all items for which DTRA provides chines. logistics management or has integrated This assignment does not apply to machines management responsibilities in accordance controlled by the Congressional Joint with the DTRA Charter. Committee on Printing. 7450 ...... Office-type Sound Recording and Reproduc- ing Machines. PART 6—GENERAL SERVICES ADMINISTRATION 7460 ...... Visible Record Equipment. ASSIGNMENTS 7490 ...... Miscellaneous Office Machines. This assignment does not apply to equip- Federal supply class code Commodity ment controlled by the Congressional Joint Committee on Printing. 2310 P ...... Passenger Motor Vehicles. 7510 ...... Office Supplies. 2320 P ...... Trucks and Truck Tractors. This assignment does not apply to office These two partial assignments apply to all supplies, including special inks, when DoD commercial, non-tactical, passenger car- requirements of such items are acquired rying vehicles and trucks except the fol- through Government Printing Office chan- lowing types which are assigned for DoD nels. Coordinated Acquisition to the Department 7520 ...... Office Devices and Accessories. of the Army— This assignment does not apply to office de- Bus, convertible to ambulance. vices and accessories when DoD require- Truck, 4×4, convertible to ambulance. ments of such items are acquired through Truck, 4×4, dump, 9,000 pounds GVW, Government Printing Office channels. with cut-down cab. 7530 ...... Stationery and Record Forms.
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Federal supply AUTHORITY; 41 U.S.C. 421 and FAR Subpart class code Commodity 1.3.
This assignment does not apply to stationery D–100 SCOPE. and record forms when DoD requirements of such items are acquired through Gov- (a) This appendix provides policy and pro- ernment Printing Office channels including cedures for breaking out components of end those items covered by term contracts items for future acquisitions so that the issued by GPO for tabulating cards and Government can purchase the components marginally punched continuous forms. 7710 ...... Musical Instruments. directly from the manufacturer or supplier 7720 ...... Musical Instrument Parts and Accessories. and furnish them to the end item manufac- 7730 ...... Phonographs, Radios, and Television Sets; turer as Government-furnished material. Home Type. (b) This appendix does not apply to— 7740 ...... Phonograph Records. (1) The initial decisions on Government- 7810 ...... Athletic and Sporting Equipment. furnished equipment/contractor-furnished 7820 ...... Games, Toys, and Wheeled Goods. 7830 ...... Recreational and Gymnastic Equipment. equipment that are made at the inception of 7910 ...... Floor Polishers and Vacuum Cleaning an acquisition program; or Equipment. (2) Breakout of parts for replenishment 7920 ...... Brooms, Brushes, Mops, and Sponges. (see Appendix E). 7930 ...... Cleaning and Polishing Compounds and Preparations. D–101 DEFINITION. 8010 ...... Paints, Dopes, Varnishes, and Related Products. Component, as used in this appendix, in- 8020 ...... Paint and Artists Brushes. cludes subsystems, assemblies, subassem- 8030 ...... Preservative and Sealing Compounds. blies, and other major elements of an end 8040 ...... Adhesives. item; it does not include elements of rel- 8105 ...... Bags and Sacks. atively small annual acquisition value. 8115 ...... Boxes, Cartons and Crates. 8135 ...... Packaging and Packing Bulk Materials. D–102 POLICY. 8510 ...... Perfumes, Toilet Preparations and Powders. 8520 ...... Toilet Soap, Shaving Preparations and DoD policy is to breakout components of Dentifrices. weapons systems or other major end items 8530 ...... Personal Toiletry Articles. under certain circumstances. 8540 ...... Toiletry Paper Products. 8710 ...... Forage and Feed. (a) When it is anticipated that a prime con- 8720 ...... Fertilizers. tract will be awarded without adequate price 8730 ...... Seeds and Nursery Stock. competition, and the prime contractor is ex- 9310 ...... Paper and Paperboard. pected to acquire any component without 9905 ...... Signs, Advertising Displays, and Identifica- adequate price competition, breakout that tion Plates. component if— 9910 ...... Jewelry. 9915 ...... Collector’s Items. (1) Substantial net cost savings probably 9920 ...... Smokers’ Articles and Matches. will be achieved; and (2) Breakout action will not jeopardize the FOOTNOTES: These GSA assignments do not apply to items as described under FSC 7430, 7490, 7510, 7520, and 7530, quality, reliability, performance, or timely and those items in the GSA assigned federal supply classes delivery of the end item. which have been retained for DLA supply management as list- (b) Even when either or both the prime ed in the applicable Federal Supply Catalog Management Data lists. In addition, see subpart 208.70 which describes contract and the component will be acquired conditions under which a military service may contract for mili- with adequate price competition, consider tary service managed items in GSA assigned federal supply breakout of the component if substantial net classes. 1 This partial FSC assignment does not include landing cost savings will result from— mats which are assigned to the Defense Logistics Agency. (1) Greater quantity acquisitions; or (2) Such factors as improved logistics sup- [56 FR 36577, July 31, 1991, as amended at 57 port (through reduction in varieties of spare FR 42634, Sept. 15, 1992; 58 FR 28475, May 13, parts) and economies in operations and 1993; 58 FR 37868, July 14, 1993; 59 FR 27678, training (through standardization of design). May 27, 1994; 61 FR 50456, Sept. 26, 1996; 64 FR (c) Breakout normally is not justified for a 8726, Feb. 23, 1999; 65 FR 14398, Mar. 16, 2000] component that is not expected to exceed $1 million for the current year’s requirement. APPENDIX C [RESERVED] D–103 RESPONSIBILITY. APPENDIX D—COMPONENT BREAKOUT (a) Agencies are responsible for ensuring Sec. that— D–100 Scope. (1) Breakout reviews are performed on D–101 Definition. components meeting the criteria in D–102(a) D–102 Policy. and (b); D–103 Responsibility. (2) Components susceptible to breakout are D–104 Procedures. earmarked for consideration in future acqui- D–105 Records. sitions;
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(3) Components earmarked for breakout (7) Can breakout be accomplished without are considered during requirements deter- jeopardizing delivery requirements of the mination and appropriate decisions are end item? made; and (8) If a decision is made to breakout a com- (4) Components are broken out when re- ponent, can advance acquisition funds be quired. made available to provide the new source (b) The program manager or other official any necessary additional lead time? responsible for the material program con- (9) Is there a source other than the present cerned is responsible for breakout selection, manufacturer capable of supplying the com- review, and decision. ponent? (c) The contracting officer or buyer and other specialists (e.g., small business spe- (10) Has the component been (or is it going cialist, engineering, production, logistics, to be) acquired directly by the Government and maintenance) support the program man- as a support item in the supply system or as ager in implementing the breakout program. Government-furnished equipment in other end items? D–104 PROCEDURES. (11) Will the financial risks and other re- (a) A breakout review and decision in- sponsibilities assumed by the Government cludes— after breakout be acceptable? (1) An assessment of the potential risks to (12) Will breakout result in substantial net the end item from possibilities such as de- cost savings? Develop estimates of probable layed delivery and reduced reliability of the savings in cost considering all offsetting component; costs such as increases in the cost of require- (2) A calculation of estimated net cost sav- ments determination and control, con- ings (i.e., estimated acquisition savings less tracting, contract administration, data any offsetting costs); and package purchase, material inspection, qual- (3) An analysis of the technical, oper- ification or preproduction testing, ground ational, logistics, and administrative factors support and test equipment, transportation, involved. security, storage, distribution, and technical (b) The decision must be supported by ade- support. quate explanatory information, including an (d) If answers to the questions reveal con- assessment by the end item contractor when ditions unfavorable to breakout, the pro- feasible. gram manager should explore whether the (c) The following questions should be used unfavorable conditions can be eliminated. in the decision process— (1) Is the end item contractor likely to do For example, where adequate technical sup- further design or engineering effort on the port is not available from Government re- component? sources, consider contracting for the nec- (2) Is a suitable data package available essary services from the end item contractor with rights to use it for Government acquisi- or other qualified source. tion? (Note that breakout may be warranted even though competitive acquisition is not D–105 RECORDS. possible.) (a) The contracting activity shall maintain (3) Can any quality control and reliability records on components reviewed for break- problems of the component be resolved with- out. Records should evidence whether the out requiring effort by the end item con- components— tractor? (1) Have no potential for breakout; (4) Will the component require further technical support (e.g., development of speci- (2) Have been earmarked as potential fications, testing requirements, or quality breakout candidates; assurance requirements)? If so, does the Gov- (3) Have been, or will be, broken out. ernment have the resources (manpower, (b) The program manager or other des- technical competence, facilities, etc.) to pro- ignated official must sign the records. vide such support? Or, can the support be ob- (c) Records must reflect the facts and con- tained from the end item contractor (even ditions of the case, including any assessment though the component is broken out) or by the contractor, and the basis for the deci- other source? sion. The records must contain the assess- (5) Will breakout impair logistics support ments, calculations, and analyses discussed (e.g., by jeopardizing standardization of com- in D–104, including the trade–off analysis be- ponents)? tween savings and increased risk to the Gov- (6) Will breakout unduly fragment admin- ernment because of responsibility for Gov- istration, management, or performance of ernment–furnished equipment. the end item contract (e.g., by complicating production scheduling or preventing identi- [56 FR 36594, July 31, 1991, as amended at 57 fication of responsibility for end item failure FR 42634, Sept. 15, 1992; 58 FR 37868, July 14, caused by a defective component)? 1993]
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APPENDIX E—DOD SPARE PARTS E–301.2 Annual Buy Forecasts. BREAKOUT PROGRAM E–301.3 Immediate Buy Requirements. E–301.4 Suspect AMC/AMSC. Part 1—General E–302 Screening. E–303 Full Screening Procedures. Sec. E–303.1 Data Collection Phase (Step 1). E–100 Scope. E–303.2 Data Evaluation Phase (Steps 2– E–101 Applicability. 14). E–102 General. E–303.3 Data Completion Phase (Steps 15– E–103 Definitions. 21). E–103.1 Acquisition Method Code (AMC). E–303.4 Technical Evaluation Phase E–103.2 Acquisition Method Code Con- (Steps 22–37). ference. E–303.5 Economic Evaluation Phase E–103.3 Acquisition Method Suffix Code (Steps 38–56). (AMSC). E–303.6 Supply Feedback Phase (Steps 57– E–103.4 Actual Manufacturer. 65). E–103.5 Altered Item Drawing. E–304 Limited Screening Procedures. E–103.6 Annual Buy Quantity. E–103.7 Annual Buy Value (ABV). Part 4—Contractor’s Assistance E–103.8 Bailment. E–103.9 Breakout. E–400 General. E–103.10 Competition. E–401 Contractor’s Technical Evaluation E–103.11 Contractor Technical Informa- Procedures. tion Code (CTIC). E–103.12 Design Control Activity. Part 5—Reporting System E–103.13 Direct Purchase. E–500 General. E–103.14 Engineering Drawings. E–501 Reports. E–103.15 Extended Dollar Value. E–502 Reporting Procedures. E–103.16 Full and Open Competition. E–503 Reporting Instructions. E–103.17 Full Screening. E–103.18 Immediate (Live) Buy. Exhibits E–103.19 Life Cycle Buy Value. Exhibit I Valid AMC/AMSC Combinations E–103.20 Limited Competition. Exhibit II Full Screening Decision Process E–103.21 Limited Screening. Summary Flow Chart E–103.22 Manufacture. Exhibit III Limited Screening Decision Proc- E–103.23 Prime Contractor. ess Summary Flow Chart E–103.24 Provisioning. Exhibit IV Spare Parts Breakout Screening E–103.25 Qualification. Report E–103.26 Replenishment Part. Exhibit V Spare Parts Acquisition Report E–103.27 Reverse Engineering. E–103.28 Selected Item Drawing. AUTHORITY; 41 U.S.C. 421 and 48 CFR chap- E–103.29 Source. ter 1. E–103.30 Source Approval. Part 1—General E–103.31 Source Control Drawing. E–103.32 Technical Data. E–100 Scope. E–104 General Policies. This appendix established the DoD Spare E–105 Responsibilities. Parts Breakout Program and provides uni- Part 2—Breakout Coding form policies and procedures for manage- ment and conduct of the program within and E–200 Scope. between the departments and agencies. E–201 Coding. E–201.1 Acquisition Method Codes. E–101 Applicability. E–201.2 Acquisition Method Suffix Codes. (a) This appendix applies to— E–201.3 Contractor Technical Information (1) Any centrally managed replenishment Codes. or provisioned part (hereinafter referred to E–202 Assignment of Codes. as ‘‘part’’) for military systems and equip- E–203 Improving Part Status. ment; and E–204 Communication of Codes. (2) All DoD personnel involved with design E–204.1 Communication Media. control, acquisition, and management of E–204.2 Responsibilities. such parts including, but not limited to, project/program/system managers, technical Part 3—Identification, Selection, and Screening personnel, contracting officers, legal coun- of Parts sel, inventory managers, inspectors, and E–300 General. small business specialists and technical advi- E–301 Identification and Selection Proce- sors. dures. (b) This appendix does not apply to— E–301.1 Parts Entering the Inventory. (1) Component breakout (see Appendix D);
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(2) Foreign military sale peculiar items; E–103 Definitions. (3) Insurance items (e.g., one-time buy); E–103.1 Acquisition method code (AMC). (4) Obsolete items; A single digit numeric code, assigned by a (5) Phase out items (e.g., life of type buy); DoD activity, to describe to the contracting (6) Items with annual buy values below the officer and other Government personnel the thresholds developed by DoD components or results of a technical review of a part and its field activities; suitability for breakout. (7) Parts being acquired under other spe- E–103.2 Acquisition method code con- cifically defined initial support programs; or ference. (8) Parts acquired through local purchase. A conference which is generally held at the contractor’s facility for the purpose of re- E–102 General. viewing contractor technical information (a) Significant resources are dedicated to codes (CTICs) and corresponding substan- the acquisition and management of parts for tiating data for breakout. military systems and equipment. The ability to competitively buy spares must be consid- E–103.3 Acquisition method suffix code ered early in a weapon system acquisition. (AMSC). Initially, repairable or consumable parts are A single digit alpha code, assigned by a identified and acquired through a provi- DoD activity, which provides the contracting sioning process; repairable or consumable officer and other Government personnel with parts acquired thereafter are for replenish- engineering, manufacturing, and technical ment. information. (b) The objective of the DoD Spare Parts Breakout Program is to reduce costs through E–103.4 Actual manufacturer. the use of competitive procurement meth- An individual, activity, or organization ods, or the purchase of parts directly from that performs the physical fabrication proc- the actual manufacturer rather than the esses that produce the deliverable part or prime contractor, while maintaining the in- other items of supply for the Government. tegrity of the systems and equipment in The actual manufacturer must produce the which the parts are to be used. The program part in-house. The actual manufacturer may is based on the application of sound manage- or may not be the design control activity. ment and engineering judgement in— E–103.5 Altered item drawing. (1) Determining the feasibility of acquiring parts by competitive procedures or direct See current version of DoD STD–100, para- purchase from actual manufacturers; and graphs 201.4.4 and 703. (2) Overcoming or removing constraints to E–103.6 Annual buy quantity. breakout identified through the screening The forecast quantity of a part required for process (technical review) described in E–302. the next 12 months. (c) This Appendix sets forth procedures to screen and code parts in order to provide E–103.7 Annual buy value (ABV). contracting officers summary information The annual buy quantity of a part multi- regarding technical data and sources of sup- plied by its unit price. ply to meet the Government’s minimum re- quirements. This information assists the E–103.8 Bailment. contracting officer in selecting the method The process whereby a part is loaned to a of contracting, identifying sources of supply, recipient with the agreement that the part and making other decisions in the preaward will be returned at an appointed time. The and award phases, with consideration for es- government retains legal title to such mate- tablished parameters of system and equip- rial even though the borrowing organization ment integrity, readiness, and the opportuni- has possession during the stated period. ties to competitively acquire parts (see FAR/ DFARS Part 6). The identification of sources E–103.9 Breakout. for parts, for example, requires knowledge of The improvement of the acquisition status manufacturing sources, additional oper- of a part resulting from a technical review ations performed after manufacture of parts and a deliberate management decision. Ex- possessing safety or other critical character- amples are— istics, and the availability of technical data. (a) The competitive acquisition of a part (d) The result of the screening process previously purchased noncompetitively; and (technical review is indicated by an acquisi- (b) The direct purchase of a part previously tion method code (AMC) and an acquisition purchased from a prime contractor who is method suffix code (AMSC). This program not the actual manufacturer of the part. provides procedures for both the initial as- signment of an AMC and an AMSC to a part, E–103.10 Competition. and for the recurring review of these codes A contract action where two or more re- (see E–202 and E–203(b)(1)). sponsible sources, acting independently, can
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be solicited to satisfy the Government’s re- tions, and should only be used to support im- quirement. mediate buy requirements (see E–301.3).
E–103.11 Contractor technical information E–103.22 Manufacture. code (CTIC). The physical fabrication process that pro- A two digit alpha code assigned to a part duces a part, or other item of supply. The by a prime contractor to furnish specific in- physical fabrication processes include, but formation regarding the engineering, manu- are not limited to machining, welding, sol- facturing, and technical aspects of that part. dering, brazing, heat treating, braking, riv- eting, pressing, chemical treatment, etc. E–103.12 Design control activity. A contractor or Government activity hav- E–103.23 Prime contractor. ing responsibility for the design of a given A contractor having responsibility for de- part, and for the preparation and currency of sign control and/or delivery of a system/ engineering drawings and other technical equipment such as aircraft, engines, ships, data for that part. The design control activ- tanks, vehicles, guns and missiles, ground ity may or may not be the actual manufac- communications and electronics systems, turer. The design control activity is synony- and test equipment. mous with design activity as used by DoD STD–100. E–103.24 Provisioning. The process of determining and acquiring E–103.13 Direct purchase. the range and quantity (depth) of spare and The acquisition of a part from the actual repair parts, and support and test equipment manufacturer, including a prime contractor required to operate and maintain an end who is an actual manufacturer of the part. item of materiel for an initial period of serv- E–103.14 Engineering drawings. ice. See current versions of DoD STD–100 and E–103.25 Qualification. DoDD 1000. Any action (contractual or precontractual) E–103.15 Extended dollar value. that results in approval for a firm to supply items to the Government without further The contract unit price of a part multi- testing beyond quality assurance demonstra- plied by the quantity purchased. tions incident to acceptance of an item. E–103.16 Full and open competition. When prequalification is required, the Gov- A contract action where all responsible ernment must have a justification on file— sources are permitted to compete. (a) Stating the need for qualification and why it must be done prior to award; E–103.17 Full screening. (b) Estimating likely cost of qualification; A detailed parts breakout process, includ- and ing data collection, data evaluation, data (c) Specifying all qualification require- completion, technical evaluation, economic ments. evaluation, and supply feedback, used to de- E–103.26 Replenishment part. termine if parts can be purchased directly from the actual manufacturer(s) or can be A part, repairable or consumable, pur- competed. chased after provisioning of that part, for: replacement; replenishment of stock; or use E–103.18 Immediate (live) buy. in the maintenance, overhaul, and repair of A buy which must be executed as soon as equipment such as aircraft, engines, ships, possible to prevent unacceptable equipment tanks, vehicles, guns and missiles, ground readiness reduction, unacceptable disruption communications and electronic systems, in operational capability, and increased safe- ground support, and test equipment. As used ty risks, or to avoid other costs. in this appendix, except when distinction is necessary, the term ‘‘part’’ includes sub- E–103.19 Life cycle buy value. assemblies, components, and subsystems as The total dollar value of all acquisitions defined by the current version of MIL–STD– that are estimated to occur over a part’s re- 280. maining life cycle. E–103.27 Reverse engineering. E–103.20 Limited competition. A process by which parts are examined and A competitive contract action where the analyzed to determine how they were manu- provisions of full and open competition do factured, for the purpose of developing a not exist. complete technical data package. The nor- mal, expected result of reverse engineering is E–103.21 Limited screening. the creation of a technical data package A parts breakout process covering only se- suitable for manufacture of an item by new lected points of data and technical evalua- sources.
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E–103.28 Selected item drawing. out regard to a part’s annual buy value, See current version of DoD–STD–100, para- where a restrictive AMC/AMSC is assigned graph 201.4.5. (see FAR 9.202). A firm must clearly dem- onstrate, normally at its own expense, that E–103.29 Source. it can satisfy the Government’s require- Any commercial or noncommercial organi- ments. The Government shall make a vig- zation which can supply a specified part. For orous effort to expedite its evaluation of coding purposes, sources include actual man- such demonstration and to furnish a decision ufacturers, prime contractors, vendors, deal- to the demonstrating firm within a reason- ers, surplus dealers, distributors, and other able period of time. If a resolution cannot be firms. made within 60 days, the offeror must be ad- vised of the status of the request and be pro- E–103.30 Source approval. vided with a good faith estimate of the date The Government review that must be com- the evaluation will be completed. Every rea- pleted before contract award. sonable effort shall be made to complete the review before a subsequent acquisition is E–103.31 Source control drawing. made. Also, restrictive codes and low annual See the current version of DoD–STD–100, buy value do not preclude consideration of a paragraph 201.4.3. surplus dealer or other nonmanufacturing source when the part offered was manufac- E–103.32 Technical data. tured by an approved source (see FAR 10.010). Specifications, plans, drawings, standards, A potential surplus dealer or other non- purchase descriptions, and such other data manufacturing source must provide the Gov- to describe the Government’s requirements ernment with all the necessary evidence for acquisition. which proves the proposed part meets the Government’s requirements. E–104 General policies. (e) The experience and knowledge accrued (a) The identification, selection, and by contractors in the development, design, screening of parts for breakout shall be made manufacture and test of equipment may en- as early as possible to determine the tech- hance the breakout decision making process. nical and economic considerations of the op- DoD activities may obtain technical infor- portunities for breakout to competition or mation from contractors when it is consid- direct purchase. Full and open competition ered requisite to an informed coding deci- is the preferred result of breakout screening. sion. The procedure for contracting for this (b) A part shall be made a candidate for information is provided in Part 4 of this ap- breakout screening based on its cost effec- pendix. Contractor’s technical information tiveness for breakout. Resources should be will be designated by CTICs. Only DoD ac- assigned and priority given to those parts tivities shall assign AMCs and AMSCs. with the greatest expected return given their (f) DoD activities with breakout screening annual buy value, life cycle buy value, and responsibilities shall develop, document, and likelihood of successful breakout, given advertise programs which promote the devel- technical characteristics such as design and opment of qualified sources for parts that performance stability. Consideration of all are currently being purchased sole source. such factors is necessary to ensure the max- These programs should provide fair and rea- imum return on investment in a given break- sonable technical assistance (engineering or out program. Occasionally, an item will not other technical data, parts on bailment, etc.) meet strict economic considerations for to contractors who prove they have potential breakout, but action may be required due to for becoming a qualified second source for an other considerations to avoid overpricing sit- item. These programs should also provide uations. Accordingly, there is no minimum specially tailored incentives to successful DoD threshold for breakout screening ac- firms so as to stimulate their investment in tions. DoD components and field activities becoming qualified, e.g., Government fur- will develop annual buy thresholds for break- nished equipment (GFE) or Government fur- out screening which are consistent with eco- nished material (GFM) for reverse engineer- nomic considerations and resources. Every ing and technical data package review and effort should be made to complete the full assistance. screening of parts that are expected to be (g) Departments and agencies shall iden- subsequently replenished as they enter the tify the engineering support activity, design inventory. control activity, actual manufacturer, and (c) Breakout improvement efforts shall prime contractor for each part such that the continue through the life cycle of a part to information is readily available to breakout improve its breakout status (see E–203) or and acquisition personnel. until such time as the part is coded 1G, 2G, 1K, 2K, 1M, 2M, 1N, 2N, 1T, 2T, 1Z, or 2Z. E–105 Responsibilities. (d) No firm shall be denied the opportunity (a) The Assistant Secretary of Defense to demonstrate its ability to furnish a part (Production and Logistics) has authority for which meets the Government’s needs, with- direction and management of the DoD Spare
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Parts Breakout Program, including the es- (1) Initiating the breakout process during tablishment and maintenance of imple- the early phases of development and con- menting regulations. tinue the process during the life of the part; (b) Departments and agencies shall per- (2) Considering the need for contractor form audits to ensure that their respective technical information codes (CTICs) and, activities comply with the provisions of this when needed, initiating a contract data re- program. quirement; (c) Commanders of DoD activities with (3) Identifying, selecting, and screening in breakout screening responsibility shall— accordance with Part 3 of this appendix; (1) Implement a breakout program con- (4) Assigning an AMC/AMSC, using all sistent with the requirements of this appen- available data, including CTICs; dix. (5) Responding promptly to a request for (2) Assist in the identification and acquisi- evaluation of additional sources or a review tion of necessary data rights and technical of assigned codes. An evaluation not com- data, and the review of restrictive legends on pleted prior to an immediate buy shall be technical data, during system/equipment de- promptly completed for future buys; and velopment and production to allow, when (6) Documenting all assignments and feasible, breakout of parts. changes, to include rationale for assigning (3) Designate a program manager to serve the chosen code, in a permanent file for each as the central focal point, communicate part. As a minimum, the file should identify breakout policy, ensure cost effectiveness of the engineering support activity, cognizant screening actions and breakout program, design control activity, actual manufac- provide assistance in implementing breakout screening, monitor ongoing breakout efforts turer, prime contractor, known sources of and achievements, and provide surveillance supply, and any other information needed to over implementation of this appendix. The support AMC/AMSC assignments. program manager shall report only to the (e) Contracting officers responsible for the Commander, or deputy, of the activity with acquisition of replenishment parts shall— breakout screening responsibility. (1) Consider the AMC/AMSC when devel- (4) Ensure that actions to remove impedi- oping the method of contracting, the list of ments to breakout are continued so long as sources to be solicited, the type of contract, it is cost effective, or until no further break- etc.; and out improvements can be made. (2) Provide information which is incon- (5) Invite the activity’s small business spe- sistent with the assigned AMC/AMSC (e.g., cialist and the resident small business ad- availability of technical data or possible ministration’s procurement center rep- sources) to the activity responsible for code resentative (PCR), if any, to participate in assignment with a request for timely evalua- all acquisition method coding conferences at tion of the additional information. An ur- Government and contractor locations. gent immediate buy need not be delayed if (6) Ensure timely engineering and tech- an evaluation of the additional information nical support to other breakout activities re- cannot be completed in time to meet the re- gardless of location. quired delivery date. (i) In the case of parts where contracting or inventory management responsibility has Part 2—Breakout Coding been transferred, support shall include— E–200 Scope. (A) Assignment of an AMC/AMSC prior to the transfer; This part provides parts breakout codes (B) Assignment of an AMC/AMSC when re- and prescribes responsibilities for their as- quested by the receiving activity to parts signment and management. transferred without such codes. The request- E–201 Coding. ing activity may recommend an AMC/AMSC; and Three types of codes are used in the break- (C) Full support of the receiving activities’ out program. breakout effort by providing timely engi- neering support in revising existing AMC/ E–201.1 Acquisition method codes. AMSCs. The following codes shall be assigned by (ii) In all cases, support shall include, but DoD activities to describe the results of the not be limited to, furnishing all necessary spare parts breakout screening: technical data and other information (such (a) AMC 0. The part was not assigned AMC as code suspense date and procurement his- 1 through 5 when it entered the inventory, tory) to permit acquisition in accordance nor has it ever completed screening. Use of with the assigned AMC/AMSC (see E– this code is sometimes necessary but dis- 105(d)(6)). couraged. Maximum effort to determine the (7) Ensure that appropriate surveillance is applicability of an alternate AMC is the ob- given to first time breakout parts. jective. This code will never be used to re- (d) Breakout program managers shall be code a part that already has AMC 1 through responsible for— 5 assigned, and shall never be assigned as a
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result of breakout screening. Maximum ef- ernment, and the data or knowledge is essen- fort to determine the applicability of AMC 1 tial to maintaining the quality of the part. through 5 is the objective. An alternate source must qualify in accord- (b) AMC 1. Suitable for competitive acqui- ance with the design control activity’s pro- sition for the second or subsequent time. cedures, as approved by the cognizant Gov- (c) AMC 2. Suitable for competitive acqui- ernment engineering activity. The qualifica- sition for the first time. tion procedures must be approved by the (d) AMC 3. Acquire, for the second or subse- Government engineering activity having ju- quent time, directly from the actual manu- risdiction over the part in the intended ap- facturer. plication. If one source is approved, AMCs 3, (e) AMC 4. Acquire, for the first time, di- rectly from the actual manufacturer. 4, or 5 are valid. If at least two sources are (f) AMC 5. Acquire directly from a sole approved or if data is adequate for an alter- source contractor which is not the actual nate source to qualify in accordance with the manufacturer. design control activity’s procedures, AMCs 1 or 2 are valid. E–201.2 Acquisition method suffix codes. (d) AMSC D. The data needed to acquire The following codes shall be assigned by this part competitively is not physically DoD activities to further describe the acqui- available, it cannot be obtained economi- sition method code. Valid combinations of cally, nor is it possible to draft adequate AMCs/AMSCs are indicated in paragraphs (a) specifications or any other adequate, eco- through (z) of this subsection and summa- nomical description of the material for a rized in Exhibit I. competitive solicitation. AMSC 3, 4, or 5 are (a) AMSC A. The Government’s right to use valid. data in its possession is questionable. This (e) AMSC E. (Reserved). code is only applicable to parts under imme- (f) AMSC F. (Reserved). diate buy requirements and for as long there- (g) AMSC G. The Government has rights to after as rights to data are still under review for resolution and appropriate coding. This the technical data, the data package is com- code is assigned only at the conclusion of plete, and there are no technical data, engi- limited screening, and it remains assigned neering, tooling or manufacturing restric- until the full screening process resolves the tions. (This is the only AMSC that implies Government’s rights to use data and results that parts are candidates for full and open in assignment of a different AMSC. If one competition. Other AMSCs such as K, M, N, source is available, AMCs 3, 4, or 5 are valid. Q, and S may imply limited competition If at least two sources exist, or if the data is when two or more independent sources exist adequate for an alternate source to qualify yet the technical data package is inadequate in accordance with the design control activi- for full and open competition.) AMCs 1 or 2 ty’s procedures, AMCs 1 or 2 are valid. are valid. (b) AMSC B. This part must be acquired (h) AMSC H. The Government physically from a manufacturing source(s) specified on does not have in its possession sufficient, ac- a source control or selected item drawing as curate, or legible data to purchase this part defined by the current version of DoD–STD– from other than the current source(s). This 100. Suitable technical data, Government code is applicable only to parts under imme- data rights, or manufacturing knowledge are diate buy requirements and only for as long not available to permit acquisition from thereafter as the deficiency is under review other sources, nor qualification testing of for resolution and appropriate recoding. This another part, nor use of a second source part code is only assigned at the conclusion of in the intended application. Although, by limited screening, and it remains assigned DoD–STD–100 definition, altered and selected until the full screening process resolves items shall have an adequate technical data physical data questions and results in as- package, data review discloses that required signment of a different AMSC. If one source data or data rights are not in Government is available, AMCs 3, 4, or 5 are valid. If at possession and cannot be economically ob- least two sources exist, AMCs 1 or 2 are tained. If one source is available, AMCs 3, 4, valid. or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid. (i) AMSC I. (Not authorized.) (c) AMSC C. This part requires engineering (j) AMSC J. (Reserved.) source approval by the design control activ- (k) AMSC K. This part must be produced ity in order to maintain the quality of the from class 1 castings and similar type forg- part. Existing unique design capability, engi- ings as approved (controlled) by procedures neering skills, and manufacturing knowledge contained in the current version of MIL– by the qualified source(s) require acquisition STD–2175. If one source has such castings and of the part from the approved source(s). The cannot provide them to other sources, AMCs approved source(s) retain data rights, manu- 3, 4, or 5 are valid. If at least two sources facturing knowledge, or technical data that have such castings or they can be provided are not economically available to the Gov- to other sources AMCs 1 or 2 or valid.
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(l) AMSC L. The annual buy value of this tional sources. The Government has been un- part falls below the screening threshold es- able to economically buy the data or rights tablished by DoD components and field ac- to the data, although the part has been un- tivities. However, this part has been dergoing full screening for 12 or more screened for additional known sources, re- months. Breakout to competition has not sulting in either confirmation that the ini- been achieved, but current, continuing ac- tial source exists or that other sources may tions to obtain necessary rights to data or supply the part. No additional screening was adequate, reprocurement technical data indi- performed to identify the competitive or cate breakout to competition is expected to noncompetitive conditions that would result be achieved. This part may be a candidate in assignment of a different AMSC. This code for reverse engineering or other techniques shall not be used when screening parts enter- to obtain technical data. All AMSC Q items ing the inventory. This code shall be used are required to be reviewed within the time- only to replace AMSC O for parts under the frames cited in E–203(b). If one source is established screening threshold. If one available, AMCs 3, 4, or 5 are valid. If at least source is available, AMCs 3, 4, or 5 are valid. two sources exist, AMCs 1 or 2 are valid. If at least two sources exist, AMCs 1 or 2 are (r) AMSC R. The Government does not own valid. the data or the rights to the data needed to (m) AMSC M. Manufacture of this part re- quires use of master or coordinated tooling. purchase this part from additional sources. If only one set of tooling exists and cannot It has been determined to be uneconomical be made available to another source for man- to buy the data or rights to the data. It is ufacture of this part, AMCs 3, 4, or 5 are uneconomical to reverse engineer the part. valid. When the availability of existent or This code is used when the Government did refurbishable tooling is available to two or not initially purchase the data and/or rights. more sources, then AMCs 1 or 2 are valid. If only one source has the rights or data to (n) AMSC N. Manufacture of this part re- manufacture this item, AMCs 3, 4, or 5 are quires special test and/or inspection facili- valid. If two or more sources have the rights ties to determine and maintain ultra-preci- or data to manufacture this item, AMCs 1 or sion quality for its function or system integ- 2 are valid. rity. Substantiation and inspection of the (s) AMSC S. Acquisition of this item is re- precision or quality cannot be accomplished stricted to Government approved source(s) without such specialized test or inspection because the production of this item involves facilities. If the test cannot be made avail- unclassified but militarily sensitive tech- able for the competitive manufacture of the nology (see FAR 6.3). If one source is ap- part, the required test or inspection knowl- proved, AMCs 3, 4, or 5 are valid. If at least edge cannot be documented for reliable rep- two sources are approved, AMCs 1 or 2 are lication, or the required physical test or in- valid. spection facilities and processes cannot be (t) AMSC T. Acquisition of this part is con- economically documented in a TDP, valid trolled by qualified products list (QPL) pro- AMCs are 3, 4, or 5. If the facilities or tests cedures. Competition for this part is limited can be made available to two or more com- to sources which are listed on or are quali- petitive sources, AMCs 1 or 2 are valid. fied for listing on the QPL at the time of (o) AMSC O. The part was not assigned an award (see FAR Part 9 and DFARS Part 209). AMSC when it entered the inventory, nor AMCs 1 or 2 are valid. has it ever completed screening. Use of this (u) AMSC U. The cost to the Government code in conjunction with AMC 0 is some- to breakout this part and acquire it competi- times necessary but discouraged. Maximum tively has been determined to exceed the effort to determine the applicability of an al- projected savings over the life span of the ternate AMSC is the objective. Only AMC O part. If one source is available, AMCs 3, 4, or is valid. 5 are valid. If at least two sources exist, (p) AMSC P. The rights to use the data needed to purchase this part from additional AMCs 1 or 2 are valid. source(s) are not owned by the Government (v) AMSC V. This part has been designated and cannot be purchased, developed, or oth- a high reliability part under a formal reli- erwise obtained. It is uneconomical to re- ability program. Probability of failure would verse engineer this part. This code is used in be unacceptable from the standpoint of safe- situations where the Government has the ty of personnel and/or equipment. The cog- data but does not own the rights to the data. nizant engineering activity has determined If only one source has the rights or data to that data to define and control reliability manufacture this item, AMCs 3, 4, or 5 are limits cannot be obtained nor is it possible valid. If two or more sources have the rights to draft adequate specifications for this pur- or data to manufacture this item, AMCs 1 or pose. If one source is available, AMCs 3, 4, or 2 are valid. 5 are valid. If at least two sources are avail- (q) AMSC Q. The Government does not able, AMCs 1 or 2 are valid. have adequate data, lacks rights to data, or (w) AMSC W. (Reserved.) both needed to purchase this part from addi- (x) AMSC X. (Not authorized.)
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(y) AMSC Y. The design of this part is un- (c) CTIC CG. There are no technical re- stable. Engineering, manufacturing, or per- strictions to competition. formance characteristics indicate that the (d) CTIC CK. Produced from class 1 cast- required design objectives have not been ings (see the current version of MIL–STD– achieved. Major changes are contemplated 2175) and similar type forgings. The process because the part has a low process yield or of developing and proving the acceptability has demonstrated marginal performance dur- of high-integrity castings and forgings re- ing tests or service use. These changes will quires repetitive performance by a con- render the present part obsolete and unus- able in its present configuration. Limited ac- trolled source. Each casting or forging must quisition from the present source is antici- be produced along identical lines to those pated pending configuration changes. If one which resulted in initial acceptability of the source is available, AMCs 3, 4, or 5 are valid. part. (The contractor shall furnish a list of If at least two sources exist, AMCs 1 or 2 are known sources for obtaining castings/forg- valid. ings with this code.) (z) AMSC Z. This part is a commercial/non- (e) CTIC CM. Master or coordinated tooling developmental/off-the-shelf item. Commer- is required to produce this part. This tooling cial item descriptions, commercial vendor is not owned by the Government or, where catalog or price lists or commercial manuals owned, cannot be made available to other assigned a technical manual number apply. sources. (The contractor shall furnish a list If one source is available, AMCs 3, 4, or 5 are of the firms possessing the master or coordi- valid. If at least two sources are available, nated tooling with this code.) AMCs 1 or 2 are valid. (f) CTIC CN. Requires special test and/or E–201.3 Contractor technical information inspection facilities to determine and main- codes. tain ultra-precision quality for function or The following two digit alpha codes shall system integrity. Substantiation and inspec- be used by contractors, when contractor’s as- tion of the precision or quality cannot be ac- sistance is requested. These codes are as- complished without such specialized test or signed in accordance with the current inspection facilities. Other sources in indus- version of MIL–STD–789 and shall be consid- try do not possess, nor would it be economi- ered during the initial assignment of an cally feasible for them to acquire facilities. AMC/AMSC. For spare parts breakout, re- (The contractor shall furnish a list of the re- quirements for contractor assistance quired facilities and their locations with this through CTIC submission shall be accom- code.) plished as stated in Part 4 of this appendix. (g) CTIC CP. The rights to use the data Each CTIC submitted by a contractor must needed to purchase this part from additional be accompanied by supporting documenta- sources are not owned by the Government tion which justifies the proposed code. These and cannot be purchased. codes and supporting documentation, trans- mitted by DD Form 1418, Contractor Tech- (h) CTIC CV. A high reliability part under nical Information Record, and DD Form a formal reliability program. Probability of 1418–1, Technical Data Identification Check- failure would be unacceptable from the list, are useful not only for code assignment standpoint of safety of personnel and/or during acquisition coding conferences, but equipment. The cognizant engineering activ- also for personnel conducting both full and ity has determined that data to define and limited screening of breakout candidates. control reliability limits cannot be obtained Personnel conducting full and limited nor is it possible to draft adequate specifica- screening of breakout candidates should use tions for this purpose. Continued control by the supporting documentation provided with the existing source is necessary to ensure ac- CTICs as a source of information. However, ceptable reliability. (The contractor shall they should not allow this information to identify the existing source with this code.) substitute for careful analysis and further (i) CTIC CY. The design of this part is un- investigation of the possibilities of acquiring stable. Engineering, manufacturing, or per- a part through competition or by direct pur- formance characteristics indicate that the chase. The definitions for CTICs are— required design objectives have not been (a) CTIC CB. Source(s) are specified on achieved. Major changes are contemplated source control, altered item, or selected item drawings/documents. (The contractor shall because the part has a low process yield or furnish a list of the sources with this code.) has demonstrated marginal performance dur- (b) CTIC CC. Requires engineering source ing tests or service use. These changes will approval by the design control activity in render the present part obsolete and unus- order to maintain the quality of the part. An able in its present configuration. Limited ac- alternate source must qualify in accordance quisition from the present source is antici- with the design control activity’s proce- pated pending configuration changes. (The dures, as approved by the cognizant Govern- contractor shall identify the existing source ment engineering activity. with this code.)
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E–202 Assignment of codes. E–203 Improving part status. The purpose of AMC/AMSC assignments is (a) General. An effective breakout program to provide the best possible technical assess- requires that all reasonable actions be taken ment of how a part can be acquired. The to improve the acquisition status of parts. technical assessment should not be based on The potential for improvement of the acqui- issues such as: are the known sources actual sition status will vary with individual cir- manufacturers, or are there two actual man- cumstances. On one end of the spectrum are ufacturers in existence; but rather on factors those parts with acquisition method suffix such as the availability of adequate tech- codes of a temporary nature requiring vig- nical data, the Government’s rights to use orous follow-through improvement action the data, technical restrictions placed on the (e.g., AMSCs A and H); on the other end are hardware (criticality, reliability, special those parts with codes suggesting a relative testing, master tooling, source approval, degree of permanence (e.g., AMSCP). A code etc.) and the cost to breakout vice projected assigned to a part should never be considered savings. In cases where there is additional fixed with respect to either technical cir- technical information which affects the way cumstance or time; today’s technical con- straint may be overcome by tomorrow’s a part can be acquired, it should be made technology and a contractor’s rights to data, available to the contracting officer, with the so zealously protected today, often become AMC/AMSC. Concerning the assignment of less important with time. The application of AMCs and AMSCs, it is DoD policy that— breakout improvement effort must always (a) The assignment of AMC/AMSCs to parts consider individual circumstances and over- is the responsibility of the DoD component all benefits expected to be obtained. introducing the equipment or system for (b) Code suspense dates. Every part whose which the parts are needed in the inventory. breakout status can be improved shall be Subsequent screening is the responsibility of suspensed for rescreening as appropriate. In the DoD component assigned technical re- general, the following codes cannot be im- sponsibility. proved: 1G, 2G, 1K, 2K, 1M, 2M, 1N, 2N, 1T, (b) When two or more AMSCs apply, the 2T, 1Z, or 2Z. The period between suspenses most technically restrictive code will be as- is a period for which an assigned AMC/AMSC signed. is considered active, and routine rescreening (c) Restricted combinations of AMC/ of parts with ‘‘valid’’ codes is not required. AMSCs are reflected in the AMSC defini- Suspense dates may vary with the cir- tions. The Defense Logistics Information cumstance surrounding each part. A code Service will reject invalid code combina- reached as a result of limited screening (E– tions, as shown in Exhibit I, submitted for 304) shall not be assigned a suspense date ex- entry into the Federal catalog program (see ceeding 12 months; a code reached as a result E–204.2). of full screening (E–303) shall not be assigned (d) One-time acquisition of a part by a a suspense date exceeding three years. In ex- method other than indicated by the code ceptional cases, where circumstances indi- does not require a change to the AMC (e.g., cate that no change can be expected in a when only one of a number of sources can code over an extended period, a suspense meet a short delivery date, or when only one date not exceeding five years may be as- manufacturing source is known but accept- signed in accordance with controls estab- able surplus parts are available from other lished by the breakout activity. Items with a sources). 1G or 2G code do not require a suspense date. (e) After the first acquisition under AMC 2 E–204 Communication of codes. or 4, the AMC shall be recoded 1 or 3 respec- E–204.1 Communication media. tively. Use the Federal catalog program formats, (f) Both full and limited screening will re- set forth in DoD Manual 4100.39–M, Defense sult in the assignment or reassignment of an Integrated Data System (DIDS) Procedural AMC/AMSC. This assignment shall be based Manual, communication media and oper- on the best technical judgment of breakout ating instructions as augmented by this ap- personnel and on information gathered dur- pendix to disseminate AMCs and AMSCs. ing the screening process. (g) A part need not be coded as non- E–204.2 Responsibilities. competitive based on an initial market sur- (a) The Defense Logistics Information vey which only uncovers one interested Service (DLIS) will— source. If the Government has sufficient (1) Receive and disseminate AMCs and technical data in its possession to enable AMSCs for each national stock number other sources to manufacture an acceptable (NSN) to all appropriate Government activi- part, and there are no technical restrictions ties in consonance with scheduled Federal on the part which would preclude other catalog program computer cycles; sources from manufacturing it, the part (2) Make the AMCs and AMSCs a part of should be coded competitive. the data bank of NSN item intelligence;
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(3) Perpetuate the codes in all subsequent screened. Parts coded 0O shall be selected for Federal catalog program transactions; e.g., full screening. entry of new NSNs and Federal supply code (FSC) changes; and E–301.3 Immediate buy requirements. (4) Reject invalid code combinations sub- An immediate buy requirement will be mitted for entry into the Federal catalog identified by the user or the item manager in program. consonance with department/agency regula- (b) DoD activities responsible for the as- tions. When an immediate buy requirement signment of AMCs and AMSCs will— meeting the screening criteria (see E–104(b)) (1) Transmit assigned codes for each NSN is generated for a part not assigned a current through normal cataloging channels to DLIS AMC/AMSC, the part shall be promptly under existing Federal catalog program pro- screened in accordance with either the full cedures; and or limited screening procedures (see E–303 (2) Notify DLIS by normal Federal catalog and E–304). program maintenance procedures when a E–301.4 Suspect AMC/AMSC. change in coding is made. Whenever an AMC/AMSC is suspected of Part 3—Identification, selection, and screening of being inaccurate by anyone, including the parts contracting officer, a rescreening shall be conducted for that part. Suspect codes in- E–300 General. clude codes composed of invalid combina- This part sets forth procedures for the tions of AMCs and AMSCs, those which do identification, selection, and screening of not truly reflect how a part is actually being parts. acquired, and those suspected of being more restrictive than necessary for the next buy. E–301 Identification and selection proce- E–302 Screening. dures. E–301.1 Parts entering the inventory. (a) Screening procedures include consider- ation and recording of the relevant facts per- The breakout process should begin at the taining to breakout decisions. The objective earliest possible stage of weapon systems ac- of screening is to improve the acquisition quisition. Generally, a provisioned part will status by determining the potential for com- require subsequent replenishment. Provi- petition, or purchase from an actual manu- sioning or similar lists of new parts are, facturer. Consideration of any reasonable ap- therefore, the appropriate bases for selecting proach to establishing competition should be parts for screening. This is not to imply that an integral part of the breakout process. breakout must be done on all items as part (b) Screening procedures may vary depend- of the provisioning process. Priorities shall ing on circumstances related to the parts. No be applied to those parts offering the great- set rules will provide complete guidance for est opportunity for breakout and potential making acquisition method decisions under savings. The major factors in making this all conditions encountered in actual prac- determination are— tice. An informed coding decision can be (a) The unit price; made without following the procedures step (b) The projected quantity to be purchased by step in every case. over the part’s life cycle; and (c) Activities involved in screening are en- (c) The potential for screening to result in couraged to develop supplemental procedures a part being successfully broken out, e.g., which prove effective in meeting this regula- item stability, cost, and completeness of tion’s objectives. These procedures should be technical data, etc. tailored to the particular activity’s oper- ating environment and the characteristics of E–301.2 Annual buy forecasts. the parts for which it is responsible. Never- Annually, lists shall be prepared that iden- theless, care should be taken in all cases to tify all parts projected for purchase during assure that— the subsequent 12-month period. Priority (1) Responsible judgment is applied to all should be given to those parts with the elements involved in the review of a part; greatest expected return given their annual (2) The necessary supporting facts are pro- buy value, life cycle buy value, and likeli- duced, considered, and recorded in the break- hood of successful breakout, given technical out screening file. The breakout screening characteristics such as design and perform- file contains technical data and other docu- ance stability and the availability of tech- ments concerning screening of the part; nical data. Parts with an expired suspense (3) All cost effective alternatives are con- date or a suspense date which will expire sidered for establishing competition, or pur- during the forecast period (see E–203(b)), chase from an actual manufacturer (see E– need only be subjected to the necessary steps 105(d)(6)); and of the full screening procedure (see E–303). (4) When possible, the sequence of the re- Parts with a valid code that will not expire view allows for accomplishing several during the forecast period need not be screening steps concurrently.
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(d) Contractor participation in the decision accurate and consistent acquisition method making process extends only to providing code assignment. It is expected that each ac- technical information. This technical infor- tivity will develop its own operational mation is provided by supporting docu- screening procedures. A general model, full mentation (DD Forms 1418, Contractor Tech- screening decision process is provided below nical Information Record, and DD Form to support the development of activity level 1418–1, Technical Data Identification Check- procedures and to provide guidance regard- list) which includes the CTIC assignment. ing the general scope of these procedures. Government personnel shall substantiate the The full screening procedures involve 65 breakout decision by reference to the CTIC steps in the decision process, and are divided and by careful review of the supporting docu- into the following phases— mentation. However, the CTIC provides guid- (1) Data collection; ance only, and it should be used as one of the (2) Data evaluation; inputs to arrive at an acceptable AMC and (3) Data completion; AMSC coding. (4) Technical evaluation; (e) Contractor’s technical information fur- (5) Economic evaluation; and nished in accordance with MIL–STD–789 may (6) Supply feedback. indicate areas requiring additional research (b) The six phases describe different func- by the Government before screening can be tions that must be achieved during screen- completed. Seldom will industry’s contribu- ing. The nature of the screening process does tion to the screening process enable the Gov- not permit clear distinction of one phase ernment to assign an AMC or AMSC without from another. Further, the order of perform- additional review. ance of these phases may not correspond to (f) During the screening process, it may be the order listed here. In fact, the phases will appropriate to communicate with industry, often overlap and may be performed simulta- particularly potential manufacturers of a neously. Their purpose is to identify the dif- part, to determine the feasibility of estab- ferent functions comprising the screening lishing a competitive source and to estimate process. the costs and technical risks involved. (g) Coding conferences with industry shall (c) A summary flow chart of the decision be documented. steps is provided as Exhibit II to assist in un- (h) Screening may disclose a part is not derstanding the logical order of the full suitable for competitive acquisition, but it screening steps for various conditions. Use of may be possible to breakout the part for di- the flow chart in connection with the text rect purchase from the actual manufacturer that follows is essential to fully understand or to establish a second source. Parts par- the order of the steps in the process. ticularly suited to direct purchase are those E–303.1 Data collection phase (step 1). where neither the design control activity nor the prime contractor contribute additional (a) Assemble all available data and estab- value or whose data belong to the actual lish a file for each part. Collect identifica- manufacturer and will not be acquired by the tion data, relevant data obtained from indus- Government, and where that manufacturer try, contracting and technical history data exercises total responsibility for the part and current status of the part, including— (design and quality control, testing, etc.), (1) Normal identification required for cata- and where additional operations performed loging and standardization review; by the prime contractor can be performed by (2) All known sources; the actual manufacturer or by the Govern- (3) Historical contracting information, in- ment. cluding the more recent awards, date of (i) For each part that is screened, a file awards, and unit price(s) for the quantities shall be established to document and justify prescribed; the decisions and results of all screening ef- (4) Identification of the actual manufac- fort (see E–105(d)(6)). turer(s), the latest unit price and the quan- (j) Full and limited screening procedures tity on which the price is based. (When the are two elements of breakout programs. actual manufacturer is not the design con- Other spare parts initiatives to enhance trol activity, the design control activity breakout are reverse engineering, bailment, may be consulted to ensure the latest data rights challenges, and publication of in- version of the item is being procured from tended buy lists. Integration of other initia- the actual manufacturer); tives within the screening processes devel- (5) Identification of the activity, Govern- oped at each activity is encouraged. ment or industry, having design control over the part and, if industry, the cognizant Gov- E–303 Full screening procedures. ernment engineering activity; (a) Full screening procedures should be de- (6) The expected life in the military supply veloped so that the potential is fully evalu- system; ated for establishing competition or pur- (7) Record of any prior review for breakout, chase from an actual manufacturer. Also, with results or findings; and full screening procedures should facilitate (8) Annual demand.
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(b) In the case of complex items requiring items which incorporate established data re- large numbers of drawings, collection of a strictions and for which there are no other reasonable technical data sample is suffi- bases for competitive acquisition nor is pur- cient for the initial technical data evalua- chase of rights possible or feasible. tion phase (steps 2–14). (5) Steps 6 and 7. Is the present technical data package adequate for competitive ac- E–303.2 Data evaluation phase (steps 2–14). quisition of a reliable part? (a) Data evaluation is crucial to the whole (6) Steps 8 and 9. Specify omissions. The review procedure. It involves determination question in steps 6 and 7 requires a critical of the adequacy of the technical data pack- engineering evaluation and should deal first age and the Government’s rights to use the with the physical completeness of the date— data for acquisition purposes. (b) The data evaluation process may be di- are any essential dimensions, tolerances, vided into two stages— processes, finishes, material specifications, (1) A brief but intensive analysis of avail- or other vital elements of data lacking from able data and documents regarding both the package? If so, these omissions should be technical matters and data rights, leading to specified. A second element deals with ade- a decision whether to proceed with screen- quacy of the existing package to produce a ing; and part of the required performance, compat- (2) If the decision is to proceed with screen- ibility, quality, and reliability. This will, of ing, further work is necessary to produce an course, be related to the completeness of adequate technical data package, such as re- data. In some cases, qualified engineering search of contract provisions, engineering judgment may decide that in spite of appar- work on data and drawings, and requests to ently complete data, the high performance contractors for additional data. or other critical characteristics of the item (c) The steps in this phase are—(1) Step 2. require retention of the present source. If Are full Government rights established by such decision is made, the file shall include the available data package? Evidence for an documentation in the form of specific infor- affirmative answer would include the identi- mation, such as difficulties experienced by fication of Government drawings, incorpora- the present manufacturer in producing a sat- tion by reference of Government specifica- isfactory item or the existence of unique pro- tions or process descriptions in the public duction skills in the present source. domain, or reference to contract provisions (7) Steps 10 and 11. Can the data be devel- giving the Government rights to data. If the oped to make up a reliable technical data answer is negative, proceed to step 3; if posi- package? This implies a survey of the speci- tive, proceed to step 6. fied omissions with careful consideration to (2) Step 3. Are the contractor’s limitations determine the resources available to supply of the Government’s rights to data estab- each missing element. Such resources will lished by the available data package? vary from simple referencing of standard en- (i) The questions in step 2 and 3 are not ex- gineering publications to more complex de- clusive. The incorporation in a drawing of velopment of drawings with the alternatives contract provisions reserving rights to the of either obtaining such drawings or devel- manufacturer, either in the whole design or oping performance specifications. In some in certain manufacturing processes, would cases, certain elements of data are missing establish a clear affirmative answer to step 3 because they have been properly restricted. where there is substantiating Government If, however, there has been no advance sub- documentation. Parts not in this group shall stantiation of the right to restrict, the part be retained for further processing (see step should be further researched. If the answer 20). Data rights that cannot be substantiated to this question is negative, proceed to step shall be challenged (see DFARS Part 227, val- 12; if positive, proceed to step 13 or 14. idation procedures). (ii) In the case of clear contractor owner- (8) Step 12. If the answer to the question in ship of rights, proceed with steps 4 and 5. steps 10 and 11 is no, which condition is the (3) Step 4. Are there bases for competitive prime element in this decision, the lack of acquisition without using data subject to data or the unreliability of the data? Spe- limitations on use? This question requires cific documentation is needed to support this consideration, for example, of the possibility decision. of using performance specifications or sub- (9) Steps 13 and 14. Estimate the time re- stitution of military or commercial speci- quired to complete the data package. In fications or bulletins for limited elements of those cases where the data package is found the manufacturing process. The use of sam- inadequate and specific additions need to be ple copies is another possibility. developed, an estimate of the time required (4) Step 5. Can the Government buy the for completion must be made in order to de- necessary rights to data? This is a prelimi- termine if breakout of the part is feasible nary question to the full analysis (in steps 20 during this review cycle and to estimate at and 21 below) and is designed primarily to what point in the remaining life of the part eliminate from further consideration those the data package could be available.
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E–303.3 Data completion phase (steps 15–21). (2) If the technical data bears legends (a) The data completion phase involves ac- which limit the Government’s right to use quiring or developing the missing elements the data for breakout and it is determined of information to reach a determination on that reasonable grounds exist to question both adequacy of the technical data package the current validity of the restrictive mark- and the restriction of rights to data. It may ings, the contracting officer will be notified involve various functional responsibilities, to initiate the validation procedures at such as examination of past contracts, que- DFARS Subpart 227.4. ries directed to industry or to other Govern- (3) Where drawings and data are unmarked ment agencies, inspection of the part, re- and, therefore, free of limitation on their verse or other engineering work to develop use, they shall be considered available for drawings and write specifications, arrange- use in acquisition, unless the acquiring of- ments with the present source for licensing fice has clear evidence to the contrary (see DFARS Subpart 227.4). or technical assistance to new manufactur- (4) The decision process in situations de- ers, and negotiations for purchase of rights scribed in paragraphs (d) (1), (2), and (3) of to data. Additional research and information this subsection requires the exercise of sound requests should be expeditiously initiated on discretion and judgment and embraces legal those parts where there is a reasonable ex- considerations. In no case shall a decision be pectation of breakout. Because this phase is made without review and approval of that time-consuming, it should take place con- decision by legal counsel. currently with other phases of the review. (5) If the validation procedures in para- (b) At the beginning of the data completion graph (d)(2) of this subsection establish the phase, the part falls into one of the following Government’s right to use the data for four steps— breakout, the Government shall attempt to (1) Step 15. The data package is complete obtain competition pursuant to the decisions and adequate and the Government has suffi- resulting from concurrent technical and eco- cient rights for acquisition purposes. Such nomic evaluation. parts require no further data analysis. Pro- (e) Step 21. If restrictions on the use of data ceed to step 22. are established, determine whether the Gov- (2) Step 16. The Government has rights to ernment can buy rights to the required data. existing data. The data package is incom- Use the procedure in DFARS Subpart 227.4. plete but there is a reasonable expectation that the missing elements can be supplied. E–303.4 Technical evaluation phase (steps Proceed to step 19. 22–37). (3) Step 17. The data package is complete, (a) Introduction. (1) The purposes of tech- but suitable Government rights to the data nical evaluation are to determine the devel- have not been established. Proceed to step opment status, design stability, high per- 20. formance, and/or critical characteristics (4) Step 18. Neither rights nor completeness such as safety of personnel and equipment; of data is adequately established; therefore, the reliability and effective operation of the the part requires further research. Proceed system and equipment in which the parts are to step 20. to be used; and to exercise technical judg- (c) Step 19. Obtain or develop the necessary ment as to the feasibility of breaking out the data for a suitable data package. Reverse en- parts. No simple and universal rules apply to gineering to develop acquisition data may be each determination. The application of expe- used if there is a clear indication that the rience and responsible judgment is required. costs of reverse engineering will be less than Technical considerations arise in several ele- the savings anticipated from competitive ac- ments of the decision process, e.g., in deter- quisition. If there is a choice between reverse mining adequacy of the data package (steps engineering and the purchase of data (step 6–14). 21), the decision shall be made on the basis of (2) Certain manufacturing conditions may relative costs, quality, time, and other perti- reduce the field of potential sources. How- nent factors. ever, these conditions do not justify the re- (d) Step 20. Establish the Government’s and striction of competition by the assignment contractor’s rights to the data. Where draw- of restrictive AMCs for the following rea- ings and data cannot be identified to a con- sons— tract, the following guidelines should be ap- (i) Parts produced from class 1 castings and plied— similar type forgings. The process of devel- (1) Where drawings and data bear legends oping and providing the acceptability of which warn of copyright or patent rights, the high-integrity castings and forgings requires effect of such legends shall be resolved ac- repetitive performance by a controlled cording to law and policy; however, the ex- source for each casting or forging along iden- istence of patent or copyright restrictions tical lines to those which result in initial ac- does not per se preclude securing competi- ceptability of the item. The particular man- tion with respect to the parts described (see ufacturer’s process becomes the controlling FAR Subpart 27.3/DFARS Subpart 227.3). factor with regard to the acceptability of
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any such item. However, other firms can source from being successful. If the answer produce class 1 castings and similar type to step 24 or 25 is affirmative, proceed simul- forgings and provide the necessary inspec- taneously to steps 27 and 38. If the answer to tion, or the part may be acquired from other step 25 is negative, proceed to step 26. sources which use castings or forgings from (5) Step 26. If the present source is pro- approved (controlled) source(s). ducing an unsatisfactory part, but technical (ii) Parts produced from master or coordi- reasons prohibit seeking a new source, speci- nated tooling, e.g., numerically controlled tapes. fy the reasons. Such parts have features (contoured sur- (6) Step 27. Does the part require prior qual- faces, hole locations, etc.) delineated accord- ification or other approval testing? If the an- ing to unique master tooling or tapes and are swer is positive, proceed to step 28; if nega- manufactured to minimum/maximum limits tive, proceed to step 32. and must be replaceable without additional (8) Step 28. Specify the requirement. tailoring or fitting. These parts cannot be (9) Step 29. Estimate the time required to manufactured or configured by a secondary qualify a new source. pattern or jigs independent of the master (10) Step 30. Is there currently a qualified tooling and cannot be manufactured to req- source? uisite tolerances of fit by use of commercial (11) Step 31. Who is responsible for quali- precision machinery. In this context, jigs fications of the subcontractor, present prime and fixtures used only for ease of production contractor, the Government, or an inde- are not considered master tooling. However, pendent testing agency? master tooling may be reproduced. (i) If a qualified source is currently in ex- (iii) Parts requiring special test and/or inspec- istence, the review should consider who will tion facilities to determine and maintain ultra- be responsible for qualification in the event precision quality for the function or system in- of competitive acquisition. If qualification tegrity. Substantiation and inspection of the testing is such that it can be performed by precision or quality cannot be accomplished the selected source under a preproduction or without specialized test or inspection facili- first article clause in the contract, the costs ties. Testing is often done by the actual of initial approval should be reflected in the manufacturer under actual operating use. offers received. If the part requires initial However, such special test inspection facili- qualification tests by some other agency ties may be available at other firms. such as the present prime contractor, the (b) Design procedures (steps 22–31). (1) Step Government, an independent testing agent 22. Will a design change occur during antici- outside the Government, or by technical fa- pated lead time? If affirmative, proceed to cilities within the departments, out-of-pock- step 23; if negative, proceed to step 24. et costs may be incurred if the part is com- (2) Step 23. Specify the design change and peted. An estimate of qualification costs assign an appropriate code. should then be made and recorded in such (3) Step 24. Is a satisfactory part now being cases. produced? Concurrently with the research (ii) Where facilities within the Government and completion of data, a technical deter- are not adequate for testing or qualification, mination is required as to the developmental or outside agencies such as the equipment status of the part. With the frequent tele- contractor cannot or will not do the job, the scoping of the development/production cycle economics of qualification may be unreason- as well as constant product improvement able, and a narrative statement of these throughout the active life of equipment, facts should replace the cost estimate. parts are frequently subject to design Whenever possible, such as in the case of en- changes. The present source, if a prime con- gine qualification tests, economy of com- tractor, is usually committed to incorporate bined qualification tests should be consid- the latest changes in any deliveries under a ered. production order. In considering the part for (c) Quality assurance procedures (steps 32– breakout, an assessment must be made of 33). Quality control and inspection is a pri- the stability of design, so that in buying mary consideration when making a decision from a new source the Government will not to breakout. Where the prime contractor be purchasing an obsolete or incompatible performs quality assurance functions beyond part. The question of obsolescence or non- those of the part manufacturer or other compatibility is to some extent under Gov- sources, the Government may— ernment control. Screening for breakout on (1) Develop the same quality control and parts that are anticipated to undergo design inspection capability in the manufacturer’s change should be deferred until design sta- plant; bility is attained. (2) Assume the responsibility for quality; (4) Step 25. Can a satisfactory part be pro- or duced by a new source? Determine whether (3) Undertake to obtain the quality assur- technical reasons prohibit seeking a new ance services from another source, possibly source. The fact that the present source has the prime contractor. not yet been able to produce a satisfactory (4) Step 32. Who is now responsible for qual- part (step 24) does not preclude another ity control and inspection of the part?
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(5) Step 33. Can a new source be assigned re- (3) Step 40. Multiply the remaining program sponsibility for quality control? Is the level life cycle buy value by the savings factor to of the quality assurance requirements speci- obtain the expected future savings, if the fied in the system contract necessary for the part is coded for breakout. screened part? The minimum quality assur- (c) Computation of breakout costs (steps 41– ance procedures for each part shall be con- 47). Several groups of costs must be col- firmed. lected, summarized and compared to esti- (i) A new source shall be considered if— mated savings to properly determine the ec- (A) Any essential responsibility (e.g., burn- onomics of breakout. These costs include— in, reliability, maintainability) retained by (1) Direct costs (steps 41–45). Direct costs of the prime contractor for the part and its re- breakout normally include all expenditures lationship to the end item can be eliminated, which are direct and wholly identifiable to a shifted to the new source, or assumed by the specific, successful breakout action, and Government; which are not reflected in the part unit (B) The prime contractor will provide the price. Examples of direct costs include Gov- needed quality assurance services; ernment tooling or special test equipment, (C) The Government can obtain competent, qualification testing, quality control ex- impartial services to perform quality assur- penses, and industry participation costs ance responsibility; or (such as completion of the Contractor Tech- (D) The new source can maintain an ade- nical Information Data Record) if borne by quate quality assurance program, inspection the Government. (i) Step 41. Estimate the cost to the Gov- system, or inspection appropriate for the ernment for tooling or special equipment. part. (ii) Step 42. Estimate the cost, if any, to (ii) If the prime contractor has responsi- the Government for qualifying the new bility for quality that a new source cannot source. assume or obtain, or that the Government (iii) Step 43. Estimate the cost, if any, to cannot undertake or eliminate, consider- the Government for assuring quality control, ation of the new source is precluded. or the cost of contracting for quality con- (d) Tooling procedures (steps 34–37). (1) Step trol. 34. Is tooling or other special equipment re- (iv) Step 44. Estimate the cost to the Gov- quired? ernment for purchasing rights to data. (2) Step 35. Specify the type of tooling. (v) Step 45. Add estimated total direct (3) Step 36. Estimate additional acquisition costs to the Government to breakout the leadtime for setup and for tooling. item. (4) Step 37. Does the Government possess (2) Performance specification costs (steps 46– this tooling? If tooling or special equipment 47). (i) Step 46. Is the breakout candidate is required for production of the part, the constructed to a performance specification? types and quantities should be specified. In- (ii) Step 47. If the answer is yes in step 46, vestigation can then be made as to whether add performance specification breakout cost the Government possesses such tooling and estimate elements to the result of step 45. can make it available to a new source. A re- The addition of an unknown number of non- quirement for special tooling is not nec- stocked parts which must be stocked by the essarily a deterrent to competitive solicita- supply system for repairs is a significant ele- tion for parts. The Government may find it ment of cost associated with the decision to desirable to purchase the needed tooling and compete a performance specification assem- furnish it to the new source. In this case, the bly. (The same situation does not arise with costs can be determined with reasonable ac- respect to a design specification assembly curacy. However, if new sources can provide since virtually all spare parts used to repair the tooling or special equipment, this will be such an assembly are essentially identical to reflected in competitive prices and should parts already in the assembly.) The cost of not normally require further analysis. introducing these nonstocked parts into the system includes— E–303.5 Economic evaluation phase (steps (A) Additional catalog costs. The number 38–56). of nonstocked parts forecasted to be in the (a) Economic evaluation concerns identi- competed assembly, multiplied by the vari- fication and estimation of breakout savings able cost of cataloging per line item. and direct cost offsets to breakout. The eco- (B) Additional bin opening costs. nomic evaluation phase is composed of the The number of nonstocked parts forecasted three segments detailed in paragraphs (b) to be in the competed assembly, multiplied through (d) of this subsection. by the variable cost of a bin opening at each (b) Development of savings data (steps 38–40). of the locations where the part is to be (1) Step 38. Estimate remaining program life stocked. cycle buy value. (C) Additional management costs. The (2) Step 39. Apply either a savings factor of number of nonstocked parts forecasted to be 25 percent or one determined under local in the competed assembly, multiplied by the conditions and experience. variable cost of management per line item.
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(D) Additional technical data costs. The time required to obtain the detailed design cost of a new set of technical data for the data package (see E–203(b)). competed assembly, including the variable (7) Step 54. Is the part manufactured by the expenses of its production, reproduction, and prime contractor? If yes, code the part AMC distribution. 3; if no, proceed to step 55. (E) Additional repair tools and test equip- (8) Step 55. Can the part be acquired di- ment costs. The costs of additional special rectly from the actual manufacturer? If no, tools and test equipment not otherwise re- proceed to step 56; if yes, code the part AMC quired by the existing assembly. 3 or 4, as applicable. (F) Additional logistics support costs. The (9) Step 56. Specify the reasons for inability costs associated with the new item such as to obtain the part from the actual manufac- spare and repair parts, technical manuals, turer. Code the part AMC 5. and training. (d) Comparison of savings and costs (steps 48– E–303.6 Supply feedback phase (steps 57– 56). Compare estimated breakout costs to 65). forecasted breakout savings. If costs exceed (a) The supply feedback phase of the anal- estimated savings, it will be uneconomical ysis is the final screening phase for breakout to compete the part. Performance specifica- parts. This phase in completed for all AMC 2 tion parts should be analyzed to ensure that parts to determine if sufficient time is avail- pertinent breakout costs have been consid- able to breakout on the immediate buy and ered and, if it is not economical to breakout to communicate this information to the in- the part, whether an appropriate detailed de- ventory manager responsible for the require- sign data package reduces costs sufficiently ment. First, all additional time factors re- to make breakout economical. quired to breakout the part are added. Total (1) Step 48. Compare total costs of breakout time is subtracted from the immediate and (step 47) to estimated savings (step 40). future buy date and the result compared to (2) Step 49. Are costs of breakout greater or the current date. (Note: Not all time factors less than estimated savings? If greater, pro- listed apply to each part screened.) If the re- ceed to step 50; if yes, proceed to step 51. sult is the same or earlier than the required (3) Step 50. Is the breakout candidate con- contract date, the part is coded competitive structed to a performance specification? If and action is begun to qualify additional no, proceed to step 54; if yes, proceed to step sources as necessary. If the result is later 57. than the required contract date, action to (4) Step 51. Is it appropriate to obtain a de- compete the immediate buy quantity should tailed design data package? If yes, proceed to be initiated if the inventory manager can step 52; if no, proceed to step 54. The decision find some means of accepting later delivery. to change a performance specification part If this is impossible, the appropriate records to a detailed design part obviously requires a should be annotated for competitive acquisi- critical engineering examination of the part tion of the next replenishment buy quantity. itself, as well as a review of the impact such If late delivery is acceptable, the inventory a change might have on the operational ef- manager should compute requirements for fectiveness of the system in which the equip- the part and initiate an appropriate purchase ment is to be employed. Acquisition of a per- requisition. formance specification part by a subse- (b) Procedures. (1) Step 57. Add all addi- quently acquired design specification sub- tional time factors required to breakout the jects the Government to the additional haz- part (steps 13, 14, 29, and 36). ard of losing the money paid for the develop- (2) Step 58. Add the results of step 57 to the ment of the design specification, should the date of this review. design be altered during the contracting (3) Step 59. Compare the result of step 58 to leadtime period. Accordingly, the engineer- the date that the contract or order must be ing evaluation should closely review design placed. stability over the anticipated contracting (4) Step 60. Is the result of step 59 earlier leadtime in order to avoid acquiring an obso- than, later than, or the same as the contract lete or nonstandard part if the decision is or order date? (If earlier or the same, proceed made to compete it. to step 61; if later, proceed to step 63.) (5) Step 52. Add the estimated cost of ob- (5) Step 61. Can supply accept late delivery? taining a detailed design data package to the If yes, proceed to step 62; if no, proceed to results of step 45. step 63. (6) Step 53. If the results of step 52 are less (6) Step 62. Notify the inventory manager than the estimated savings, initiate action to compute requirements and initiate a pur- to obtain a detailed design data package. chase requisition. Proceed to step 64. Proceed to step 54 to code the part for a pe- (7) Step 63. Code the part AMC 2. Insuffi- riod until it can be rescreened using the de- cient time to compete on this buy. sign specification package. The code deter- (8) Step 64. Code the part AMC 2. mined in this screening shall be assigned a (9) Step 65. Begin actions to qualify new suspense date commensurate with the lead- sources, if required and possible.
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E–304 Limited screening procedures. Part 4—Contractor’s Assistance (a) Limited screening procedures are only E–400 General. appropriate when the full screening process cannot be completed for a part in sufficient (a) Contractor’s assistance in screening time to support an immediate buy require- shall be requested on provisioned and replen- ment. If limited screening does not result in ishment parts after consideration of the ben- a competitive AMC and the part is charac- efit expected from the contractor’s technical terized by a high buy value and high buy information and the cost to the Government quantity in the annual buy forecast, full of obtaining such assistance. screening procedures shall be immediately (b) Contractor’s assistance shall not be re- initiated. quested for parts covered by Government/in- (b) Limited screening procedures cover dustry specifications, commercially avail- only the essential points of data and tech- able parts or parts for which data is already nical evaluations more completely described available. in full screening procedures (see E–303). Ex- (c) Arrangements entered into with con- tensive legal review of rights or technical re- tractor to obtain technical information shall view of data is not required; nor is backup provide that— information on type and extent of qualifica- (1) Contractors will exert their best effort tion testing, quality control procedures and to make impartial technical evaluations master tooling required. A summary flow using applicable technical data and the expe- chart of the limited screening decision steps rience of competent personnel; and is provided at Exhibit III. (2) No costs to the Government will be in- (c) The limited screening decision steps are curred for duplicate screening of parts. followed sequentially if the answer to the question in each step is affirmative. If any E–401 Contractor’s technical evaluation pro- step is answered in the negative, proceed di- cedures. rectly to step 10. (a) Contractor’s technical evaluation for (1) Step 1. Assemble all available data and the screening process shall be required con- establish a file for each part. Collect identi- tractually by incorporating MIL–STD–789, fication data, relevant data obtained from which delineates the contractor’s respon- industry, contracting and technical history sibilities and procedures and prescribes use data and current status of the part (see E– of the contractor DD Form 1418, Technical 303.1). Information Record, and the DD Form 1418– (2) Step 2. Do the available documents es- 1, Technical Data Identification Checklist, a tablish Government rights to use the data copy of each document listed on DD Form for acquisition purposes? If the Govern- 1418–1, and other substantive data that was ment’s rights to use data in its possession is used in developing the contractor’s rec- questionable, resolution of the rights must ommendations. continue beyond award of the immediate (b) When MIL–STD–789 is incorporated in a buy. contract, the DD Form 1423, Contract Data (3) Step 3. Is the data package sufficient, Requirements List, shall specify the require- accurate, and legible? If the Government ment for the submission of DD Form 1418, does not have in its possession sufficient, ac- Technical Information Record, and DD Form curate, or legible data, action shall be 1418–1, Technical Data Identification Check- promptly initiated to resolve the deficiency list, in accordance with MIL–STD–789. for the next buy. Part 5—Reporting System (4) Step 4. Is the design of the part stable over the anticipated acquisition leadtime? E–500 General. (5) Step 5. Is a satisfactory part now being This part prescribes reports regarding the produced? breakout program which cannot be obtained (6) Step 6. Can the part be acquired from a from other sources. These reports are used to new source without prior qualification test- evaluate the effectiveness of breakout pro- ing or other approval testing? grams, establish a baseline for all spare part (7) Step 7. Can the Government or a new acquisitions, and identify trends in spare source be responsible for quality assurance? parts acquisition. (8) Step 8. Can the part be manufactured without master or coordinated tooling or E–501 Reports. other special equipment; if no, is there more (a) Spare Parts Breakout Screening Report than one source which has the tooling or spe- (RCS DD P&L(Q&SA)714A). This is a cumu- cial equipment? lative semi-annual report reflecting the ac- (9) Step 9. Assign AMC 2. Proceed to step 11. complishments of the breakout program. The (10) Step 10. Assign AMC 3, 4, or 5, as appro- report describes the results of full and lim- priate. ited screening for provisioning and replen- (11) Step 11. Establish the date of the next ishment parts by number of different NSNs review (see E–104(c) and E–203(b)). for each AMC. Departments and agencies
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shall also maintain actual cost data attrib- also include appropriate prorated costs of utable to the Spare Parts Breakout Program ADP services, office overhead, data retrieval which shall be forwarded on this report semi- service costs, etc. (see E–303.5). annually. (b) Spare parts acquisition report. Using the (b) Spare Parts Acquisition Report (RCS DD format in Exhibit V, provide the following— P&L(Q&SA) 714B). This is a cumulative semi- (1) Enter reporting activity name, fiscal annual report for all purchases made of spare year, and period ending. parts during the current fiscal year. This re- (2) For each AMC/AMSC listed, enter the port describes the number and extended dol- number of different NSNs purchased during lar value of different NSNs purchased for the current fiscal year and their extended each AMC. Departments and agencies shall dollar value. also maintain actual savings (or cost avoid- (3) Report the actual breakout program ance) data attributable to the Spare Parts savings or cost avoidances as measured by Breakout Program which shall be forwarded completed acquisition (not anticipated ac- on this report semi-annually. Because of ex- quisitions). Price differentials should be traneous factors such as contracting measured on each acquisition where a break- leadtimes and changes in spare parts require- out action has taken place. They should ments, this report will not always reflect the equal the difference between the previous acquisition of the parts screened during a re- contract unit price and the current contract porting period (contained on the Spare Parts unit price, times the number of units pur- Breakout Screening Report). Also, it will not chased. show in all instances how the part was actu- ally acquired. This report is intended to be EXHIBIT I—VALID AMC/AMSC COMBINATIONS an indication of the success of the breakout program, and designed to show trends in the Acquisition Method Code (AMC) coding and data available to buyers in the AMSC 012345 acquisition package. A Xooooo E–502 Reporting procedures. B Xooooo (a) Departments and agencies shall main- C Xooooo tain and forward semi-annual reports. The D XXXooo second semi-annual report in a fiscal year G XooXXX shall reflect cumulative totals for the cur- H Xooooo rent fiscal year using the formats in Exhibits K Xooooo L Xooooo IV and V. M Xooooo (b) The reports will be due no later than 45 N Xooooo days after the end of each period designated. O oXXXXX (c) Submissions will be made to the Assist- P Xooooo ant Secretary of Defense (Production and Q Xooooo Logistics), ATTN: Deputy Assistant Sec- R Xooooo retary for Logistics. S Xooooo T XooXXX E–503 Reporting instructions. U Xooooo (a) Spare parts breakout screening report. V Xooooo Y Xooooo Using the format in Exhibit IV, provide the Z Xooooo following— (1) Enter reporting activity name, fiscal o = Valid Combinations. year, and period ending. X = Invalid Combinations. (2) For each AMC/AMSC listed, enter the EXHIBIT II—FULL SCREENING DECISION number of different NSNs for which screen- PROCESS SUMMARY FLOW CHART ing was completed during the period. Show zeros where applicable. This should be done NOTE: Copies of Exhibit II can be obtained for both full and limited screening. from: Defense Acquisition Regulations Sys- (3) Report the total costs of the breakout tem, OUSD (AT&L), 3062 Defense Pentagon, program incurred for the period. Although Washington, DC 20301–3062; datafax (703) 602– this will be primarily labor costs, it should 0350.
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[56 FR 36595, July 31, 1991, as amended at 58 FR 37868, July 14, 1993; 65 FR 14398, Mar. 16, 2000; 65 FR 63805, Oct. 25, 2000]
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APPENDIX F—MATERIAL INSPECTION AND ment contract quality assurance at origin or RECEIVING REPORT destination; (2) To provide evidence of acceptance at or- Sec. igin or destination; Part 1—Introduction (3) For packing lists; F–101 General. (4) For receiving; F–102 Applicability. (5) For shipping; F–103 Use. (6) As a contractor invoice; and F–104 Application. (7) As commercial invoice support. Part 2—Contract Quality Assurance (CQA) (b) Do not use the DD Form 250 for ship- on Shipments Between Contractors ments—(1) By subcontractors, unless the F–201 Instructions. subcontractor is shipping directly to the Part 3—Preparation of the DD Form 250 and Government; or DD Form 250c (2) Of contract inventory. F–301 Preparation instructions. (c) The contractor prepares the MIRR, ex- F–302 Mode/method of shipment codes. cept for entries that an authorized Govern- ment representative is required to complete. F–303 Consolidated shipments. (d) Use the DD Form 250–1—(1) For bulk F–304 Multiple consignee instructions. movements of petroleum products by tanker F–305 Correction instructions. or barge to cover— F–306 Invoice instructions. (i) Origin or destination acceptance of F–307 Packing list instructions. cargo; or F–308 Receiving instructions. (ii) Shipment or receipt of Government Part 4—Distribution of DD Form 250 and DD owned products. Form 250c (2) To send quality data to the point of ac- F–401 Distribution. ceptance in the case of origin inspection on Part 5—Preparation of the DD Form 250–1 FOB destination deliveries or preinspection (Loading Report) at product source. Annotate the forms with F–501 Instructions. the words ‘‘INSPECTED FOR QUALITY Part 6—Preparation of the DD Form 250–1 ONLY.’’ (Discharge Report) F–601 Instructions. F–104 Application. Part 7—Distribution of the DD Form 250–1 (a) DD Form 250. (1) Use the DD Form 250 F–701 Distribution. for delivery of contract line, subline, exhibit F–702 Corrected DD Form 250–1. line, or exhibit subline items. Do not use the AUTHORITY; 41 U.S.C. 421 and 48 CFR chap- DD Form 250 for those exhibit line or exhibit ter 1. subline items on a DD Form 1423, Contract Data Requirements List, that indicate no DD PART 1—INTRODUCTION Form 250 is required. (2) If the shipped to, marked for, shipped F–101 General. from, mode of shipment, contract quality as- This appendix contains procedures and in- surance and acceptance data are the same structions for the use, preparation, and dis- for more than one shipment made on the tribution of the material inspection and re- same day under the same contract, contrac- ceiving report (MIRR) (DD Form 250 series) tors may prepare one MIRR to cover all such and commercial shipping/packing lists used shipments. to document Government contract quality (3) If the volume of the shipment precludes assurance. the use of a single car, truck, or other vehi- cle, prepare a separate MIRR for the con- F–102 Applicability. tents of each vehicle. (a) The provisions of this appendix apply to (4) When a shipment is consigned to an Air supplies or services acquired by DoD when Force activity and the shipment includes the clause at 252.246–7000, Material Inspec- items of more than one federal supply class tion and Receiving Report, is included in the (FSC) or material management code (MMC), contract. If the contract contains the clause prepare a separate DD Form 250 for items of at FAR 52.213–1, Fast Payment Procedure, each of the FSCs or MMCs in the shipment. the contractor may elect not to prepare a However, the cognizant Government rep- DD Form 250. resentative may authorize a single DD Form (b) When DoD provides quality assurance 250, listing each of the FSCs or MMCs in- or acceptance services for non-DoD activi- cluded in the shipment on a separate con- ties, prepare a MIRR using the instructions tinuation sheet. The MMC appears as a suffix in this appendix, unless otherwise specified to the national stock number applicable to in the contract. the item. (5) Consolidation of Petroleum Shipments F–103 Use. on a Single MIRR—(i) Continental United (a) The DD Form 250 is a multipurpose re- States. Contractors may consolidate multiple port used—(1) To provide evidence of Govern- car or truck load shipments of petroleum
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made on the same day, to the same destina- port. When acceptance is at destination, the tion, against the same contract line item, on receiving activity must retain the shipping one MIRR. To permit verification of motor document(s) to verify the entries on the con- deliveries, assign each load a load number signee copy of the DD Form 250. which can be identified to the shipment (b) DD Form 250–1. (1) Use a separate form number in Block 2 of the DD Form 250. In- for each tanker or barge cargo loaded. clude a shipping document (commercial or (2) The contractor may report more than government) with each individual load show- one barge in the same tow on a single form ing as a minimum— if on the same contract and consigned to the (A) The shipper; same destination. (B) Shipping point; (3) When liftings involve more than one (C) Consignee; contract, prepare separate forms to cover the (D) Contract and line item number; portion of cargo loaded on each contract. (E) Product identification; (4) Prepare a separate form for each prod- (F) Gross gallons (bulk only); uct or grade of product loaded. (G) Loading temperature (bulk only); (5) Use a separate document for each tank- (H) American Petroleum Institute gravity er or barge cargo and each grade of product (bulk only); discharged. (I) Identification of carrier’s equipment; (6) For discharge, the contractor may re- (J) Serial number of all seals applied; and port more than one barge in the same tow on (K) Signature of supplier’s representative. a single form if from the same loading When acceptance is at destination, the re- source. ceiving activity retains the shipping docu- ment(s) to verify the entries on the con- PART 2—CONTRACT QUALITY ASSURANCE signee copy of the DD Form 250 forwarded by (CQA) ON SHIPMENTS BETWEEN CONTRACTORS the contractor (reference F–401, Table 1) be- fore signing Block 21b. F–201 Instructions. (ii) Overseas. The same criteria as for con- (a) Use the supplier’s commercial shipping tinental U.S. applies, except the consolida- document/packing list to enter performance tion period may be extended, if acceptable to of required CQA actions at subcontract level. the receiving activity, shipping activity, Make the following entries on the supplier’s Government finance office, and the author- commercial shipping document/packing list: ized Government representative having cog- Required CQA of listed items has been per- nizance at the contractor’s facility. In addi- formed. tion, the contractor may include more than llllllllllllllllllllllll one contract line item in each DD Form 250 (Signature of Authorized Govt. Rep. or DoD if the shipped to, marked for, shipped from, Stamp) mode of shipment, contract quality assur- llllllllllllllllllllllll ance, and acceptance data are the same for (Date) all line items. llllllllllllllllllllllll (6) Consolidation of Coal Shipments on a Sin- (Typed Name and Office) gle MIRR. Contractors may consolidate mul- (b) Distribution for Government purposes tiple railcar or truck shipments of coal made shall be— on the same day, to the same destination, (1) One copy with shipment; against the same contract line items, on one (2) One copy for the Government represent- MIRR. To permit verification of truck deliv- ative at consignee (via mail); and eries, assign each load a load number which (3) One copy for the Government represent- can be identified to the shipment number in ative at consignor. Block 2 of the DD Form 250 and the analyt- ical test report. Include a commercial ship- PART 3—PREPARATION OF THE DD FORM 250 ping document with each individual truck AND DD FORM 250C load showing as a minimum— (i) The shipper; F–301 Preparation instructions. (ii) The name or names; (a) General. (iii) Location and shipping point of the (1) Dates must use nine spaces consisting mine or mines from which the coal origi- of the four digits of the year, three-position nates; alphabetic month abbreviation, and two dig- (iv) The contract number; its for the day. For example, 2000AUG07, (v) The exact size of the coal shipped; and 2000SEP24. (vi) A certified weighmaster’s certification (2) Addresses must consist of the name, of weight for the truckload. street address/P.O. box, city, state, and ZIP Include a waybill with each rail shipment code. showing the identical information. To per- (3) Enter to the right of and on the same mit verification of rail deliveries, identify line as the word ‘‘Code’’ in Blocks 9 through each railcar number comprising the ship- 12 and in Block 14— ment to the shipment number in Block 2 of (i) The Commercial and Government Enti- the DD Form 250 and the analytical test re- ty Handbook (H4/H8) code;
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(ii) The DoD activity address code mentary Procurement Instrument Identi- (DoDAAC) as it appears in the DoD Activity fication Number (SPIIN). Use SPIINs for Address Directory (DoDAAD), DoD 4000.25–6– (also see Subpart 204.70)— M; or (A) Delivery orders under indefinite-deliv- (iii) The Military Assistance Program Ad- ery type contracts; dress Directory (MAPAD) code. (B) Orders under basic ordering agree- (4) Enter the DoDAAC, CAGE (H4/H8), or ments; and MAPAD code in Block 13. (C) Calls under blanket purchase agree- (5) The data entered in the blocks at the ments. top of the DD Form 250c must be identical to (ii) Except as indicated in paragraph the comparable entries in Blocks 1, 2, 3, and (b)(1)(iii) of this section, do not enter supple- 6 of the DD Form 250. mentary numbers used in conjunction with (6) Enter overflow data from the DD Form basic PIINs to identify— 250 in Block 16 or in the body of the DD Form (A) Modifications of contracts and agree- 250c with an appropriate cross-reference. Do ments; not number or distribute additional DD Form 250c sheets, solely for continuation of (B) Modifications to calls or orders; or Block 23 data as part of the MIRR. (C) Document numbers representing con- (7) Do not include classified information in tracts written between contractors. the MIRR. MIRRs must not be classified. (iii) When shipping instructions are fur- (b) Completion instructions. nished and shipment is made before receipt (1) Block 1—Procurement Instrument Iden- of the confirming contract modification (SF tification (Contract) No. 30, Amendment of Solicitation/Modification (i) Enter the 13-position alpha-numeric of Contract), enter the contract modification basic Procurement Instrument Identification six-digit number or the two-digit call or Number (PIIN) of the contract. When appli- order number immediately following the cable, enter the four-position alpha-numeric PIIN or call/order four-digit SPIIN. call/order serial number that is supple- (iv) For DoD delivery orders on non-DoD mentary to the 13-position basic PIIN. This contracts, enter the non-DoD contract num- number is also referred to as the Supple- ber immediately below the PII number.
1. PROCUREMENT INSTRUMENT IDENTIFICATION (CON- TRACT) NO. SP0400–00–F–1684 ORDER NO. GS–000S–61917
(v) When a contract number other than PII (1) Use alpha-numeric serial numbers when number is used, enter that contract number. more than 9,999 numbers are required. Seri- (2) Block 2—Shipment No. ally assign alpha-numeric numbers with the (i) The shipment number has a three-posi- alpha in the first position (the letters I and tion alpha character prefix and a four-posi- O shall not be used) followed by the three-po- tion numeric or alpha-numeric serial num- sition numeric serial number. Use the fol- ber. lowing alpha-numeric sequence: (A) The prime contractor shall control and A000 through A999 (10,000 through 10,999) assign the shipment number prefix. The ship- B000 through B999 (11,000 through 11,999) ment number shall consist of three alpha- Z000 through Z999 (34,000 through 34,999) betic characters for each ‘‘Shipped From’’ (2) When this series is completely used, address (Block 11). The shipment number start over with 0001. prefix shall be different for each ‘‘Shipped (ii) Reassign the shipment number of the From’’ address and shall remain constant initial shipment where a ‘‘Replacement throughout the life of the contract. The Shipment’’ is involved (see paragraph prime contractor may assign separate pre- (b)(16)(iv)(F) of this section). fixes when shipments are made from dif- (iii) The prime contractor shall control de- ferent locations within a facility identified liveries and on the final shipment of the con- by one ‘‘Shipped From’’ address. tract shall end the shipment number with a (B) Number the first shipment 0001 for ‘‘Z.’’ Where the final shipment is from other shipments made under the contract or con- than the prime contractor’s plant, the prime tract and order number shown in Block 1 contractor may elect either to— from each ‘‘Shipped From’’ address, or ship- (A) Direct the subcontractor making the ping location within the ‘‘Shipped From’’ ad- final shipment to end that shipment number dress. Consecutively number all subsequent with a ‘‘Z’’; or shipments with the identical shipment num- (B) Upon determination that all sub- ber prefix. contractors have completed their shipments,
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to correct the DD Form 250 (see F–305) cov- performance at multiple locations, or if iden- ering the final shipment made from the tical to Block 9, enter ‘‘See Block 9.’’ prime contractor’s plant by addition of a (iii) Enter on the same line and to the ‘‘Z’’ to that shipment number. right of ‘‘FOB’’ an ‘‘S’’ for Origin or ‘‘D’’ for (iv) Contractors follow the procedures in Destination as specified in the contract. F–306 to use commercial invoices. Enter an alphabetic ‘‘O’’ if the ‘‘FOB’’ point (3) Block 3—Date Shipped. Enter the date cited in the contract is other than origin or the shipment is released to the carrier or the destination. date the services are completed. If the ship- (iv) For destination or origin acceptance ment will be released after the date of CQA shipments involving discount terms, enter and/or acceptance, enter the estimated date ‘‘DISCOUNT EXPEDITE’’ in at least one- of release. When the date is estimated, enter half inch outline-type style letters across an ‘‘E’’ after the date. Do not delay distribu- Blocks 11 and 12. Do not obliterate other in- tion of the MIRR for entry of the actual formation in these blocks. shipping date. Reissuance of the MIRR is not (12) Block 12—Payment will be made by/ required to show the actual shipping date code. Enter the code and address of the pay- (see F–303). ment office cited in the contract. (4) Block 4—B/L TCN. When applicable, (13) Block 13—Shipped to/code. Enter the enter— code and address from the contract or ship- (i) The commercial or Government bill of ping instructions. lading number after ‘‘B/L;’’ (14) Block 14—Marked for/code. Enter the (ii) The transportation control number code and address from the contract or ship- after ‘‘TCN’’ (when a TCN is assigned for ping instructions. When three-character each line item on the DD Form 250 under project codes are provided in the contract or Block 16 instructions, insert ‘‘See Block 16’’); shipping instructions, enter the code in the and body of the block, prefixed by ‘‘Proj’’; do not (iii) The initial (line haul) mode of ship- enter in the code block. ment code in the lower right corner of the (15) Block 15—Item No. Enter the item block (see F–302). number used in the contract. (5) Block 5—Discount Terms. (i) The con- (i) Use item numbers under the Uniform tractor may enter the discount in terms of Contract Line Item Numbering System (see percentages on all copies of the MIRR. 204.71). (ii) Use the procedures in F–306 when the (ii) Position the item numbers as follows— MIRR is used as an invoice. (A) For item numbers with four or less dig- (6) Block 6—Invoice No./date. (i) The con- its, enter the number immediately to the left tractor may enter the invoice number and of the vertical dashed line and prefix them actual or estimated date of invoice submis- with zeros, to achieve four digits. sion on all copies of the MIRR. When the (B) For item numbers with six digits, with date is estimated, enter an ‘‘E’’ after the alpha digits in the final two positions, enter date. Do not correct MIRRs other than in- the last two digits to the right of the voice copies to reflect the actual date of in- vertical dashed line. voice submission. (C) For item numbers with six digits, with (ii) Use the procedures in F–306 when the numbers in the final two positions, enter the MIRR is used as an invoice. first four digits immediately to the left of (7) Block 7—Page/of. the vertical dashed line. Do not use the last Consecutively number the pages of the two digits. MIRR. On each page enter the total number (iii) Line item numbers not in accordance of pages of the MIRR. with the Uniform Contract Line Item Num- (8) Block 8—Acceptance point. bering System may be entered without re- Enter an ‘‘S’’ for Origin or ‘‘D’’ for destina- gard to positioning. tion. (16) Block 16—Stock/part No./description. (9) Block 9—Prime contractor/code. (i) Use single or double spacing between line Enter the code and address. items when there are less than four line (10) Block 10—Administered by/code. items. Use double spacing when there are Enter the code and address of the contract four or more line items. Enter the following administration office (CAO) cited in the con- for each line item: tract. (A) The national stock number (NSN) or (11) Block 11—Shipped from/code/FOB. noncatalog number. Where applicable, in- (i) Enter the code and address of the clude a prefix or suffix. If a number is not ‘‘Shipped From’’ location. If identical to provided, or it is necessary to supplement Block 9, enter ‘‘See Block 9.’’ the number, include other identification (ii) For performance of services line items such as the manufacturer’s name or federal which do not require delivery of items upon supply code (as published in Cataloging completion of services, enter the code and Handbook H4–1), and the part number. Show address of the location at which the services additional part numbers in parentheses or were performed. If the DD Form 250 covers slashes. Show the descriptive noun of the
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item nomenclature and if provided, the Gov- (D) When an NSN is required by but not ernment assigned management/material con- cited in a contract and has not been fur- trol code. The contractor may use the fol- nished by the Government, the contractor lowing technique in the case of equal kind may make shipment without the NSN at the supply items. The first entry shall be the de- direction of the contracting officer. Enter scription without regard to kind. For exam- the authority for such shipment. ple, ‘‘Shoe-Low Quarter-Black,’’ ‘‘Resistor,’’ (E) When Government furnished property ‘‘Vacuum Tube,’’ etc. Below this description, (GFP) is included with or incorporated into enter the contract line item number in Block the line item, enter the letters ‘‘GFP.’’ 15 and Stock/Part number followed by the (F) When shipment consists of replace- size or type in Block 16. ments for supplies previously furnished, (B) On the next printing line, if required by enter in capital letters ‘‘REPLACEMENT the contract for control purposes, enter: the SHIPMENT.’’ (See F–301, Block 17, for re- make, model, serial number, lot, batch, haz- placement indicators). ard indicator, or similar description. (G) On shipments of Government furnished (C) On the next printing lines enter— aeronautical equipment (GFAE) under Air (1) The MIPR number prefixed by ‘‘MIPR’’ Force contracts, enter the assignment or the MILSTRIP requisition number(s) AERNO control number, e.g., ‘‘AERNO 60– when provided in the contract; or 6354.’’ (2) Shipping instructions followed on the (H) For items shipped with missing compo- same line (when more than one requisition is nents, enter and complete the following: entered) by the unit for payment and the ‘‘Item(s) shipped short of the following quantity shipped against each requisition. component(s): NSN or comparable identifica- Example: tion llllll, Quantity llllll, Esti- V04696–185–750XY19059A—EA 5 mated Value llllll, Authority N0018801776038XY3211BA—EA 200 llllll’’ AT650803050051AAT6391J—EA 1000 (I) When shipment is made of components which were short on a prior shipment, enter (D) When a TCN is assigned for each line and complete the following: item, enter on the next line the transpor- ‘‘These components were listed as short- tation control number prefixed by ‘‘TCN.’’ ages on shipment number llllll, date (ii) For service line items, enter the word shipped llllll’’ ‘‘SERVICE’’ followed by as short a descrip- (J) When shipments involve drums, cyl- tion as is possible in no more than 20 addi- inders, reels, containers, skids, etc., des- tional characters. Some examples of service ignated as returnable under contract provi- line items are maintenance, repair, alter- sions, enter and complete the following: ation, rehabilitation, engineering, research, ‘‘Return to llllll, Quantity development, training, and testing. Do not llllll, Item llllll, Ownership complete Blocks 4, 13, and 14 when there is (Government/contractor).’’ no shipment of material. (K) Enter the total number of shipping (iii) For all contracts administered by the containers, the type of containers, and the Defense Contract Management Agency, with container number(s) assigned for the ship- the exception of fast pay procedures, enter ment. and complete the following: (L) On foreign military sales (FMS) ship- Gross Shipping Wt. llllll ments, enter the special markings, and FMS State weight in pounds only. case identifier from the contract. Also enter the gross weight. (iv) Starting with the next line, enter the (M) When test/evaluation results are a con- following as appropriate (entries may be ex- dition of acceptance and are not available tended through Block 20). When entries prior to shipment, the following note shall apply to more than one line item in the be entered if the shipment is approved by the MIRR, enter them only once after the last contracting officer: line item entry. Reference applicable line item numbers. ‘‘NOTE: Acceptance and payment are con- (A) Enter in capital letters any special tingent upon receipt of approved test/evalua- handling instructions/limits for material en- tion results.’’ vironmental control, such as temperature, The contracting officer will advise— humidity, aging, freezing, shock, etc. (1) The consignee of the results (approval/ (B) When a shipment is chargeable to Navy disapproval); and appropriation 17X4911, enter the appropria- (2) The contractor to withhold invoicing tion, bureau control number (BCN), and au- pending attachment of the approved test/ thorization accounting activity (AAA) num- evaluation results. ber (e.g., 17X4911–14003–104). (N) The copy of the DD Form 250 required (C) When the Navy transaction type code to support payment for destination accept- (TC), ‘‘2T’’ or ‘‘7T’’ is included in the appro- ance (top copy of those with shipment) or priation data, enter ‘‘TC 2T’’ or ‘‘TC 7T.’’ ARP origin acceptance shall be identified as
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follows: enter ‘‘PAYMENT COPY’’ in ap- measure is indicated in the contract for pur- proximately one-half inch outline type style poses other than payment or used for ship- letters with ‘‘FORWARD TO BLOCK 12 AD- ping purposes, enter the second unit of meas- DRESS’’ in approximately one-quarter inch ure directly below in parentheses. Author- letters immediately below. Do not obliterate ized abbreviations are listed in MIL–STD– any other entries. 129, Marking for Shipping and Storage. For (O) For clothing and textile contracts con- example, LB for pound, SH for sheet. taining a bailment clause, enter the words 18. Unit ‘‘GFP UNIT VALUE.’’ LB (P) When the initial unit incorporating an (SH) approved value engineering change proposal (VECP) is shipped, enter the following state- (19) Block 19—Unit price. The contractor ment: may, at its option, enter unit prices on all This is the initial unit delivered which in- MIRR copies, except as a minimum: corporates VECP No. llllll, Contract (i) The contractor shall enter unit prices Modification No. llllll, dated on all MIRR copies for each item of property llllll fabricated or acquired for the Government (17) Block 17—Quantity shipped/received. and delivered to a contractor as Government (i) Enter the quantity shipped, using the unit furnished property (GFP). Get the unit price of measure in the contract for payment. from Section B of the contract. If the unit When a second unit of measure is used for price is not available, use an estimate. The purposes other than payment, enter the ap- estimated price should be the contractor’s propriate quantity directly below in paren- estimate of what the items will cost the Gov- theses. ernment. When the price is estimated, enter (ii) On the final shipment of a line item of an ‘‘E’’ after the unit price. a contract containing a clause permitting a (ii) Use the procedures in F–306 when the variation of quantity and an underrun condi- MIRR is used as an invoice. tion exists, the prime contractor shall enter (iii) For clothing and textile contracts con- a ‘‘Z’’ below the last digit of the quantity. taining a bailment clause, enter the cited Where the final shipment is from other than Government furnished property unit value the prime contractor’s plant and an opposite ‘‘GFP UNIT VALUE’’ entry in underrun condition exists, the prime con- Block 16. tractor may elect either to— (iv) Price all copies of DD Forms 250 for (A) Direct the subcontractor making the FMS shipments with actual prices, if avail- final shipment to enter a ‘‘Z’’ below the able. If actual prices are not available, use quantity; or estimated prices. When the price is esti- (B) Upon determination that all sub- mated, enter an ‘‘E’’ after the price. contractors have completed their shipments, (20) Block 20—Amount. Enter the extended correct the DD Form 250 (see F–305) covering amount when the unit price is entered in the final shipment of the line item from the Block 19. prime contractor’s plant by addition of a (21) Block 21—Contract quality assurance ‘‘Z’’ below the quantity. Do not use the ‘‘Z’’ (CQA). (i) The words ‘‘conform to contract’’ on deliveries which equal or exceed the con- contained in the printed statements in tract line item quantity. Blocks 21a and 21b relate to quality and to (iii) For replacement shipments, enter ‘‘A’’ the quantity of the items on the report. Do below the last digit of the quantity, to des- not modify the statements. Enter notes tak- ignate first replacement, ‘‘B’’ for second re- ing exception in Block 16 or on attached sup- placement, etc. Do not use the final ship- porting documents with an appropriate block ment indicator ‘‘Z’’ on underrun deliveries cross-reference. when a final line item shipment is replaced. (ii) When a shipment is authorized under alternative release procedure, attach or in- 17. Quantity clude the appropriate contractor signed cer- Ship/rec’d tificate on the top copy of the DD Form 250 1000 copies distributed to the payment office or (10) attach or include the appropriate contractor Z certificate on the contract administration (iv) If the quantity received is the same office copy when contract administration quantity shipped and all items are in appar- (Block 10 of the DD Form 250) is performed ent good condition, enter by a check mark. If by the Defense Contract Management Agen- different, enter actual quantity received in cy (DCMA). apparent good condition below quantity (iii) When contract terms provide for use of shipped and circle. The receiving activity Certificate of Conformance and shipment is will annotate the DD Form 250 stating the made under these terms, the contractor shall reason for the difference. enter ‘‘Certificate of Conformance’’ in Block (18) Block 18—Unit. Enter the abbreviation 21a on the next line following the CQA and of the unit measure as indicated in the con- acceptance statements. Attach or include tract for payment. Where a second unit of the appropriate contractor signed certificate
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on the top copy of the DD Form 250 copies ment representative for dating and signing distributed to the payment office or attach and forwarding to the contract administra- or include the appropriate certificate on the tion office (see F–401, Table 1). contract administration office copy when (3) When acceptance is at destination, no contract administration (Block 10 of the DD entry shall be made other than ‘‘CERTIFI- Form 250) is performed by DCMA. In addi- CATE OF CONFORMANCE.’’ tion, attach a copy of the signed certificate (v) Destination. (A) When acceptance at or- to, or enter on, copies of the MIRR sent with igin is indicated in Block 21a, make no en- shipment. tries in Block 21b. (iv) Origin. (A) The authorized Government (B) When CQA and acceptance or accept- representative must— ance is at destination, the authorized Gov- (1) Place an ‘‘X’’ in the appropriate CQA ernment representative must— and/or acceptance box(es) to show origin (1) Place an ‘‘X’’ in the appropriate box(es); CQA and/or acceptance. When the contract (2) Sign and date; and requires CQA at destination in addition to (3) Enter typed, stamped, or printed name, origin CQA, enter an asterisk at the end of title, mailing address, and commercial tele- the statement and an explanatory note in phone number. Block 16; (C) When ‘‘ALTERNATIVE RELEASE Sign and date; (2) PROCEDURE’’ is entered in Block 21a and (3) Enter the typed, stamped, or printed acceptance is at destination, the authorized name, title, mailing address, and commercial Government representative must complete telephone number. the entries required by paragraph (B) When alternative release procedures (b)(21)(v)(B) of this section. apply— (1) The contractor or subcontractor shall (D) Forward the executed payment copy or complete the entries required under para- MILSCAP format identifier PKN or PKP to graph (A) and enter in capital letters ‘‘AL- the payment office cited in Block 12 within 4 TERNATIVE RELEASE PROCEDURE’’ on work days (5 days when MILSCAP Format is the next line following the printed CQA/ac- used) after delivery and acceptance of the ceptance statement. shipment by the receiving activity. Forward (2) When acceptance is at origin and con- one executed copy of the final DD Form 250 tract administration is performed by an of- to the contract administration office cited in fice other than DCMA, the contractor shall Block 10 for implementing contract closeout furnish the four payment office copies of the procedures. MIRR to the authorized Government rep- (E) When ‘‘FAST PAY’’ is entered in Block resentative for dating and signing of one 21a, make no entries in this block. copy and forwarding of all copies to the pay- (22) Block 22—Receiver’s Use. The author- ment office. ized representative of the receiving activity (3) When acceptance is at origin and con- (Government or contractor) must use this tract administration is performed by DCMA, block to show receipt, quantity, and condi- furnish the contract administration office tion. The authorized representative must— copy of the MIRR to the authorized Govern- (i) Enter the date the supplies arrived. For ment representative for dating and signing example, when off-loading or in-checking oc- and forwarding to the contract administra- curs subsequent to the day of arrival of the tion office (see F–401, Table 1). carrier at the installation, the date of the (C) When fast pay procedures apply, the carrier’s arrival is the date received for pur- contractor or subcontractor shall enter in poses of this block; capital letters ‘‘FAST PAY’’ on the next line (ii) Sign; and following the printed CQA/acceptance state- (iii) Enter typed, stamped, or printed ment. When CQA is required, the authorized name, title, mailing address, and commercial Government representative shall execute the telephone number. block as required by paragraph (A). (23) Block 23—Contractor use only. Self ex- (D) When Certificate of Conformance pro- planatory. cedures apply, inspection or inspection and acceptance are at source, and the contrac- F–302 Mode/method of shipment codes. tor’s Certificate of Conformance is required, Code Description the contractor shall make entries required by paragraph (iv)(A). A Motor, truckload. (1) For contracts administered by an office B Motor, less than truckload. other than DCMA, furnish the four payment C Van (unpacked, uncrated personal or Government office copies of the MIRR to the authorized property). Government representative for dating and D Driveaway, truckaway, towaway. signing of one copy, and forwarding of all E Bus. F Air Mobility Command (Channel and Special As- copies to the payment office. signment Airlift Mission). (2) For contracts administered by DCMA, G Surface parcel post. furnish the contract administration office H Air parcel post. copy of the MIRR to the authorized Govern-
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Code Description (1) Code(s) and complete shipping address and a sequential shipment number for each; I Government trucks, for shipment outside local deliv- (2) Line item number(s); ery area. (3) Quantity; J Air, small package carrier. (4) MIPR number(s), preceded by ‘‘MIPR,’’ K Rail, carload.1 L Rail, less than carload.1 or the MILSTRIP requisition number, and M Surface, freight forwarder. quantity for each when provided in the con- N LOGAIR. tract or shipping instructions; and O Organic military air (including aircraft of foreign gov- (5) If applicable, bill of lading number, ernments). TCN, and mode of shipment code. P Through Government Bill of Lading (TGBL). (e) The contractor may omit those dis- Q Commercial air freight (includes regular and expe- dited service provided by major airlines; charters tribution list pages of the DD Form 250c that and air taxis). are not applicable to the consignee. Provide R European Distribution System or Pacific Distribution a complete MIRR for all other distribution. System. S Scheduled Truck Service (STS) (applies to contract F–305 Correction instructions. carriage, guaranteed traffic routings and/or Make a new revised MIRR or correct the scheduled service). T Air freight forwarder. original when, because of errors or omis- U QUICKTRANS. sions, it is necessary to correct the MIRR V SEAVAN. after distribution has been made. Use data W Water, river, lake, coastal (commercial). identical to that of the original MIRR. Do X Bearer, walk-thru (customer pickup of material). not correct MIRRs for Blocks 19 and 20 en- Y Military Intratheater Airlift Service. tries. Make the corrections as follows— Z Military Sealift Command (MSC) (controlled contract or arranged space). (a) Circle the error and place the corrected 2 Government watercraft, barge, lighter. information in the same block; if space is 3 Roll-on Roll-off (RORO) service. limited, enter the corrected information in 4 Armed Forces Courier Service (ARFCOS). Block 16 referencing the error page and 5 Surface, small package carrier. block. Enter omissions in Block 16 ref- 6 Military official mail (MOM). erencing omission page and block. For exam- 7 Express mail. 8 Pipeline. ple— 9 Local delivery by Government or commercial truck 2. SHIPMENT NO. (includes on base transfers; deliveries between (AAA0001) air, water, or motor terminals; and adjacent activi- See Block 16 ties). Local delivery areas are identified in com- mercial carriers’ tariffs which are filed and ap- 17. QUANTITY proved by regulatory authorities. SHIP/REC’D 1 Includes trailer/container-on-flat-car (excluding SEAVAN). 19 (17) F–303 Consolidated shipments. 16. STOCK/PART NO. DESCRIPTION When individual shipments are held at the CORRECTIONS: contractor’s plant for authorized transpor- Refer Block 2: Change shipment No. AAA001 tation consolidation to a single bill of lad- to AAA0010 on all pages of the MIRR. ing, the contractor may prepare the DD Refer Blocks 15, 16, 17, and 18, page 2: Delete Forms 250 at the time of CQA or acceptance in entirety Line Item No. 0006. This item prior to the time of actual shipment (see was not shipped. Block 3). (b) When corrections have been made to en- F–304 Multiple consignee instructions. tries for line items (Block 15) or quantity The contractor may prepare one MIRR (Block 17) enter the words ‘‘CORRECTIONS when the identical line item(s) of a contract HAVE BEEN VERIFIED’’ on page 1. The au- are to be shipped to more than one con- thorized Government representative will signee, with the same or varying quantities, date and sign immediately below the state- and the shipment requires origin acceptance. ment. This verification statement and signa- Prepare the MIRR using the procedures in ture are not required for other corrections. this appendix with the following changes— (c) Clearly mark the pages of the MIRR re- (a) Blocks 2, 4, 13, and, if applicable, 14— quiring correction with the words ‘‘COR- Enter ‘‘See Attached Distribution List.’’ RECTED COPY.’’ Avoid obliterating any (b) Block 15—The contractor may group other entries. Where corrections are made item numbers for identical stock/part num- only on continuation sheets, also mark page ber and description. number 1 with the words ‘‘CORRECTED (c) Block 17—Enter the ‘‘total’’ quantity COPY.’’ shipped by line item or, if applicable, (d) Page 1 and only those continuation grouped identical line items. pages marked ‘‘CORRECTED COPY’’ shall be (d) Use the DD Form 250c to list each indi- distributed to the initial distribution. A vidual ‘‘Shipped To’’ and ‘‘Marked For’’ complete MIRR with corrections shall be dis- with— tributed to new addressee(s) created by error corrections.
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F–306 Invoice instructions. (f) Copies of the MIRR forwarded to a loca- The Government encourages, but does not tion for more than one recipient shall clearly require, contractors to use copies of the identify each recipient. MIRR as an invoice, in lieu of a commercial Material Inspection and Receiving Report form. If commercial forms are used, identify the related MIRR shipment number(s) on the Table 1—Standard Distribution form. If using the MIRR as an invoice, pre- pare and forward four copies to the payment With Shipment* ...... 2 office as follows— Consignee (via mail)...... 1 (a) Complete Blocks 5, 6, 19, and 20. Block (For Navy procurement, include unit price) 6 shall contain the invoice number and date. (For foreign military sales, consignee cop- Column 20 shall be totaled. ies are not required) (b) Mark in letters approximately one inch Contract Administration Office ...... 1 high, first copy: ‘‘ORIGINAL INVOICE;’’ (Forward direct to address in Block 10 ex- three copies ‘‘INVOICE COPY.’’ cept when addressee is a Defense Con- tract Management Agency (DCMA) office (c) Forward the four copies to the payment and a certificate of conformance or the office (Block 12 address), except when accept- alternate release procedures (see F–301, ance is at destination and a Navy finance of- Block 21) is involved, and acceptance is fice will make payment, forward to destina- at origin; then, forward through the au- tion. thorized Government representative.) (d) Be sure to separate the four copies of Purchasing Office...... 1 the MIRR used as an invoice from the copies Payment Office** ...... 2 the MIRR used as a receiving report. (Forward direct to address in Block 12 ex- F–307 Packing list instructions. cept— (i) When address in Block 10 is a DCMA of- Contractors may use copies of the MIRR as fice and payment office in Block 12 is the a packing list. The packing list copies are in Defense Finance and Accounting Service, addition to the copies of the MIRR required Columbus Center, do not make distribu- for standard distribution (see F–401). Mark tion to the Block 12 addressee; them ‘‘PACKING LIST.’’ (ii) When address in Block 12 is the Defense Finance and Accounting Service, Colum- F–308 Receiving instructions. bus Center/Albuquerque Office (DFAS– When the MIRR is used for receiving pur- CO/ALQ), Kirtland AFB, NM, attach only poses, local directives shall prescribe proce- one copy to the required number of cop- dures. If CQA and acceptance or acceptance ies of the contractor’s invoice; of supplies is required upon arrival at des- (iii) When acceptance is at destination and tination, see F–301(b)(21)(v) for instructions. a Navy finance office will make pay- ment, forward to destination; and PART 4—DISTRIBUTION OF DD FORM 250 AND (iv) When a certificate of conformance or DD FORM 250C the alternative release procedures (see F– 301, Block 21) are involved and accept- F–401 Distribution. ance is at origin, forward the copies (a) The contractor is responsible for dis- through the authorized Government rep- tributing the DD Form 250, including mail- resentative. ing and payment of postage. ADP Point for CAO (applicable to Air (b) Contractors shall distribute MIRRs Force only)...... 1 using the instructions in Tables 1 and 2. (When DFAS–CO/ALQ is the payment office (c) Contractors shall distribute MIRRs on in Block 12, send one copy to DFAS–CO/ non-DoD contracts using this appendix as ALQ immediately after signature. If sub- amended by the contract. mission of delivery data is made elec- (d) Contractors shall make distribution tronically, distribution of this hard copy promptly, but no later than the close of busi- need not be made to DFAS–CO/ALQ.) ness of the work day following— CAO of Contractor Receiving GFP...... 1 (1) Signing of the DD Form 250 (Block 21a) (For items fabricated or acquired for the by the authorized Government representa- Government and shipped to a contractor tive; or as Government furnished property, send (2) Shipment when authorized under terms one copy directly to the CAO cognizant of alternative release, certificate of conform- of the receiving contractor, ATTN: Prop- ance, or fast pay procedures; or erty Administrator (see DoD 4105.59–H).) (3) Shipment when CQA and acceptance are *Attached as follows: to be performed at destination. (e) Do not send the consignee copies (via Type of shipment Location mail) on overseas shipments to port of em- Carload or truck- Affix to the shipment where it will be barkation (POE). Send them to consignee at load. readily visible and available upon re- APO/FPO address. ceipt.
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Type of shipment Location Type of shipment Location
Less than carload Affix to container number one or con- Pipeline, tank car, Forward with consignee copies. or truckload. tainer bearing lowest number. or railroad cars Mail, including par- Attach to outside or include in the for coal move- cel post. package. Include a copy in each ad- ments. ditional package of multi-package ** Payment by Defense Finance and Accounting Service, shipments. Columbus Center will be based on the source acceptance copies of DD Forms 250 forwarded to the contract administra- tion office.
MATERIAL INSPECTION AND RECEIVING REPORT
TABLE 2—SPECIAL DISTRIBUTION
As required Address Number of copies
Each: Navy Status Control Activity, Army, Air Address specified in contract ...... 1 Each Force, DLA Inventory Control Manager. addressee. Quality Assurance Representative ...... Address specified by the assigned quality as- 1 surance representative. Transportation Office issuing GBL (attach to CAO address unless otherwise specified in the 1 GBL memorandum copy). contract. Purchasing Office other than office issuing con- Address specified in the contract ...... 1 tract. Foreign Military Sales Representative ...... Address specified in the contract ...... 8 Military Assistance Advisory Group (Grant Aid U.S. Military Advisory Group, Military Attache, 1 shipments). Mission, or other designated agency ad- dress as specified in the contract. Army Foreign Military Sales ...... Commander, U.S. Army Security Assistance 1 Command, ATTN: AMSAC–OL, 54 ‘‘M’’ Ave- nue, Suite 1, New Cumberland, PA 17070– 5096. Air Force: On shipments of new production of HQ Air Force Materiel Command, LGX–AVDO, 1 aircraft and missiles, class 1410 missiles, Area A, Building 262, Room N142, 4375 1510 aircraft (fixed wing, all types), 1520 air- Chidlaw Road, Wright-Patterson AFB, OH craft (rotary wing), 1540 gliders, 1550 target 45433–5006. drones. When above items are delivered to aircraft DCMA ...... 1 modification centers. Foreign Military Sales/Military Assistance Pro- National Defence Headquarters, Ottawa, On- 1 gram (Grant Aid) shipments to Canada. tario, Canada, K1A OK4, ATTN: DPSUPS3. Other than Canada ...... Address in the contract ...... 1 When consignee is an Air National Guard Ac- Consignee address (Block 13), ATTN: Prop- 3 tivity. erty Officer. Navy: Navy Foreign Military Sales ...... Naval Inventory Control Point, Deputy Com- 2 mander for International Programs (NAVICP Code P761), 700 Robbins Avenue, Philadel- phia, PA 19111–5095. When typed code (TC) 2T or 7T is shown in Naval Inventory Control Point (Code 0142) for 2 Block 16, or when shipment is consigned to aviation type material, 700 Robbins Avenue, another contractor’s plant for a Government Philadelphia, PA 19111–5098, and representative or when Block 16 indicates shipment includes GFP. Naval Inventory Control Point (Code 0143) for 2 all other material, 5450 Carlisle Pike, PO Box 2020, Mechanicsburg, PA 17055–0788. Bulk Petroleum Shipments ...... Cognizant Defense Fuel Region (see Table 4) 1
PART 5—PREPARATION OF THE DD FORM 250–1 (a) Block 1—Tanker/Barge. Line out (LOADING REPORT) ‘‘TANKER’’ or ‘‘BARGE’’ as appropriate and place an ‘‘X’’ to indicate loading report. F–501 Instructions. (b) Block 2—Inspection Office. Enter the Prepare the DD Form 250–1 using the fol- name and location of the Government office lowing instructions when applied to a tanker conducting the inspection. or barge cargo lifting. If space is limited, use (c) Block 3—Report No. Number each form abbreviations. The block numbers cor- consecutively, starting with number 1, to respond to those on the form. correspond to the number of shipments made against the contract. If shipment is made
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from more than one location against the tract or specification, the stock or class same contract, use this numbering system at number, and the NATO symbol. each location. (x) Block 24—Specifications. Enter the (d) Block 4—Agency Placing Order on ship- specification and amendment number shown per, city, State and/or local address (load- in the contract. ing). Enter the applicable Government activ- (y) Block 25—Statement of quantity. Enter ity. in the ‘‘LOADED’’ column, the net barrels, (e) Block 5—Department. Enter military net gallons, and long tons for the cargo load- department owning product being shipped. ed. NOTE: If more than 1⁄2 of 1 percent dif- (f) Block 6—Prime contract or P.O. No. ference exists between the ship and shore Enter the contract or purchase order num- quantity figures, the contractor shall imme- ber. diately investigate to determine the cause of (g) Block 7—Name of prime contractor, the difference. If necessary, prepare cor- city, State and/or local address (loading). rected documents; otherwise, put a state- Enter the name and address of the con- tractor as shown in the contract. ment in Block 28 as to the probable or actual (h) Block 8—Storage contract. Enter stor- cause of the difference. age contract number if applicable. (z) Block 26—Statement of quality. (1) (i) Block 9—Terminal or refinery shipped Under the heading ‘‘TESTS’’ list all inspec- from, city, State and/or local address. Enter tion acceptance tests of the specification and the name and location of the contractor fa- any other quality requirements of the con- cility from which shipment is made. Also tract. enter delivery point in this space as either (2) Under the heading ‘‘SPECIFICATION ‘‘FOB Origin’’ or ‘‘FOB Destination.’’ LIMITS’’ list the limits or requirements as (j) Block 10—Order No. on supplier. Enter stated in the specification or contract di- number of the delivery order, purchase order, rectly opposite each entry in the ‘‘TESTS’’ subcontract or suborder placed on the sup- column. List waivers to technical require- plier. ments. (k) Block 11—Shipped to: (receiving activ- (3) Under the heading ‘‘TEST RESULTS’’ ity, city, State and/or local address. Enter list the test results applicable to the storage the name and geographical address of the tank or tanks from which the cargo was lift- consignee as shown on the shipping order. ed. If more than one storage tank is in- (l) Block 12—B/L Number. If applicable, volved, list the tests applicable to each tank enter the initials and number of the bill of in separate columns headed by the tank lading. If a commercial bill of lading is later number, the date the product in the tank authorized to be converted to a Government was approved, and the quantity loaded from bill of lading, show ‘‘Com. B/L to GB/L.’’ the tank. Each column shall also list such (m) Block 13—Reqn. or request No. Enter product characteristics as amount and type number and date from the shipping instruc- of corrosion inhibitor, etc. tions. (aa) Block 27—Time statement. Line out (n) Block 14—Cargo No. Enter the cargo ‘‘DISCHARGE’’ and ‘‘DISCHARGING.’’ Com- number furnished by the ordering office. plete all applicable entries of the time state- (o) Block 15—Vessel. Enter the name of ment using local time. Take these dates and tanker or barge. times from either the vessel or shore facility (p) Block 16—Draft arrival. Enter the ves- log. The Government representative shall en- sel’s draft on arrival. sure that the logs are in agreement on those (q) Block 17—Draft sailing. Enter the ves- entries used. If the vessel and shore facility sel’s draft on completion of loading. (r) Block 18—Previous two cargoes. Enter logs are not in agreement, the Government the type of product constituting previous representative will explain the reasons in two cargoes. Block 28—REMARKS. Do not enter the date (s) Block 19—Prior inspection. Leave and time the vessel left berth on documents blank. placed aboard the vessel. The date and time (t) Block 20—Condition of shore pipeline. shall appear on all other copies. Express all Enter condition of line (full or empty) before dates in sequence of day, month, and year and after loading. with the month spelled out or abbreviated (u) Block 21—Appropriation (loading). (e.g., 10 Sept. 67). The term FINISHED BAL- Enter the appropriation number shown on LAST DISCHARGE is meant to include all the contract, purchase order or distribution times needed to complete deballasting and plan. If the shipment is made from depart- mopping/drying of ship’s tanks. The inspec- mentally owned stock, show ‘‘Army, Navy, tion of ship’s tanks for loading is normally or Air Force (as appropriate) owned stock.’’ performed immediately upon completion of (v) Block 22—Contract item No. Enter the drying tanks. contract item number applicable to the ship- (bb) Block 28—Remarks. Use this space for ment. reporting—(1) All delays, their cause and re- (w) Block 23—Product. Enter the product sponsible party (vessel, shore facility, Gov- nomenclature and grade as shown in the con- ernment representative, or other).
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(2) Details of loading abnormalities such as (h) Block 8—Storage contract. Enter the product losses due to overflow, leaks, deliv- number of the contract under which material ery of product from low level in shore tanks, is placed in commercial storage where appli- etc. cable. (3) In the case of multiple consignees, enter (i) Block 9—Terminal or refinery shipped each consignee, the amount consigned to from, city, state and/or local address. Enter each, and if applicable, the storage contract source of cargo. numbers appearing on the delivery order. (j) Block 10—Order no. on supplier. Make (4) When product title is vested in the U.S. same entry appearing on loading report. Government, insert in capital letters ‘‘U.S. (k) Block 11—Shipped to: (receiving activ- GOVERNMENT OWNED CARGO.’’ If title to ity, city, state and/or local address). Enter the product remains with the contractor and receiving activity’s name and location. inspection is performed at source with ac- (l) Block 12—B/L Number. Enter as appears ceptance at destination, insert in capital let- on loading report. ters ‘‘CONTRACTOR OWNED CARGO.’’ (m) Block 13—Reqn. or Request No. Leave (5) Seal numbers and location of seals. If blank. space is not adequate, place this information (n) Block 14—Cargo No. Enter cargo num- on the ullage report or an attached supple- ber shown on loading report. mental sheet. (o) Block 15—Vessel. Enter name of tanker (cc) Block 29—Company or receiving ter- or barge discharging cargo. minal. Line out ‘‘OR RECEIVING TER- (p) Block 16—Draft arrival. Enter draft of MINAL’’ and get the signature of the sup- vessel upon arrival at dock. plier’s representative. (q) Block 17—Draft sailing. Enter draft of (dd) Block 30—Certification by government vessel after discharging. representative. Line out ‘‘DISCHARGED.’’ (r) Block 18—Previous two cargoes. Leave The Government representative shall date blank. and sign the form to certify inspection and (s) Block 19—Prior inspection. Enter the acceptance, as applicable, by the Govern- name and location of the Government office ment. The name of the individual signing which inspected the cargo loading. this certification, as well as the names ap- (t) Block 20—Condition of shore pipeline. plied in Blocks 29 and 31, shall be typed or Enter condition of line (full or empty) before hand lettered. The signature in Block 30 and after discharging. must agree with the typed or lettered name (u) Block 21—Appropriation (loading). to be acceptable to the paying office. Leave blank. (ee) Block 31—Certification by master or (v) Block 22—Contract item no. Enter the agent. Obtain the signature of the master of item number shown on the loading report. the vessel or its agent. (w) Block 23—Product. Enter information PART 6—PREPARATION OF THE DD FORM 250–1 appearing in Block 23 of the loading report. (DISCHARGE REPORT) (x) Block 24—Specifications. Enter infor- mation appearing in Block 24 of the loading F–601 Instructions. report. Prepare the DD Form 250–1 using the fol- (y) Block 25—Statement of quantity. Enter lowing instructions when applied to a tanker applicable data in proper columns. or barge discharge. If space is limited, use (1) Take ‘‘LOADED’’ figures from the load- abbreviations. The block numbers cor- ing report. respond to those on the form. (2) Determine quantities discharged from (a) Block 1—Tanker/barge. Line out shore tank gauges at destination. ‘‘TANKER’’ or ‘‘BARGE’’ as applicable and (3) If a grade of product is discharged at place an ‘‘X’’ to enter discharge report. more than one point, calculate the loss or (b) Block 2—Inspection office. Enter Gov- gain for that product by the final discharge ernment activity performing inspection on point. Report amounts previously discharged the cargo received. on discharge reports prepared by the pre- (c) Block 3—Report No. Leave blank. vious discharge points. Transmit volume fig- (d) Block 4—Agency placing order on ship- ures by routine message to the final dis- per, city, state and/or local address (loading). charge point in advance of mailed documents Enter Government agency shown on loading to expedite the loss or gain calculation and report. provide proration data when more than one (e) Block 5—Department. Enter Depart- department is involved. ment owning product being received. (4) The loss or gain percentage shall be en- (f) Block 6—Prime contract or P.O. No. tered in the ‘‘PERCENT’’ column followed by Enter the contract or purchase order number ‘‘LOSS’’ or ‘‘GAIN,’’ as applicable. shown on the loading report. (5) On destination acceptance shipments, (g) Block 7—Name of prime contractor, accomplish the ‘‘DISCHARGED’’ column city, state and/or local address (loading). only, unless instructed to the contrary. Enter the name and location of contractor (z) Block 26—Statement of quality. (1) who loaded the cargo. Under the heading ‘‘TESTS’’ enter the
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verification tests performed on the cargo signature of a representative of the receiving preparatory to discharge. terminal. (2) Under ‘‘SPECIFICATION LIMITS’’ (dd) Block 30—Certification by government enter the limits, including authorized depar- representative. Line out ‘‘LOADED.’’ The tures (if any) appearing on the loading re- Government representative shall date and port, for the tests performed. sign the form to certify inspection and ac- (3) Enter the results of tests performed ceptance, as applicable, by the Government. under the heading ‘‘TEST RESULTS.’’ The name of the individual signing the cer- (aa) Block 27—Time statement. Line out tification as well as the names applied in ‘‘LOAD’’ and ‘‘LOADING.’’ Complete all ap- Blocks 29 and 31, shall be typed or hand let- plicable entries of the time statement using tered on the master or all copies of the form. local time. Take the dates and times from ei- The signature in Block 30 must agree with ther the vessel or shore facility log. The the typed or lettered name to be acceptable Government representative shall ensure that to the paying office. these logs are in agreement with entries (ee) Block 31—Certification by master or used. If the vessel and shore facility logs are agent. Obtain the signature of the master of not in agreement, the Government rep- the vessel or the vessel’s agent. resentative will explain the reason(s) in PART 7—DISTRIBUTION OF THE DD FORM 250–1 Block 28—REMARKS. Do not enter the date and time the vessel left berth on documents F–701 Distribution. placed aboard the vessel. The date and time (a) The Government representative shall shall appear on all other copies. Express all distribute the completed DD Form 250–1 dates in sequence of day, month, and year using Table 3 of this appendix as amended by with the month spelled out or abbreviated the provisions of the contract or shipping (e.g., 10 Sept. 67). order. (bb) Block 28—Remarks. Use this space for (b) The contractor shall furnish the Gov- reporting important facts such as— ernment representative sufficient copies of (1) Delays, their cause, and responsible the completed form to permit the required party (vessel, shore facility, Government distribution. representative, or others). (c) Distribution of the form shall be made (2) Abnormal individual losses contrib- as soon as possible, but not later than 24 uting to the total loss. Enter the cause of hours following completion of the form. (See such losses as well as actual or estimated Table 3 on following pages) volumes involved. Such losses shall include, but not be restricted to, product remaining F–702 Corrected DD Form 250–1. aboard (enter tanks in which contained), When errors are made in entries on the spillages, line breaks, etc. Note where grav- form which would affect payment or ac- ity group change of receiving tank contents countability, make corrected copies. Circle results in a fictitious loss or gain. Note the corrected entries on all copies and mark irregularities observed on comparing vessel the form ‘‘CORRECTED COPY.’’ Enter the ullages obtained at loading point with those statement, ‘‘Corrections Have Been at the discharge point if they indicate an ab- Verified,’’ in Block 26 with the authorized normal transportation loss or contamina- Government representative’s dated signature tion. directly below. Make distribution of the cer- (cc) Block 29—Company or receiving ter- tified corrected copy to all recipients of the minal. Line out ‘‘COMPANY OR.’’ Secure the original distribution.
TABLE 3
Number of copies Recipient of DD Loading (Prepared by shipper or Discharge (Prepared by receiv- Type of shipment Form 250–1 Government representative) ing activity) Tanker Barge Tanker Barge
All (On overseas shipments, provide Each Consignee 2 ...... 1 ...... As Required ... As Required for a minimum of 4 consignees. (by mail CONUS Place 1 copy, attached to ullage re- only). port, in each of 4 envelopes. Mark the envelopes, ‘‘Consignee—First Destination,’’ ‘‘Consignee—Second Destination,’’ etc. Deliver via the vessel). With Shipment ...... 1 ...... 1 ...... As Required ... As Required Master of Vessel .. 1 ...... 1 ...... 1 ...... 1 Tanker or Barge 2 ...... 2 ...... 2 ...... 2 Agent. Contractor ...... As Required ... As Required ... As Required ... As Required
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TABLE 3—Continued
Number of copies Recipient of DD Loading (Prepared by shipper or Discharge (Prepared by receiv- Type of shipment Form 250–1 Government representative) ing activity) Tanker Barge Tanker Barge
Cognizant Inspec- 1 ...... 1 ...... 1 ...... 1 tion Office. Government Rep- 1 ...... 1 ...... 1 ...... 1 resentative re- sponsible for quality at each destination. Government Rep- 1 ...... 1 ...... 1* ...... 1* resentative at Cargo Loading Point. On all USNS tankers and all MSC Military Sealift 2 ...... 2 ...... 2 ...... 2 chartered tankers and MSC char- Command, tered barges. Code N322, Washington, DC 20396–5100. See the contract or shipping order for Payment Office: If 2 ...... 2 ...... 2 ...... 2 finance documentation and any this is DFAS– supplemental requirements for Gov- CO, send copies ernment-owned product shipments to: Defense En- and receipts. ergy Support Center, ATTN: DESC–FII, 8725 John J. Kingman Road, Fort Belvoir, VA 22060–6221 (do not send copies to DFAS–CO). For shipments and receipts of DESC Defense Energy 1 ...... 1 ...... 1 ...... 1 financed cargoes for which DFAS– Support Center, CO is not the paying office. ATTN: DESC– FII, 8725 John J. Kingman Road, Fort Belvoir, VA 22060–6221. For shipments on all USNS tankers, Defense Energy 1 ...... 1 ...... 1** ...... 1 MSC chartered tankers and barges, Support Center, and FOB destination tankers with ATTN: DESC– copy of ullage report. BID, 8725 John J. Kingman Road, Fort Belvoir, VA 22060–6221. On Army ILP shipments ...... U.S. Army Inter- 2 ...... 2 ...... 2 ...... 2 national Logis- tics Center, New Cumberland Army Depot, New Cum- berland, PA 17070–5001. NAVY—On all shipments to Navy Op- Defense Energy 2 ...... 1 ...... 2 ...... 1 erated Terminals. Support Center, ATTN: DESC– FII, 8725 John J. Kingman Road, Fort Belvoir, VA 22060–6221. On all shipments to AF Bases ...... Directorate of En- 1 ...... 1 ...... 1 ...... 1 ergy Manage- ment, SA ALC(SFT), Kelly AFB, TX 78241– 5000.
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TABLE 3—Continued
Number of copies Recipient of DD Loading (Prepared by shipper or Discharge (Prepared by receiv- Type of shipment Form 250–1 Government representative) ing activity) Tanker Barge Tanker Barge
On all CONUS loadings ...... DESC Region(s) 1 ...... 1 ...... 1 ...... 1 cognizant of shipping point. On all shipments to CONUS Destina- DESC Region(s) 1 ...... 1 ...... 0 ...... 0 tions. cognizant of shipping and re- ceiving point.****. For all discharges of cargoes origi- Defense Energy ...... 1*** ...... 1*** nating at Defense Energy Support Support Center, Points and discharging at activities ATTN: DESC– not Defense Energy Support Points. BID, 8725 John J. Kingman Road, Fort Belvoir, VA 22060–6221. * With copy of ullage report. ** Dry tank certificate to accompany DD Form 250–1 and ullage report. *** Copies of the DD Form 250–1, forwarded by bases, will include the following in Block 11: Shipped to: Supplementary Ad- dress, if applicable; Signed Code; and Fund Code. **** See Table 4.
TABLE 4—FUEL REGION LOCATIONS AND AREAS OF RESPONSIBILITY
a. DFR Northeast ...... Defense Fuel Region Northeast, Building 2404, McGuire AFB, NJ 08641–5000. Area of Responsi- Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New bility. Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia. b. DFR Central ...... Defense Fuel Region Central, 8900 S. Broadway, Building 2, St. Louis, MO 63125–1513. Area of Responsi- Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North bility. Dakota, Ohio, South Dakota, Wisconsin, and Wyoming. c. DFR South ...... Defense Fuel Region South, Federal Office Building, 2320 La Branch, Room 1213, Houston, TX 77004–1091. Area of Responsi- Alabama, Arizona, Arkansas, Caribbean Area, Florida, Georgia, Louisiana, Mexico, Mississippi, New bility. Mexico, North Carolina, Oklahoma, Puerto Rico, South Carolina, Tennessee, Texas, West Indies, Central America, and South America. d. DFR West ...... Defense Fuel Region West, 3171 N. Gaffney Street, San Pedro, CA 90731–1099. Area of Responsi- California, Idaho, Montana, Nevada, Oregon, Utah, and Washington. bility. e. DFR Alaska ...... Defense Fuel Region Alaska, Elmendorf AFB, Alaska 99506–5000. Area of Responsi- Alaska and Aleutians. bility. f. DFR Europe ...... Defense Fuel Region Europe, Building 2304, APO New York 09128–4105. Area of Responsi- Continental Europe, United Kingdom, Mediterranean Area, Turkey, and Africa (less Djibouti, Egypt, bility. Ethiopia, Kenya, Somalia). g. DFR Mideast ...... Defense Fuels Region, Middle East, P.O. Box 386, Awali, Bahrain, APO New York 09526–2830. Area of Responsi- Afghanistan, Bahrain, Djibouti, Egypt, Ethiopia, Iran, Iraq, Jordan, Kenya, Kuwait, Oman, Pakistan, bility. Qatar, Saudi Arabia, Somalia, Sudan, United Arab Emirates, and Yemen. h. DFR Pacific ...... Defense Fuel Region, Pacific, Camp H. M. Smith, Honolulu, HI 96861–5000. Area of Responsi- Australia, Burma, East Indies, Hawaii, Indian Ocean, Japan, Korea, Malaya, Marianas, New Zealand, bility. Philippines, Ryukyu Islands, South Pacific Islands, Sri Lanka, Taiwan, and Thailand. [56 FR 36610, July 31, 1991, as amended at 57 FR 53602, Nov. 12, 1992; 58 FR 37868, July 14, 1993; 59 FR 27678, May 27, 1994; 60 FR 61615, Nov. 30, 1995; 65 FR 14398, Mar. 16, 2000; 65 FR 52953, 52954, Aug. 31, 2000; 65 FR 63803, 63804, 63805, Oct. 25, 2000; 65 FR 69376, Nov. 16, 2000; 66 FR 49861, Oct. 1, 2001]
APPENDIX G—ACTIVITY ADDRESS G–102 Activity address number data base NUMBERS maintenance Part 2—Army Activity Address Numbers. Table of Contents Part 3—Navy Activity Address Numbers. Part 1—General. Part 4—Marine Corps Activity Address Num- G–100 Scope bers. G–101 Assignment and use of a number Part 5—Air Force Activity Address Numbers.
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Part 6—Defense Logistics Agency Activity DEFENSE LOGISTICS AGENCY Address Numbers. Defense Logistics Agency, Acquisition Oper- Part 7—Defense Information Systems Agen- ations Team, 8725 John J. Kingman Road cy Activity Address Numbers. Suit 2533, Fort Belvoir, VA 22060–6221 Part 8—Defense Mapping Agency Activity Address Numbers. OTHER DEFENSE AGENCIES Part 9—Defense Special Weapons Agency Ac- All other Defense agencies will forward re- tivity Address Numbers. quests for Appendix G maintenance to the Part 10—Miscellaneous Defense Activities Department of the Army, OSA(RDA)-PA. Activity Address Numbers. * The Navy and Marine Corps Activity Ad- Part 11—On-Site Inspection Agency Activity dress Monitor for assignment of two-char- Address Numbers. acter call/order serial numbers is: Office of Part 12—Ballistic Missile Defense Organiza- the Assistant Secretary of the Navy (RD&A), tion Activity Address Numbers. 2211 South Clark Place, Crystal Plaza 5, Part 13—Defense Commissary Agency Activ- Room 506, Arlington, VA 22202–3738. ity Address Numbers. Part 14—United States Special Operations G–102 Activity address number data base Command Activities Address Numbers. maintenance. (a) The Defense Logistics Agency, DLA– AUTHORITY; 41 U.S.C. 421 and 48 CFR chap- ter 1. PS, Cameron Station, Alexandria, VA 22304– 6100 is the executive agent for maintenance PART 1—GENERAL of six and two character code assignments. The executive agency distributes blocks of G–100 Scope. two character codes to department/agency activity address monitors for further assign- This appendix identifies the activity ad- ment. dress numbers to be used with the uniform (b) Contracting activities submit requests procurement instrument identification num- for assignment of or changes in either the six bering system prescribed in DFARS subpart character or two character codes to their ac- 204.70. tivity address monitor in accordance with department/agency procedures. Activity ad- G–101 Assignment and use of a number. dress monitors— (a) Activities coding solicitations, con- (1) Approve request for additions, dele- tracts and related instruments shall use only tions, or changes; those codes assigned by their respective de- (2) Notify the executive editor, Defense Ac- partment/agency activity address mon- quisition Regulations System, itor(s). OUSD(AT&L)DP(DAR), 3062 Defense Pen- (b) The six-character code is used in the tagon, Washington, DC 20301–3062; and first six positions of the procurement instru- (3) Provide a copy of the notification to the ment identification number (PIIN). When re- executive agent. quired, activities also will be assigned a two (c) A copy of the appendix G data base is position code. The two position code is used available on tape or MS–DOS compatible in the first two positions of the call/order se- floppy diskettes from the executive agent. rial number. PART 2—ARMY ACTIVITY ADDRESS (c) Activity address monitors are— NUMBERS ARMY DAAA03, B1 Pine Bluff Arsenal, ATTN: SIOPB–PO, 10020 Kabrich Circle, Pine Department of the Army, Attn: OSA(RDA)- Bluff, AR 71602–9500 PA, 5109 Leesburg Pike, Suite 916, Falls DAAA08, B7 Rock Island Arsenal, ATTN: Church, VA 22041–3201 SIORI–CT, Rock Island, IL 61299–5000 DAAA09, BA U.S. Army Industrial Oper- NAVY * ations Command, ATTN: AMSIO–ACS, Defense Finance and Accounting Service, Rock Island, IL 61299–6000 Cleveland (Code AADB), 1240 East Ninth DAAA10, 9X Blue Grass Army Depot Pro- Street, Cleveland, OH 44199–4000 curement Office, Building S–14, ATTN: SIOBG–PO 2091 Kingston Highway, Rich- MARINE CORPS * mond, KY 40475–5115 DAAA12, ZM Sierra Army Depot, Building Headquarters, U.S. Marine Corps, 2 Navy 74, Herlong, CA 96113–5009 Annex, Room 2135, Washington, DC 20380– DAAA14, BK Tooele Army Depot, Con- 1775 tracting Office, ATTN: SIOTE–CD, Build- ing S–9, Tooele, UT 84074–0839 AIR FORCE DAAA22, BV Watervliet Arsenal, ATTN: SAF/AQCP, 1060 Air Force Pentagon, Wash- SIOWV–PQP, Building 10, Watervliet, NY ington, DC 20330–1060 12189–4050
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DAAA31, GJ McAlester Army Ammunition Ground Office, ATTN: STEAA–DP, 5330 Plant, ATTN: SIOMC–PC 1 C Tree Road, Valdez Circle, Dugway, UT 84022–5000 McAlester, OK 74501–9002 DAAD11, B2 U.S. Army Materiel Command DAAA32, 0P Crane Army Ammunition Ac- Acquisition Center, Rocky Mountain Arse- tivity ATTN: SIOCN–CT 300 Highway 361, nal Office, ATTN: STEAA–RM, 72nd and Crane, IN 47522–5099 Quebec Streets, Commerce City, CO 80022– DAAA33 U.S. Army Combat Equipment 1748 Group-Asia 103 Guidance Road, Goose DAAD13, ZU U.S. Army Materiel Command Creek, SC 29445–6060 Acquisition Center, APG Contracting Divi- DAAA34 Seneca Army Depot Activity, sion, Edgewood Branch, ATTN: STEAA– ATTN: SIOSE–IR 5786 State Route 96, AP–E, 5183 Blackhawk Road, Aberdeen Building 115, Romulus, NY 14541–5001 Proving Ground, MD 21010–5424 DAAB07, BG U.S. Army Communications- DAAD15, BB U.S. Army Materiel Command Electronics Command, CECOM Acquisition Acquisition Center, Natick Contracting Di- Center, ATTN: AMSEL–AC–CC–D–B, Build- vision, ATTN: AMSSB–ACN–M, Building 1, ing 1208, Fort Monmouth, NJ 07703–5008 Kansas Street, Natick, MA 01760–5011 DAAB08, 2V U.S. Army Communications- DAAD16, C5 U.S. Army Materiel Command Electronics Command, CECOM Acquisition Acquisition Center, Natick Contracting Di- Center, ATTN: AMSEL–AC–CC–RT–S, vision (R&D and BaseOps), ATTN: AMSSB– Building 1208, Fort Monmouth, NJ 07703– ACN–S, Building 1, Kansas Street, Natick, 5008 MA 01760–5011 DAAD17, 1Y U.S. Army Materiel Command DAAB11, D0 U.S. Army Communications- Acquisition Center, Army Research Lab- Electronics Command, CECOM Acquisition oratory Contracting Division, ATTN: Center Washington, ATTN: AMSEL–AC–W STEAA–AR, 2800 Powder Mill Road, (Vint Hill Operations), 2461 Eisenhower Av- Adelphi, MD 20783–1197 enue, Alexandria, VA 22331–0700 DAAD19,YU U.S. Army Materiel Command DAAB15, BD U.S. Army Communications- Acquisition Center, Army Research Lab- Electronics Command, CECOM Acquisition oratory Contracting Division, ATTN: Center Washington, ATTN: AMSEL–AC–W STEAA–AO, PO Box 12211 Research Tri- 2461 Eisenhower Avenue, Alexandria, VA angle Park, NC 27709–2211 22331–0700 DAAE07, BR TACOM—Warren, Corporate DAAB17, ZS U.S. Army Communications- Contracting, ATTN: AMSTA–CM–C, E Electronics Command, Tobyhanna Depot Eleven Mile Road, Warren, MI 48397–5000 Contracting Office, ATTN: AMSEL–TY–KO DAAE20, DG TACOM—Rock Island, ATTN: 11 Hap Arnold Boulevard, Tobyhanna, PA AMSTA–CM–CR, Rock Island Arsenal, 18466–5100, Rock Island, IL 61299–7630 DAAB18, E4 U.S. Army Communications- DAAE24, BH TACOM—Anniston, Direc- Electronics Command, Technology Appli- torate of Contracting, ATTN: AMSTA–AN– cations Office, ATTN: AMSEL–DSA–TA CT, 7 Frankford Avenue, Building 221, An- 1671 Nelson Street, Fort Detrick, MD 21702– niston, AL 36201–4199 5004 DAAE30, 2T TACOM—Picatinny, Corporate DAAB22, E7 U.S. Army Communications- Contracting Directorate, ATTN: AMST– Electronics Command, APM–European CM–CP, Building 9, Picatinny Arsenal, NJ Switched Systems, ATTN: AMSEL–DSA– 07806–5000 SWE, CMR 421, Box 651, APO AE 09056–3104, DAAE32, D7 TACOM—Texarkana, ATTN: DAAB32, Y6 U.S. Army Communications- AMSTA–RR–P, 100 Main Drive, Building Electronics Command, Southwest Oper- 110, Texarkana, TX 75507–5000 ations Office, ATTN: AMSEL–AC–CC–S, DAAG60, G8 United States Military Acad- Building 61801, Room 3212, Fort Huachuca, emy, Directorate of Contracting, ATTN: AZ 85613–6000 MADC, Building 681, West Point, NY 10996– DAAD01, B5 U.S. Army Materiel Command 1594 Acquisition Center, Yuma Proving Ground DAAG99, ZY U.S. Army Program Manager- Office, ATTN: STEAA–CD–Y, Building 2100, SANG, ATTN: AMCPM–NGA, Unit 61304, Ocotilla Street, Yuma, AZ 85365–9106, APO AE 09803–1304 DAAD05, BM U.S. Army Materiel Command DAAH01, CC U.S. Army Aviation and Mis- Acquisition Center, APG Contracting Divi- sile Command, ATTN: AMSAM–AC, Build- sion, Aberdeen Branch, ATTN: STEAA–AP– ing 5303, Martin Road, Redstone Arsenal, A 4118 Susquehanna Avenue, Aberdeen AL 35898–5280 Proving Ground, MD 21005–3013 DAAH03, D8 U.S. Army Aviation and Mis- DAAD07, BN U.S. Army Materiel Command sile Command, ATTN: AMSAM–AC, Build- Acquisition Center, White Sands Missile ing 5303, Martin Road, Redstone Arsenal, Range Contract Division, ATTN: STEAA– AL 35898–5280 WS, Building 126 West, Crozier Street, DAAH10, D9 Aviation Applied Technology White Sands Missile Range, NM 88002–5201 Directorate, AMCOM RDEC (Provisional), DAAD09, BP U.S. Army Materiel Command ATTN: AMSAM–RD–AA–C, Building 401, Acquisition Center, Dugway Proving Lee Boulevard, Fort Eustis, VA 23604–5577
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DAAH11, 0V U.S. Army Aviation and Mis- DABT60, 1L TRADOC Contracting Activity, sile Command, Charles Melvin Price Sup- ATTN: ATCA, Building 2798, Fort Eustis, port Center, ATTN: AMSAM–AC–SS–BB, VA 23604–5538 100 First Street, Room 200, Granite City, IL DABT61, BF The Judge Advocate General’s 62040–1801 School, U.S. Army, University of Virginia, DAAH12, ZF IAS21WG, AMCOM RDEC (Pro- ATTN: JAGS–SSL–B 600 Massie Road, visional), ATTN: AMSAM–RD–AA–Z–I, Charlottesville, VA 22903–1781 Building 401, Lee Boulevard, Fort Eustis, DABT63, BL U.S. Army Intelligence Center VA 23604–5577 and Fort Huachuca, ATTN: ATZS–DK, PO DAAH13, BJ Corpus Christi Army Depot, Box 12748, Fort Huachuca, AZ 85670–2748 ATTN: SIOCC–RS–AQ, 308 Crecy Street, DABT65, B0 Mission Contracting Activity Corpus Christi, TX 78419–6170 at Fort Leavenworth, ATTN: ATOB–AL, DAAH 17, ZN Letterkenny Army Depot, Room 303, 600 Thomas Avenue, Fort Leav- ATTN: SIOLE–KO, 1 Overcash Avenue, enworth, KS 66027–1389 Chambersburg, PA 17201–4152 DABT67, 0Q Commander DLIFLC & POM, DAAH23, BS U.S. Army Aviation and Mis- ATTN: ATZP–DOC, Building 276, Plummer sile Command, ATTN: AMSAM–AC, Build- Street, Presidio of Monterey, CA 93944–5006 ing 5303, Martin Road, Redstone Arsenal, DACA01, DACW01, CK U.S. Army Engineer AL 35898–5280 District, Mobile, ATTN: CESAM–CT, PO DABT01, F6 U.S. Army Aviation Center, Box 2288, Mobile, AL 36628–0001 Contracting Office, ATTN: ATZQ–C, Build- DACA02, DACW02 U.S. Army Corps of Engi- ing T–00116, Fort Rucker, AL 36362–5000 neers, ATTN: CEPR–ZA, 20 Massachusetts DABT02, 2A U.S. Army Chemical and Mili- Avenue NW, Washington, DC 20314–1000 tary Police, Centers and Fort McClellan, DACA03, DACW03, CL U.S. Army Engineer ATTN: ATZN–DOC, Building 241–C, Trans- District, Little Rock, ATTN: CESWL–CT, portation Road, Fort McClellan, AL 36205– PO Box 867, Little Rock, AR 72203–0867 5000 DACA05, DACW05, CM U.S. Army Engineer DABT10, 2B U.S. Army Infantry Center and District, Sacramento, ATTN: CESPK–CT, Fort Benning, ATTN: ATZB–KT, Building 1325 J Street, Sacramento, CA 95814–2922 6, Meloy Hall, Room 207, Fort Benning, GA DACA07, DACW07, CP U.S. Army Engineer 31905–5000 District, San Francisco, ATTN: CESPN– DABT11, 2C U.S. Army Signal Center and CT, 333 Market Street, San Francisco, CA Fort Gordon, ATTN: ATZH–CT, Building 94105–2195 2102, Fort Gordon, GA 30905–5110 DACA09, DACW09, CQ U.S. Army Engineer DABT19, 2D U.S. Army Combined Arms District, Los Angeles, ATTN: CESPL–CT, Center and Fort Leavenworth, ATTN: PO Box 532711, Los Angeles, CA 90053–2325 ATZL–GCC 600 Thomas Avenue, Fort Leav- enworth, KS 66027–1389 DACA17, DACW17, CS U.S. Army Engineer DABT23, 2E U.S. Army Armor Center and District, Jacksonville, ATTN: CESAJ–CT, Fort Knox, ATTN: ATZK–DC, Building PO Box 4970, Jacksonville, FL 32232–0019 4022, Fort Knox, KY 40121–5000 DACA21, DACW21, CV U.S. Army Engineer DABT31, 2F U.S. Army Engineer Center and District, Savannah, ATTN: CESAS–CT, PO Fort Leonard Wood, ATTN: ATZT–DOC, Box 889, Savannah, GA 31402–0889 Building 606, PO Box 140, Fort Leonard DACA23, DACW23, CX U.S. Army Engineer Wood, MO 65473–0140 District, Chicago, ATTN: CELRC–CT, 111 DABT39, 2H U.S. Army Field Artillery Cen- North Canal Street, Chicago, IL 60606–7206 ter and Fort Sill, ATTN: ATZR–Q, Building DACA25, DACW25, CD U.S. Army Engineer 1803, PO Box 3501, Fort Sill, OK 73503–0501 District, Rock Island, Clock Tower Build- DABT43, 2J Carlisle Barracks, ATTN: ing, ATTN: CEMVR–CT, PO Box 2004, Rock ATZE–DOC–C, 314 Lovell Avenue, Suite 1, Island, IL 61204–2004 Carlisle Barracks, PA 17013–5072 DACA27, DACW27, CY U.S. Army Engineer DABT47, 2K U.S. Army Training Center and District, Louisville, ATTN: CELRL–CT, PO Fort Jackson, ATTN: ATZJ–DOC, Building Box 59, Louisville, KY 40201–0059 4340, Magruder Street, Fort Jackson, SC DACA29, DACW29, CZ U.S. Army Engineer 29207–5491 District, New Orleans, ATTN: CEMVN–CT, DABT51, 2L U.S. Army Air Defense Artil- PO Box 60267, New Orleans, LA 70160–0267 lery Center and Fort Bliss, ATTN: ATZC– DACA31, DACW31, DA U.S. Army Engineer DOC, Building 2021, 1733 Pleasonton Road, District, Baltimore, Contracting Division, Fort Bliss, TX 79916–6816 ATTN: CENAB–CT, PO Box 1715, Balti- DABT57, 2N Directorate of Peninsula Con- more, MD 21203–1715 tracting, ATTN: ATZF–DPC, Building 2746, DACA33, DACW33, DB U.S. Army Engineer Harrison Loop, Fort Eustis, VA 23604–5293 District, New England, ATTN: CENAE–CT, DABT59, 2Q U.S. Army Combined Arms 696 Virginia Road, Concord, MA 01742–2751 Support, Command and Fort Lee, ATTN: DACA35, DACW35, DC U.S. Army Engineer ATZM–DOC, 1830 Quartermaster Road, District, Detroit, ATTN: CELRE–CT, PO Fort Lee, VA 23801–1606 Box 1027, Detroit, MI 48321–1027
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DACA37, DACW37, DD U.S. Army Engineer North Main Street, Room B–202, Memphis, District, St. Paul, ATTN: CEMVP–CT, 190 TN 38103–1894 Fifth Street East, St. Paul, MN 55101–1638 DACA67, DACW67, EC U.S. Army Engineer DACA38, DACW38, DE U.S. Army Engineer District, Seattle, ATTN: CENWS–CT, PO District, Vicksburg, ATTN: CEMVK–CT, Box 3755, Seattle, WA 98124–3755 4155 Clay Street, Vicksburg, MS 39183–3435 DACA68, DACW68, YW U.S. Army Engineer DACA41, DACW41, DH U.S. Army Engineer District, Walla Walla, ATTN: CENWW–CT, District, Kansas City, ATTN: CENWK–CT, 201 North 3rd Avenue,Walla Walla, WA 700 Federal Building 60l East 12th Street, 99362–1876 Kansas City, MO 64106–2896 DACA69, DACW69, CG U.S. Army Engineer DACA42, DACW42, DF Vicksburg Consoli- District, Huntington, ATTN: CELRH–CT, dated Contracts Office, ATTN: ERDC, 4155 502 8th Street, Huntington, WV 25701–2070 Clay Street, Vicksburg, MS 39183–3435 DACA72, DACW72, ZA U.S. Army Hum- DACA43, DACW43, DJ U.S. Army Engineer phreys Engineer Center Support Activity, District, St. Louis, ATTN: CEMVS–CT, 1222 ATTN: CEHEC–CT, Kingman Building, Al- Spruce Street, St. Louis, MO 63103–2833 exandria, VA 22315–3860 DACA45, DACW45, DK U.S. Army Engineer DACA75, DACW75, ZC U.S. Army Engineer District, Omaha, ATTN: CENWO–CT, 215 Ordnance Program Division, ATTN: North 17th Street, Omaha, NE 68102–4978 CETAC–OP–C, APO AE 09803–1303 DACA78, DACW78, 9V Transatlantic Pro- DACA47, DACW47, DM U.S. Army Engineer grams Center, ATTN: CETAC–CT 201 District, Albuquerque, ATTN: CESPA–CT, Prince Frederick Drive, Winchester, VA 4101 Jefferson Plaza NE, Albuquerque, NM 22602–5000 87109–3435 DACA79, DACW79, 2R U.S. Army Engineer DACA49, DACW49, DN U.S. Army Engineer District, Japan, ATTN: CEPOJ–CT Unit District, Buffalo, ATTN: CELRB–CT, 1776 45010, APO AP 96338–5010 Niagara Street, Buffalo, NY 14207–3199 DACA81, DACW81, CN U.S. Army Engineer DACA51, DACW51, CE U.S. Army Engineer District, Far East, ATTN: CEPOF–CT, Unit District, New York, Contracting Division, 15546, APO AP 96205–0610 ATTN: CENAN–CT, 26 Federal Plaza, New DACA83, DACW83, ZH U.S. Army Engineer York, NY 10028–0090 District, Honolulu, ATTN: CEPOH–CT, DACA54, DACW54, DQ U.S. Army Engineer Building 230, Fort Shafter, HI 96858–5540 District, Wilmington, ATTN: CESAW–CT, DACA85, DACW85, ZJ U.S. Army Engineer PO Box 1890, Wilmington, NC 28402–1890 District, Alaska, ATTN: CEPOA–CT, PO DACA56, DACW56, DS U.S. Army Engineer Box 898, Anchorage, AK 99506–0898 District, Tulsa, ATTN: CESWT–CT, 1645 DACA87, DACW87, ZW U.S. Army Engineer South 101st East Avenue, Tulsa, OK 74128– and Support Center, Huntsville, ATTN: 4609 CEHNC–CT, PO Box 1600, Huntsville, AL DACA57, DACW57, DT U.S. Army Engineer 35807–4301 District, Portland, ATTN: CENWP–CT, PO DACA90, DACW90, 2S U.S. Army Engineer Box 2946, Portland, OR 97208–2946 District, Europe, ATTN: CENAU–CT, CMR DACA59, DACW59, DV U.S. Army Engineer 410, Box 7, APO AE 09096–9401 District, Pittsburgh, ATTN: CELRP–CT, DADA03, 8W Fitzsimons U.S. Army Garri- 1000 Liberty Avenue, Pittsburgh, PA 15222– son, Directorate of Contracting, ATTN: 4186 MCHG–DC, 205 McCloskey Avenue, Aurora, DACA60, DACW60, DW U.S. Army Engineer CO 80045–5000 District, Charleston, ATTN: CESAC–CT, DADA08, BT Dwight David Eisenhower PO Box 919, Charleston, SC 29402–0919 Medical Center, Southwest Regional Con- DACA61, DACW61, CF U.S. Army Engineer tracting Office, ATTN: MCAA–SE, 39706 District, Philadelphia, Contracting Divi- 40th Street, Fort Gordon, GA 30905–5650 sion, ATTN: CENAP–CT, 110 Penn Square DADA09, YY William Beaumont Army Med- East, Wanamaker Building, Philadelphia, ical Center, Great Plains Regional Con- PA 19107–3390 tracting Office, ATTN: MCAA–GP, Build- DACA62, DACW62, DX U.S. Army Engineer ing 7777, 5000 North Piedras Street, El District, Nashville ATTN: CELRN–CT, PO Paso, TX 79920–5001 Box 1070, Nashville, TN 37202–1070 DADA10, ZQ U.S. Army Medical Command, DACA63, DACW63, DY U.S. Army Engineer Medical Contracting Center, ATTN: District, Fort Worth, ATTN: CESWF–CT, MCAA–C, Building 4197, 2107 17th Street, PO Box 17300, Fort Worth, TX 76102–0300 Fort Sam Houston, TX 78234–5015 DACA64, DACW64, DZ U.S. Army Engineer DADA13, 0W Madigan Army Medical Cen- District, Galveston, ATTN: CESWG–CT, ter, Western Regional Contracting Office, PO Box 1229, Galveston, TX 77553–1229 ATTN: MCAA–W, 9933A West Johnson DACA65, DACW65, EA U.S. Army Engineer Street, Tacoma, WA 98431–1110 District, Norfolk, ATTN: CENAO–CT, 803 DADA15, 0X Walter Reed Army Medical Front Street, Norfolk, VA 23510–1096 Center, Directorate of Contracting, ATTN: DACA66, DACW66, EB U.S. Army Engineer MCHL–ZC, Building T–20, 6825 16th Street District, Memphis, ATTN: CEMVM–CT, 167 NW, Washington, DC 20307–5000
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DADA16, 0Y Tripler Army Medical Center, DAHA21, 9K USPFO for Minnesota, Camp Pacific Regional Contracting Office, Ripley, 15000 Highway 115, Little Falls, MN ATTN: MCAA–P, Building 160, Krukowski 56345–4173 Road, Honolulu, HI 96850–5000 DAHA22, CW USPFO for Mississippi, 144 DADW30, 0F Fort Myer Military Commu- Military Drive, Jackson, MS 39208–8880 nity, Directorate of Contracting, ATTN: DAHA23, 9H USPFO for Missouri, 7101 Mili- ANMY–OC, 204 Lee Avenue, Fort Myer, VA tary Circle, Jefferson City, MO 65101–1200 22211–1199 DAHA24, 9P USPFO for Montana, PO Box DADW35, 2M MDW Acquisition Center, 9410 1157, Helena, MT 59624–1157 Jackson Loop, Fort Belvoir, VA 22060–5134 DAHA25, 9S USPFO for Nebraska, 1234 Mili- DADW36, 1J Fort Meade Directorate of Con- tary Road, Lincoln, NE 68508–1092 tracting, ATTN: ANME–OC, Building 2234, DAHA26 USPFO for Nevada, 2601 South Car- Fort George G. Meade, MD 20755–5081 son Street, Carson City, NV 89701–5596 DADW39, OS Fort Hamilton Military Com- DAHA27, 9U USPFO for New Hampshire, PO munity, ATTN: ANFH–GC, Building 111, Box 2003, Concord, NH 03302–2003 Brooklyn, NY 11252 DAHA28, ZK USPFO for New Jersey, 131 DADW49, 0M National Defense University, Eggert Crossing Road, Lawrenceville, NJ Building 62, Room 203, 300 5th Avenue, Fort 08648–2805 McNair, DC 20319–5066 DAHA29 USPFO for New Mexico, ATTN: DAHA01, 9B USPFO for Alabama, PO Box Contracting Officer, 47 Bataan Road, Santa 3715, Montgomery, AL 36109–0715 Fe, NM 87502–4277 DAHA02, 0G USPFO for Arizona, 5645 East DAHA30, D2 USPFO for New York, 330 Old McDowell Road, Phoenix, AZ 85008–3442 Niskayuna Road, Latham, NY 12110–2224 DAHA03, 9D USPFO for Arkansas, Camp DAHA31, D3 USPFO for North Carolina, Robinson, North Little Rock, AR 72199–9600 4201 Reedy Creek Road, Raleigh, NC 27607– DAHA04, 9N USPFO for California, PO Box 6412 8104, San Luis Obispo, CA 93403–8104 DAHA32, D6 USPFO for North Dakota, PO DAHA05, Z0 USPFO for Colorado, ATTN: Box 5511, Bismarck, ND 58506–5511 Mail Stop 53, 660 South Aspen Street, DAHA33, 9M USPFO for Ohio, 2811 West Building 1005, Aurora, CO 80011–9511 Dublin-Granville Road, Columbus, OH DAHA06, 1S USPFO for Connecticut, State 43235–2788 Armory, ATTN: Contracting Officer, 360 DAHA34, 9J USPFO for Oklahoma, 3535 Broad Street, Hartford, CT 06105–3795 Military Circle NE, Oklahoma City, OK DAHA07, 9A USPFO for Delaware, Grier 73111–4398 Building, 1161 River Road, New Castle, DE DAHA35, 1X USPFO for Oregon, ATTN: 19720–5199 USPFO–P, PO Box 14840, Salem, OR 97309– DAHA08, 2W USPFO for Florida, PO Box 5008 1008, St. Augustine, FL 32085–1008 DAHA36, DL USPFO for Pennsylvania, De- DAHA09, C0 USPFO for Georgia, PO Box partment of Military Affairs, ATTN: Con- 17882, Atlanta, GA 30316–0882 tracting Officer, Annville, PA 17003–5003 DAHA10, CU USPFO for Idaho, 3489 West DAHA37, 9W USPFO for Rhode Island, 330 Harvard Street, Boise, ID 83705–5004 Camp Street, Providence, RI 02906–1954 DAHA11, 9E USPFO for Illinois, ATTN: DAHA38, DU USPFO for South Carolina, 9 PFOIL–PC, 1301 North McArthur Boule- National Guard Road, Columbia, SC 29201– vard, Springfield, IL 62702–2399 4766 DAHA12, 4E USPFO for Indiana, 2002 South DAHA39, VQ USPFO for South Dakota, 2823 Holt Road, Indianapolis, IN 46241–4839 West Main Street, Rapid City, SD 57702– DAHA13, 9L USPFO for Iowa, Camp Dodge, 8186 7700 NW Beaver Drive, Johnston, IA 50131– DAHA40, YX USPFO for Tennessee, Powell 1902 Avenue, PO Box 40748, Nashville, TN 37204– DAHA14, 4Z USPFO for Kansas, 2737 South 0748 Kansas Avenue, Topeka, KS 66611–1170 DAHA41, 9C USPFO for Texas, ATTN: Con- DAHA15, 6P USPFO for Kentucky, Boone tracting Officer, PO Box 5218, Austin, TX National Guard Center, 120 Minuteman 78563–5218 Parkway, Frankfort, KY 40601–6192 DAHA42 USPFO for Utah, PO Box 2000, DAHA16, 0A USPFO for Louisiana, Building Draper, UT 84020–2000 39, New Orleans, LA 70146–0330 DAHA43 USPFO for Vermont, Camp John- DAHA17, 0B USPFO for Maine, Camp Keys, son, Building 3, PO Box 2000, Colchester, Augusta, ME 04333–0032 VT 05446–3004 DAHA18, 0C USPFO for Maryland, State DAHA44, ZR USPFO for Virginia, Building Military Reservation, 301 Old Bay Lane, 316, Fort Pickett, Blackstone, VA 23824– Havre de Grace, MD 21078–4094 6316 DAHA19, 0D USPFO for Massachusetts, DAHA45, ZX USPFO for Washington, Build- ATTN: Contracting Officer, 50 Maple ing 32, Camp Murray, Tacoma, WA 98430– Street, Milford, MA 01757–3604 5000 DAHA20, 9F USPFO for Michigan, 3111 West DAHA46 USPFO for West Virginia, 50 Ar- Joseph Street, Lansing, MI 48913–5102 mory Road, Buckhannon, WV 26201–2396
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DAHA47, 9G USPFO for Wisconsin, 8 Madi- ATTN: AFLG–PRC, 1301 Anderson Way SW, son Boulevard, Camp Douglas, WI 54618– Fort McPherson, GA 30330–1096 5002 DAKF19, 1G Directorate of Contracting, DAHA48 USPFO for Wyoming, 5500 Bishop Fort Riley, ATTN: AFZN–DOC, PO Box Boulevard, Cheyenne, WY 82009–3320 2248, Fort Riley, KS 66442–0248 DAHA49 USPFO for the District of Colum- DAKF23, 1H Directorate of Contracting, bia, Naval District of Washington, 189 Fort Campbell, ATTN: AFZB–DOC, Build- Poremba Court SW, Washington, DC 20373 ing 2174, 131⁄2 & Indiana Streets, Fort DAHA50 USPFO for Hawaii, 4208 Diamond Campbell, KY 42223–1100 Head Road, Honolulu, HI 96816–4495 DAKF24, G1 Directorate of Contracting, DAHA51, 2Z USPFO for Alaska, P&C Divi- Fort Polk, ATTN: AFZX–DOC, PO Drawer sion, PO Box B, Camp Denali, Fort Rich- 3918, Fort Polk, LA 71459–5000 ardson, AK 99505–2600 DAKF29, 2G Directorate of Contracting, DAHA70 USPFO for Puerto Rico, PO Box Fort Dix, ATTN: AFRC–FA–DC, Building 34069, Fort Buchanan, PR 00904–4068 5418, 3rd Floor, South Scott Plaza, Fort DAHA72 USPFO for Virgin Islands, RR #2, Dix, NJ 08640–6150 Box 9200, Kinghill, VI 00850–9200 DAKF36, 1M Directorate of Contracting, DAHA74 USPFO for Guam, 622 East Harmon Fort Drum, ATTN: AFZS–DOC, 45 West Industrial Park Road, Tamuning, GU 96911– Street, Fort Drum, NY 13602–5220 4422 DAKF40, 1N Installation Business Office, DAHA90, 2Y National Guard Bureau, Con- Fort Bragg Contracting, ATTN: AFZA– tracting Support, 1411 Jefferson Davis IBO–C, PO Drawer 70120, Fort Bragg, NC Highway, Arlington, VA 22202–3231 28307–0120 DAJA01, 9Q RCO Vicenza, ATTN: AEUCC–I, DAKF48, 1Q Headquarters, III Corps and Unit 31401, Box 33, APO AE 09630–4033 Fort Hood, III Corps and Fort Hood Con- DAJA02, G5 RCO Seckenheim, ATTN: tracting Command, ATTN: AFZF–CC, 761st AEUCC–S, Unit 29331, APO AE 09266–0509 Tank Batallion Avenue, Room W103, Fort DAJA16, 8X RCO Grafenwoehr, ATTN: Hood, TX 76544–5025 AEUCC–G, Unit 28130, APO AE 09114–8130 DAKF57, 1T Directorate of Contracting, DAJA22, G6 Wiesbaden Regional Con- Fort Lewis, ATTN: AFZH–DOC MS 19, tracting Center, G6 ATTN: AEUCC–C, CMR Building 2015, Box 339500, Fort Lewis, WA 410, Box 741, APO AE 09096–0741 98433–9500 DAJA61, 9Z RCO Benelux, ATTN: AEUCC– B, PSC 79, Box 003, APO AE 09724–0003 DAKF61, 1U Directorate of Contracting, DAJA77 HQ, USACCE (Contracting Cell, Fort McCoy, ATTN: AFRC–FM–DC, Build- Deployed), ATTN: AEUCC–O, Unit 29331, ing 2103, 8th Avenue, Fort McCoy, WI 54656– APO AE 09266–0509 5000 DAJA89, F0 RCO Wuerzburg, ATTN: DAMD17, B3 U.S. Army Medical Research AEUCC–W, Unit 26622, APO AE 09244–6622 Acquisition Activity, ATTN: MCMR–AAA, DAJA90, 0T RCO Bad Kreuznach, ATTN: 820 Chandler Street, Frederick, MD 21702– AEUCC–BK, Unit 24335, APO AE 09252–4355 5014 DAJB03, F4 HQ, EUSA, Asst Cofs Acquisi- DAMT01, 0E HQ, MTMC, ATTN: MTAQ–A, tion Mgt, ATTN: EAAQ (PARC), Unit 15236, 5611 Columbia Pike, Falls Church, VA APO AP 96205–0009 22041–5050 DAJN01, 1B U.S. Southern Command, Base DAMT02, G3 Deployment Support Com- Operations Support Activity Miami, 7955 mand (East), ATTN: MTDCE–LO–C, Build- NW 12th Street, Suite 450, Miami, FL 33126– ing 42/7, Military Ocean Terminal, Ba- 1823 yonne, NJ 07002–5302 DAJN02, 8V Fort Buchanan Contracting Of- DAMT03, G4 Deployment Support Com- fice, ATTN: SOFB–DOC, Building 556, Fort mand (West), ATTN: MTDCW–PAL–CO, Buchanan, PR 00934–5049 Building 1, Alaska Street, Room 2336, Oak- DAJN21, 1V Theater Support Brigade, Pan- land, CA 94626–5000 ama, Directorate of Contracting, ATTN: DAPCO1, 1K U.S. Army, Pacific, Office of SOCO–CO, Unit 7155, APO AA 34004–5000 the ACSAM, ATTN: APAM, Building T–115, DAKF04, ZE Directorate of Contracting, B Street, Fort Shafter, HI 96858–5100 Fort Irwin, ATTN: AFZJ–DC, PO Box 10039, DAPC49, 8U U.S. Army Garrison, Alaska, Fort Irwin, CA 92310–0039 Directorate of Contracting, ATTN: APVR– DAKF06, 1C Directorate of Contracting, RDOC, PO Box 5–525, Fort Richardson, AK Fort Carson, ATTN: AFZC–DOC, 1850 99505–0525 Mekong Street, Building 6222, Fort Carson, DAPC50, CJ U.S. Army Garrison, Hawaii, CO 80913–4323 Directorate of Contracting, ATTN: APVG– DAKF10, 1D Directorate of Contracting, GK, Building 520, Pierce Street, Fort Fort Stewart, ATTN: AFZP–DC, 1042 Wil- Shafter, HI 96858–5025 liam H. Wilson Avenue, Suite 219, Fort DASA01, G0 U.S. Army Central Command— Stewart, GA 31314–3322 Saudi Arabia, Directorate of Contracting, DAKF11, 1E Army Atlanta Contracting ATTN: ARCENT–SA, Eskan Village Ri- Center, HQ, U.S. Army Forces Command, yadh, Saudi Arabia, APO AE 09852
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DASA02 U.S. Army Central Command—Ku- N00022, ML*, MQ*, NV*, MLZ Contracting wait, ATTN: ARCENT–KU–DOC, Camp Officer, Chief of Naval Personnel, 2 Navy Doha, Kuwait, APO AE 09889–9900 Annex, Washington, DC 20370–2000 DASA03 ARCENT Contracting Office, N00023, 4J*, L5*, 4J0–9 Commander, Naval ATTN: AFRD–PARC, Building 363, Fort Supply Systems Command, PO Box 2050, McPherson, GA 30330–7000 5450 Carlisle Pike, Mechanicsburg, PA DASA04 U.S. Army Central Command— 17055–0791 Qatar, ATTN: ARCENT–QA–DOC, Doha, N00024, EH*, U0*, EH0–9 Commander, Naval Qatar, APO AE 09898 Sea Systems Command, 2531 Jefferson DASC01, YJ HQ USAINSCOM, Directorate Davis Highway, Arlington, VA 22242–5160 of Contracting, ATTN: IAPC–DOC, 8825 N00025, EJ*, FZ*, EJ0–9 Commander, Naval Beulah Street, Fort Belvoir, VA 22060–5246 Facilities Engineering Command, Wash- DASC02, YV National Ground Intelligence ington Navy Yard, 1322 Patterson Avenue, Center, ATTN: IANG–LOG, 220 Seventh Suite 1000, Washington, DC 20374–5362 Street NE, Charlottesville, VA 22902–5396 N00030, EK*, EKO–9 Strategic Systems Pro- DASG60, CB U.S. Army Space and Strategic grams, 3801 Nebraska Avenue, Washington, Defense Command, Deputy Commander, DC 20393–5446 ATTN: SMDC–CM–AP, PO Box 1500, Hunts- N00033, EL*, EL0–9 Commander, Military ville, AL 35807–3801 Sealift Command, Washington Navy Yard, DASG62, CH U.S. Army Space Command, 914 Charles Morris Court SE, Washington, ATTN: SMDC–AR–CM, 1670 North Newport DC 20398–5540 Road, Suite 211, Colorado Springs, CO 80916–2849 N00038, (MAJ00011), LB–5 Commander-in- DASW01, F7 Defense Supply Service—Wash- Chief, U.S. Pacific Command, Box 64017, ington, ATTN: Policy and Compliance, 5200 Camp H. M. Smith, HI 96861–4017 Army Pentagon, Room 1D245, Washington, N00039, NS*, NS0–9 Commander, Space and DC 20310–5200 Naval Warfare Systems Command, 4301 Pa- DASW02, 1W Joint Visual Information Ac- cific Highway, San Diego, CA 92110–3127 tivity, ATTN: JDHQS–AVIC–W, 601 North N00061, NL*, NLZ Commander-in-Chief, U.S. Fairfax Street, Room 334, Alexandria, VA Naval Forces, Europe, (London, UK), FPO 22314–2007 AE 09499–0153 DATM01, 0R U.S. Army ATEC Contracting N00062, 8A*, L9*, R0*, 8A0–9 Chief of Naval Activity, ATTN: CSTE–CA, PO Box Y, Fort Education and Training, Code 013, NAS, Hood, TX 76544–0770 Pensacola, FL 32508–5100 N00063, NT*, NTZ Naval Computer and Tele- PART 3—NAVY ACTIVITY ADDRESS communications Command, 4401 Massachu- NUMBERS setts Avenue NW, Washington, DC 20394– *An asterisk indicates a two-digit code of a 5460 major command that is shared with subordi- N00069, 8Q*, 8QZ Naval Security Group HQ, nate activities. Such subordinate activities 9800 Savage Road, Suite 6585, Fort George will indicate the Unit Identification Code of Meade, MD 20775–6585 the major command in parentheses, e.g., N00102, EN Commander, Portsmouth Naval (MAJ00011). Shipyard, Building 153, 6th Floor, Ports- mouth, NH 03804–5000 N00011, LB*, LBZ Chief of Naval Operations, N00104, EP, EQ Commander, Naval Inven- 2000 Navy Pentagon, Washington, DC 20350– tory Control Point, 5450 Carlisle Pike, Box 2000 2020, Mechanicsburg, PA 17055–0788 N00012, HX*, V8*, V8Y Assistant for Admin- istration, Under Secretary of the Navy, N00105, JT Commander, Naval Ambulatory 1000 Navy Pentagon, Washington, DC 20350– Care Center, 1 Ayres Circle, Building H–1, 1000 Portsmouth, NH 03804–5000 N00013, MR Judge Advocate General, Hoff- N00123, ES Commanding Officer, Fleet and man Building 2, Room 8N45N, 200 Stovall Industrial Supply Center, 937 North Harbor Street, Alexandria, VA 22332–2400 Drive, San Diego, CA 92132–0060 N00014, EE*, EE0–9 Office of Naval Re- N00124, M5 Commanding Officer, Naval War search, 800 North Quincy Street, Arlington, College, 686 Cushing Road, Newport, RI VA 22217–5660 02841–1207 N00015, L0*, L0Z Director, Office of Naval N00128, EU Supply Department, Naval Ad- Intelligence, 4251 Suitland Road, Wash- ministrative Command, Naval Training ington, DC 20395–5720 Station, Great Lakes, IL 60088–5300 N00018, MC*, MD*, J5*, QA*, MCZ Chief, Bu- N00129, EV Commanding Officer, Submarine reau of Medicine and Surgery, 2300 E Base, New London, PO Box 156, Code 1150, Street NW, Washington, DC 20372–5300 Groton, CT 06349–5156 N00019, EF*, GU*, EF0–9 Commander, Naval N00140, EX, LA Officer-in-Charge, Fleet and Air Systems Command (Code T), 47123 Buse Industrial Supply Center, Norfolk, Detach- Road, Unit IPT, Patuxent River, MD 20670– ment Philadelphia, 700 Robbins Avenue, 1547 Building 2B, Philadelphia, PA 19111–5083
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N00153, N0 Governor, Naval Home, 01800 N00204, FN Commanding Officer, Naval Air East Beach Boulevard, Gulfport, MS 39501– Station Pensacola, 395 Millington Avenue, 3111 Pensacola, FL 32508–5014 N00158, 3V Commanding Officer, Naval Air N00205, FP Commanding Officer, Naval Sup- Station, Joint Reserve Base, PO Box 21, port Activity New Orleans, 2300 General Willow Grove, PA 19090–5021 Meyer Avenue, New Orleans, LA 70142–5000 N00161, FA Superintendent, U.S. Naval N00206 Commanding Officer, Naval Air Sta- Academy, 121 Blake Road, Annapolis, MD tion Joint Reserve Base, 400 Russel Ave- 21402–5000 nue, Building 31, Belle Chasse, LA 70143– N00162, (MAJ00018), MDG–H Commanding 5012 Officer, Naval Medical Clinic, 250 Wood N00210, (MAJ00062) Commanding Officer, Road, Annapolis, MD 21402–5050 Naval Training Center Great Lakes, Build- N00164, FC Commander, Crane Division, ing 3200, Code N23, 2601A Paul Jones Street, Naval Surface Warfare Center, 300 Highway Great Lakes, IL 60088–5127 361, Building 64, Crane, IN 47522–5001 N00211, (MAJ00018), MCQ–S Commanding N00166, (MAJ00011), LC0–1 Commanding Of- Officer, Naval Hospital, Hospital Supply, ficer, Naval Air Facility, 1 San Diego Loop, Building 1H, Great Lakes, IL 60088–5230 Building 3198, Andrews Air Force Base, N00213, H4 Commanding Officer, Naval Air Washington, DC 20762–5518 Station Key West, PO Box 9030, Building N00167, FD Commander, Carderock Divi- A–314, Key West, FL 33040–9001 sion, Naval Surface Warfare Center, 9500 MacArthur Boulevard, West Bethesda, MD N00215, 3W Commanding Officer, Naval Air 20817–5700 Station, 8100 West Jefferson Boulevard, N00168, FE Commanding Officer, National Dallas, TX 75211–9501 Naval Medical Center, 8901 Wisconsin Ave- N00216, FR Commanding Officer, Naval Air nue, Building 54, Bethesda, MD 20889–5600 Station, 1001 D Street, Corpus Christi, TX N0017A Atlantic Fleet Weapons Training 78419–5021 Facility, Roosevelt Roads, PSC 1008, Box N0022A Commander, Afloat Training Group 3023, Naval Station, FPO AA 34051–9000 Atlantic, 8952 First Street, Suite 150, Nor- N00171, N5 Commandant, Naval District folk, VA 23511–3799 Washington, Washington Navy Yard, 1014 N N00231, (MAJ00018), J54 Commanding Offi- Street SE, Suite 200, Washington, DC 20374– cer, Naval Medical Clinic, 2200 Lester 5001 Street, Quantico, VA 22134–6050 N00173, FF Naval Research Laboratory, 4555 N00232, (MAJ00018), MCB–F Commanding Overlook Avenue SW, Washington, DC Officer, Naval Hospital Jacksonville, 20375–5320 Building H–2091, Code 0603, Jacksonville, N00174, FG Commander, Indian Head Divi- FL 32214–5000 sion, Naval Surface Warfare Center, 101 N00244 NW—Fleet and Industrial Supply Cen- Strauss Avenue, Building 1558, Indian ter San Diego, 937 North Harbor Drive, San Head, MD 20640–5035 Diego, CA 92132–0060 N00178 Commander, Dahlgren Division, N00245, (MAJ00070), LPN Commanding Offi- Naval Surface Warfare Center, 17320 Dahl- cer, Naval Station, 3455 Senn Road, San gren Road, Dahlgren, VA 22448–5100 Diego, CA 92136–5084 N00181, FJ Commander, Norfolk Naval N00246, H5 Naval Air Station, North Island, Shipyard Facility Support, Public Works San Diego, CA 92135–5112 Center, PO Box 5000, Portsmouth, VA N00250 FW Commander, Navy Exchange 23709–5000 Service Command, 3280 Virginia Beach N00183, JX Commanding Officer, Naval Med- Boulevard, Virginia Beach, VA 23452–5724 ical Center, 54 Lewis Minors Street, Build- ing 250, Portsmouth, VA 23708–2297 N00251 FX Commander, Puget Sound Naval N00187, 3J Commanding Officer, Navy Pub- Shipyard, 1400 Farragut Avenue, Brem- lic Works Center, Naval Station, 9742 erton, WA 98314–5000 Maryland Avenue, Norfolk, VA 23511–3095 N00253 FY Commanding Officer, Keyport N00188, H2 Commanding Officer, Naval Air Division, Naval Undersea Warfare Center, Station, 9420 3rd Avenue, Norfolk, VA 614 Dowell Street, Keyport, WA 98345–7610 23511–2197 N00259, (MAJ00018), JE Commanding Offi- N00189, FK, H3 Commanding Officer, Fleet cer, Naval Medical Center, 34800 Bob Wil- and Industrial Supply Center, 1968 Gilbert son Drive, Suite 1800, San Diego, CA 92134– Street, Suite 600, Norfolk, VA 23511–3392 5001 N00196, 3K Commanding Officer, Naval Air N00262, (MAJ00027, MUG Marine Air Corps Station, Atlanta, 1000 Halsey Avenue, Facility, 2100 Belleau Avenue, Quantico, Marietta, GA 30060–5099 VA 22134–5063 N00203, (MAJ00018), MCL Commanding Offi- N00275, 3M Commanding Officer, Naval Air cer, Naval Hospital Pensacola, 6000 West Reserve Activity Chicago, 615 Barry Road, Highway 98, Building 2269, Pensacola, FL Naval Training Center, Building 190, Great 32512–0003 Lakes, IL 60088–5707
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N00281, (MAJ00062) L90–1 Commanding Offi- N00308A, (MAJ00033) Commanding Officer, cer, Fleet Combat Training Center, Atlan- Military Sealift Command Office Port Ca- tic Dam Neck, 1912 Regulus Avenue, Vir- naveral, PO Box 4066, Patrick AFB, FL ginia Beach, VA 23461–2098 32925–7468 N00285, (MAJ00018) MDR Commanding Offi- N00434A, (N00022), MQL Officer-in-Charge, cer, Naval Hospital, 10651 E Street, Corpus United States Navy Band, Washington Christi, TX 78419–5200 Navy Yard, Building 105, 901 M Street SE, N00311, GA Commander, Pearl Harbor Naval Washington, DC 20374–5054 Shipyard, PO Box 400, 401 Avenue E, Suite N00463A, (MAJ00024), EHC Commanding Of- 124, Pearl Harbor, HI 96860–5350 ficer, Navy Experimental Diving Unit, 321 N0031A, Commander, (MAJ00060), J0K-M Bullfinch Road, Panama City, FL 32407– JOY-Z Naval Special Warfare Group Two, 7015 Naval Amphibious Base, Little Creek, Nor- N00534A, (MAJ00019), EFG Commanding Of- folk, VA 23521–5340 ficer, Pacific Missile Range Facility (Code N00318, (MAJ00027, MUK-M Contracting Of- 7040), Barking Sands, Kokaha, HI 96752–0128 fice (Code LSCP), Marine Corps Base Ha- N00597A, (MAJ00012), HXP-W Director, Of- waii, Supply Dept, PO Box 63063, MCBH fice of Civilian Personnel Management, Kaneohe Bay, HI 96744–3063 Southeast Region, Building A–67, Naval N00367, (MAJ00023), L5G Commanding Offi- Base, Norfolk, VA 23511–6098 cer, Navy Fleet Support Office, 5450 Car- N00608A, Commanding Officer, National lisle Pike, PO Box 2010, Building 409, Code Naval Regional Dental Center, 8901 Wis- 9243, Mechanicsburg, PA 17055–0787 consin Avenue, Building 2, Bethesda, MD N00383, GB, GC Commanding Officer, Naval 20889–5602 Inventory Control Point, 700 Robbins Ave- N00610A, (MAJ00062), L98 Commanding Offi- nue, Philadelphia, PA 19111–5098 cer, Naval Diving and Salvage Training N00391, EP, EQ, GB, GC Commanding Offi- Center, 350 South Crag Road, Panama City, cer, Naval Inventory Control Point, 700 FL 32407–7016 Robbins Avenue, Philadelphia, PA 19111– N00618A, (MAJ00062), 8AE Commanding Of- 5098 ficer, School of Music, 1420 Gator Boule- N00406, GE Commanding Officer, Fleet and vard, Norfolk, VA 23521–2617 Industrial Supply Center, Puget Sound, 467 N00622A Commanding Officer, Naval School W Street, Bremerton, WA 98314–5100 of Health Sciences, 8901 Wisconsin Avenue, N00421, M8 Naval Air Warfare Center, Air- Building 141, Bethesda, MD 20889–5611 craft Division, 47253 Whalen Road, Building N00708A, (MAJ00024), U0A-B Naval Warfare 588, Patuxent River, MD 20670–1463 Engineering Activity, Port Hueneme Divi- N00600 GG Officer-in-Charge, Fleet and In- sion, Naval Surface Warfare Center, PO dustrial Supply Center, Norfolk, Detach- Box 10, Yorktown, VA 23691–0010 ment Washington, Washington Navy Yard, Building 200 901 M Street SE, Washington, N009158 Commander, Reserve Patrol Wing DC 20374–5014 Atlantic, 513 Park Crescent, Norfolk, VA N00604 NQ Commanding Officer, Fleet and 23511–4091 Industrial Supply Center, PO Box 300, N30530, (MAJ00023) Commanding Officer, Pearl Harbor, HI 96860–5300 Naval Air Reserve Center, 2988 North Ac- N00620, H6 Commanding Officer, Naval Air cess Road, Columbus, OH 43217–1199 Station, Whidbey Island, 1170 West Lex- N30829, (MAJ00061), NL0–2 Officer-in- ington Street, Oak Harbor, WA 98278–5000 Charge, Naval Support Activity, Naples N00639, H7 Commanding Officer, Naval Sup- Detachment (Gaeta, Italy), PSC 811, port Activity Memphis, 5720 Integrity ADMIN, FPO AE, NA 09609–1001 Drive, Building S–242, Millington, TN N30929, Commanding Officer, Navy Flight 38054–5045 Demonstration Squadron (Blue Angels), 390 N00702, (MAJ00069), 8QM-N Commander, San Carlos Road, Suite A, Pensacola, FL Naval Security Group Activity, 10 Fabbri 32508–5508 Green, Suite 70, Winter Harbor, ME 04693– N31020, (MAJ00011), LBP-Y Commanding Of- 0900 ficer, Naval Reserve Information Systems N00743, 8N Commanding Officer, Naval Com- Office, 4400 Dauphine Street, New Orleans, puter and Telecommunications Station LA 70146–0001 Puerto Rico, PSC 1008, Box 3022, FPO AA, N31188 Commanding Officer, Naval Security PR 34051–8200 Group Activity Sugar Grove, Building 324, N00950, 8R Commanding Officer, Naval Com- Sugar Grove, WV 26815–5399 puter and Telecommunications Area Mas- N31699, (MAJ00012), V8Z Office of the Under ter Station, EASTPAC 500 Center Street, Secretary of the Navy, 1000 Navy Pen- Wahiawa, HI 96786–3050 tagon, Room 4E732, Washington, DC 20350– N001024, (MAJ00023) Commanding Officer, 1000 USS Constitution, Building 5, Boston Na- N31954, (MAJ00062), R0X Submarine Train- tional Historical Park, Charlestown, MA ing Facility, 544 White Road, San Diego, 02129–1797 CA 92106–3550
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N31980, (MAJ00033) Commander, Military 1063 Tennessee Avenue, Kings Bay, GA Sealift Command, 140 Sylvester Road, San 31547–2606 Diego, CA 92106–3521 N42985, LB Chief, Naval Forces Division, N32205, (MAJ00033) Commander, Military U.S. Military Training Mission, Kingdom Sealift Command, Contracts and Business of Saudi Arabia, Unit 61300, Box 5, APO AE, Management West, 140 Sylvester Road, San NA 09803–1300 Diego, CA 92106–3521 N44249 Officer-in-Charge-of-Construction, N32263 Officer-in-Charge-of-Construction, Naval Facilities Engineering Command Mediterranean Contracts Office Naples, Contracts, 1005 Michael Road, Camp PSC 817, Box 100, FPO AE, NA 09622–0100 Lejeune, NC 28547–2521 N32434 Commander, Fleet and Industrial N44250 Officer-in-Charge-of-Construction, Service Center (Yokosuka Det Okinawa), Naval Facilities Engineering Command Purchasing and Contracting Kadena, PSC Contracts, Keflavik IC, PSC 1003, Box 28, 480, FPO AP, NA 96370–0006 FPO AE, NA 09728–0328 N32515, (MAJ00011), VSF Patrol Wing One, N44251 Officer-in-Charge-of-Construction, Detachment Kadena, Supply Department, Naval Facilities Engineering Command PSC 480, Box 055, FPO AP, NA 96370–0055 Contracts (Guantanamo), Naval Base PSC N3258A FZG—Navy Crane Center, Naval Fa- 1005, Box 37,FPO AE, NA 09593–0137 cilities Engineering Command, 10 Indus- N44255 Commanding Officer, Engineering trial Highway, Mail Stop 82, Lester, PA Field Activity, Northwest, 19917 7th Ave- 19113–2090 nue NE, Poulsbo, WA 98370–7570 N32778, (MAJ00070), 4LE Commander, Fleet N44416, (MAJ00023) Defense Printing Service Activities, Chinhae (Korea), PSC 479, FPO Northeast Area, 700 Robbins Avenue, 4JL AP, NA 96269–1100 Philadelphia, PA 19111–5093 N32960, K2 Commanding Officer, Navy Sup- N45045, (MAJ00012) V8A Navy Comptroller port Activity La Maddalena, PSC 816, FPO Standard Systems Activity Det., Raleigh AE, NA 09612–0006 Oaks Plaza Building, 3606 Austin Peay N33191 Commanding Officer, Engineering Highway, Memphis, TN 38128–3757 Field Activity Mediterranean, PSC 810, N45411, (MAJ00070) LPE Commanding Offi- Box 51, APO AE, NA 09622–0051 cer, ssault Craft #5 PO Box 555161, Camp N35697 Director, Defense Activity for Non- Pendleton, CA 92055–5003 Traditional Education Support, 6490 N45534, (MAJ00024) EHN AEGIS Combat Saufley Field Road, Pensacola, FL 32509– Flight Facility, Building V–10, Library K, 5243 Wallops Island, VA 23337–5000 N35949, (MAJ00018), J5S Commanding Offi- cer, Naval Hospital, Marine Corps Air N45610 Commanding Officer, Navy Consoli- Ground Combat Center, Box 788250, dated Brig, 1050 Remount Road, Building Twentynine Palms, CA 92278–8250 3107, Charleston, SC 29406–3515 N39088, (MAJ00022), NVF Commanding Offi- N45806 Officer-in-Charge-of-Construction, cer, Navy Recruiting Orientation Unit, 206 Naval Facilities Engineering Command South Avenue, Suite C, Pensacola, FL Contracts, 9324 Virginia Avenue, Norfolk, 32508–5102 VA 23511–3689 N39163, (MAJ00018), MDO–9 Commanding Of- N45809 Officer-in-Charge-of-Construction, ficer, Naval Hospital Sigonella, Italy, PSC Naval Facilities Engineering Command, 812, Box 2670, FPO AE, NA 09627–2670 Building 820, Naval Air Station Oceana, N39479, (MAJ00023) Commander, Naval Air Virginia Beach, VA 23460–5121 Reserve Activity, Selfridge ANGB, 41130 N45810 Officer-in-Charge-of-Construction, Castle Avenue, Building 1422, Selfridge Naval Facilities Engineering Command ANGB, MI 48045–5008 Contracts, Little Creek, 1450 Seventh N39539 Officer-in-Charge, U.S. Naval Air Pa- Street, Norfolk, VA 23521–2443 cific Repair Activity, Detachment Oki- N45854, (MAJ00011) LBE Commanding Offi- nawa, PSC 556, Box 222, FPO AP, NA 98636– cer, Fleet Surveillance Support Command, 0222 Chesapeake, 1298 Olympic Avenue, Chesa- N39830, (MAJ00030), EXE Directorate of peake, VA 23322–5010 Contracting (Code 52), Naval Security Sta- N46077 Director, (MAJ00033) Military Sealift tion, Building 18–139, 3801 Nebraska Avenue Command, TAGOS Project Office East, 2425 NW, Washington, DC 20393–5440 Stalwart Road, Suite 200, Norfolk, VA N39849, (MAJ00025) Officer-in-Charge, Navy 23521–3326 Public Works Detachment Philadelphia, N46450, L50–9 Officer-In-Charge, Fleet and U.S. Naval Base, Building 1, Philadelphia, Industrial Supply Center, Jacksonville De- PA 19112–5087 tachment, 930 USS Hunley Avenue, Room N42055 Commanding Officer, Beachmaster 214, Kings Bay, GA 31547–2617 Unit Two, 1745 10th Street, Norfolk, VA N46531, (MAJ00012), HX0–E Office of Civilian 23521–2942 Personnel Management, National Capital N42237, 7A Commanding Officer, Naval Sub- Region, 801 North Randolph Street, Arling- marine Base Public Works Department, ton, VA 22203–1977
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N46656, NP Telecommunication Management N53863, (MAJ00060), LHH Commander, Sur- Detachment West, 937 North Harbor Drive, face Warfare Development Group, 2200 Am- San Diego, CA 92132–5104 phibious Drive, Norfolk, VA 23521–2850 N47408, (MAJ00025), EJP–W Commanding Of- N55105, (MAJ00060), NMC Commanding Offi- ficer, Naval Facilities Engineering Com- cer, Amphibious Construction Battalion mand Contracts Office, Seabee Logistics Two, 1815 Seabee Drive, Norfolk, VA 23521– Center, Building 41, Code 27, 4111 San Pedro 2928 Street, Port Hueneme, CA 93043–4410 N55131, (MAJ00060), J0A–B Commanding Offi- N47634 NK—Naval Computer and Tele- cer, Cargo Handling and Port Group, 290 communications, Area Master Station, At- 4th Street, Williamsburg, VA 23185–8792 lantic, Detachment Pensacola, 130 West N55161 Commander, U.S. Seventh Fleet Rep- Avenue, Suite B, Pensacola, FL 32508–5111 resentative, Perth, Western Australia, N47764 (MAJ00023) Officer-in-Charge, Navy American Consulate Unit 11021, APO AP, Reserve Recruiting Command (Det Two), NA 96530–5000 Building 3400, Room 230, NTC, Great Lakes, N55271, (MAJ00070), LP8 Commander, Naval IL 60088–5709 N47767 Officer-in-Charge, Naval Reserve Re- Surface Group Pacific Northwest, 2000 cruiting Command Det 5, 4040 Blackburn West Marine View Drive, Everett, WA Lane, Suite 210, Burtonsville, MD 20866– 98207–2400 1170 N55322, (MAJ00060), LHN Explosive Ord- N47898 (MAJ00074), QUA–B Naval Special nance Disposal Group Two, 821 Blasters Warfare Development, Fleet Combat Cove, Fort Story, VA 23459–5024 Training Center, Atlantic, Dam Neck, N55520 Officer-in-Charge, Commander-in- Building 310, Virginia Beach, VA 23461–5200 Chief Pacific Command Representative, N48066 Commanding Officer, Navy Recruiting Civil Action Detachment Guam, PSC 455, District New England 495 Summer Street, Box 181, FPO AP, GU 96540–2970 Boston, MA 02210–2103 N55575, (MAJ00011), LPM Strategic Commu- N48067, (MAJ00023) Commanding Officer, nications, Wing One, Tinker Air Force Navy Recruiting District Chicago, 3400 Base, Oklahoma, OK 73145–8701 Patton Road, Suite 300, Fort Sheridan, IL N57012, GQ Commander, Naval Air Force, 60037–1288 U.S. Atlantic Fleet, 1279 Franklin Street, N48068, (MAJ00023) Commanding Officer, Norfolk, VA 23511–2494 Navy Recruiting District Columbus, Fed- N57016, (MAJ00060), J0N Commander, Sub- eral Building, Room 609, 200 North High marine Force, U.S. Atlantic Fleet, 7958 Street, Columbus, OH 44142–2474 Blandy Road, Norfolk, VA 23511–2494 N48069, (MAJ00023) Commanding Officer, N57023, GT Commander, Operational Test Navy Recruiting District Michigan, 1155 and Evaluation Force, 7970 Diven Street, Brewery Park Boulevard, Suite 320, De- Norfolk, VA 23505–1498 troit, MI 48207–4221 N57032, (MAJ00061), NLF–H Commanding N48142, (MAJ00012), V80–1, Assistant Sec- Officer, Naval Air Facility, Mildenhall, retary of the Navy, Research, Development UK, RAF Mildenhall, Unit 5020, PSC 37, and Acquisition, 1000 Navy Pentagon, Box 485, FPO AE, NA 09459–0485 Washington, DC 20350–1000 N57066 Commander, Naval Beach Group One, N48389, Commanding Officer, Joint Maritime 3600 Tarawa Road, San Diego, CA 92155–5592 Facility, St. Mawgawn, UK,PSC 804, Box 3, N57070, (MAJ00060), LH7 Commander, Un- FPO, AE, NA 09409–1003 dersea Surveillance, U.S. Atlantic Fleet, N48398, (MAJ00070), 4LD Commander, U.S. 373 Bullpup Street, Virginia Beach, VA Naval Forces Alaska, PO Box 25517, Ju- 23461–2198 neau, AK 99802–5517 N48984, (MAJ00023), L5E Defense Printing N57092, (MAJ00070), V5U Commander, Naval Service Detachment Office, 901 South Inshore Undersea Warfare Group One, Drive, Scott Air Force Base, IL 62225–5106 Building 184, PO Box 357140, NOLF Imperial N49399 (MAJ00060), NM0–9 Commanding Offi- Beach, San Diego, CA 92135–7140 cer, Naval Submarine Support Facility, N57095, (MAJ00060), LH0–1 Commander, At- Supply Operations, New London, Box 500, lantic Fleet Headquarters Support Activ- Groton, CT 06349–5500 ity, 1918 Blandy Road, Suite 100, Norfolk, N49872, (MAJ00011), V85 Commander, Naval VA 23551–2419 Media Center, Naval Station Anacostia, N57100, (MAJ00070), LP0–1 Commander, Building 168, 2701 South Capital Street SW, Naval Special Warfare Group One, 3632 Washington, DC 20373–5819 Guadacanal Road, San Diego, CA 92155–5583 N53210, (MAJ00060), LHJ–K Assault Craft N60087, 3P Commanding Officer, Naval Air Unit 2, Naval Amphibious Base, Little Station, 700 Fitch Avenue, Brunswick, ME Creek, 2901 Amphibious Drive, Norfolk, VA 04011–5000 23521–3322 N60138 Officer-in-Charge-of-Construction, N53825 GY Commander, Naval Surface Force, Fleet Industrial Supply Center, Cheatham U.S. Atlantic Fleet, 1430 Mitscher Avenue, Annex, 108 Sanda Avenue, Williamsburg, Building NH21, Norfolk, VA 23551–2494 VA 23187–8792
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N60241, 3X Commanding Officer, Naval Air N62285, (MAJ00065), S00–1 Superintendent, Station Kingsville, 802 Dealey Avenue, Naval Observatory, 3450 Massachusetts Av- Suite 209, Kingsville, TX 78363–5027 enue NW, Washington, DC 20390–5420 N60495, 3T Commanding Officer, Naval Air N62306, 7C Commanding Officer, Naval Station, 4755 Pasture Road, Fallon, NV Oceanographic Office, 1002 Balch Boule- 89496–5000 vard, Stennis Space Center, MS 39552–5001 N60508, 4Q Commanding Officer, Naval Air N62367, (MAJ00023), 4JC Officer-in-Charge, Station Whiting Field, 7201 USS Wasp Navy Clothing and Textile Research Facil- Street, Milton, FL 32570–6141 ity, 21 Strathmore Road, PO Box 59, N60514, GL Commanding Officer, Naval Sta- Natick, MA 01760–0001 tion (Guantanamo Bay, Cuba), PSC 1005, N62395, JK Navy Public Works Center, PO Box 37, FPO AE, NA 09593–0137 (Mariana Islands, Guam), PSC 455, Box 195, N60701, 4M Naval Weapons Station, 800 Seal FPO AP, GU 96540–2937 Beach Boulevard, Seal Beach, CA 90740–5000 N62404, JJ Commander, Military Sealift N60951, (MAJ00060), LHU Fleet Accounting Command, Far East, PSC 471, Yokohama, and Disbursing Center, Operating Forces, Japan, FPO AP, NA 96347–2600 U.S. Atlantic Fleet, Norfolk, VA 23511–6096 N62410, (MAJ00022), MQ6 Commanding Offi- N61331, HR Commanding Officer, Coastal cer, Navy Recruiting District, PO Box 8667, Systems Station, Dahlgren Division, Naval Albuquerque, NM 87198–8667 N62412, (MAJ00022), MLR Commanding Offi- Surface Warfare Center, 6703 West Highway cer, Navy Recruiting District, 2400 Presi- 98, Panama City, FL 32407–7001 dents Drive, Suite 250, Montgomery, AL N61337, H0 Commanding Officer, Naval Hos- 36119–1616 pital Beaufort, 1 Pinckney Boulevard, N62414, (MAJ00023) Commanding Officer, Beaufort, SC 29904–6148 Navy Recruiting District, 111 West Huron N61339, HT Commanding Officer, Naval Air Street, Buffalo, NY 14202–2384 Warfare Center Training System Division, N62419 Commanding Officer, Navy Recruit- 12350 Research Parkway, Orlando, FL ing District, 9990 Richmond Avenue, Suite 32826–3275 200, Houston, TX 77042–4546 N61414, 4B Officer-in-Charge-of-Construc- N62421, (MAJ00022), MQM Commanding Offi- tion, Public Works Division Little Creek, cer, Navy Recruiting District, 8925 North 1450 Gator Boulevard, Code 026, Norfolk, Meridian Street, Room 250, Indianapolis, VA 23521–2626 IN 46260–2036 N61463 (MAJ00060), LHB–D, LH2–4 Com- N62422 Commanding Officer, Navy Recruit- mander, Naval Base Norfolk, 1530 Gilbert ing District, 4070 Boulevard Center Drive, Street, Suite 2200, Norfolk, VA 23511–2797 Jacksonville, FL 32207–2897 N61564, FS Commanding Officer, U.S. Naval N62427, (MAJ00022), MLP Commanding Offi- Hospital, PO Box 36, PSC 1005, Guanta- cer, Navy Recruiting District, 6910 Pacific namo Bay, Cuba, NA 09593–0136 Street, Suite 400, Omaha, NE 68106–1085 N61581, (MAJ00070), 4LT Commander, Fleet N62429, (MAJ00022), MLE Commanding Offi- Activities, Yokosuka Naval Base, PSC 473, cer, Navy Recruiting District, 1220 SW Box 1, FPO AP, NA 96349–1100 Third Avenue, Suite 576, Portland, OR N61685, (MAJ00065), S0A Naval Oceanog- 97204–2887 raphy Command Center (Guam), Box 12, N62430 Commanding Officer, Navy Recruit- FPO AP, NA 96540–2926 ing District, 801 Oberlin Road, Suite 120, N61726, QL Commanding Officer, Naval Am- Raleigh, NC 27605–1130 bulatory Care Center, Material N62431 Commanding Officer, Navy Recruit- Mangement, 1 Wahoo Drive, Building 449, ing District Command, 3410 West Broad Groton, CT 06349–5600 Street, Richmond, VA 23230–5004 N61751, (MAJ00018), MCK,M,N,P Com- N62432, (MAJ00022), MQG Navy Recruiting manding Officer, Naval Medical Research District, 1222 Spruce Street, St. Louis, MO Unit No. 3, Cairo (Egypt), PSC 452, Box 63103–2814 5000, FPO AE 09835–7000 N62435, (MAJ00022), MQE Commanding Offi- N61797 Commanding Officer, Fleet Training cer, Navy Recruiting District New Eng- Center Norfolk, 9549 Bainbridge Avenue, land, 495 Summer Street, Boston, MA Norfolk, VA 23511–2594 02210–2103 N62102, (MAJ00011), 9T9 Commanding Offi- N62437, (MAJ00022), MQ4 Commanding Offi- cer, Naval and Marine Corps Reserve Cen- cer, Navy Recruiting District, 1565 West ter, 801 Reeves Avenue, Terminal Island, Mockingbird Lane, Suite 500, Dallas, TX CA 90731–5992 75235–5006 N62254, (MAJ00070), 4LX Commander Fleet N62438, (MAJ00022), MLQ Commanding Offi- Activities, Okinawa Naval Air Facility, cer, Navy Recruiting District, 225 East 16th Kadena, PSC 480, Box SU/CR, FPO AP, NA Avenue, Suite 300, Denver, CO 80203–1607 96370–1150 N62440, (MAJ00022), MLT Commanding Offi- N62271, QE Commanding Officer, Naval Sup- cer, Navy Recruiting District, 10306 NW port Activity-Monterey Bay, 1 University Prairie View Road, Kansas City, MO 64153– Circle, Monterey, CA 93943–5000 1350
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N62441, (MAJ00022), MLG Commanding Offi- N62588, NR Commanding Officer, Naval Sup- cer, Navy Recruiting District, 5051 Rodeo port Activity (Naples, Italy), PSC 817, Box Road, Los Angeles, CA 90016–4795 5, FPO AE, NA 09619–1005 N62442 Commanding Officer, Navy Recruit- N62604, J4 Commanding Officer, Naval Con- ing District Atlanta, 2400 Herodian Way, struction Battalion Center, 5200 CBC 2nd Suite 400, Smyrna, GA 30080–8500 Street, Gulfport, MS 39501–5001 N62443, (MAJ00022),MLV Commanding Offi- N62638, (MAJ00011) LCN Commander, Naval cer, Navy Recruiting District, 6026 28th Av- Inshore Undersea Warfare Group Two, 111 enue South, Minneapolis, MN 55450–2700 Sanda Avenue, Cheatham Annex, Williams- N62444, (MAJ00022), NVA Commanding Offi- burg, VA 23185–5830 cer, Navy Recruiting District, 4400 Dau- N62643 Commanding Officer, Naval Ice Cen- phine Street, Building 602–2C, New Orleans, ter, 4521 Suitland Road, FB4, Washington, LA 70146–6400 DC 20395–5180 N62446, (MAJ00022) Commanding Officer, N62645, EG Commanding Officer, Naval Navy Recruiting District 128 North Broad Medical Logistics Command Fort Detrick, Street, Philadelphia, PA 19102–1483 521 Fraim Street, Frederick, MD 21702–5015 N62447, (MAJ00022) Commanding Officer, N62649, JY Commanding Officer, Fleet and Navy Recruiting District, 1000 Liberty Av- Industrial Supply Center, Yokosuka, PSC enue, Room 701, Pittsburgh, PA 15222–4094 473, Box 11, FPO AP, NA 96349–1500 N62448, (MAJ00022), MLN Commanding Offi- N62661, (MAJ00062) L97 Commanding Offi- cer, Navy Recruiting District San Fran- cer, Naval Education and Training Center, cisco, 1500 Broadway, Oakland, CA 94612– 47 Chandler Street, Code 56, Newport, RI 2096 02841–5000 N62449, (MAJ00022), MLC Commanding Offi- N62670, 8B Commanding Officer, Supervisor cer, Navy Recruiting District, 2901 3rd Ave- of Shipbuilding, Conversion and Repair, nue, Suite 250, Seattle, WA 98121–1042 USN, PO Box 280158, Mayport Naval Sta- N62467, JM Commanding Officer, Naval Fa- tion, Jacksonville, FL 32228–0158 cilities Engineering Command, Southern N62673, 8P Director, SUPSHIP Jacksonville Division, PO Box 190010, 2155 Eagle Drive, Detachment Charleston, 1661 Redbank North Charleston, SC 29418–9010 Road, Suite 104, Goose Creek, SC 29444–6511 N62470, JN Commanding Officer, Naval Fa- N62678, 8C Commanding Officer, Supervisor cilities Engineering Command, Atlantic of Shipbuilding, Conversion and Repair, Division, 1510 Gilbert Street, Norfolk, VA USN, Portsmouth, PO Box 215, Building 15, 23511–2699 2nd Floor, Portsmouth, VA 23705–0215 N62471, N7 Officer-in-Charge-of-Construc- N62686, T0 Defense Automated Printing tion, Pacific Division Naval Facilities En- Service, 645 Rickover Street SE, Suite 100, gineering Command Contracts, Mid-Pa- Washington, DC 20374–5030 cific, PO Box 104, Pearl Harbor, HI 96860– N62688, GW Commanding Officer, Naval Sta- 5421 tion Norfolk, 9583 Maryland Avenue, Nor- N62472, JP Commanding Officer, Naval Fa- folk, VA 23511–2895 cilities Engineering Command, Northern N62695 Auditor General/Director, Naval Division, 10 Industrial Highway, Mail Stop Audit Services Headquarters, Area #82, Lester, PA 19113–2090 Facilitator, Eastern Office, 5611 Columbia N62474, JR Commanding Officer, Engineer- Pike, Nassif Building, Falls Church, VA ing Field Activity, West Naval Facilities 22041–5080 Engineering Command, 900 Commodore N62700, (MAJ00023) 4JJ Defense Automated Drive, San Bruno, CA 94066–5006 Printing Service, Naval Training Center, N62477, JU Commanding Officer, Naval Fa- Building 2A, Great Lakes, IL 60088–5700 cilities Engineering Command, Chesapeake N62706, JS Defense Automated Printing Division, 901 M Street SE, Building 212, Service Detachment Office, San Diego Washington Navy Yard, Washington, DC Naval Station, Box 368148, 4300 Hoover Sta- 20374–2121 tion, San Diego, CA 92136–5595 N62507, (MAJ00070) 4LJ Commanding Offi- N62707, (MAJ00023), 4JS–U Defense Printing cer, Naval Air Facility (Atsugi, Japan), Service Detachment Office, Western Area, PSC 477, Box 4, FPO AP, NA 96306–1204, Pearl Harbor, Box 126, Pearl Harbor, HI N62537 Commander, Military Sealift Com- 96860–5120 mand, Europe, PSC 817, Box 23, FPO AE, N62709, NR Officer-in-Charge, Naval Sup- NA 09622–0023, port Unit, Allied Forces Southern Europe, N62576, (MAJ00023) 4JG Defense Printing Navy Element, Naples, Italy, PSC 813, Box Service Branch Office, 700 Robbins Avenue, 167, FPO AE, NA 09620–0120 Philadelphia, PA 19111–5094 N62735, (MAJ00070) 4LP, 4L3–9, 4LP–S Com- N62583, J3 Commanding Officer, Naval Con- manding Officer, Fleet Activities, (Sasebo, struction Battalion Center, 1000 23rd Ave- Japan), PSC 476, Box 1, FPO AP, NA 96322– nue, Port Hueneme, CA 93043–4301 1100 N62585, K3 Commander, Naval Activities, N62741, MB Commanding Officer, Navy Sup- United Kingdom, PSC 802, Box 26, FPO AE, ply Corps School, 1425 Prince Avenue, Ath- NA 09499–1000 ens, GA 30606–2205
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N62742, KB Commander, Naval Facilities N62913, (MAJ00022), MLL Commander, Engineering Command, Pacific Division, Naval Recruiting Area Three, 451 College Building 258, Makalapa Drive, Pearl Har- Street, PO Box 4887, Macon, GA 31208–4887 bor, HI 96860–7300 N62915, (MAJ00022), MQJ Commander, Navy N62755, J7 Officer-in-Charge-of-Contracts, Recruiting Area Five, 320B Dewey Avenue, Naval Facilities Engineering Command, Great Lakes, IL 60088–5135 Pearl Harbor, 4262 Radford Drive, Pearl N62918, (MAJ00022), MLA Commander, Navy Harbor, HI 96818–3296 Recruiting Area Eight, 1301 Clay Street, N62766, L1 Officer-in-Charge-of-Construc- Suite 610N, Oakland CA 94621–1929 tion, Naval Facilities Engineering Com- N62936 Commander Officer, Naval Security mand Contracts, Marianas (Guam), PSC Group Activity, 9800 Savage Road, Fort 455, Box 175, FPO AP, NA 96540–2200 Meade, MD 20755–6000 N62786, ER Commanding Officer, Supervisor N62980, (MAJ00022), MQR–Z Chief of Naval of Shipbuilding, Conversion and Repair, Personnel, Bureau of Naval Personnel, USN, 574 Washington Street, Bath, ME Navy Annex, Columbia Pike & Southgate 04530–1916 89, L8 Commanding Officer, Su- Road, Room 1410, Washington, DC 20370– pervisor of Shipbuilding, Conversion and 5000 Repair, USN, 73 Eastern Point Road, Grot- N62995, 4H Commanding Officer, Naval Air on, CT 06340–4909 Station, Sigonella (Italy), PSC 812, FPO N62791, NU Commanding Officer, Supervisor AE, NA 09627–1000 of Shipbuilding, Conversion and Repair, N63005, (MAJ00011), LBL–N Commanding Of- USN, 3600 Surface Navy Boulevard, PO Box ficer, Administrative Support Unit, Bah- 368119, San Diego, CA 92136–5066 rain, PSC 451, FPO AE, NA 09834–2800 N62793, 4T Commanding Officer, Supervisor N63032, KS Commanding Officer, U.S. Naval of Shipbuilding, Conversion and Repair, Station, Keflavik (Iceland), PSC 1003, Box USN, 4101 Washington Avenue, Building 2, 15, FPO AE, NA 09728–0315 Newport News, VA 23607–2787 N63038, 8M Commanding Officer, U.S. Naval N62795, 7F Commanding Officer, Supervisor Computer and Telecommunications Sta- of Shipbuilding, Conversion and Repair, tion, HC69, PO Box 1198, Cutler, ME 04626– USN, PO Box 7003, Pascagoula, MS 39568– 9603 7003 N63042, NZ Commanding Officer, Naval Air N62799, 7M Commanding Officer, Supervisor Station, 700 Avenger Avenue, Lemoore, CA of Shipbuilding, Conversion and Repair, 93246–5001 USN, Puget Sound, 2802 Wetmore Avenue, N63043, 3S Commanding Officer, Naval Air Suite 500, Everett, WA 98201–3518 Station, 1155 Rosebaum Avenue, Suite 13, N62814 Commanding Officer, U.S. Naval Meridian, MS 39309–5003 Medical Research Unit Two, Jakarta, Indo- N63055, (MAJ00011), LBJ Naval Investiga- nesia, Box 3, Unit 8132, APO AP, NA 96520– tive Service, Mid-Atlantic Region Norfolk, 8132 293 Independence Boulevard, Suite 525, N62836, L4 Officer-in-Charge-of-Construc- Pembroke 5, Virginia Beach, VA 23462–5400 tion, Naval Facilities Engineering Com- N63061, (MAJ00065), 50E Commanding Offi- mand Contracts, Far East Yokosuka, cer, Naval Atlantic Meteorology and Japan, PSC 473, Box 61, FPO AP, NA 96349– Oceanography Center, 9141 Third Avenue, 2903 Norfolk, VA 23511–2394 N62841 (MAJ00030), EKA Commanding Offi- N63082 Commanding Officer, Naval Tech- cer, Naval Ordnance Test Unit, PO Box nical Training Center, Corry Station, 640 1623, Cape Canaveral, FL 32920–1623 Roberts Avenue, Room 112, Pensacola, FL N62863, K4 Commanding Officer, U.S. Naval 32511–5138 Station (Rota, Spain), PSC 819, Box 8, FPO N63099 Commanding Officer, Naval Air Re- AE, NA 09645–1600 serve Jacksonville, PO Box 4, Building 966, N62873 (MAJ00018) Commanding Officer, Code N4, Jacksonville, FL 32212–0004 Navy Disease Vector Ecology and Control N63110 Commanding Officer, Chief of Naval Center, Building 937, PO Box 43, Naval Air Air Training, 250 Lexington Boulevard, Station, Jacksonville, FL 32212–0043 Suite 102, Corpus Christi, TX 78419–5041 N62907, KG Naval Plant Representative Of- N63117 Office-in-Charge, Navy Environ- fice, Applied Physics Laboratory, Johns mental & Preventive Medicine Unit Two, Hopkins Road, Laurel, MD 20810–2081 1887 Powhattan Street, Norfolk, VA 23511– N62909, (MAJ00014) Commanding Officer, Of- 3394 fice of Naval Research, International Field N63124, (MAJ00024), U00–9 Commanding Offi- Office, London, UK, PSC 802, Box 39, FPO cer, Supervisor of Shipbuilding, Conversion AE, NA 09499–0700 and Repair, USN, Naval Support Activity, N62911, (MAJ00022), MQC Commander, Navy Building 16, 2300 General Meyer Avenue, Recruiting Area One, 1 Amsterdam Road, New Orleans, LA 70142–5700 Scotia, NY 12302–9462 N63134, 7R Commanding Officer, Fleet Nu- N62913, (MAJ00022), MLL Commander, merical Meteorology and Oceanography Naval Recruiting Area Three, 451 College Center, 7 Grace Hopper Avenue, Monterey, Street, PO Box 4887, Macon, GA 31208–4887 CA 93943–5501
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N63165, 7U Commanding Officer, Naval Com- N63223, (MAJ00062), R0K Commanding Offi- puter and Telecommunications Station, 901 cer, Naval Reserve Officers Training Corps M Street SE, Building 143–6, Washington Unit, University of Nebraska, 103 M & N Navy Yard, Washington, DC 20374–5069 Building, Lincoln, NE 68508–0139 N63190, (MAJ00062) Commanding Officer, N63224, (MAJ00062), 8AD Commanding Offi- Surface Warfare Officers School Command, cer, Naval Reserve Officers Training Corps 446 Cushing Road, Newport, RI 02841–1209 Unit, University of Wisconsin, 1610 Univer- N63200, (MAJ00011), LBB Commanding Offi- sity Avenue, Madison, WI 53705–4086 cer, Naval Satellite Operations Center, 661 N63225, (MAJ00062), 8AH Commanding Offi- 13th Street, Point Mugu, CA 93042–5003 cer, Naval Reserve Officers Training Corps N63209, (MAJ00062), L9A Commanding Offi- Unit, Marquette University, PO Box 1881, cer, Naval Reserve Officers Training Corps Gymnasium, Milwaukee, WI 53705–4086 Unit, University of New Mexico, 720 Yale N63226, (MAJ00062), 8AJ Commanding Offi- Street NE, Albuquerque, NM 87131–1556 cer, Naval Reserve Officers Training Corps N63210, (MAJ00062), L9B Commanding Offi- Unit, University of Minnesota, 203 Armory, cer, Naval Reserve Officers Training Corps 15 Church Street SE, Minneapolis, MN Unit, Iowa State University, Armory 55455–0108 Building, Room 3, Ames, IA 50011–3035 N63227, (MAJ00062), 8AK Commanding Offi- N63211, (MAJ00062), L9C Commanding Offi- cer, Naval Reserve Officers Training Corps cer, Naval Reserve Officers Training Corps Unit, University of Idaho, 375 Line Street, Unit, University of Michigan, 104 North Moscow, ID 83844–1122 Hall, Ann Arbor, MI 48109–1085 N63228, (MAJ00062), 8AM Commanding Offi- N63212, (MAJ00062), L9G Commanding Offi- cer, Naval Reserve Officers Training Corps cer, Naval Reserve Officers Training Corps Unit, Tulane University, 6823 Saint Charles Unit, University of Texas at Austin, Rus- Avenue, New Orleans, LA 70118–5698 sell A. Steindham Hall, Room 104, Austin, N63229, (MAJ00062), 8AN Commanding Offi- TX 78712–1184 N63213, (MAJ00062), L9J Commanding Offi- cer, Naval Reserve Officers Training Corps cer, Naval Reserve Officers Training Corps Unit, University of Oklahoma, 290 West Unit, University of California, 152 Hearst Brook Street, Norman, Oklahoma 73019– Gymnasium, Berkeley, CA 94720–3640 0220 N63214, (MAJ00062), L9M Commanding Offi- N63230, (MAJ00062), 8AR Commanding Offi- cer, Naval Reserve Officers Training Corps cer, Naval Reserve Officers Training Corps Unit, University of Colorado, Box 374, Unit, University of Notre Dame, 213 Boulder, CO 80309–0374 Pasquerilla Center, Notre Dame, IN 46556– N63216, (MAJ00062), L9W Commanding Offi- 5601 cer, Naval Reserve Officers Training Corps N63231, (MAJ00062), 8AW Commanding Offi- Unit, University of Missouri, 105 Crowder cer, Naval Reserve Officers Training Corps Hall, Columbia, MO 65211–0001 Unit, University of Utah, 110 South, 1452 N63217, (MAJ00062), L9Z Commanding Offi- East Front, Salt Lake City, UT 84112–0430 cer, Naval Reserve Officers Training Corps N63232, (MAJ00062), 8AY Commanding Offi- Unit, Oregon State University, Naval Ar- cer, Naval Reserve Officers Training Corps mory, Washington Way, Corvallis, OR Unit, University of Washington, Box 353840, 97331–5401 Seattle, WA 98195–3840 N63218, (MAJ00062), R0B Commanding Offi- N63234, (MAJ00062), L9Q Commanding Offi- cer, Naval Reserve Officers Training Corps cer, Naval Reserve Officers Training Corps Unit, Chicago, Northwestern University, Unit, University of Illinois, 505 East Ar- 617 Haven Street, Evanston, IL 60208–4140 mory Street, Room 236–B, Champaign, IL N63219, (MAJ00062), R0E, L99 Commanding 61820–6288 Officer, Naval Reserve Officers Training N63235, (MAJ00062), R05 Commanding Offi- Corps Unit, Houston Consortium, Rice Uni- cer, Naval Reserve Officers Training Corps versity, PO Box 1892, Houston, TX 77251– Unit, Purdue University, 1503 Armory 1892 Building, West Lafayette, IN 47907–1513 N63220, (MAJ00062), R0L Commanding Offi- N63285, (MAJ00011), LB0 Naval Security and cer, Naval Reserve Officers Training Corps Investigative Command, 716 Sicard Street, Unit, UCLA, Mens Gym, Room 123, 405 Washington, DC 20388–5800 Milgard Avenue, Los Angeles, CA 90024–1399 N63291, (MAJ00062), R0F Commanding Offi- N63221, (MAJ00062), 8AB Commanding Offi- cer, Naval Reserve Officers Training Corps cer, Naval Reserve Officers Training Corps Unit, Cornell University, Barton Hall, De- Unit, Los Angeles Consortium, University partment of Science, Garden Avenue, Park, USC MC0654, Los Angeles, CA 90024– Ithaca, NY 14853–1701 1399 N63294, (MAJ00062), 8AV Commanding Offi- N63222, (MAJ00062), R0H Commanding Offi- cer, Naval Reserve Officers Training Corps cer, Naval Reserve Officers Training Corps Unit, University of Rochester, Morey Hall Unit, University of Kansas, Military 108, RC Box 270436, Rochester, NY 14627–0436 Science Building, Room 115, Lawrence, KS N63295, (MAJ00062), R0M Commanding Offi- 66045–2528 cer, Naval Reserve Officers Training Corps
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Unit, Rensselaer Polytechnic Institute, 110 N63406, (MAJ00070), V5C Commanding Offi- 8th Street, Troy, NY 12180–3590 cer, Naval Submarine Base, 140 Sylvester N63296, (MAJ00062), L9F Commanding Offi- Road, San Diego, CA 92106–3521 cer, Naval Reserve Officers Training Corps N63410, KA Commanding Officer, Navy Man- Unit, Auburn University, William F. Nich- power and Material Analysis Center, 5820 ols Center, Auburn, AL 36849–5512 Navy Road, Building C–1, Millington, TN N63299, (MAJ00062), R0A–9 Commanding Of- 38054–5011 ficer, Naval Reserve Officers Training N63429, MH Naval Computer and Tele- Corps Unit, North Carolina Piedmont Re- communications, Station London (UK), gion, Room 225, North Building, Durham, PSC 802, Box 44, FPO AE, NA 09499–1200 NC 27708–0456 N63543, (MAJ00011), 9TC Naval Reserve Cen- N63301, (MAJ00062), L9D Commanding Offi- ter, 3070 Ross Lane, Central Point, OR cer, Naval Reserve Officers Training Corps 97502–1399 Unit, 225 North Avenue NW., Atlanta, GA N63821, (MAJ00039), NSA–B Officer-in- 30332–0125 Charge, Naval Underwater Systems Center N63303, (MAJ00062), R0U Commanding Offi- Detachment, AUTEC, Andros Island, Ba- cer, Naval Reserve Officers Training Corps hama Islands, PSC 1012, FPO AA, NA 34058– Unit, College of the Holy Cross, PO Box E, 9998 Worcester, MA 01610–2389 N63891, (MAJ00069), 8QG Commanding Offi- N63306, (MAJ00062), 8AS Commanding Offi- cer, Naval Security Group, Northwest, 1320 cer, Naval Reserve Officers Training Corps Northwest Boulevard, Suite 100, Chesa- Unit, Miami University, 67 Millett Hall, peake, VA 23322–4094 Oxford, OH 45056–1698 N63902 Commanding Officer, Naval Security N63307, (MAJ00062), R0N Commanding Offi- Group Activity, 1247 West C Street, Nor- cer, Naval Reserve Officers Training Corps folk, VA 23511–2322 Unit, University of Mississippi, PO Box 69, N64181, (MAJ00062), R0W Officer-in-Charge, University, MS 38677–0069 Department of Naval Science, Texas Mari- N63309, (MAJ00062), L9Y Commanding Offi- time Academy, Box 1675, Galveston, TX cer, Naval Reserve Officers Training Corps 77553–1675 Unit, University of Ohio State, 2121 Tuttle N64223, (MAJ00018), J58 Commanding Offi- Park Place, Columbus, OH 43210–1169 cer, Naval Medical Research Institute, 8901 N63310, (MAJ00062), R0P Commanding Offi- Wisconsin Avenue, Building 17, Bethesda, cer, Naval Reserve Officers Training Corps MD 20889–5607 Unit, The Pennsylvania State University, N64267, M9 Commanding Officer, Naval War- Wagner Building, University Park, PA fare Assessment Center, Box 5000, Corona, 16802–3893 CA 91718–5000 N63311, (MAJ00062), 8AT Commanding Offi- N64356, KF Commanding Officer, Naval Ad- cer, Naval Reserve Officers Training Corps ministrative Command, Armed Forces Unit, University of Pennsylvania, 3000 Staff College, 7800 Hampton Boulevard, South Street, Philadelphia, PA 19104–0339 Norfolk, VA 23511–1702 N63313, (MAJ00062), L9X Commanding Offi- N64416 Commanding Officer, U.S. Naval cer, Naval Reserve Officers Training Corps Forces, Marianas, PSC 489, FPO AP, GU Unit, University of South Carolina, 96536–0051 Leconte College, Room 215, Columbia, SC N65113, EZ Commanding Officer, Navy Pub- 29208–0064 lic Works Center, 210 Decatur Avenue, N63315, (MAJ00062), 8AL Commanding Offi- Building 1A, Great Lakes, IL 60088–5600 cer, Naval Reserve Officers Training Corps N65114, (MAJ00025), EJC Commanding Offi- Unit, Vanderbilt University, University cer, Navy Public Works Center, Naval Air Plaza, Suite 360, 112 21st Avenue South, Station, 310 John Tower Road, Building Nashville, TN 37203–2427 3560, Pensacola, FL 32508–5303 N63317, (MAJ00062), L9T Commanding Offi- N65115, (MAJ00025), FZA Commanding Offi- cer, Naval Reserve Officers Training Corps cer, Navy Public Works Center, Yokosuka, Unit, University of Virginia, Maury Hall, Japan, PSC 473, Box 13, FPO AP, NA 96349– Charlottesville, VA 22903–3194 1103 N63381, (MAJ00011), LBA Chief, Joint U.S. N65116, MZ Officer-in-Charge, Navy-Marine Military Advisory Group, Thailand, (Bang- Corps Appellate Review Activity, Office of kok, Thailand), MAGTRMS–S, APO AP, the Judge Advocate General, Washington NA 96546–5000 Navy Yard, 901 M Street SE., Building 111, N63387, JD Commanding Officer, Navy Pub- Washington, DC 20374–5047 lic Works Center, 2730 McKean Street, N65126, (MAJ00018), J52 Commanding Offi- Suite 1, San Diego, CA 92136–5294 cer, Naval Medical Information Manage- N63393 Commander, Naval Safety Center, ment Center, 8901 Wisconsin Avenue, 375 A Street, Norfolk, VA 23511–4399 Building 27, Bethesda, MD 20889–5605 N63394, L6 Commander Port Hueneme Divi- N65236, V7 Commander Space and Naval sion, Naval Surface Warfare Center, 4363 Warfare Systems Center, PO Box 190022, Missile Way, Port Hueneme, CA 93043–4307 North Charleston, SC 29419–9022
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N65428, (MAJ00018), MDP Commanding Offi- N66612, (MAJ00062), L95 Commanding Offi- cer, Naval Hospital (Roosevelt Roads, PR), cer, Naval Reserve Officers Training Corps PSC 1008, Box 3007, FPO AA, PR 34051–8100 Unit, The Citadel, 171 Moultrie Street, Jen- N65538, (MAJ00024), U0D Commanding Offi- kins Hall, Charleston, SC 29409–0770 cer, Naval Sea Logistics Center, PO Box N66617, (MAJ00024), L5T Navy Shipbuilding 2060, 5450 Carlisle Pike, Mechanicsburg, PA Liaison Office Spain, PSC 65, Box 50, APO 17055–0795 AE, NA 09645–5385 N65888, ED Commanding Officer, Navy N66630, (MAJ00011), LCS Commanding Offi- Aviation Depot, NAS North Island, PO Box cer, Naval Air Reserve, Naval Air Weapons 357058, San Diego, CA 92135–7058 Station, 355 Nar Road, Point Mugu, CA N65912, GP Commanding Officer, Fleet 93042–5018 Technical Support Center, 9727 Avionics N66691, 4P Commanding Officer, Naval Sup- Loop, Norfolk, VA 23511–2124 port Activity, Souda Bay, Crete, Greece, N65918, FT Commanding Officer, Shore In- PSC 814, Box 01, FPO AE, NA 09865–0102 termediate Maintenance Activity, 3755 Brinser Street, Suite 1, Box 368106, San N66715, VJ Commander, Navy Recruiting Diego, CA 92136–5299 Command, 801 North Randolph Street, Ar- N65926, (MAJ00024), NSA–B Officer-in- lington, VA 22203–1991 Charge, Naval Underwater Systems Center N66752, (MAJ00069) Commanding Officer, Detachment, AUTEC West Palm Beach, PO Naval Security Group Activity, Misawa, Box 24619, West Palm Beach, FL 33416–4619 Japan, Unit 5003, Code N8, APO AP, NA N65966 Commanding Officer, Fitting Out & 96319–5000 Supply Support Assistance Center, PO Box N66753, (MAJ00062), R0G Commanding Offi- 15129, Norfolk, VA 23511–0129 cer, Naval Reserve Officers Training Corps N6600, 17N Space and Naval Warfare Sys- Unit, Jacksonville University, 2800 Univer- tems Center, 53560 Hull Street, San Diego, sity Boulevard North, Jacksonville, FL CA 92152–5001 32211–3394 N66021, 7G Commanding Officer, Naval Air N66809, (MAJ00062), R0V Commanding Offi- Pacific Repair Activity, (Atsugi, Japan), cer, Naval Reserve Officers Training Corps PSC 477, Box 35, FPO AP, NA 96306–2735 Unit, Savannah State College, PO Box N66022, (MAJ00018), MDW Commanding Offi- 20299, Savannah, GA 31404–9701 cer, Naval Dental Center, 2310 Craven N66810, (MAJ00062), L9H Commanding Offi- Street, PO Box 368147, San Diego, CA 92136– cer, Naval Reserve Officers Training Corps 5596 Unit, Southern University and A&M Col- N66023, (MAJ00018) Commanding Officer, lege, PO Box 9214, Baton Rouge, LA 70813– Naval Dental Center, NE. 1173 Whipple 9214 Street, Newport, RI 02841–1642 N66833, (MAJ00060), LHL Commanding Offi- N66094, (MAJ00018), QAA–B Commanding cer, U.S. Naval Station Panama (Rodman, Officer, Naval Hospital, PSC Box 8023, Canal Zone), FPO AA, NA 34061–1000 Cherry Point, NC 28533–5008 N66972, (MAJ00022), MQ2 Commanding Offi- N66095, (MAJ00018), J5E Commanding Offi- cer, Navy Recruiting District, 8525 NW 53rd cer, Naval Hospital, 929 Franklin Avenue, Terrace, Suite 201, Miami, FL 33166–4521 Lemoore, CA 93246–5004 N67596, (MAJ00022), NVD Commanding Offi- N66096, (MAJ00018), QAJ Commanding Offi- cer, Navy Recruiting District, 10500 North cer, Naval Hospital Naples, Italy, PSC 810, U.S. Highway 281, Suite 108, San Antonio, Box 19, FPO AE, NA 09619–0700 TX 78216–3630 N66097, (MAJ00018), MDE Commanding Offi- N68047, (MAJ00070), 4L0 Commanding Offi- cer, Naval Hospital, 3475 North Saratoga cer, Naval Regional Contracting Center, Street, Oak Harbor, WA 98278–8800 Singapore, PSC 470, Box 2100, FPO AP, NA N66098 Commanding Officer, Naval Hospital 96534–2100 Patuxent River, 47149 Buse Road, Unit 1370, Patuxent River, MD 20670–1540 N68057, VZ Commanding Officer, Naval N66101, (MAJ00018), J5B–D Commanding Of- Computer and Telecommunications Area ficer, U.S. Naval Hospital ROTA, PSC 819, Master Station Atlantic, 9625 Moffett Ave- Box 18, FPO AE, NA 09645–2500 nue, Norfolk, VA 23511–2784 N66319 Ship Support Office, PSC 464, Box 20, N68064, (MAJ00062), R0D Commanding Offi- FPO AP, NA 96522–2200 cer, Naval Reserve Officers Training Corps N66398, (MAJ00022), ML6–7 Commanding Of- Unit, University of Florida, PO Box 118537, ficer, Navy Motion Picture Service, 5720 In- Gainesville, FL 32611–8537 tegrity Drive, Millington, TN 38055–6560 N68072, (MAJ00062), L9V Commanding Offi- N66540, (MAJ00022), NVZ Morale, Welfare cer, Naval Reserve Officers Training Corps and Recreation Division, Chief of Naval Unit, Texas A&M University, PO Box 2920, Personnel, Navy Annex, Federal Building College Station, TX 77843–2920 2, Washington, DC 20370–5000 N68073, (MAJ00063), NTU Naval Computer N66604, N4 Commander, Naval Undersea and Telecommunications Station Diego Warfare Center, Newport Division, 1 Garcia, (British Indian Ocean Territory), Simonpietri Drive, Newport, RI 02841–1708 FPO AP, NA 96464–0008
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N68084, (MAJ00018), MDJ–M Commanding N68308, (MAJ00011), 9TQ Naval Reserve Officer, Naval Hospital, 3600 Rivers Ave- Readiness Command, Region 20, Building 1, nue, North Charleston, SC 29405–7769 NAVSTA Treasure Island, San Francisco, N68086, 7S Commanding Officer, Naval Am- CA 94130–5032 bulatory Care Center, 1 Riggs Road, Build- N68317, (MAJ00062), R03 Officer-in-Charge, ing 44, Newport, RI 02841–1002 Naval Administrative Unit, 1 Amsterdam N68088, (MAJ00061), NLL–N Officer-in- Road, Scotia, NY 12302–9460 Charge, CINCUSAVEUR Detachment N68322, 7Z Commanding Officer, Naval Edu- Iberlant Support Component, Oieras, Por- cation and Training, Professional Develop- tugal, PSC 83, Box 82, APO AE, NA 09726 ment and Technology Center, 6490 Saufley N68093, (MAJ00018), MCG–H Commanding Field Road, Pensacola, FL 32509–5237 Officer, Naval Hospital, Camp Lejeune, N68323, (MAJ00011), LBC Naval Legal Serv- Brewster Boulevard, Building NH100, Camp ice Office, 200 Stovall Street, Alexandria, Lejeune, NC 28547–0100 VA 22332–2400 N68094, V9 Commanding Officer, Naval Hos- N68326, (MAJ00018), MDA Commanding Offi- pital, Box 555191, Marine Corps Base, Camp cer, Naval Dental Center, 2730 Sampson Pendleton, CA 92055–5191 Road, Building 73, Great Lakes, IL 60088– N68095, JF Commanding Officer, Naval Hos- 6008 pital, 1 Boone Road, Bremerton, WA 98312– N68327, (MAJ00022), ML8 Commanding Offi- 1898 cer, Naval Reserve Personnel Center, 4400 N68096, (MAJ00018), J50 Commanding Offi- Dauphine Street, New Orleans, LA 70149– cer, Naval Hospital (Guam), PSC 455, Box 7800 7717, FPO AP, NA 96538–1600 N68328, (MAJ00011), 9TJ Commander, Naval N68098, (MAJ00018), QAL–M Commanding Reserve Readiness Command Region 22, Officer, Naval Medical Clinic, Box 121, Building 2102, Naval Station 2000 West Ma- Pearl Harbor, HI 96860–5080 rine View Drive, Seattle, WA 98207–2600 N68139, (MAJ00062), 8AZ Commanding Offi- N68329, (MAJ00011), LCL Commander, Naval cer, Naval Reserve Officers Training Corps Reserve Readiness Command Region 5, Unit, Florida A&M University, PO Box Building 1033, USAAP, Ravenna, OH 44266– 6508, Tallahassee, FL 32314–6508 9211 N68141, (MAJ00062), L9P Commanding Offi- N68330, (MAJ00011), 9TN Commander, Naval cer, Naval Reserve Officers Training Corps Reserve Readiness Command Region 13, Unit, Maine Maritime Academy, PO Box 2601 Paul Jones Street, Great Lakes, IL 137, Castine, ME 04421–0902 60088–5026 N68166, (MAJ00015), L01–2 Naval Technical N68331, (MAJ00011), LCE F Commander, Intelligence Center, 4301 Suitland Road, Naval Reserve Readiness Command Region Washington, DC 20390–5720 4, Building 5957, N. J. Avenue, Fort Dix, NJ N68171, M3 Commanding Officer, Naval Re- 08640–7800 gional Contracting Center, (Naples, Italy), N68332, (MAJ00011), 9T0–1 Commander, PSC 810, Box 50, FPO AE 09619–3700 Naval Reserve Readiness Command Region N68175, (MAJ00022), MQA Navy Recruiting 18, 301 Navy Drive, Industrial Airport, KS District New Jersey, Parkway Towers, 66031–0031 Building A, 485 U.S. Route 1 South, Iselin, N68335, 4Y Naval Air Warfare Center, Air- NJ 08830–3012 craft Division, Contracts Department, N68221, 7J Commanding Officer, Navy Per- Code 252000B129–2, Highway 547, Lakehurst, sonnel Research and Development Center, NJ 08733–5082 53335 Ryne Road, San Diego, CA 92152–7250 N68348, (MAJ00011), 9TG Commander, Naval N68246 (MAJ00070) 4LL–N EY—Officer-in- Reserve Readiness Command Region 9, 5720 Charge, FISC Yokosuka Det. (Sasebo, Integrity Drive, Building S–241, Millington, Japan), PSC 476, Box 6, FPOAP 96322–1500 TN 38054–5013 N68248, V6 Officer-in-Charge-of-Construc- N68350, (MAJ00011), LCH Commander, Naval tion, Southern Division Contracts Office, Reserve Readiness Command Region 19, 960 Naval Submarine Base, Building 101, 1342 North Harbor Drive, San Diego, CA 92132– USS Simon Bolivar Road, Kings Bay, GA 5108 31547–2613 N68351, (MAJ00011), LCQ Commander, Naval N68292, (MAJ00018), J5A Commander, Naval Reserve Readiness Command Region 1, 344 Hospital, (Yokosuka, Japan), PSC 475, Box Easton Street, Newport, RI 02841–1515 6, FPO AP, NA 96350–1615 N68355, (MAJ00062), R0J Commanding Offi- N68303, (MAJ00062), R0C Commanding Offi- cer, Naval Reserve Officers Training Corps cer, Naval Reserve Officers Training Corps Unit, Virginia Military Institute, Unit, State University of New York, Mari- Kilbourne Hall, Lexington, VA 24450–2697 time College, 6 Pennyfield Avenue, Fort N68358, (MAJ00011), 9TA Commander, Naval Schuyler, Bronx, NY 10465–4198 Reserve Readiness Command Region 8, N68306, (MAJ00011), 9TF Commander, Naval Building 966, Yorktown & Ajax, Naval Air Reserve Readiness Command Region 6, 901 Station, Jacksonville, FL 32212–0090 M Street SE, Building 200–3, Washington N68359, (MAJ00011), 9TB Commander, Naval Navy Yard, Washington, DC 20374–5009 Reserve Readiness Command Region 11,
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1803 Doolittle Avenue, Fort Worth, TX N68610, GF Commanding Officer, Fleet Hos- 76127–1803 pital Support Office, 620 Central Avenue, N68363 Commanding Officer, Naval Legal Building 2G, Alameda, CA 94501–3874 Service Office, 9620 Maryland Avenue, N68636, (MAJ00024), EHJ–K Director, Naval Suite 100, Norfolk, VA 23511–2989 Sea Logistics Center Detachment Atlantic, N68389, (MAJ00011), LB4 Commander, Joint PO Box 100, Indian Head, MD 20640–0100 Intelligence Center, Pacific, PO Box 500, N68660, (MAJ00063), NT4 Commanding Offi- Makalapa Drive, Pearl Harbor, HI 96860– cer, Naval Computer and Telecommuni- 7450 cations, Puget Sound, 1008 Harder Road, N68391, (MAJ00022), MLB Navy Recruiting Silverdale, WA 98315–1099 District, Harrisburg, 310 North Second N68689, (MAJ00024), U0F Director, Human Street, Harrisburg, PA 17101–1304 Resources Office Crystal City, Crystal Mall 2, Room 506, 1921 Jefferson Davis Highway, N68401, (MAJ00022), MLJ Commanding Offi- Arlington, VA 22241–5363 cer, Navy Recruiting District, San Diego, N68692, (MAJ00062), 8AX Commanding Offi- 33055 Nixie Way, ASW Building 2, San cer, Naval Reserve Officers Training Corps Diego, CA 92147–5192 Unit, University of San Diego/San Diego N68436, KC, J6 Commanding Officer, Naval State University, 5998 Alcala Park, San Submarine Base, Bangor, 1100 Hunley Diego, CA 92110–2496 Road, Silverdale, WA 98315–1199 N68695, (MAJ00060), LHG Shore Inter- N68443, 7T Commanding Officer, Naval Den- mediate Maintenance Activity, Naval Re- tal Clinic, 2240 Decatur Avenue, Brem- serve Maintenance Facility, Building 133, erton, WA 98314–5245 Naval Base, Philadelphia, PA 19112–5066 N68470, (MAJ00018), J5J–M Commanding Of- N68699, (MAJ00062), 8AP Commanding Offi- ficer, U.S. Naval Hospital, (Okinawa, cer, Naval Reserve Officers Training Corps Japan), PSC 482, Box 248, FPO AP, NA Unit, Old Dominion University/Hampton 96362–1695 Institute/Norfolk State University, 5215 N68482, (MAJ00022) Officer-in-Charge, Bu- Hampton Boulevard, Norfolk, VA 23529–0120 reau of Naval Personnel Detachment, Drug N68710, (MAJ00062), L9K Commanding Offi- and Alcohol Program Management Activ- cer, Naval Reserve Officers Training Corps ity, 937 North Harbor Drive, Suite 17, San Unit, Virginia Polytechnic Institute and Diego, CA 92132–0017 State University, 420 Femoyer Hall, N68499, LX Director, Naval Council of Per- Blacksburg, VA 24061–0241 sonnel Boards, 901 M Street SE, Wash- N68711, (MAJ00025), EFE–F Commander, ington, DC 20374–5053 Southwest Division, NAVFACENGCOM, N68518 Commanding Officer, Naval Reserve 1220 Pacific Highway, Building 127, San Financial Information Processing Center, Diego, CA 92132–5190 Code S43, 4400 Dauphine Street, New Orle- N68717, (MAJ00062), L9L Commanding Offi- ans, LA 70146–5401 cer, Naval Reserve Officers Training Corps N68546, QG Commanding Officer, Navy En- Unit, Boston University-MIT, Building vironmental Health Center, 2510 Walmer W59–110, 77 Massachusetts Avenue, Cam- Avenue, Norfolk, VA 23513–2617 bridge, MA 02139–4807 N68726, (MAJ00062), R0T Commanding Offi- N68547, (MAJ00060), LHQ Commanding Offi- cer, Naval Reserve Officers Training Corps cer, Personnel Support Activity, 17555 Unit, The George Washington University, Powhattan Street, Suite 200, Norfolk, VA 729 21st Street NW, Washington, DC 20052– 23511–2985 0001 N68560, QM Commanding Officer, Naval N68727, (MAJ00062), 8AF Commanding Offi- Computer and Telecommunications Sta- cer, Naval Reserve Officers Training Corps tion, PO Box 111, Building 919, Langley Unit, Mid South Region, Memphis State Street, Naval Air Station, Jacksonville, University, Campus Box 526260, Memphis, FL 32212–0111 TN 38152–6260 N68561, (MAJ00039), NSE Space and Naval N68728, (MAJ00062), 8AQ Commanding Offi- Warfare Systems Center, 1441 Crossways cer, Naval Reserve Officers Training Corps Boulevard, Chesapeake, VA 23320–2843 Unit, Norwich University, 65 South Main N68573, (MAJ00023), 4JM Commander, Navy Street, Northfield, VT 05663–1097 Exchange Service Center, NAVBASE, Nor- N68733, (MAJ00030), EKC Strategic Weapons folk, Building CD–1, 9222 Hampton Boule- Facility, Atlantic, Kings Bay, GA 31547– vard, Norfolk, VA 23511–6390 6600 N68582 Commanding Officer, Third Dental N68742, (MAJ00070), LPA Commanding Offi- Battalion, U.S. Naval Dental Center, Unit cer, Naval Base, 1103 Hunley Road, 38450, Okinawa, Japan, FPO AP, NA 96604– Silverdale, WA 98315–1103 8450 N68753, (MAJ00070), V5L Naval Air Pacific N68593, (MAJ00060), LHE Commanding Offi- Repair Activity Det., Singapore, SAE cer, Naval Ocean Processing Facility, 352 Singapore, FPO AP, NA 96536–2700 Bullpup Street, Dam Neck, Virginia Beach, N68762 Officer-in-Charge-of-Construction, VA 23461–2197 Naval Facilities Engineering Command
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Contracts, (Puerto Rico Area), PSC 1008, yard, Building 17, Portsmouth, VA 23709– Box 3976, FPO AA, NA 34051–3976 5000 N68779 Military Sealift Command, Atlantic N69212 Commanding Officer, Naval Weapons Detachment Charleston Army Depot, PO Station Yorktown, Box 160, Yorktown, VA Box 5124, Charleston, SC 29406–0124 23691–0160 N68829, (MAJ00060), J0J Shore Intermediate N70092, (MAJ00069), 8QJ-K, Q-R Com- Maintenance Activity (NRMF), Pier 2, manding Officer, Naval Security Station, Building 68 NETC, Newport, RI 02841–5001 3801 Nebraska Avenue NW, Building 18–139, N68836 J9 Commanding Officer, Fleet and Washington, DC 20390–5440 Industrial Supply Center, 110 Yorktown N70240, M6 Commanding Officer, Naval Avenue, Jacksonville, FL 32212–0097 Computer and Telecommunications Sta- N68838 Commander, Naval Supply System tion, Naval Air Station North Island, PO Command Detachment Fleet, Fort Detrick, Box 357056, San Diego, CA 92135–5110 Building S10, Hospital Program Office, N70243 Commanding Officer, Naval Com- Frederick, MD 21702–5021 puter and Telecommunications Station, N68850, J5N Commanding Officer, Navy Drug Screening Laboratory, PO Box 113, PSC 488, Box 122, FPO AP, GU 96537–1819 Naval Air Station, Jacksonville, FL 32212– N70272, 8G, ND, LQ Officer-in-Charge-of- 0113 Construction, Naval Computer and Tele- N68857, (MAJ00062), 8AC Commanding Offi- communications Area Master Station, Fa- cer, Naval Reserve Officers Training Corps cility Support Center, Public Works Divi- Unit, Texas Tech University, Lubbock, TX sion, 9624 Moffett Avenue, Norfolk, VA 79409–4559 23511–6898 N68875, (MAJ00018), QAP–S Naval Hospital N70283, (MAJ00069), 8QE Commanding Offi- (Keflavik, Iceland), PSC 1003, Box 8, FPO cer, Naval Security Group Activity, Code AE, NA 09728–0308 30, Galeta Island, Canal Zone, FPO AA, NA N68877, (MAJ00062), R0Y Commanding Offi- 34060–9998 cer, Naval Reserve Officers Training Corps N70294, 8H Commanding Officer, Naval Com- Unit, Carnegie Mellon University, HBH– puter and Telecommunications Area, Mas- A200, 5000 Forbes Avenue, Pittsburgh, PA ter Station MED, Naples, Italy, PSC 822, 15213–3890 Box 1000, FPO AE, NA 09621–7000 N68891, (MAJ00060), LH5 Commanding Offi- N91732, (MAJ00011), H8 Commanding Officer, cer, Naval Station Ingleside, 1455 Ticon- Naval Occupational Safety and Health and deroga Road, Suite W210, Ingleside, TX Environmental Training Center, 9080 78362–5000 Breezy Point Crescent, Norfolk, VA 23511– N68899, (MAJ00011), LCW Commander, 3998 Naval Reserve Intelligence Command, NAS Joint Reserve Base, Fort Worth, TX 76127– PART 4—MARINE CORPS ACTIVITY 1550 ADDRESS NUMBERS N68911 Officer-in-Charge-of-Construction, M00027, MS*, MU*, MS0–9 Commandant of Naval Facilities Engineering Command the Marine Corps, Headquarters, U.S. Ma- Contracts, Naval Hospital, Building 286, PO rine Corps (LBC), 2 Navy Annex, Wash- Box 5310, Portsmouth, VA 23708–5310 ington, DC 20380–1775 N68925, 8J Commanding Officer, Navy Pub- M00146, MT Marine Corps Regional Con- lic Works Center, Building 201, Washington tracting Office (SUL), COMCABEAST, Ma- Navy Yard, 901 M Street SE, Washington, rine Corps Air Station, Cherry Point, NC DC 20374–5041 N68936, GM Naval Air Warfare Center, 28533–0018 Weapons Division, 1 Administration Circle, M00243, NE Marine Corps Regional Con- China Lake, CA 93555–6100 tracting Office, 4411 Belleau Avenue, Ma- N68950, (MAJ00025), F27 Engineering Field rine Corps Recruit Depot/WRR, San Diego, Activity Midwest, Naval Training Center, CA 92140–5380 Building 1A, Suite 120, 2703 Sheridan Road, M00262, (MAJ00027), MUG Marine Air Corps Great Lakes, IL 60088–5600 Facility, 2100 Rowell Road, Quantico, VA N68958, (MAJ00024), U10–9 Officer-in-Charge, 22134–5063 SUPSHIP New Orleans Detachment, M00263, MX Marine Corps Regional Con- Ingleside, 125 Coral Sea Road, Trailer 13, tracting Office, PO Box 5069, Marine Corps Ingleside, TX 78362–5000 Recruit Depot/ERR, Parris Island, SC N68967, (MAJ00070), LPS-T, LPW-Y Com- 29905–5069 manding Officer, Naval Station Everett, M00264, (MAJ00027), MUT Marine Corps Re- 2000 West Marine View Drive, Everett, WA gional Contracting Office, Northeast Re- 98207–5001 gion, 2010 Henderson Road, Quantico, VA N69197 Director, Human Resources Oper- 22134–5045 ations Center, 800 North Quincy Street, M00318, (MAJ00027), MUK–M Contracting Ballston Tower 1, Arlington, VA 22203–1998 Office (Code LSCP), Marine Corps Base Ha- N69199 Director, Human Resources Service waii, Supply Dept, Box 63063, MCBH, Center East Region, Norfolk Naval Ship- Kaneohe Bay, HI 96744–3063
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M00681, NG Marine Corps Regional Con- rope (Designate), Panzer Kaserne, Building tracting Office, PO Box 1609, Oceanside, CA 2901, APO AE, NA 09046–0160 92054–1609 M67353, (MAJ00027), MSQ Contracting Office M20001, (MAJ00027) MUN Contracting Of- (HQBN–1), HQBN HQMC Henderson Hall, fice, Headquarters and Service Company, Building 28, Battalion Supply, Arlington, Marine Forces Atlantic, Building CA–486, VA 22214–5000 Room 203, 1468 Ingram Street, Norfolk, VA M67354 Contracting Office, Headquarters, 23551–2596 U.S. Marine Corps (Code ARD), 2 Navy M20002 Contracting Officer, HQ, U.S. Ma- Annex, Arlington, VA 20380–1775 rine Forces South, 8420 NW 52nd Street, M67385, (MAJ00027), MU0–1 Miami, FL 33166 COMMARFORPAC, Marine Corps Regional M29000, (MAJ00027) MSZ Contingency Con- Contracting Office (LSCP), HQSVCBN, tracting Office, 3D Force Service Support Building 600, Box 64131, Camp H. M. Smith, Group, Marine Forces Pacific, Unit 38404, HI 96861–5010 FPO AP 96604–8404 M67386, LG Marine Corps Regional Con- M60169, W0 Contracting Office, Marine tracting Office, (Midwest), Marine Corps Corps Air Station, PO Box 55010, Beaufort, Support Activity, 15430 Andrew Road, Kan- SC 29904–5010 sas City, MO 67147–1208 M62204, NC Marine Corps Regional Con- M67399, NF Marine Corps Regional Con- tracting Office, Marine Corps Logistics tracting Office, Northwest Region, PO Box Base, PO Box 110340, Barstow, CA 92311–5039 X24, Building 1525, Marine Corps Air- M62613, MUE Contracting Office, Marine Ground Combat Center, Twentynine Corps Air Station, PSC 561, Box 1872, Palms, CA 92278–0124 Iwakuni, Japan, FPO AP, NA 96310–1872 M67400 QJ Marine Corps Regional Con- M62974, Marine Corps Air Station, PO Box tracting Office (Far East), Marine Corps 99133, Station S–4/3KG, Yuma, AZ 85369– Base Camp Smedley D. Butler, PSC 577, 9133 Box 2000, FPO AP, NA 96379–2000 M64495 Contracting Office, Marine Corps M67854, (MAJ00027), MU6–9 Commander, Ma- Mountain Warfare Training Center, Box rine Corps Systems Command, 2033 Barnett 5009, Bridgeport, CA 93517–5009 Avenue, Suite 315, Quantico, VA 22134–5010 M67001, NB Marine Corps Regional Con- M67861, MUC, MSU Marine Corps Regional tracting Office, PSC Box 20004, Marine Contracting Office, Marine Forces Reserve, Corps Base, Camp Lejeune, NC 28542–0004 4400 Dauphine Street, New Orleans, LA M67004, (MAJ00027), NC 70146–5400 COMMARCORLOGBASES, Marine Corps M67865 MV Contracting Office, MCAS Regional Contracting Office, Marine Corps Miramar (Code 5KB), PO Box 452007, San Logistics Base (Code 89), PO Drawer 43019, Diego, CA 92145–2007 Albany, GA 31704–3019 M68447 Contingency Contracting Office, 2nd M67011, (MAJ00027), MSA Commander Offi- Supply Battalion, 2nd FSSG, PSC Box cer, 1st Marine Corps District, 605 Stewart 20120, Camp Lejuene, NC 28542–0128 Avenue, Garden City, NY 11530–4761 M68450 Contingency Contracting Office, M67013, (MAJ00027), MSC Commanding Offi- SMU, 1st Supply Battalion, 1st FSSG , PO cer, 4th Marine Corps District, DDRE, Box 1609, Oceanside, CA 92501–1609 Building 54, Suite 3, Box 806, New Cum- M68909, (MAJ00027), MU3 Commanding Offi- berland, PA 17070–0806 cer, Marine Corps Tactical Systems Sup- M67015, (MAJ00027), MSE Commanding Offi- port Activity, PO Box 555171, Camp Pen- cer, 6th Marine Corps District, PO Box dleton, CA 92055–5171 19201, Marine Corps Recruit Depot, Eastern M85001 (MAJ00027)—Contracting Office, Ma- Recruiting Region, Parris Island, SC 29905– rine Aviation Training Support Group, 222 9201 East Avenue, Pensacola, FL 32508–5213 M67016, (MAJ00027), MSG Commanding Offi- cer, 8th Marine Corps District, Building 10, PART 5—AIR FORCE ACTIVITY ADDRESS Room 121, NSA, New Orleans, LA 70142–5100 NUMBERS M67017, (MAJ00027), MSJ Commanding Offi- cer, 9th Marine Corps District, 3805 155th F01600, 5A 42 CONS/CC, 50 Lemay Plaza Street, Building 710, Kansas City, MO South, Building 804, Maxwell AFB, AL 64147–1309 36112–6334 M67019, (MAJ00027), MSL Commanding Offi- F01620, 6K SSG/PK, 375 Libby Street, cer, 12th Marine Corps District, 3704 MAFB-Gunter Annex, AL 36114–3207 Hochmuth Avenue, San Diego, CA 92140– F02601, 5C 355 CONS/CC, 3180 South 5191 Craycroft Road, Davis Monthan AFB, AZ M67029, (MAJ00027), MSN Contracting Of- 85707–3522 fice, Marine Barracks, 8th and I Street, SE, F02604, 5D 56 CONS/CC, 14100 West Eagle Washington, DC 20390–5000 Street, Luke AFB, AZ 85309–1217 M67351 COMMARFOREUR, Marine Corps F03602, 5F 314 CONS/CC, 642 Thomas Ave- Regional Contracting Office, HQ FMF Eu- nue, Little Rock AFB, AR 72099–5119
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F04605, 5H 452 LSS/LGC, 1940 Graeber F09650, Q6 WR–ALC/PKO, 235 Byron Street, Street, Building 449, March ARB, CA 92518– Robins AFB, GA 31098–1611 1650 F10603, 5Z 366 CONS/CC, 366 Gunfighter Ave- F04606 SM SM-ALC/PK, 3237 Peacekeeper nue, Suite 498, Mountain Home AFB, ID Way, Suite 17, McClellan AFB, CA 95652– 83648–5296 1060 F11623, 6C 375 CONS/LGC, 102 East Martin F04611, QQ AFFTC/PK, Building 2800, 5 Street, Suite 216, Scott AFB, IL 62225–5015 South Wolfe Avenue, Edwards AFB, CA F11626, RL HQ AMC/DOKR, 402 Scott Drive, 93524–1185 Unit 3A1, Scott AFB, IL 62225–5302 F04626, 5M 60 CONS/LGC, 350 Hangar Ave- F12617, 6D 434 LSS/LGC, 448 Mustang Ave- nue, Building 549, Travis AFB, CA 94535– nue, Grissom ARB, IN 46971–5320 2632 F14614, X4 22 CONS/LGC, 53147 Kansas F04666, 5N 9 CONS/CC, 6500 B Street, Suite Street, Suite 102, McConnell AFB, KS 101, Beale AFB, CA 95903–1712 67221–3606 F04684, QW 30 CONS/LGC, Building 7015, F16602, 6G 2 CONS/CC, 841 Fairchild Avenue, Section 2c, Suite D, 806 13th Street, Van- Barksdale AFB, LA 71110–2271 denberg AFB, CA 93437–6025 F19617, R5 439 LSS/LGC, 250 Airlift Drive, F04689, RN 750 LSS/LGC, 1080 Lockheed Westover Air Reserve Base, Chicopee, MA Way, Box 039, Onizuka AFB, CA 94089–1234 01022–1525 F04693, MG SMC/PKO, 400 North Douglas F19628, RS ESC/PK, 104 Barksdale Street, Boulevard, Suite 212E, Los Angeles, CA Hanscom AFB, MA 01731–1806 90245–4640 F19650, SH ESC/PKO, Building 1520, 104 F04699, Q5 SM-ALC/PK, 3227 Peacekeeper Barksdale Street, Hanscom AFB, MA Way, Suite 17, McClellan AFB, CA 95652– 01731–1806 1060 F21611, 6N 934 LSS/LGC, 760 Military High- F04700, Q2 AFFTC/PKA, 5 South Wolfe Ave- way, Minneapolis-St. Paul ARS, Min- nue, Building 2800, Edwards AFB, CA 93524– neapolis, MN 55450–2000 1185 F22600, RC 81 CONS/CC, 200 Fifth Street, F04701, TB SMC/PK, 155 Discoverer Boule- Room 104, Keesler AFB, MS 39534–2102 vard, Suite 1516, Los Angeles, CA 90245–4692 F22608, 6Q 14 CONS/CC, 555 Seventh Street, F05603 HQ AFSPC/LGC, 150 Vandenberg Suite 113, Columbus AFB, MS 39701–1006 Street, Suite 1105, Peterson AFB, CO 80914– F23606, 6R 509 CONS/CC, 850 Arnold Avenue, 4350 Suite 2, Whiteman AFB, MO 65305–5054 F05604, SX 21 CONS/LGC, 700 Suffolk Street, F24604, 6T 341 CONS/LGC, 7015 Goddard Peterson AFB, CO 80914–1200 Drive, Malmstrom AFB, MT 59402–6863 F05611, 5Q 10 ABW/LGC, 8110 Industrial F25600, 6U 55 CONS/CC, 101 Washington Drive, Suite 200, USAF Academy, CO 80840– Square, Offutt AFB, NE 68113–2107 2315 F26600, S4 99 CONS/CC, 5865 Swabb Boule- F07603, 5R 436 CONS/LGC, 639 Atlantic vard, Nellis AFB, NV 89191–7063 Street, Suite 243, Dover AFB, DE 19902–5639 F28609, 6V 305 CONS/LGC, 3563 Lancaster F08602, 5S 6 CONS/CC, 2606 Brown Pelican Avenue, McGuire AFB, NJ 08641–1712 Avenue, MacDill AFB, FL 33621–5000 F28620, M1 65 CONS/CC, Unit 7775, Building F08620, 5T 16 CONS/LGC, PO Box 9190, 350 T615, Lajes AB, APO AE 09720–7775 Tully Street, Hurlburt Field, FL 32544–5825 F28620, S8 65 CONS/OL-A, PO Box 837, F08630, S1 AFRL/MNK, 101 West Eglin Bou- Wrightstown, NJ 05862–0837 levard, Suite 337, Eglin AFB, FL 32542–6810 F29601, RW Det 8, AFRL/PK, 2251 Maxwell F08635, RH AAC/PK, 205 West D Avenue, Avenue SE, Kirtland AFB, NM 87117–5773 Suite 433, Eglin AFB, FL 32542–6864 F29605, 6W 27 CONS/CC, 100 North Torch F08637, 5V 325 CONS/CC, 501 Illinois Avenue, Boulevard, Cannon AFB, NM 88103–5131 Suite 5, Tyndall AFB, FL 32403–5526 F29650, R3 377 LG/LGC, 2251 Maxwell Avenue F08650, TJ 45 CONS/LGC, 1201 Edward H. SE, Kirtland AFB, NM 87117–5773 White II Street, MS7200, Patrick AFB, FL F29651, 6X 49 CONS/CC, 1210 Fortyniner Ave- 32925–3227 nue, Holloman AFB, NM 88330–5010 F08651, Q3 AAC/PKO, 205 West D Avenue, F30602, RX AFRL/IFK, 26 Electronic Park- Suite 541, Eglin AFB, FL 32542–6862 way, Rome, NY 13441–4514 F09603, RJ, RR WR-ALC/PK, Building 300, F30617, 6Y 914 AW/LGC, 2720 Kirkbridge 215 Byron Street, Robins AFB, GA 31098– Drive, Niagara Falls IAP-ARS, NY 14304– 1611 5001 F09604, RU LR Directorate/PK, 750 3rd F31601, BU 43 CONS/CC, 1443 Reilly Road, Street, Building 350, Robins AFB, GA Suite C, Pope AFB, NC 28308–2896 31098–2122 F31610, BW 4 CONS/CC, 1695 Wright Brothers F09607, 5W 347 CONS/CC, 4380B Alabama Avenue, Seymour Johnson AFB, NC 27531– Road, Moody AFB, GA 31699–1793 2459 F09609, 5X 94 LG/LGC, 1538 Atlantic Avenue, F32604, BX 5 CONS/CC, BX 211 Missile Ave- Suite 141, Dobbins ARB, GA 30069–4824 nue, Minot AFB, ND 58705–5027 F09634, 5Y HQ AFRC/LGC, 155 2nd Street, F32605, BY 319 CONS/CC, 575 6th Avenue, Robins AFB, GA 31098–1635 Grand Forks AFB, ND 58205–6436
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F33600, RZ ASC/PKW, 1940 Allbrook Drive, F41689, SK AETC CONS/CC, 550 D Street, Suite 3, Building 1, Wright Patterson AFB, Suite 07, Randolph AFB, TX 78150–4434 OH 45433–5309 F41691, Y0 12 CONS/CC, 395 B Street West, F33601, Q7 ASC/PKWO, 1940 Allbrook Drive, Suite 02, Randolph AFB, TX 78150–4525 Suite 3, Building 1, Wright Patterson AFB, F42600, QP OO–ALC/PK, Building 1289 SE, OH 45433–5309 6038 Aspen Avenue, Hill AFB, UT 84056–5805 F33615, SG Det 1, AFRL/PK, Building 167, F42610, QP OO–ALC/LMK, Building 1289 SE, 2310 8th Street, Wright Patterson AFB, OH 6038 Aspen Avenue, Hill AFB, UT 84056–5821 45433–7801 F42620, QP OO–ALC/LFK, Building 1233, 6072 F33630, C1 910 AW/LGC, 3976 King Graves Fir Avenue, Hill AFB, UT 84056–5820 Road, Unit 25, Youngstown Air Reserve F42630, QP OO–ALC/LIK, Building 1215, 6050 Station, Vienna, OH 44473–5925 Gum Lane, Hill AFB, UT 84056–5825 F33657, SC ASC/PK, Building 14, Room 107, F42650, R2 OO–ALC/PKO, Building 1289 SE, 1865 Fourth Street, Wright Patterson AFB, 6038 Aspen Avenue, Hill AFB, UT 84056–5805 OH 45433–7120 F44600, F3 1 CONS/CC, 74 Nealy Avenue, F33660, FY2333, AFMETCAL Det 1/MLK, 813 Suite 100, Langley AFB, VA 23665–2088 Irving Wick Drive West, Building 2, Heath, F44650, Q1 ACC CONS, 130 Douglas Street, OH 43056–6116 Suite 210, Langley AFB, VA 23665–2791 F34600, C2 71 FTW/CVC, 246 Brown Parkway, F45603, F5 62 CONS/LGC, 100 Main Street, Suite 228, Vance AFB, OK 73705–5037 Suite 1049, McChord AFB, WA 98438–1109 F34601, SD OC-ALC/PK, 3001 Staff Drive, F45613, F8 92 CONS/LGC, 110 West Ent Suite 1AG76A, Tinker AFB, OK 73145–3015 Street, Suite 200, Fairchild AFB, WA 99011– F34608, TF 38 LS/LGC, 4008 Hilltop Road, 9403 Suite 103, Tinker AFB, OK 73145–2713 F47606, G7 440 AW/LGC, 300 East College Av- F34612, C3 97 CONS/CC, 205 South 6th Street, enue, Gen. Mitchell IAP, Milwaukee, WI Building 318, Altus AFB, OK 73523–5147 53207–6299 F34650, Q9 OC-ALC/PKO, Building 3, Suite 1, F48608, G9 90 CONS/LGC, 7505 Marne Loop, 7858 Fifth Street, Tinker AFB, OK 73145– F.E. Warren AFB, WY 82005–2860 9106 F49620, SE AFOSR/PK, 801 North Randolph F36629, C7 911 AW/LGC, 2375 Hercules Court, Street, Room 732, Arlington, VA 22203–1977 Pittsburgh IAP-ARS, Corapolis, PA 15108– F49642, J1 11 CONS/LGC, 500 Duncan Ave- 4495 nue, Room 250, F36700, C8 913 LG/LGC, 1051 Fairchild Bolling AFB, DC 20332–0305 Street, Willow Grove ARS, PA 19090–5203 F61101, T1 Det 1, 21 CONS/CC, Copenhagen F38601, C9 20 CONS/CC, 305 Blue Jay Street, AB, APO AE 09716–5000 Shaw AFB, SC 29152–5004 F61211, N9 31 FW/LGC, Unit 6102, Box 140, F38604, T3 USCENTAF, 524 Shaw Drive, Aviano AB APO AE 09601–2140 Shaw AFB, SC 29152–5029 F61354, W8 425 ABS/LGC, Unit 6870, Box 85, F38610, CR 437 CONS/LGC, 102 Long Street, Izmir AB APO AE 09821–7085 Charleston AFB, SC 29404–4829 F61358, W9 39 CONS/LGC, Unit 1045, Box 280, F39601, CT 28 CONS/LGC, 1000 Ellsworth Incirlik AB APO AE 09824–0285 Street, Suite 1200, Ellsworth AFB, SD F61503, UC 469 ABG/LGC, Unit 7420, Box 115, 57706–4910 Rhein Main AB APO AE 09050–0115 F40600, Q4 AEDC/PK, 100 Kindel Drive, Suite F61517, UF 52 CON FLT/LGC, Unit 3910, A335, Arnold AFB, TN 37389–1335 Building 2001, Spangdahlem AB APO AE F40650, D1 AEDC/PKP, 100 Kindel Drive, 09137–3910 Suite 1332, Arnold AFB, TN 37389–1332 F61521, UH USAFE CONS/LGC, Unit 3115, F41608, SA SA–ALC/PK, 485 Quentin Roo- Ramstein AB APO AE 09094–3115 sevelt Road, Suite 12, Kelly AFB, TX 78241– F61730, UQ 423 ABS/LGC, PSC 47, Unit 5720, 6419 RAF Alconbury APO AE 09470–5720 F41612, D4 82 CONS/CC, 136 K Avenue, Suite F61775, UV 48 CONS/LGC, Unit 5070, Box 270, 2, Sheppard AFB, TX 76311–2739 RAF Feltwell APO AE 09461–0270 F41614, E2 17 CONS/CC, 210 Scherz Boule- F61815, UW 496 ABS/LGC, Unit 6585, Moron vard, Goodfellow AFB, TX 76908–4705 AB APO AE 09643–6585 F41622, QY HSC/PKO, Building 625, 8005 9th F62032, 4D USMTM, Unit 61300, Box 2, Saudi Street, Brooks AFB, TX 78235–5353 Arabia, APO AE 09803–1300 F41624, TG HSC/PK, Building 626, 8005 9th F62321, RA 18 CONS/LGC, Unit 5199, Kadena Street, Brooks AFB, TX 78235–5353 AB APO AP 96368–5199 F41636, ZV 37 CONS/CC, 1655 Selfridge Ave- F62509, QZ 35 CONS, Unit 5201, Misawa AB nue, Lackland AFB, TX 78236–5253 APO AP 96319–5201 F41650, YA SA-ALC/PKO, Building 1598, 1288 F62562, SW 374 CONS/LGC, Unit 5228, Growden Road, Kelly AFB, TX 78251–5318 Yokota AB APO AP 96328–5228 F41652, E5 7 CONS/CC, 381 3rd Street, Dyess F63197 UJ 731 MUNSS/LGC, Unit 7230, Box AFB, TX 79607–1581 49, Araxos AB APO AE 09843–0049 F41685, E6 47 CONS/CC, 171 Alabama Ave- F64133, S9 36 CONS/CC, Unit 14040, Anderson nue, Laughlin AFB, TX 78840–5102 AFB APO AP 96543–4040
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F64605, TN 15 CONS/LGC, 90 G Street, SA7039, 1P Defense Automated Printing Hickam AFB, HI 96853–5230 Service, 151 Ellyson Avenue, Naval Air F65501, WF 3 CONS/CC, 6920 12th Street, Station Pensacola, FL 32508–5121 Suite 242, Elmendorf AFB, AK 99506–2570 SA7042, 1P Defense Automated Printing F65503, WH 354 CONS/LGC, 3112 Broadway Service, McFarland Street, Building 721, Avenue, Suite 3, Eielson AFB, AK 99702– Jacksonville, FL 32212–0003 1850 SA7049, 1P Defense Automated Printing F66501, R7 24 CONS/CC, Unit 0550, Howard Service, 568 Spacelift Avenue, Building 318, AFB APO AA 34001–5000 Patrick AFB, FL 33040–5000 FA0021 HQ AFSOC/LGCQ, 100 Bartley SA7051, 1P Defense Automated Printing Street, Hurlburt Field, FL 32544–5273 Service, PSC 1005, Box 28, Building 1842, FA2550 50 CONS, 66 Falcon Parkway, Suite Guantanamo Bay, Cuba, FPO AE 09593–0128 49, Schreiver AFB, CO 80912–6649 SA7053, 1P Defense Automated Printing FA4416, 5J 89 CONS/LGC, 1419 Menoher Service, 901 South Drive, Building 700 East, Drive, Andrews AFB, MD 20762–6500 Scott AFB, IL 62225–5106 FA4452, RL AMCCONF/LGCF, 102 East Mar- SA7054, 1P Defense Automated Printing tin Street, Room 216, Scott IL 62225–5015 Service, PO Box 20013, Building 110, 4300 FA6648, 5U 482 LSS/LGC, 29050 Coral Sea Goodfellow Boulevard, St. Louis, MO 63120– Boulevard, Box 50, Homestead ARS, FL 1798 33039–1299 SA7055, 1P Defense Automated Printing FA6675, D5 301 LSS/LGC, 1710 Burke Street, Service, 601 East 12th Street, Kansas City, Suite 100, NAS Fort Worth, TX 76127–6200 MO 64106–2896 FA7046, Air Force Operational Test and Eval- SA7057, 1P Defense Automated Printing uation Center, 8500 Gibson Boulevard SE, Service, 4300 Hoover Street, San Diego, CA Kirtland AFB, NM 87117–5558 92136–5595 SA7058, 1P Defense Automated Printing FA8623 ASC/ENVK, Building 8, Room 201, Service, 250 South Butler Avenue, Gunter 1801 10th Street, Wright Patterson AFB, Annex, Maxwell AFB, AL 36114–3104 OH 45433–7626 SA7064, 1P Defense Automated Printing FA8770 MSG/PK, 4375 Childlaw Road, Room Service, Building 550 3989, Box 126, Pearl C022, Wright Patterson AFB, OH 45433–5006 Harbor, HI 96860–3440 PART 6—DEFENSE LOGISTICS AGENCY SA7065, 1P Defense Automated Printing ACTIVITY ADDRESS NUMBERS Service, 1100 Hunley Road, Silverdale, WA 98315–5740 SA7003, 1P Defense Automated Printing SA7069, 1P Defense Automated Printing Service, 700 Robbins Avenue, Building 4 Service, 255 Cochran Street, Robins AFB, D, Philadelphia, PA 19111–5093 GA 31098–1623 SA7007, 1P Defense Automated Printing SA7079, 1P Defense Automated Printing Service, 5450 Carlisle Pike, PO Box 2020, Service, PSC 455, Box 200, Naval Supply Mechanicsburg, PA 17055–0788 Station, Guam, FPO AP 96540–1200 SA7008, 1P Defense Automated Printing SA7080, 1P Defense Automated Printing Service, 2825 D Avenue, Charleston, SC Service, PSC 557, Box 1475, Okinawa, 29408–1819 Japan, FPO AP 96379–1475 SA7012, 1P Defense Automated Printing SA7081, 1P Defense Automated Printing Service, 80 Post Lane, Camp LeJeune, NC Service, PSC 473, Box 26, Yokosuka, Japan, 28547–2527 FPO AP 96349–1108 SA7014, 1P Defense Automated Printing SP0100, TW Defense Supply Center Phila- Service, 47 Chandler Street, Newport, RI delphia, Directorate of Clothing & Tex- 02841–1707 tiles, 700 Robbins Avenue, Philadelphia, PA SA7019, 1P Defense Automated Printing 19111–5096 Service, Building 655, Fort Eustis, VA SP0103, W7 Defense Supply Center Philadel- 23604–5093 phia, Installation Support, 700 Robbins Av- SA7021, 1P Defense Automated Printing enue, Philadelphia, PA 19111–5096 Service, 1401 South Fern Street, Arlington, SP0200, TX Defense Supply Center Philadel- VA 22201–1401 phia, Directorate of Medical Materiel, 700 SA7023, 1P Defense Automated Printing Robbins Avenue, Philadelphia, PA 19111– Service, 2530 Paul Jones, Building 2A, 5096 Great Lakes, IL 60088–5700 SP0300, UE Defense Supply Center Philadel- SA7026, 1P Defense Automated Printing phia, Directorate of Subsistence, 700 Rob- Service, 4165 Communications Boulevard, bins Avenue, Philadelphia, PA 19111–5096 Building 281, Suite 2, Dayton, OH 45433–5602 SP0302, W6 Defense Supply Center Philadel- SA7031, 1P Defense Automated Printing phia, Pacific, ATTN: DSCP–Pacific, 2155 Service, 1641 Morris Street, Naval Station Mariner Square Loop, Alameda, CA 94501– Norfolk, VA 23511–2898 1022 SA7033, 1P Defense Automated Printing SP0303, U6 Defense Supply Center Philadel- Service, 4400 Dauphine Street, Unit 601 3–B, phia, Europe, ATTN: DSCP–Europe, APO New Orleans, LA 70146–6300 AE 09052–5000
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SP0400, TY, XK, Z1, Z3, Z6 Defense Supply ECAT, 8000 Jefferson Davis Highway, Rich- Center Richmond, Business Operations, mond, VA 23297–5770 8000 Jefferson Davis Highway, Richmond, SP0499 Defense Supply Center Richmond- VA 23297–5770 FCIM, 8000 Jefferson Davis Highway, Rich- SP0410, XH Defense Supply Center Rich- mond, VA 23297–5770 mond, Base Spt Div, Directorate of Pro- SP0500, TZ, WU Defense Supply Center curement, 8000 Jefferson Davis Highway, Philadelphia, 700 Robbins Avenue, Phila- Richmond, VA 23297–5312 delphia, PA 19111–5096 SP0411, TY Defense Supply Center Rich- SP0520 Defense Supply Center Philadelphia, mond, Proc Br (ESOC), Customer Asst Ctr, Product Verification Testing Acquisition, 8000 Jefferson Davis Highway, Richmond, 700 Robbins Avenue, Philadelphia, PA VA 23297–5871 19111–5096 SP0413, TY Defense Supply Center Rich- SP0540 Defense Supply Center Philadelphia, mond, Spec Purchase Br, Prod Ctr Spt Div, 700 Robbins Avenue, Philadelphia, PA 8000 Jefferson Davis Highway, Richmond, 19111–5096 VA 23297–5864 SP0560 Defense Supply Center Philadelphia, SP0414, TY Defense Supply Center Rich- 700 Robbins Avenue, Philadelphia, PA mond, SASPS Phase I Br, Prod Ctr Spt 19111–5096 Div, 8000 Jefferson Davis Highway, Rich- SP0599 Defense Supply Center Philadelphia- mond, VA 23297–5864 FCIM, 700 Robbins Avenue, Philadelphia, SP0430, TY Defense Supply Center Rich- PA 19111–5096 mond, Procurement Branch, Product Cen- SP0600, UA Defense Energy Support Center, ter 5, 8000 Jefferson Davis Highway, Rich- 8725 John J. Kingman Road, Suite 2533, mond, VA 23297–5813 Fort Belvoir, VA 22304–6160 SP0700, UB, UZ, U3 Defense Supply Center SP0440, TY Defense Supply Center Rich- Columbus, PO Box 3990, Columbus, OH mond, Procurement Branch, Product Cen- 43216–3990 ter 7, 8000 Jefferson Davis Highway, Rich- SP0701 Defense Supply Center Columbus, mond, VA 23297–5834 ATTN: DSCC–OT, Building 20, Fourth SP0441, TY Defense Supply Center Rich- Floor, Columbus, OH 43216–5000 mond, Procurement Branch, Product Cen- SP0710, YL Defense Supply Center Colum- ter 6, 8000 Jefferson Davis Highway, Rich- bus, Base Contracting, PO Box 16704, Co- mond, VA 23297–5822 lumbus, OH 43216–5010 SP0450, TY Defense Supply Center Rich- SP0720, YM Defense Supply Center Colum- mond, Procurement Branch, Product Cen- bus, Lumber Solicitations/Awards, PO Box ter 4, 8000 Jefferson Davis Highway, Rich- 16704, Columbus, OH 43216–5010 mond, VA 23297–5800 SP0730, WZ Defense Supply Center Colum- SP0451, TY Defense Supply Center Rich- bus, Military Interdepartmental PR MIPR mond, Procurement Branch, Product Cen- Division, PO Box 3990, Columbus, OH 43216– ter 2, 8000 Jefferson Davis Highway, Rich- 5000 mond, VA 23297–5772 SP0740, XJ Defense Supply Center Colum- SP0460, TY Defense Supply Center Rich- bus, Aerospace Solicitations/Awards, PO mond, Procurement Branch, Product Cen- Box 3990, Columbus, OH 43216–5000 ter 1, 8000 Jefferson Davis Highway, Rich- SP0749 Defense Supply Center Columbus, mond, VA 23297–5772 Aerospace/Public Manufacturing, PO Box SP0461, TY Defense Supply Center Rich- 3990, Columbus, OH 43216–3990 mond, Special Purchase Branch (SPUR), SP0750, UB Defense Supply Center Colum- 8000 Jefferson Davis Highway, Richmond, bus, Land Solicitations/Awards, PO Box VA 23297–5864 16704, Columbus, OH 43216–5010 SP0470 Defense Supply Center Richmond, SP0759 Defense Supply Center Columbus, Procurement Branch, Product Center 10, Land Public Manufacturing, PO Box 16704, 8000 Jefferson Davis Highway, Richmond, Columbus, OH 43216–5010 VA 23297–5352 SP0760, UB Defense Supply Center Colum- SP0475 Defense Supply Center Richmond, bus, Maritime Solicitations/Awards, PO Procurement Branch, Product Center 11, Box 16704, Columbus, OH 43216–5010 8000 Jefferson Davis Highway, Richmond, SP0769 Defense Supply Center Columbus, VA 23297–5361 Maritime Public Manufacturing, PO Box SP0480, TY Defense Supply Center Rich- 16704, Columbus, OH 43216–5010 mond, Procurement Branch, Product Cen- SP0770, UB Defense Supply Center Colum- ter 3, 8000 Jefferson Davis Highway, Rich- bus, Commodities Solicitations/Awards, mond, VA 23297–5876 PO Box 16704, Columbus, OH 43216–5010 SP0490, TY Defense Supply Center Rich- SP0779 Defense Supply Center Columbus, mond, Procurement Branch, Product Cen- Commodities Public Manufacturing, PO ter 1, 8000 Jefferson Davis Highway, Rich- Box 16704, Columbus, OH 43216–5010 mond, VA 23297–5846 SP0780 Defense Supply Center Columbus, SP0495 Defense Supply Center Richmond, Government Furnished Property Account, Directorate of Business Operations, ATTN: ATTN: DSCC–PAPB GFP, Building 20 A2N,
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3990 East Broad Street, Columbus, OH SAS01A UY DCMC Pacific-Australia, Unit 43216–5000 11009, APO AP 96551–1000 SP0799 Defense Supply Center Columbus- SBL00A MJ DCMC Northern Europe-Bel- FCIM, PO Box 3990, Columbus, OH 43216– gium, PSC 82, Box 002, APO AE 09724–5000 5000 SCN01A WV DCMC Americas, 275 Bank SP0833, VS Defense National Stockpile Cen- Street, Suite 200, Ottawa, Canada K2P 2L6 ter, 8725 John J. Kingman Road, Suite 3339, SGR18A DCMC Southern Europe, Box 775, Fort Belvoir, VA 22060–6223 ATTN: DCMDI–GGA, APO AE 09096–5000 SP0900, UD Defense Supply Center Colum- SJP10A Y9 DCMC Pacific-Japan, PSC 477, bus, Electronics, PO Box 16704, Columbus, Box 39, FPO AP 96306–2739 OH 43216–5010 SKR08A R1 DCMC Pacific-Korea (Kimhae), SP0905 Defense Supply Center Columbus, Unit 2000, APO AE 96214–5000 PO Box 16704, Columbus, OH 43216–5010 SML04A XC DCMC Pacific—Kuala Lumpur, SP0910, U7 Defense Supply Center Colum- American Embassy, APO AP 96535–5000 bus, Base Contracting, PO Box 16704, Co- lumbus, OH 43216–5010 SPR01A QF DCMC Americas—Puerto Rico, SP0920, W4 Defense Supply Center Colum- Box DLA NSGA 7, FPO AA 34053–0006 bus, Electro Mechanical, PO Box 16704, Co- SSA20A DCMC Southern Europe—Spain, lumbus, OH 43216–5010 PSC 61, Box 3000, APO AE 09642–5000 SP0930 Defense Supply Center Columbus, SSN05A DCMC Pacific—Singapore, PSC 470, Switches, PO Box 16704, Columbus, OH Box 2700, FPO AP 96534–2100 43216–5000 SSR01A YE DCMC Southern Europe— SP0935 Defense Supply Center Columbus, Israel, American Embassy Unit 7228, APO Connectors, PO Box 16704, Columbus, OH AE 09830–7228 43216–5000 SSU01A U4 DCMC Saudi Arabia—Air, SP0960 Defense Supply Center Columbus, DCMCI Unit 61305, APO AE 09803–1305 Active Devices, PO Box 16704, Columbus, SSU03A US DCMC Saudi Arabia—Land, OH 43216–5000 DCMCI Unit 61301, APO AE 09803–1301 SP0970 Defense Supply Center Columbus, STA21A DCMC Southern Europe—Italy PO Box 16704, Columbus, OH 43216–5000 (Brindisi), PSC 817, Box 61, FPO AE 09622– SP0999 Defense Supply Center Columbus- 0061 FCIM, PO Box 16704, Columbus, OH 43216– STA23 DCMC Southern Europe—Italy, Unit 5000 31401, Box 71, APO AE 09630–0071 SP3100, WX Defense Distribution Center STR02A, TQ DCMC Southern Europe—Tur- East, Directorate of Distribution Procure- key, Unit 9050, APO AE 09822–9050 ment, 2001 Mission Drive, New Cumberland, SUK12A, VN DCMC Northern Europe, PSC PA 17070–5001 821, Box 55, APO AE 09421–0055 SP3200, TV Defense Distribution Center SUK14A DCMC Northern Europe—UK Bris- West, Directorate of Distribution Procure- tol, Unit 4825, APO AE 09456–4825 ment, Building S–4, Lathrop, CA 95330–5000 SUK15A DCMC Northern Europe—UK Roch- SP4400, X1 Defense Reutilization Marketing ester, PSC 30, Box 100, APO AE 09447–0100 Service, 74 Washington Avenue North, Bat- SZA01A DCMC Pacific—New Zealand, PSC tle Creek, MI 49017–3092 467, Box 298, FPO AP 96531–2000 SP4410, X1 Defense Reutilization Marketing S0101A DCMC Birmingham, 1910 Third Ave- Service, Special Contracts Divison ATTN: nue North, Room 201, Birmingham, AL DRMS–PO 74 Washington Avenue North, 35203–2376 Battle Creek, MI 49017–3092 SP4420, XI Defense Reutilization Marketing S0102A, WA DCMC Pemco Aeroplex Bir- Service, ATTN: DRMS–PMG, APO AE mingham, PO Box 12447, Birmingham, AL 09096–5000 35202–2447 SP4700, YK, X8 DLA Administrative Sup- S0302A, WY DCMC Phoenix, Two Renais- port Center, Office of Contracting 8725 sance Square, 40 North Central Avenue, John J. Kingman Road, Suite 0119, Fort Suite 400, Phoenix, AZ 85004–4424 Belvoir, VA 22060–6221 S0305A, SR DCMC Raytheon Tucson, PO SP4800 Defense Logistics Agency, Office of Box 11337, Building 801, M/5 D–4, Tucson, Small And Disadvantaged Business Utiliza- AZ 85734–1337 tion, 8725 John J. Kingman Road, Suite S0506A, WL DCMD West, 222 North Sepul- 1127, Fort Belvoir, VA 22060–6221 veda Boulevard, El Segundo, CA 90245–4320 SP4900 Defense Logistics Support Com- S0507A, XR DCMC San Francisco, 1265 mand, Procurement Systems, Standard Borregas Avenue, Sunnyvale, CA 94089 Procurement System Program, 8725 John S0512A, YC DCMC Van Nuys, 6230 Van Nuys J. Kingman Road, Fort Belvoir, VA 22060– Boulevard, Van Nuys, CA 91401–2713 6221 S0513A, UG DCMC Santa Ana, 34 Civic Cen- SP5200 Defense Logistics Support Com- ter Plaza, PO Box C–12700, Santa Ana, CA mand, Electronic Commerce Mall Oper- 92712–2700 ations, ATTN: DLSC–PRS, 8725 John J. S0514A, VH DCMC San Diego, 7675 Dagget Kingman Road, Fort Belvoir, VA 22060–6221 Street, Suite 200, San Diego, CA 92111–2241
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S0520A, VR DCMC San Francisco—ULDP S1221A, X5 DCMC Northrop Grumman Mel- San Jose, M/SX65, PO Box 367, San Jose, bourne 2000 West NASA Boulevard, PO Box CA 95103–0367 9650, Melbourne, FL 32902–9650 S0530A, X9 DCMC Boeing Huntington S1403A, YP DCMC Chicago, PO Box 66911, Beach, 5301 Bolsa Avenue, Huntington Chicago, IL 60666–0911 Beach, CA 92647–2099 S1501A, WG DCMC Indianapolis, 8899 East S0539A, QT DCMC Hughes, Los Angeles, Kil- 56th Street, Indianapolis, IN 46249–5701 roy Airport Building Center, 2250 East Im- S1505A, X2 DCMC Indianapolis-Raytheon, perial Highway, Suite 11000, El Segundo, Communication Systems Division, 1010 CA 90245–4320 Production, Mail Stop 03–07, Fort Wayne, S0542A, RY DCMC Boeing Canoga Park, PO IN 46808–4106 Box 7922, 6633 Canoga Avenue, Canoga S1510A, Z9 DCMC Pacific-Honolulu, Box Park, CA 91303–7922 64110, Camp H.M. Smith, Honolulu, HI S0543A, QX DCMC Lockheed Martin Mis- 96861–4110 siles & Space, PO Box 3504, Sunnyvale, CA S1701A, YD DCMC Wichita, 271 West Third 94088–3504 Street North, Suite 6000, Wichita, KS 67202– S0544A, TC DCMC Boeing Long Beach, 2401 1212 ≤S2101A DCMC Baltimore, 200 East Wardlow, Mail Code, 54–79, Long Towsontown Boulevard West, Towson, MD Beach, CA 90807–4481 21204–5299 S0546A, QR DCMC Northrop Grumman Haw- S2103A, S2 DCMC Northrop Grumman Bal- thorne, 2301 West 120th Street, Mail Code timore, PO Box 1693, Mail Stop 1285, Balti- H3–2, Hawthorne, CA 90251–5032 more, MD 21203–1693 S0602A, VK DCMC Denver, Orchard Place 2, S2202A, UT DCMC East, 495 Summer Suite 200, 5975 Greenwood Plaza Boulevard, Street, Boston, MA 02210–2184 Englewood, CO 80111–4715 S2203A, XX DCMC Boston—GTE, Govern- S0605A, RE DCMC Lockheed Martin Astro- ment Systems Corp. 77 A Street, Needham, nautics, PO Box 179, Denver, CO 80201–0179 MA 02194–9123 S0701A, WB DCMC Hartford, 130 Darlin S2205A, XF DCMC Raytheon, 2 Wayside Av- Street, East Hartford, CT 06108–3234 enue, Burlington, MA 01803–0901 S0702A, UP DCMC Hartford-Stratford, 550 S2206A, Y3 DCMC Boston, 495 Summer Main Street, Stratford, CT 06497–7574 Street, Boston, MA 02210–2138 S0703A, XT DCMC Hartford-Hamilton S2207A, 7Q DCMC GE Lynn, 1000 Western Standard, 1 Hamilton Road, Windsor Avenue, Lynn, MA 01910–0445 Locks, CT 06096–0463 S2208A, NJ DCMC General Dynamics De- S0707A LF DCMC Sikorsky, 6900 Main fense Systems, 100 Plastics Avenue, Pitts- Street, Stratford, CT 06497–9131 field, MA 01201–3677 S0708A, T5 DCMC Pratt & Whitney, East Hartford, 400 Main Street, Mail Stop 104–08, S2209A, SQ DCMC Boston-Textron Systems East Hartford, CT 06108–0969 Corporation, 201 Lowell Street, Wil- mington, MA 01887–2941 S1002A, WW DCMC Orlando, 3555 Maguire Boulevard, Orlando, FL 32803–3726 S2303A, VW DCMC Detroit-Grand Rapids, S1005A, XL DCMC Lockheed Martin, Or- Riverview Center Building, 678 Front Ave- lando, 5600 Sand Lake Road, MP49, Or- nue NW, Grand Rapids, MI 49504–5352 lando, FL 32819–8907 S2305A, Y7 DCMC Detroit, U.S. Army Tank- S1009A, V1 DCMC Orlando-Harris, 1425 Automotive Command, ATTN: DCMDE– Troutman Boulevard NE, Palm Bay, FL GJD, Warren, MI 48397–5000 32905–4102 S2401A, WQ DCMC Twin Cities, 3001 Metro S1011A, T2 DCMC Pratt & Whitney West Drive, Bloomington, MN 55425–1573 Palm Beach, 17900 Beeline Highway, West S2404A, UR DCMC Baltimore, ATTN: Chesa- Palm Beach, FL 33410–9600 peake 200 Towsontown, Boulevard West, S1103A, Y1 DCMC Atlanta, 805 Walker Towson, MD 21204–5299 Street, Marietta, GA 30060–2789 S2605A, XS DCMC St. Louis, 1222 Spruce S1104A DCMC Atlanta-Rockwell, PO Box Street, St. Louis, MO 63103–2812 1356, Duluth, GA 30136–1357 S2606A, JZ DCMC Boeing St. Louis, PO Box S1109A, Z4 DCMC Clearwater, Gadsen 516, St. Louis, MO, 63166–0516 Building, Suite 200, 9549 Koger Boulevard, S3001A, YS DCMC Lockheed Martin Sand- St. Petersburg, FL 33702–2455 ers, PO Box 0868, NHQ–539 Nashua, NH S1110A, Z5 DCMC Northrop Grumman, St. 03061–0868 Augustine, 5000 U.S. Highway 1 North, St. S3101A, WT DCMC Springfield, Building 1, Augustine, FL 32085–3447 ARDEC, Picatinny, NJ 07806–5000 S1111A, RK DCMC Lockheed Martin Mari- S3102A, UU DCMC Springfield-Allied Sig- etta, 86 South Cobb Drive, Building B–2, nal, Route 46, Mail Stop, 1–37, Teterboro, Marietta, GA 30063–0260 NJ 07608–1173 S1211A, U8 DCMC Aircraft Program Man- S3109A, WC DCMC Springfield-GEC/ agement Office, 805 Walker Street, Mari- Kearfott/MIDSCO, PO Box 975, 164 Totowa etta, GA 30060–2789 Road, Wayne, NJ 07474–0975
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S3110A, X7 DCMC Lockheed Martin, Dela- S4419A, SL DCMC Lockheed Martin Tac- ware Valley, Mail Stop AE 2–W 1 Federal tical Aircraft Systems, PO Box 371, Fort Street, Camden, NJ 08102–1013 Worth, TX 76101–0371 S3305A, DCMC Syracuse-Buffalo, T.J. Dulski S4420A, WP DCMC Dallas-Lockheed Martin Federal Building, Room 1103, 111 West Vought Systems, PO Box 650003, Mail Stop Huron Street, Buffalo, NY 14202–2392 PT, Dallas, TX 75265–0003 S3306A, XU DCMC Syracuse, 615 Erie Boule- S4503A, R6 DCMC Thiokol, PO Box 524, Mail vard West, Syracuse, NY 13402–2408 Stop Z–10, Brigham City, UT 84302–0524 S3309A, VX DCMC Long Island, 605 Stewart S4601A DCMC General Dynamics Arma- Avenue, Garden City, NY 11530–4761 ment/Ord Systems, 128 Lakeside Avenue, S3310A DCMC New York, Fort Wadsworth Burlington, VT 05401–4985 Building 120, 207 New York Avenue, Staten S4801A, XW DCMC Seattle, Corporate Cam- Island, NY 10305–5013 pus East III, 3009 112th Avenue NE, Suite S3315A, YR DCMC Lockheed Martin, Fed- 200, Bellevue, WA 98004–8019 eral Systems, Owego, 1801 State Route 17C, S4804A, SP DCMC Boeing, Seattle, PO Box Owego, NY 13827–3998 3707, Seattle, WA 98124–2207 S3316A, KK DCMC Northrop Grumman S4807A, WM DCMC Stewart and Stevenson, Bethpage, Mail Stop D23–025, South Oyster Inc., PO Box 457, Sealy, TX 77474–0457 Bay Road, Bethpage, NY 11714–3593 S3319A DCMC Boston-Manchester, 2 Wall PART 7—DEFENSE INFORMATION SYS- Street, Manchester, NH 03101–1621 TEMS AGENCY ACTIVITY ADDRESS S3619A, SB DCMC GE Aircraft Engines, NUMBERS Evendale, Mail Drop N–1, Cincinnati, OH DCA100, VC DITCO–NCR, ATTN: DTN 701 45215–6303 South Courthouse Road, Arlington, VA S3603, VB DCMC Cleveland, Admiral Kidd 22204–2109—(ZD10) Building, 555 East 88th Street, Bratenahl, DCA200, VP Defense Information Tech- OH 44108–1068 nology Contracting Organization, Con- S3605A, VL DCMC Dayton, Area C, Building tracting Directorate, ATTN: DTS 2300 East 30, 1725 Van Patton Drive, Wright-Patter- Drive, Scott AFB, IL 62225–5406—(ZD11) son AFB, OH 45433–5302 DCA300, 1F DITCO-Pacific, ATTN: DTP 1080 S3616A, X6 DCMC Cleveland—Lockheed Vincennes Avenue, Suite 100, Pearl Harbor, Martin, Tactical Defense Systems, Akron, HI 96860–4535—(ZD13) 1210 Massillon Road, Akron, OH 44315–0001 DCA400, WK DITCO-Europe, ATTN: DTE, S3618A, YF DCMC Detroit—General Dy- Unit 4235, Box 375, APO AE 09136–5375— namics Lima, 1155 Buckeye Road, Lima, (ZD14) OH 45804–1898 DCA500, KH DITCO-Alaska, ATTN: DTA S3620A, VA Defense Contract Management 10441 Kuter Avenue, Suite 209, Elmendorf District International, 8725 John J. King- AFB, AK 99506–2615—(ZD15) man Road, Suite 3321, Fort Belvoir, VA 22060–6221 PART 8—NATIONAL IMAGERY AND MAP- S3911A, X3 DCMC Pittsburgh, Federal PING AGENCY ACTIVITY ADDRESS Building, Room 1612, 1000 Liberty Avenue, NUMBERS Pittsburgh, PA 15222–4190 NMA100, BQ National Imagery and Mapping S3912A, XM DCMC Philadelphia-Reading, Agency, Support of Network and Enter- 201 Penn Street, Suite 201, Reading, PA prise Systems, ATTN: PCN/D–88, 4600 19601–4054 Sangamore Road, Bethesda, MD 20816– S3915A, XD DCMC Philadelphia, South 20th 5003—(ZM10) Street, Philadelphia, PA 19101–7699 NMA201, Y2 National Imagery and Mapping S3916A, TU DCMC Boeing Philadelphia, PO Agency, Support of USIGS, ATTN: PCU/D– Box 16859, Philadelphia, PA 19142–0859 88, 4600 Sangamore Road, Bethesda, MD S4201A, XY DCMC Philadelphia-United De- 20816–5003—(ZM21) fense Limited Partnership, PO Box 15512, NMA202, Z2 National Imagery and Mapping York, PA 17405–1512 Agency, Support of Systems Engineering, S4402A, Z7 DCMC Dallas, 1200 Main Street, ATTN: PCE/D–88, 4600 Sangamore Road, Dallas, TX 75202–4399 Bethesda, MD 20816–5003—(ZM22) S4404A, XN DCMC San Antonio, 615 East NMA301, V2 National Imagery and Mapping Houston, PO Box 1040, San Antonio, TX Agency, Contracts in Support of Oper- 78294–1040 ations (East), ATTN: PCO–E/D–5, 4600 S4407A, WN DCMC Raytheon E-Systems, Sangamore Road, Bethesda, MD 20816– Inc., PO Box 6379, Greenville, TX 75403–6379 5003—(ZM31) S4408A, XZ DCMC Raytheon TI Systems, NMA302, YQ National Imagery and Mapping PO Box 660246, Mail Stop 256, Dallas, TX Agency, Contracts in Support of Oper- 75266–0246 ations (West), ATTN: PCO–W/L–13, 3200 S4418A, W1 DCMC Bell Helicopter Textron, South Second Street, St. Louis, MO 63118– PO Box 1605, Fort Worth, TX 76101–1605 3399—(ZM32)
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NMA401, 8Y National Imagery and Mapping Buford Road, Richmond, VA 23235–5292— Agency, Contracts in Support of Corp Af- (ZK14) fairs (East), ATTN: PCC–E/D–6, 4600 MDA416, YT DoD Education Activity, Pa- Sangamore Road, Bethesda, MD 20816– cific Procurement Office, PSC 557, Box 5003—(ZM41) 1894, FPO AP 96379–1894—(ZK16) NMA402, YZ National Imagery and Mapping MDA418, E1 DoD Education Activity, Edu- Agency, Contracts in Support of Corp Af- cation Supplies Procurement Office, 101 fairs (West), ATTN: PCC–W/L–13, 3200 Buford Road, Richmond, VA 23235–5292— South Second Street, St. Louis, MO 63118– (ZK18) 3399—(ZM42) MDA904 Maryland Procurement Office, ATTN: N363, 9800 Savage Road, Fort PART 9—DEFENSE THREAT REDUCTION George G. Meade, MD 20755–6000—(ZD04) AGENCY ACTIVITY ADDRESS NUMBERS MDA905, B4 Uniformed Services University DTRA01 8Z—Defense Threat Reduction of the Health Sciences, ATTN: Directorate Agency (AM), DTRA Annex, 8725 John J. of Contracting, 4301 Jones Bridge Road, Be- Kingman Road, MSC 6201, Fort Belvoir, VA thesda, MD 20814–4799—(ZD05) 22060–6201 (ZT01) MDA906, U5 TRICARE Management Activ- DTRA02 0N—Defense Threat Reduction ity, Contract Management Directorate, Agency, Acquisition Management Albu- 16401 East Centretech Parkway, Aurora, CO querque (AMA), 1680 Texas Street SE, 80011–9043—(ZD06) Kirtland AFB, NM 87117–5669 (ZT02) MDA907 Purchasing and Contracting Office, Menwith Hill Station, APO AE 09210— PART 10—MISCELLANEOUS DEFENSE AC- (ZD07) TIVITIES ACTIVITY ADDRESS NUM- MDA908, 2X Virginia Contracting Activity, BERS ATTN: DAP, PO Box 46563, Washington, DC MDA112, E0 T–ASA, Sacramento Con- 20050–6563—(ZD50) tracting Office, 3116 Peacekeeper Way, MDA928 Armed Forces Radiobiology Re- McClellan AFB, CA 95652–1068—(ZP12) search Institute, ATTN: Directorate of MDA113, VE T–ASA, March Contracting Of- Contracting, USUHS, 4301 Jones Bridge fice, 1363 Z Street, Building 2730, March Road, Bethesda, MD 20814–4799—(ZD28) AFB, CA 92518–2717—(ZP13) MDA946 Washington Headquarters Services, MDA210, SF Defense Finance and Account- Real Estate and Facilities Directorate, ing Service, Headquarters, 1931 Jefferson ATTN: REFCO, The Pentagon-Butler Davis Highway, Arlington, VA 22240–5291— Building, 1155 Defense Pentagon, Wash- (ZF21) ington, DC 20301–1155—(ZD46) MDA220, BC Defense Finance and Account- MDA947, DP Pentagon Renovation Office, ing Service, Integrated Contracting Office, 100 Boundary Channel Drive, Arlington, VA 1931 Jefferson Davis Highway, Arlington, 22202–3712—(ZD47) VA 22240–5291—(ZF22) MDA972, WS DARPA, Contracts Manage- MDA230, SU Defense Finance and Account- ment Directorate, 3701 North Fairfax ing Service, Cleveland Center, 1240 East 9th Drive, Arlington, VA 22203—(ZD72) Street, Cleveland, OH 44199–2055—(ZF23) MDA240, 9R Defense Finance and Account- PART 11—DEFENSE MICROELECTRONICS ing Service, Columbus Center, 4280 East ACTIVITY ADDRESS NUMBER 5th Avenue, Columbus, OH 43219–1879— DMEA90, 2P Defense Microelectronics Ac- (ZF24) tivity, ATTN: Contracting Office, 4234–54th MDA250, SV Defense Finance and Account- Street, Building 620, McClellan Air Force ing Service, Denver Center, 6760 East Base, CA 95652–1521—(ZD90) Irvington Place, Denver, CO 80279–8000— (ZF25) PART 12—BALLISTIC MISSILE DEFENSE MDA260, ST Defense Finance and Account- ORGANIZATION ACTIVITY ADDRESS ing Service, Contract Support Office-Indi- NUMBERS anapolis, 8899 East 56th Street, Building 1, Indianapolis, IN 46249–0240—(ZF26) HQ0006, SS Ballistic Missile Defense Orga- MDA280, SY Defense Finance and Account- nization, Contracts Directorate, ATTN: CT ing Service, Kansas City Center, 1500 East 1725 Jefferson Davis Highway, Suite 809, 95th Street, Kansas City, MO 64131—(ZF28) Arlington, VA 22202–4131—(ZD60) MDA410, DR DoD Education Activity, H95001, VV Joint National Test Facility, ATTN: Procurement Division, 4040 North Program Operations Acquisition, 730 Irwin Fairfax Drive, 4th Floor, Arlington, VA Avenue, Schriever Air Force Base, CO 22203–1635—(ZK10) 80912–7300—(ZD61) MDA412, 9Y DoD Education Activity, Euro- PART 13—DEFENSE COMMISSARY pean Procurement Office, Unit 29649, Box AGENCY ACTIVITY ADDRESS NUMBERS 6000, APO AE 09096–9649—(ZK12) MDA414, Y4 DoD Education Activity, Edu- DECA01, ZG Defense Commissary Agency, cation Supplies Procurement Office, 101 Marketing Business Unit, ATTN: DeCA/
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MB, 5258 Oaklawn Boulevard, Hopewell, VA USZA91 USSOCOM, SOTF, ATTN: Con- 23860–7336—(ZD81) tracting, PO Box 70660, Fort Bragg, NC DECA02, ZT Defense Commissary Agency, 28307–5000—(ZA91) Contract Management Business Unit, USZA92, 1F USSOCOM, USASOC, ATTN: ATTN: DeCA/RAS, 5258 Oaklawn Boule- AOCO, Building E–2929, Fort Bragg, NC vard, Hopewell, VA 23860–7336—(ZD82) 28307–5200—(ZA92) DECA03, 0H Defense Commissary Agency, USZA93 Special Boat Squadron One, 3400 Eastern Region/Northern Area Office, Tarawa Road, San Diego, CA 92155–5176— ATTN: DeCA/EA–N–AEA, 2257 Huber Road, (ZA93) Fort George G. Meade, MD 20755–5520— USZA94, ZL Naval Special Warfare Group (ZD83) One, 3632 Guadalcanal Road, San Diego, CA DECA04, BE Defense Commissary Agency, 92155–5583—(ZA94) Contract Management Business Unit, USZA95, 1A USSOCOM, TAKO, Contracting ATTN: DeCA/RAE, 1300 E Avenue, Building Division, ATTN: AMSAT–D–TK, Building P–11200, Fort Lee, VA 23801–1800—(ZD84) 401, Lee Boulevard, Office 209, Fort Eustis, DECA05, 0L Defense Commissary Agency, VA 23604–5577—(ZA95) Eastern Region/Southern Area Office, USZA96, 1P Special Boat Squadron Two, ATTN: DeCA/EA–S–AEA, 60 West Maxwell ATTN: NAB Little Creek, 2220 Schofield Boulevard, Maxwell AFB, AL 36112–6307— Road, Suite 100, Norfolk, VA 23521–2845— (ZD85) (ZA96) DECA06, 0J Defense Commissary Agency, USZA97, B8 Naval Special Warfare Group Midwest Region, ATTN: DeCA/MW–RDA, Two, 3854 Helicopter Road, Norfolk, VA 300 AFCOMS Way, Building 3030, Kelly 23521–2944—(ZA97) AFB, TX 78241–6132—(ZD86) USZA98 Naval Special Warfare Center, 2446 DECA07, 0Z Defense Commissary Agency, Trident Way, San Diego, CA 92155–5494— Western/Pacific Region, ATTN: DeCA/WP– (ZA98) RDA, 3401 Acacia Street, Building 950, USZA99, B9 Naval Special Warfare Develop- McClellan AFB, CA 95692–1154—(ZD87) ment Group, 1636 Regulus Avenue, Building DECA08, 0K Defense Commissary Agency, 313, Virginia Beach, VA 23461–2299—(ZA99) Contract Management Business Unit, ATTN: DeCA/RAV, 1300 E Avenue, Building [59 FR 27678, May 27, 1994, as amended at 60 P–11200, Fort Lee, VA 23801–1800—(ZD88) FR 61615, 61620, 61623, 61626–61627, Nov. 30, DECA09, 0U Defense Commissary Agency, 1995; 61 FR 7751, Feb. 29, 1996; 61 FR 18195, Contract Management Business Unit, Apr. 24, 1996; 61 FR 50457, 50458, Sept. 26, 1996; ATTN: DeCA/EU–RDA, Unit 3060, APO AE 62 FR 34136, June 24, 1997; 63 FR 11550, Mar. 09094—(ZD89) 9, 1998; 63 FR 71231, Dec. 24, 1998; 65 FR 14380, Mar. 16, 2000; 65 FR 39707, June 27, 2000; 65 FR PART 14—UNITED STATES SPECIAL OP- 52954, Aug. 31, 2000; 65 FR 63806, Oct. 25, 2000; ERATIONS COMMAND ACTIVITY AD- 66 FR 49861, Oct. 1, 2001] DRESS NUMBERS USZA20, 1R AFSOC Specialized Contracting APPENDIX H—DEBARMENT AND Office, 100 Bartley Street, Suite 208–W, SUSPENSION PROCEDURES Hurlburt Field, FL 32544–5273—(ZA20) USZA21 SOPAC Contracting Office, Special Sec. Operations Command Pacific, Building 31– H–100 Scope. A, Box 64046, Thompson Road, Camp H.M. H–101 Notification. Smith, HI 96861–4046—(ZA21) H–102 Nature of proceeding. USZA22, 2U USSOCOM Headquarters, Di- H–103 Presentation of matters in opposi- rectorate of Procurement, ATTN: SOAL– tion. KB, 7701 Tampa Point Boulevard, MacDill H–104 Fact-finding. AFB, FL 33621–5323—(ZA22) H–105 Timing requirements. USZA23 Integrated Aviation Systems 21 H–106 Subsequent to fact-finding. Workgroup, ATTN: AATD, Building 401, AUTHORITY; 41 U.S.C. 421 and 48 CFR chap- Fort Eustis, VA 23604–5577—(ZA23) ter 1. USZA24 USSOCOM, 24th STS, ATTN: MS–Z, Building 3–1947, Room 105, Pope AFB, NC H–100 Scope. 28308–5000—(ZA24) This appendix provides uniform debarment USZA25, B6 USSOCOM, RD&A Contracting and suspension procedures to be followed by Office, ATTN: USASOC–RDA, 4118 Susque- all debarring and suspending officials. hanna Avenue, Room 109, Aberdeen Prov- ing Ground, MD 21005–5001—(ZA25) H–101 Notification. USZA26, 1Z USSOCOM, Procurement Man- Contractors will be notified of the proposed agement Office, ATTN: SOAL–KMR, 7701 debarment or suspension in accordance with Tampa Point Boulevard, MacDill AFB, FL FAR 9.406–3 or 9.407–3. A copy of the record 33621–5323—(ZA26) which formed the basis for the decision by USZA90 USSOCOM, JSOC, PO Box 70329, the debarring and suspending official will be Fort Bragg, NC 28307–5000—(ZA90) made available to the contractor. If there is
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a reason to withhold from the contractor (d) The opportunity to present matters in any portion of the record, the contractor will opposition to debarment includes the oppor- be informed of what is withheld and the rea- tunity to present matters concerning the du- sons for such withholding. ration of the debarment.
H–102 Nature of proceeding. H–104 Fact-finding. There are two distinct proceedings which (a) The debarring and suspending official may be involved in the suspension or debar- will determine whether the contractor’s ment process. The first is the presentation of presentation has raised a genuine dispute of matters in opposition to the suspension or material fact(s). If the debarring and sus- proposed debarment by the contractor. pending official has decided against debar- The second is fact-finding which occurs ment or continued suspension, or the provi- only in cases in which the contractor’s pres- sions of FAR 9.4 preclude fact-finding, no entation of matters in opposition raises a fact-finding will be conducted. If the debar- genuine dispute over one or more material ring and suspending official has determined facts. In a suspension action based upon an a genuine dispute of material fact(s) exists, a indictment or in a proposed debarment ac- designated fact-finder will conduct the fact- tion based upon a conviction or civil judg- finding proceeding. The proceeding before ment, there will be no fact-filling proceeding the fact-finder will be limited to a finding of concerning the matters alleged in the indict- the facts in dispute as determined by the de- ment, or the facts underlying the convic- barring and suspending official. (b) The designated fact-finder will estab- tions or civil judgment. However, to the ex- lish the date for a fact-finding proceeding, tent that the proposed action stems from the normally to be held within 45 working days contractor’s affiliation with an individual or of the contractor’s presentation of matters firm indicted or convicted, or the subject of in opposition. An official record will be made a civil judgment, fact-finding is permitted if of the fact-finding proceeding. a genuine dispute of fact is raised as to the (c) The Government’s representative and question of affiliation as defined in FAR the contractor will have an opportunity to 9.403. present evidence relevant to the facts at H–103 Presentation of matters in opposi- issues. The contractor may appear in person tion. or through a representative in the fact-find- ing proceeding. (a) In accordance with FAR 9.406–3(c) and (d) Neither the Federal Rules of Evidence 9.407–3(c), matters in opposition may be pre- nor the Federal Rules of Civil Procedure gov- sented in person, in writing, or through a ern fact-finding. Hearsay evidence may be representative. Matters in opposition may be presented and will be given appropriate presented through any combination of the weight by the fact-finder. foregoing methods, but if a contractor de- (e) Witnesses may testify in person. Wit- sires to present matters in person or through nesses will be reminded of the official nature a representative, any written material of the proceeding and that any false testi- should be delivered at least 5 working days mony given is subject to criminal prosecu- in advance of the presentation. Usually, all tion. Witnesses are subject to cross-examina- matters in opposition are presented in a sin- tion. gle proceeding. A contractor who becomes aware of a pending indictment or allegations H–105 Timing requirements. of wrongdoing that the contractor believes All timing requirements set forth in these may lead to suspension or debarment action procedures may be extended by the debarring may contact the debarring and suspending and suspending official for good cause. official or designee to provide information as to the contractor’s present responsibility. H–106 Subsequent to fact-finding. (b) An in-person presentation is an infor- (a) Written findings of fact will be prepared mal meeting, nonadversarial in nature. The by the fact-finder as mandated by FAR 9.406– debarring and suspending official and/or 3(d)(2)(i) and 9.407–3(d)(2)(i). other agency representatives may ask ques- (b) The fact-finder will determine the dis- tions of the contractor or its representative puted fact(s) by a preponderance of the evi- making the presentation. The contractor dence. A copy of the findings of fact will be may select the individuals who will attend provided to the debarring and suspending of- the meeting on the contractor’s behalf; indi- ficial, the Government’s representative, and vidual respondents or principals of a business the contractor. firm respondent may attend and speak for (c) The debarring and suspending official themselves. will determine whether to continue the sus- (c) In accordance with FAR 9.406–3(c) and pension or to debar the contractor based 9.407–3(c), the contractor may submit mat- upon the entire administrative record, in- ters in opposition within 30 days from re- cluding the findings of fact. ceipt of the notice of suspension or proposed (d) Prompt written notice of the debarring debarment. and suspending official’s decision will be
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sent to the contractor and any affiliates in- contractors and suppliers. According to the volved, in compliance with FAR 9.406–3(e) law, DoD may provide the mentor firm with and 9.407–3(d)(4). either cost reimbursement or credit against applicable subcontracting goals established [59 FR 27700, May 27, 1994] under contracts with DoD or other Federal agencies. APPENDIX I—POLICY AND PROCEDURES (c) DoD will measure the overall success of FOR THE DOD PILOT MENTOR-PRO- the Program by the extent to which the Pro- TEGE PROGRAM gram results in— Sec. (1) An increase in the dollar value of con- I–100 Purpose. tract and subcontract awards to protege I–101 Definitions. firms (under DoD contracts, contracts I–101.1 Emerging SDB protege firm. awarded by other Federal agencies, and com- I–101.2 Historically Black college or univer- mercial contracts) from the date of their sity. entry into the Program until 2 years after I–101.3 Minority institution of higher edu- the conclusion of the agreement; cation. (2) An increase in the number and dollar I–102 General procedures. value of subcontracts awarded to a protege I–103 Program duration. firm (or former protege firm) by its mentor I–104 Eligibility requirements for a protege firm (or former mentor firm); firm. (3) An increase in subcontracting with I–105 Selection of protege firms. small disadvantaged business (SDB) and I–106 Approval process for companies to women-owned small business (WOSB) con- participate in the Program as mentor cerns in industry categories where SDBs and firms. WOSBs traditionally have not participated I–107 Mentor-protege agreements. within the mentor firm’s vendor base; I–108 Reimbursement procedures. (4) The involvement of emerging SDB pro- I–109 Credit for unreimbursed develop- tege firms in the Program; and mental assistance costs. (5) An increase in the employment level of I–110 Advance agreements on the treatment protege firms from the date of entry into the of developmental assistance costs. Program until 2 years after the completion I–111 Reporting requirements. of the agreement. I–112 Agreement reviews. (d) This policy sets forth the procedures for AUTHORITY; 41 U.S.C. 421 and 48 CFR chap- participation in the Program applicable to ter 1. companies that are interested in receiving— (1) Reimbursement through a separate con- I–100 Purpose. tract line item in a DoD contract or a sepa- (a) This Appendix I to 48 CFR Chapter 2 rate contract with DoD; or implements the Pilot Mentor–Protege Pro- (2) Credit toward applicable subcontracting gram (hereinafter referred to as the ‘‘Pro- goals for costs incurred under the Program. gram’’) established under Section 831 of Pub- lic Law 101–510, the National Defense Au- I–101 Definitions. thorization Act for Fiscal Year 1991 (10 I–101.1 Emerging SDB protege firm. U.S.C. 2302 note). The purpose of the Pro- gram is to— A small disadvantaged business whose size (1) Provide incentives to major DoD con- is no greater than 50 percent of the Small tractors, performing under at least one ac- Business Administration (SBA) numerical tive approved subcontracting plan nego- size standard applicable to the North Amer- tiated with DoD or another Federal agency, ican Industry Classification System (NAICS) to assist protege firms in enhancing their ca- code for the supplies or services that the pro- pabilities to satisfy DoD and other contract tege firm provides or would provide to the and subcontract requirements; mentor firm. (2) Increase the overall participation of I–101.2 Historically Black college or univer- protege firms as subcontractors and sup- sity. pliers under DoD contracts, other Federal agency contracts, and commercial contracts; An institution determined by the Sec- and retary of Education to meet the require- (3) Foster the establishment of long-term ments of 34 CFR 608.2. The term also means business relationships between protege firms any nonprofit research institution that was and such contractors. an integral part of such a college or univer- (b) Under the Program, eligible companies sity before November 14, 1986. approved as mentor firms will enter into mentor-protege agreements with eligible I–101.3 Minority institution of higher edu- protege firms to provide appropriate develop- cation. mental assistance to enhance the capabili- An institution meeting the definition of ties of the protege firms to perform as sub- ‘‘Minority Institution’’ at FAR 26.301.
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I–102 General procedures. I–104 Eligibility requirements for a protege (a) At any time between October 1, 1991, firm. and September 30, 2002, companies interested (a) An entity may qualify as a protege firm in becoming mentor firms that want to take if it is— credit toward applicable subcontracting (1)(i) An SDB concern as defined at 219.001, goals for costs incurred for providing devel- paragraph (1) of the definition of ‘‘small dis- opmental assistance to one or more protege advantaged business concern’’; firms must apply to DoD for participation in (ii) A business entity owned and controlled the Program pursuant to the application by an Indian tribe as defined in Section process set forth at I–106(a). 8(a)(13) of the Small Business Act (15 U.S.C. 637(a)(13)); (b) At any time between October 1, 1991, (iii) A business entity owned and con- and September 30, 2002, companies interested trolled by a Native Hawaiian Organization as in becoming mentor firms that are able to defined in Section 8(a)(15) of the Small Busi- identify funding from a DoD program man- ness Act (15 U.S.C. 637(a)(15)); ager(s) to provide developmental assistance (iv) A qualified organization employing the to one or more protege firms must apply to severely disabled as defined in Section 8064A DoD for participation in the Program, pursu- of Public Law 102–172; or ant to the application process set forth at I– (v) A small business concern owned and 106(d). controlled by women, as defined in Section 8(d)(3)(D) of the Small Business Act (15 I–103 Program duration. U.S.C. 637(d)(3)(D)); Activities under the Program may occur (2) Eligible for the award of Federal con- only during the following periods: tracts; and (a) From October 1, 1991, until September (3) A small business according to the SBA 30, 2002, companies that have been approved size standard for the NAICS code that rep- for participation in the Program as mentor resents the contemplated supplies or services firms pursuant to I–102, General Procedures, to be provided by the protege firm to the may enter into mentor-protege agreements, mentor firm, if the firm is representing itself pursuant to I–107, Mentor Protege Agree- as a qualifying entity under paragraph ments. (a)(1)(i) or (v) of this section. (b) From October 1, 1991, until September (b) A protege firm may self-certify to a 30, 2005, DoD may reimburse a mentor firm’s mentor firm that it meets the eligibility re- costs of providing developmental assistance quirements in paragraph (a) of this section. to its protege firm only if a DoD program Mentor firms may rely in good faith on a manager has identified the funding for such written representation that the entity meets costs and— the requirements of paragraph (a) of this sec- (1)(i) For mentor-protege agreements en- tion, except for a protege’s status as a small tered into prior to October 1, 1999, the men- disadvantaged business concern (see FAR tor firm incurs such costs after DoD and the 19.703(b)). (c) A protege firm may have only one ac- mentor firm enter into a separate contract, tive DoD mentor-protege agreement. cooperative agreement, or other agreement; or I–105 Selection of protege firms. (ii) For mentor-protege agreements en- (a) Mentor firms will be solely responsible tered into on or after October 1, 1999, the for selecting protege firms. Mentor firms are mentor firm incurs such costs after DoD and encouraged to identify and select concerns the mentor firm enter into a separate con- that are defined as emerging SDB protege tract based upon a determination by the Di- firms. rector, Small and Disadvantaged Business (b) The selection of protege firms by men- Utilization, Office of the Under Secretary of tor firms may not be protested, except as in Defense (Acquisition, Technology, and Logis- paragraph (c) of this section. tics) (SADBU, OUSD (AT&L)), that unusual (c) In the event of a protest regarding the circumstances justify using a separate con- size or disadvantaged status of an entity se- tract; or lected to be a protege firm as defined in I– (2) The mentor firm incurs such costs pur- 104(a), the mentor firm must refer the pro- suant to the execution of a separately priced test to the SBA to resolve in accordance contract line item added to a DoD con- with 13 CFR Part 121 (with respect to size) or tract(s). 13 CFR 124 (with respect to disadvantaged (c) From October 1, 1991, until September status). 30, 2005, a mentor firm may receive credit to- (d) For purposes of the Small Business Act, ward the attainment of its applicable sub- no determination of affiliation or control (ei- contracting goals, for unreimbursed costs in- ther direct or indirect) may be found be- curred in providing developmental assistance tween a protege firm and its mentor firm on to its protege firms, only if such costs are in- the basis that the mentor firm has agreed to curred pursuant to an approved mentor-pro- furnish (or has furnished) to its protege firm, tege agreement. pursuant to a mentor-protege agreement,
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any form of developmental assistance de- Federal agency contracts during the 2 pre- scribed in I–107(f). ceding fiscal years. (e) If at any time pursuant to paragraph (c) (8) The total dollar amount and percentage of this section, the SBA determines that a of subcontracts that the company awarded protege firm is ineligible, assistance that the to all SDB and WOSB firms under DoD con- mentor firm furnishes to such a concern tracts and other Federal agency contracts after the date of the determination may not during the 2 preceding fiscal years. (Show be considered assistance furnished under the DoD subcontract awards separately.) If the Program. company presently is required to submit a Standard Form (SF) 295, Summary Sub- I–106 Approval process for companies to contract Report, the request must include participate in the Program as mentor copies of the final reports for the 2 preceding firms. fiscal years. (a) On or after October 1, 1991, a company (9) The number and total dollar amount of that is interested in becoming a mentor firm subcontracts that the company awarded to that is seeking credit toward applicable sub- the identified protege firm(s) during the 2 contracting goals for costs incurred under preceding fiscal years (if any). (Show DoD the Program must submit a request to the subcontract awards and other Federal agen- Director, SADBU, OUSD (AT&L), for ap- cy subcontract awards separately.) proval as a mentor firm under the Program. (c) In addition to the information required The Director will evaluate the request based in paragraph (b) of this section, companies on the extent to which the company’s pro- must submit the following information for posal addresses the items listed in para- each proposed mentor-protege relationship: (1) Information on the company’s ability to graphs (b) and (c) of this section. To the provide developmental assistance to the maximum extent possible, a company should identified protege firm and how that assist- limit its request to not more than 10 pages, ance will potentially increase subcon- single-spaced. A company may identify more tracting opportunities in industry categories than one protege in its request for approval where SDBs and WOSBs are not dominant in under the Program. The request must in- the company’s vendor base. clude the information required in paragraphs (2) A letter of intent indicating that both (b) and (c) of this section and may cover one the mentor firm and the protege firm will or more proposed mentor-protege relation- negotiate a mentor-protege agreement. The ships. letter of intent must be signed by both par- (b) A company must indicate whether it is ties and must contain the following informa- interested in participating in the Program tion: pursuant to I–100(d)(1) or (2) and must submit (i) The name, address, and telephone num- the following information: ber of both parties. (1) A statement that the company is cur- (ii) The protege firm’s business classifica- rently performing under at least one active tion, based upon the NAICS code(s) that rep- approved subcontracting plan negotiated resents the contemplated supplies or services with DoD or another Federal agency pursu- to be provided by the protege firm to the ant to FAR 19.702, and that the company is mentor firm. currently eligible for the award of Federal (iii) A statement that the protege firm contracts. meets the eligibility criteria in I–104(a). (2) The number of proposed mentor-protege (iv) A preliminary assessment of the devel- relationships covered by the request for ap- opmental needs of the protege firm, and the proval as a mentor firm. proposed developmental assistance the men- (3) A summary of the company’s historical tor firm envisions providing the protege firm and recent activities and accomplishments to address those needs and enhance the pro- under its small and disadvantaged business tege firm’s ability to perform successfully utilization program. under contracts or subcontracts with DoD (4) The total dollar amount of DoD con- and other Federal agencies and commercial tracts and subcontracts that the company contracts. received during the 2 preceding fiscal years. (v) An estimate of the dollar amount and (Show prime contracts and subcontracts sep- type of subcontracts that the mentor firm arately per year.) will award to the protege firm, and the pe- (5) The total dollar amount of all other riod of time over which the mentor firm will Federal agency contracts and subcontracts make those awards. that the company received during the 2 pre- (vi) Information as to whether the protege ceding fiscal years. (Show prime contracts firm’s development will be concentrated on a and subcontracts separately per year.) single major system, a service or supply pro- (6) The total dollar amount of subcontracts gram, research and development programs, that the company awarded under DoD con- initial production, or mature systems, or in tracts during the 2 preceding fiscal years. the mentor firm’s overall contract base. (7) The total dollar amount of subcontracts (3) An estimate of the cost of the develop- that the company awarded under all other mental assistance program and the period of
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time over which the mentor firm will pro- (2) May not be reimbursed or take credit vide assistance. for any costs of providing developmental as- (d) A company that has identified Program sistance to its protege firm, incurred more funds to be made available through a DoD than 30 days after the imposition of such sus- program manager must provide the informa- pension or debarment; and tion in paragraphs (b) and (c) of this section (3) Must promptly give notice of its suspen- through the appropriate program manager sion or debarment to its protege firm and the and the cognizant Director, SADBU, to the Director, SADBU, OUSD (AT&L). Director, SADBU, OUSD(AT&L), with a let- ter signed by the appropriate program man- I–107 Mentor-protege agreements. ager indicating the amount of funding that (a) A signed mentor-protege agreement for has been identified for the developmental as- each mentor-protege relationship identified sistance program. The company must submit under I–106(b)(2) must be submitted to the a justification and endorsement from the Director, SADBU, OUSD (AT&L), and ap- cognizant Director, SADBU, when requesting proved before developmental assistance costs any of the following unusual actions: may be incurred. To the maximum extent (1) Reimbursement of developmental costs possible, such mentor-protege agreements in excess of $1,000,000. will be approved within 5 business days of re- (2) Reimbursement through a separate con- ceipt. tract. (b) Each signed mentor-protege agreement (3) A Program participation term greater submitted for approval under the Program than 3, but not more than 5, years. must include— (e) Companies seeking credit toward appli- (1) The name, address, and telephone num- cable subcontracting goals for the cost of de- ber of the mentor firm and the protege firm velopmental assistance, or reimbursement and a point of contact within the mentor with funds made available by a DoD program firm who will administer the developmental manager, must submit four copies of the in- assistance program; formation specified in paragraphs (b) and (c) of this section to the Director, SADBU, (2) The NAICS code(s) that represent the OUSD(AT&L), ATTN: Pilot Mentor-Protege contemplated supplies or services to be pro- Program Manager, 1777 North Kent Street, vided by the protege firm to the mentor firm Suite 9100, Arlington, VA 22209. Upon receipt and a statement that, at the time the agree- of this information, the Director, SADBU, ment is submitted for approval, the protege OUSD(AT&L), will review and evaluate each firm, if an SDB or WOSB concern, does not request and, to the maximum extent pos- exceed the size standard for the appropriate sible, within 30 days advise each applicant of NAICS code; approval or rejection of its request to be- (3) A developmental program for the pro- come a mentor firm. tege firm specifying the type of assistance (f) A company approved as a mentor firm, identified in paragraph (f) of this section either for credit or for reimbursement that will be provided. The developmental through funds made available by a DoD pro- program also must include— gram manager may proceed with the nego- (i) Factors to assess the protege firm’s de- tiation of the mentor-protege agreement velopmental progress under the Program, in- with the identified protege firm(s). cluding milestones for providing the identi- (g) Companies that apply for participation fied assistance; in the Program pursuant to paragraph (e) of (ii) The anticipated number, dollar value, this section, and are not approved, will be and type of subcontracts to be awarded the provided the reasons and an opportunity to protege firm consistent with the extent and submit additional information for reconsid- nature of the mentor firm’s business, and the eration. period of time over which the subcontracts (h) A company may not be approved for will be awarded; and participation in the Program as a mentor (iii) The dollar value of the technical as- firm if, at the time of requesting participa- sistance program, broken out per year; tion in the Program, it is currently debarred (4) A statement from the protege firm indi- or suspended from contracting with the Fed- cating its commitment to comply with the eral Government pursuant to FAR subpart requirements for reporting and for review of 9.4. the agreement during the duration of the (i) If the mentor firm is suspended or agreement and for 2 years thereafter; debarred while performing under an approved (5) A program participation term for the mentor-protege agreement, the mentor agreement that does not exceed 3 years. Re- firm— quests for an extension of the agreement for (1) May continue to provide assistance to a period not to exceed an additional 2 years its protege firms pursuant to approved men- are subject to the approval of the Director, tor-protege agreements entered into prior to SADBU, OUSD (AT&L), and are contingent the imposition of such suspension or debar- upon the endorsement and submission of jus- ment; tification for such an extension from the
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cognizant Director, SADBU. The justifica- (f) The mentor-protege agreement may tion must detail the unusual circumstances provide for the mentor firm to furnish any or that warrant a term in excess of 3 years; all of the following types of developmental (6) Procedures for the mentor firm to no- assistance: tify the protege firm in writing at least 30 (1) Assistance by mentor firm personnel days in advance of the mentor firm’s intent in— to voluntarily withdraw its participation in (i) General business management, includ- the Program. A mentor firm may voluntarily ing organizational management, financial terminate its mentor-protege agreement(s) management, and personnel management, only if it no longer wants to be a participant marketing, business development, and over- in the Program as a mentor firm. Otherwise, all business planning; a mentor firm must terminate a mentor-pro- (ii) Engineering and technical matters tege agreement for cause; such as production inventory control and (7) Procedures for a protege firm to notify quality assurance; and the mentor firm in writing at least 30 days in (iii) Any other assistance designed to de- advance of the protege firm’s intent to vol- velop the capabilities of the protege firm untarily terminate the mentor-protege under the developmental program. agreement; (2) Award of subcontracts under DoD con- (8) Procedures for the mentor firm to ter- tracts or other contracts on a noncompeti- minate the mentor-protege agreement for tive basis. cause which provide that— (3) Payment of progress payments for the (i) The mentor firm must furnish the pro- performance of subcontracts by a protege tege firm a written notice of the proposed firm in amounts as provided for in the sub- termination, stating the specific reasons for contract; but in no event may any such such action, at least 30 days in advance of progress payment exceed 100 percent of the the effective date of such proposed termi- costs incurred by the protege firm for the nation; performance of the subcontract. Provision of (ii) The protege firm must have 30 days to progress payments by a mentor firm to a respond to such notice of proposed termi- protege firm at a rate other than the cus- nation, and may rebut any findings believed tomary rate for the firm must be imple- to be erroneous and offer a remedial pro- mented in accordance with FAR 32.504(c). gram; (4) Advance payments under such sub- (iii) Upon prompt consideration of the pro- contracts. The mentor firm must administer tege firm’s response, the mentor firm must advance payments in accordance with FAR either withdraw the notice of proposed ter- subpart 32.4. mination and continue the protege firm’s (5) Loans. participation, or issue the notice of termi- (6) Investment(s) in the protege firm in ex- nation; and change for an ownership interest in the pro- (iv) The decision of the mentor firm re- tege firm, not to exceed 10 percent of the garding termination for cause, conforming total ownership interest. Investments may with the requirements of this section, will be include, but are not limited to, cash, stock, final and is not reviewable by DoD; and and contribution in kind. (9) Additional terms and conditions as may (7) Assistance that the mentor firm obtains be agreed upon by both parties. for the protege firm from one or more of the (c) Mentor firms must send a copy of any following: termination notices to the Director, SADBU, (i) Small Business Development Centers es- OUSD (AT&L), the cognizant Director, tablished pursuant to Section 21 of the Small SADBU, and the Defense Contract Manage- Business Act (15 U.S.C. 648). ment Agency administrative contracting of- (ii) Entities providing procurement tech- ficer responsible for conducting the annual nical assistance pursuant to 10 U.S.C. Chap- performance review, and, where funding is ter 142 (Procurement Technical Assistance made available through a DoD program man- Centers). ager, must provide a copy to the program (iii) Historically Black colleges and univer- manager and to the contracting officer. sities. (d) Termination of a mentor-protege agree- (iv) Minority institutions of higher edu- ment will not impair the obligations of the cation. mentor firm to perform pursuant to its con- (g) A mentor firm may not require a pro- tractual obligations under Government con- tege firm to enter into a mentor-protege tracts and subcontracts. Termination of all agreement as a condition for award of a con- or part of the mentor-protege agreement will tract by the mentor firm, including a sub- not impair the obligations of the protege contract under a DoD contract awarded to firm to perform pursuant to its contractual the mentor firm. obligations under any contract awarded to the protege firm by the mentor firm. I–108 Reimbursement procedures. (e) Only developmental assistance provided (a) DoD will reimburse a mentor firm only after DoD approval of the mentor-protege for the cost of developmental assistance in- agreement may be reimbursed. curred by the mentor firm and provided to a
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protege firm under I–107(f)(1) and (7), and I–109 Credit for unreimbursed develop- pursuant to an approved mentor-protege mental assistance costs. agreement. For agreements entered into (a) Developmental assistance costs in- prior to October 1, 1999, DoD will provide re- curred by a mentor firm for providing assist- imbursement only through a separate con- ance to a protege firm pursuant to an ap- tract, cooperative agreement, or other agree- proved mentor-protege agreement, that have ment entered into between DoD and the not been reimbursed through a separate con- mentor firm, awarded for the purpose of pro- tract, cooperative agreement, or other agree- viding developmental assistance to one or ment entered into between DoD and the more protege firms; a separately priced con- mentor firm, or through a separately priced tract line item in a DoD contract; or inclu- contract line item added to a DoD contract, sion of program costs in indirect expense may be credited as if it were a subcontract pools. For agreements entered into on or award to that protege for determining the after October 1, 1999, DoD will provide reim- performance of the mentor firm in attaining bursement only through a separately priced an applicable subcontracting goal estab- contract line item in a DoD contract; or lished under any contract containing a sub- through a separate contract if the Director, contracting plan pursuant to the clause at SADBU, OUSD(AT&L), determines that un- FAR 52.219–9, Small Business Subcontracting usual circumstances justify reimbursement Plan. Unreimbursed developmental assist- using a separate contract. No other means ance costs incurred for a protege firm that is for the reimbursement of the costs of devel- a qualified organization employing the se- opmental assistance provided under I– verely disabled may be credited toward the mentor firm’s small disadvantaged business 107(f)(1) and (7) are authorized under the Pro- subcontracting goal, even if the protege firm gram. is not a small disadvantaged business con- (b) Costs included in indirect expense pools cern. will be reimbursed only to the extent that (b) For crediting purposes only, costs that the costs are otherwise reasonable, allocable, have been reimbursed through inclusion in and allowable. indirect expense pools may also be credited (c) Assistance provided in the form of as subcontract awards for determining the progress payments to a protege firm in ex- performance of the mentor firm in attaining cess of the customary progress payment rate an applicable subcontracting goal estab- for the firm will be reimbursed only if imple- lished under any contract containing a sub- mented in accordance with FAR 32.504(c). contracting plan pursuant to the clause at (d) Assistance provided in the form of ad- FAR 52.219–9. However, costs that have not vance payments will be reimbursed only if been reimbursed because they are not rea- the payments have been provided to a pro- sonable, allocable, or allowable under I– tege firm under subcontract terms and con- 108(b), will not be recognized for crediting ditions similar to those in the clause at FAR purposes. 52.232–12, Advance Payments. Reimburse- (c) Other costs that are not eligible for re- ment of any advance payments will be made imbursement pursuant to I–108(a) may be pursuant to the inclusion of the clause at recognized for credit only if requested, iden- DFARS 252.232–7005, Reimbursement of Sub- tified, and incorporated in an approved men- contractor Advance Payments—DoD Pilot tor-protege agreement. Mentor-Protege Program, in appropriate (d) The amount of credit a mentor firm contracts. In requesting reimbursement, the may receive for any such unreimbursed de- mentor firm agrees that the risk of any fi- velopmental assistance costs must be equal nancial loss due to the failure or inability of to— a protege firm to repay any unliquidated ad- (1) Four times the total amount of such vance payments will be the sole responsi- costs attributable to assistance provided by small business development centers, histori- bility of the mentor firm. cally Black colleges and universities, minor- (e) No other forms of developmental assist- ity institutions, and procurement technical ance are authorized for reimbursement under assistance centers. the Program. (2) Three times the total amount of such (f) The total amount reimbursed to a men- costs attributable to assistance furnished by tor firm for costs of assistance furnished to the mentor’s employees. a protege firm in a fiscal year may not ex- (3) Two times the total amount of other ceed $1,000,000 unless the Director, SADBU, such costs incurred by the mentor in car- OUSD(AT&L), determines in writing that rying out the developmental assistance pro- unusual circumstances justify reimburse- gram. ment at a higher amount. Request for au- (e) A mentor firm may receive credit to- thority to reimburse in excess of $1,000,000 ward the attainment of an SDB subcon- must detail the unusual circumstances and tracting goal for each subcontract awarded must be endorsed and submitted by the pro- for a product or a service by the mentor firm gram manager and the cognizant Director, to an entity that qualifies as an SDB protege SADBU. firm pursuant to I–104(a)(1)(i) through (iv).
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With respect to former SDB protege firm(s), (AT&L), must reflect the actual costs in- a mentor may take credit for awards to such curred for developmental assistance (not ex- concern(s) that, except for its size would be ceeding the maximum amount reimbursed). a small business concern owned and con- (l) For purposes of calculating any incen- trolled by socially and economically dis- tives to be paid to a mentor firm for exceed- advantaged individuals, but only if— ing an SDB subcontracting goal pursuant to (1) The size of such business concern is not the clause at FAR 52.219–26, Small Disadvan- more than two times the appropriate size taged Business Participation Program—In- standard; centive Subcontracting, incentives will be (2) The business concern formerly had a paid only if an SDB subcontracting goal has mentor-protege agreement with such mentor been exceeded as a result of actual sub- firm that was not terminated for cause; and contract awards to SDBs (i.e., excluding (3) The credit is taken not later than Octo- credit under paragraphs (a), (b), and (c) of ber 1, 2005. this section). (f) Amounts credited toward applicable (m) Developmental assistance costs that subcontracting goal(s) for unreimbursed are incurred pursuant to an approved men- costs under the Program must be separately tor-protege agreement, and have been identified from the amounts credited toward charged to, but not reimbursed through, a the goal resulting from the award of actual separate contract, cooperative agreement, or subcontracts to protege firms. The combina- other agreement entered into between DoD tion of the two must equal the mentor firm’s and the mentor firm, or through a separately overall accomplishment toward the applica- priced contract line item added to a DoD ble goal(s). contract, will not be otherwise reimbursed, (g) Adjustments may be made to the as either a direct or indirect cost, under any amount of credit claimed under paragraphs other DoD contract, irrespective of whether (a) and (b) of this section if the Director, the costs have been recognized for credit SADBU, OUSD(AT&L), determines that— against applicable subcontracting goals. (1) A mentor firm’s performance in the at- (n) Developmental assistance provided tainment of its subcontracting goals through under an approved mentor-protege agree- actual subcontract awards declined from the ment is distinct from, and must not dupli- prior fiscal year without justifiable cause; cate, any effort that is the normal and ex- and pected product of the award and administra- (2) Imposition of such a limitation on cred- tion of the mentor firm’s subcontracts. Costs it appears to be warranted to prevent abuse associated with the latter must be accumu- of this incentive for the mentor firm’s par- lated and charged in accordance with the ticipation in the Program. contractor’s approved accounting practices; (h) The mentor firm must be afforded the they are not considered developmental as- opportunity to explain the decline in small sistance costs eligible for either credit or re- business subcontract awards before imposi- imbursement under the Program. tion of any such limitation on credit. In making the final decision to impose a limita- I–110 Advance agreements on the treatment tion on credit, the Director, SADBU, OUSD of developmental assistance costs. (AT&L), must consider— Pursuant to FAR 31.109, approved mentor (1) The mentor firm’s overall small busi- firms seeking either reimbursement or credit ness participation rates (in terms of percent- are strongly encouraged to enter into an ad- ages of subcontract awards and dollars vance agreement with the contracting offi- awarded) as compared to the participation cer responsible for determining final indirect rates existing during the 2 fiscal years prior cost rates under FAR 42.705. The purpose of to the firm’s admission to the Program; the advance agreement is to establish the ac- (2) The mentor firm’s aggregate prime con- counting treatment of the costs of the devel- tract awards during the prior 2 fiscal years opmental assistance pursuant to the mentor- and the total amount of subcontract awards protege agreement prior to the incurring of under such contracts; and any costs by the mentor firm. An advance (3) Such other information the mentor firm agreement is an attempt by both the Govern- may wish to submit. ment and the mentor firm to avoid possible (i) The decision of the Director, SADBU, subsequent dispute based on questions re- OUSD (AT&L), regarding the imposition of a lated to reasonableness, allocability, or al- limitation on credit will be final. lowability of the costs of developmental as- (j) Any prospective limitation on credit sistance under the Program. Absent an ad- imposed by the Director, SADBU, OUSD vance agreement, mentor firms are advised (AT&L), must be expressed as a percentage to establish the accounting treatment of of otherwise eligible credit, will apply begin- such costs and address the need for any ning on a specific date in the future, and will changes to their cost accounting practices continue until a date certain during the cur- that may result from the implementation of rent fiscal year. a mentor-protege agreement, prior to incur- (k) Any retroactive limitation on credit ring any costs, and irrespective of whether imposed by the Director, SADBU, OUSD costs will be reimbursed or credited.
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I–111 Reporting requirements. (ii) Each of the 2 fiscal years following the (a) Mentor firms must report on the expiration of the Program participation progress made under active mentor-protege term; agreements semiannually for the periods (2) Must provide the data by October 31st ending March 31st and September 30th. The of each year to address the prior fiscal year; September 30th report must address the en- and tire fiscal year. Reports are due 30 days after (3) During the Program participation term, the close of each reporting period. The report may provide the data as part of the mentor must include— report required by paragraph (a) of this sec- (1) Data on performance under the mentor- tion for the period ending September 30th. protege agreement, including dollars obli- (c) Progress reports must be submitted as gated, expenditures, credit taken under the follows: Program, applicable subcontract awards under DoD contracts, developmental assist- (1) For agreements that provide credit to- ance provided, impact of the agreement, and ward applicable subcontracting goals for progress of the agreement (A recommended costs incurred under the Program, to the Di- format and guidance for this submission are rector, SADBU, OUSD (AT&L), and the De- available via the Internet at http:// fense Contract Management Agency (DCMA) www.acq.osd.mil/sadbu/mentorlprotege); administrative contracting officer. and (2) For agreements that provide for reim- (2) A copy of the SF 294, Subcontracting bursement of costs incurred under the Pro- Report for Individual Contracts, for each gram, to the Director, SADBU, OUSD contract where developmental assistance (AT&L), the contracting officer, the DCMA was credited, with a statement in Block 15 administrative contracting officer, the pro- identifying— gram manager, and the cognizant Director, (i) The amount of dollars credited to the SADBU. applicable subcontracting goal as a result of developmental assistance provided to pro- I–112 Agreement reviews. tege firms under the Program; and The Defense Contract Management Agency (ii) The number and dollar value of sub- will conduct annual performance reviews of contracts awarded to the protege firm(s), the progress and accomplishments realized broken out per protege. under approved mentor-protege agreements. (3) In addition to the reporting require- These reviews must verify data provided on ments of paragraph (a)(1) of this section, for commercial companies and companies par- the semiannual reports and must provide in- ticipating in the DoD Test Program for Ne- formation as to— gotiation of Comprehensive Small Business (a) Whether all costs reimbursed to the Subcontracting Plans, indicate in Block 15 of mentor firm under the agreement were rea- the SF 295— sonably incurred to furnish assistance to the (i) The total dollars credited to the appli- protege firm in accordance with the mentor- cable subcontracting goal as a result of de- protege agreement and applicable regula- velopmental assistance provided to protege tions and procedures; and firm(s) under the Program; and (b) Whether the mentor firm and protege (ii) The total dollar amount of sub- firm accurately reported progress made by contracts awarded to the protege firm(s), the protege firm in employment, revenues, broken out per protege. and participation in DoD contracts during (b) The mentor firm and the protege firm— the Program participation term and for 2 fis- (1) Must provide data on the progress made cal years following the expiration of the Pro- by the protege firm in employment, reve- gram participation term; and nues, and participation in DoD contracts during— [65 FR 6556, Feb. 10, 2000; 65 FR 30191, May 10, (i) Each fiscal year of the Program partici- 2000, as amended at 65 FR 50149, 50150, Aug. pation term; and 17, 2000; 66 FR 47109, 47110, Sept. 11, 2001]
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