HUD Acquisition Regulations (HUDAR), 73523-73539 [2012-29324]
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Vol. 77
Monday,
No. 237
December 10, 2012
Part III
Department of Housing and Urban
Development
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48 CFR Parts 2401, 2402, 2403 et al.
HUD Acquisition Regulations (HUDAR); Final Rule
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Federal Register / Vol. 77, No. 237 / Monday, December 10, 2012 / Rules and Regulations
HUDAR was last revised by final rule
published on January 13, 2006 (71 FR
2432).
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
48 CFR Parts 2401, 2402, 2403, 2404,
2406, 2407, 2409, 2415, 2416, 2417,
2419, 2426, 2427, 2428, 2432, 2437,
2439, 2442, and 2452
II. Public Comments
[Docket No FR–5571–F–02]
RIN 2501–AD56
HUD Acquisition Regulations (HUDAR)
Office of the Chief Procurement
Officer, HUD.
ACTION: Final rule.
AGENCY:
This final rule amends the
HUDAR to implement miscellaneous
changes. These changes include, for
example, such amendments as removing
provisions that are now obsolete,
refining provisions to approve requests
for deviation from the HUDAR,
updating provisions that address the
organizational structure of HUD, and
adding provisions on contractor record
retention.
DATES: Effective date: January 9, 2013.
FOR FURTHER INFORMATION CONTACT:
David S. Blocker, Deputy Assistant
Chief Procurement Officer for Policy,
Oversight, and Systems, Office of the
Chief Procurement Officer, Department
of Housing and Urban Development,
451 7th Street SW., Washington, DC
20410; telephone number 202–708–0294
(this is not a toll-free number) and fax
number 202–708–8912. Persons with
hearing or speech impairments may
access Mr. Blocker’s telephone number
via TTY by calling the toll-free Federal
Relay Service at 800–877–8339.
SUPPLEMENTARY INFORMATION: This final
rule follows a proposed rule. No public
comments were received on the
proposed rule, and this final rule
implements the proposed rule with only
minor technical changes.
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SUMMARY:
I. Background
The uniform regulation for the
procurement of supplies and services by
federal departments and agencies, the
Federal Acquisition Regulation (FAR),
was promulgated on September 19, 1983
(48 FR 42102). The FAR is codified in
title 48, chapter 1, of the Code of
Federal Regulations. HUD promulgated
its regulation to implement the FAR on
March 1, 1984 (49 FR 7696).
The HUDAR (title 48, chapter 24 of
the Code of Federal Regulations) is
prescribed under section 7(d) of the
Department of HUD Act (42 U.S.C.
3535(d)); section 205(c) of the Federal
Property and Administrative Services
Act of 1949 (40 U.S.C. 121(c)); and the
general authorization in FAR 1.301.
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The proposed rule was published on
March 16, 2012 (77 FR 15681), and the
public comment period closed on May
15, 2012. As of the close of the public
comment period, no public comments
were received.
III. This Final Rule
This final rule implements without
substantive change (there are minor
corrections) the proposed amendments
to the HUDAR, made by proposed rule
published on March 16, 2012 (77 FR
15681). The proposed rule inadvertently
omitted, in 2432.908, a paragraph
prescribing the usage of HUDAR clause
2452.232–70. This necessary paragraph
is now added at 2432.908(c)(2). The
subsequent paragraphs are accordingly
redesignated. In the newly designated
2432.908(c)(2), which is 2432.908(c)(1)
in the currently codified HUDAR, a
revision is made to reflect that the
indicated clause is not used in
performance-based contracts under
which performance-based payments
will be used. This is not a change in
policy or contracting practice. The
authority citations for certain sections
are revised in this final rule because
they were improperly worded (the
authorities cited were and are correct,
however). A reference to paragraph (a)
in § 2432.908 was incorrect. The
reference is corrected in this final rule
to (c)(1).
The preamble to the proposed rule
explained in detail the changes
proposed; see 77 FR 15682 et seq. for a
full description of the substantive
changes made to the HUDAR that are
implemented in this final rule.
IV. Findings and Certifications
Paperwork Reduction Act Statement
The information collection
requirements contained in this final rule
are currently approved by the Office of
Management and Budget (OMB) in
accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501–
3520) and assigned OMB control
number 2535–0091. The information
collection requirements for the HUDAR
are currently approved by OMB under
control number 2535–0091. In
accordance with the Paperwork
Reduction Act, an agency may not
conduct or sponsor, and a person is not
required to respond to, a collection of
information, unless the collection
displays a currently valid OMB control
number.
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Unfunded Mandates Reform Act
Title II of the Unfunded Mandates
Reform Act of 1995 (2 U.S.C. 1531–
1538) (UMRA) establishes requirements
for federal agencies to assess the effects
of their regulatory actions on state,
local, and tribal governments and the
private sector. This rule does not
impose any federal mandate on any
state, local, or tribal government or the
private sector within the meaning of
UMRA.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
(5 U.S.C. 601 et seq.) generally requires
an agency to conduct a regulatory
flexibility analysis of any rule subject to
notice and comment rulemaking
requirements, unless the agency certifies
that the rule will not have a significant
economic impact on a substantial
number of small entities. This final rule
makes technical changes to existing
contracting procedures and does not
make any major changes that would
significantly impact businesses.
Accordingly, the undersigned certifies
that this rule will not have a significant
economic impact on a substantial
number of small entities.
Environmental Impact
This final rule does not direct,
provide for assistance or loan and
mortgage insurance for, or otherwise
govern or regulate real property
acquisition, disposition, leasing,
rehabilitation, alteration, demolition, or
new construction, or establish, revise, or
provide for standards for construction or
construction materials, manufactured
housing, or occupancy. Accordingly,
under 24 CFR 50.19(c)(1), this final rule
is categorically excluded from
environmental review under the
National Environmental Policy Act of
1969 (42 U.S.C. 4321).
Executive Order 13132, Federalism
Executive Order 13132 (entitled
‘‘Federalism’’) prohibits an agency from
publishing any rule that has federalism
implications if the rule imposes
substantial direct compliance costs on
state and local governments and is not
required by statute, or the rule preempts
state law, unless the agency meets the
consultation and funding requirements
of section 6 of the Executive Order. This
final rule would not have federalism
implications and would not impose
substantial direct compliance costs on
state and local governments or preempt
state law within the meaning of the
Executive Order.
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List of Subjects
2401.106–70
48 CFR Part 2401
Government procurement, Reporting
and recordkeeping requirements.
The contracting officer shall insert the
clause at 2452.201–70, Coordination of
Data Collection Activities, in
solicitations and contracts where the
Contractor is required to collect
information from ten or more public
respondents.
48 CFR Part 2402
Government procurement.
48 CFR Part 2403
Conflict of interests, Government
procurement.
Contract clause.
Subpart 2401.4—Deviations From the
FAR
3. Revise section 2401.403 to read as
follows:
■
48 CFR Part 2404
Government procurement.
2401.403
48 CFR Parts 2406, 2407, and 2409
Government procurement.
Individual deviations.
48 CFR Parts 2415, 2416, and 2417
Government procurement.
The Senior Procurement Executive is
the agency head’s designee for the
purposes of FAR 1.403.
■ 4. Revise section 2401.404 to read as
follows:
48 CFR Part 2419
2401.404
Government procurement, Small
business.
48 CFR Part 2426
Colleges and universities,
Government procurement, Minority
businesses.
2401.470
48 CFR Part 2427
Government procurement, Inventions
and patents.
48 CFR Part 2428
Government procurement, Surety
bonds.
48 CFR Part 2437
Government procurement.
48 CFR Part 2439
Computer technology, Government
procurement.
48 CFR Part 2442
Government procurement.
48 CFR Part 2452
Government procurement.
For the reasons discussed in the
preamble, HUD amends 48 CFR chapter
24 as follows:
PART 2401—FEDERAL ACQUISITION
REGULATION SYSTEM
1. The authority citation for part 2401
is revised to read as follows:
■
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Authority: 40 U.S.C. 121(c); 42 U.S.C.
3535(d).
Subpart 2401.1—Purpose, Authority,
Issuance
2. Add section 2401.106–70 to read as
follows:
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Deviations from the HUDAR.
The Senior Procurement Executive is
authorized to approve deviations from
the HUDAR.
■ 6. Add section 2401.471 to read as
follows:
2401.471 Requests for deviations—FAR
and HUDAR.
48 CFR Part 2432
Government procurement.
■
Class deviations.
(a) The Senior Procurement Executive
is the agency head’s designee for the
purposes of FAR 1.404(a).
■ 5. Add section 2401.470 to read as
follows:
(a) Requests for deviations from the
FAR or HUDAR shall be submitted in
writing to the Chief Procurement
Officer.
(b) Each request for authorization of a
deviation from the FAR or HUDAR
shall:
(1) Identify the deviation as
individual or class;
(2) Identify the FAR or the HUDAR
requirement from which a deviation is
sought;
(3) Fully describe the deviation, its
intended effect, and the circumstances
in which it will be used;
(4) Explain why a deviation is
required and include pertinent
background and supporting information;
(5) State whether the deviation has
been requested previously and if so, the
circumstances and result of the previous
request; and
(6) Identify the contractor(s) and the
contract(s) (including dollar values) that
would be affected.
(c) At his or her discretion, the Chief
Procurement Officer will consider
requests for deviations on an expedited
basis and, in urgent situations, may
authorize deviations via telephone or
electronic mail. Such authorizations
will be confirmed in writing.
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(d) The contracting officer shall
include a copy of each authorized
deviation in the contract file(s) to which
it pertains.
Subpart 2401.6—Career Development,
Contracting Authority and
Responsibilities
7. In section 2401.602–3, revise
paragraphs (b)(1) and (3) and remove
paragraph (c)(7).
The revisions read as follows:
■
2401.602–3 Ratification of unauthorized
commitments.
(b)(1) Requests for ratification of
unauthorized commitments shall be
submitted in writing through the
contracting officer to the ratification
approval officials identified in
paragraph (b)(3) of this section. The
Assistant Secretary or equivalent official
for the office that created the
unauthorized commitment shall sign the
request for ratification.
(3) In accordance with FAR 1.602–
3(b)(3), the Senior Procurement
Executive may delegate the authority to
approve ratifications of individual
unauthorized commitments down to,
but not below, the level of an Assistant
Chief Procurement Officer.
*
*
*
*
*
PART 2402—DEFINITIONS OF WORDS
AND TERMS
8. The authority citation for part 2402
is revised to read as follows:
■
Authority: 40 U.S.C. 121(c); 42 U.S.C.
3535(d).
Subpart 2402.1—Definitions
9. In section 2402.101, add in
alphabetical order a definition of
‘‘Contracting Activity,’’ remove the
definition of ‘‘Head of Contracting
Activity (HCA)’’ and add in its place the
definition of ‘‘Head of the Contracting
Activity (HCA)’’ and revise the
definition of ‘‘Legal Counsel’’ to read as
follows:
■
2402.101
Definitions.
*
*
*
*
*
Contracting activity means the Office
of the Chief Procurement Officer.
*
*
*
*
*
Head of the contracting activity (HCA)
means the Chief Procurement Officer.
As permitted by the FAR and the HUD
Acquisition Regulation, the Chief
Procurement Officer, acting within his
or her authority as the Senior
Procurement Executive, may delegate
HCA authority for specific actions or
classes of actions down to, but not
below, the level of the Assistant Chief
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Procurement Officers. Delegated HCA
authority may not be further
redelegated.
Legal counsel means HUD’s Office of
General Counsel and its field-based
components.
*
*
*
*
*
Subpart 2406.3—Other Than Full and
Open Competition
PART 2403—IMPROPER BUSINESS
PRACTICES AND PERSONAL
CONFLICTS OF INTEREST
(d)(1)(ii) The HCA is the agency
head’s designee for the purposes of FAR
6.302–2(d)(1)(ii).
10. The authority citation for part
2403 continues to read as follows:
2406.304–70
■
15. Add section 2406.302–2 to read as
follows:
■
2406.302–2
urgency.
■
Unusual and compelling
2409.407–1
General.
(d) The Senior Procurement Executive
is the agency head’s designee under
FAR 9.407–1(d).
2409.470 HUD regulations on debarment,
suspension, and ineligibility.
HUD’s policies and procedures
concerning debarment and suspension
are contained in 2 CFR part 2424.
Subpart 2409.5—Organizational and
Consultant Conflicts of Interest
[Removed]
16. Remove section 2406.304–70.
22. Revise section 2409.503 to read as
follows:
■
Authority: 42 U.S.C. 3535(d).
Subpart 2406.5—Competition
Advocates
Subpart 2403.4—Contingent Fees
2409.503
17. Revise section 2406.501 to read as
follows:
■
11. Revise section 2403.405(b) to read
as follows:
■
2403.405 Misrepresentations or violations
of the covenant against contingent fees.
2406.501
*
*
*
*
*
(b) When there is specific evidence or
other reasonable basis to suspect one or
more of the violations in paragraph (a)
of this section, the HCA shall review the
facts and, if appropriate, take or direct
one or more of the actions set forth at
FAR 3.405(b). The HCA shall refer
suspected fraudulent or criminal
matters to HUD’s Office of the Inspector
General for possible referral to the
Department of Justice.
Requirement.
The Senior Procurement Executive is
the head of the agency for the purposes
of FAR 6.501 and designates the
Departmental competition advocate.
PART 2407—ACQUISITION PLANNING
Waiver.
The Senior Procurement executive is
the agency head’s designee under FAR
9.503.
Subpart 2409.70—[Removed]
■
23. Remove subpart 2409.70.
PART 2415—CONTRACTING BY
NEGOTIATION
24. The authority citation for part
2415 is revised to read as follows:
■
18. The authority citation for part
2404 continues to read as follows:
■
Authority: Sec. 7(d) of the Department of
Housing and Urban Development Act (42
U.S.C. 3535(d)).
Authority: 40 U.S.C. 121(c); 41 U.S.C. 253;
42 U.S.C. 3535(d).
Subpart 2407.1—Acquisition Plans
25. Revise the heading for subpart
2415.2 to read as follows:
■
PART 2404—ADMINISTRATIVE
MATTERS
■
19. Revise section 2407.102 to read as
follows:
Subpart 2415.2—Solicitation and
Receipt of Proposals and Quotations
■
12. The authority citation for part
2404 continues to read as follows:
2407.102
■
13. Add subpart 2404.7 to read as
follows:
The Senior Procurement Executive is
responsible for establishing and
maintaining internal procedures that
meet the criteria contained in FAR
subpart 7.1 for acquisition planning and
acquisition plan content.
Authority: 42 U.S.C. 3535(d).
■
Subpart 2404.7—Contractor Records
Retention
2404.7001
Contract clause.
The contracting officer shall insert the
clause at 2452.204–72, Preservation of,
and Access to, Contract Records
(Tangible and Electronically Stored
Information (ESI) Formats), in all
solicitations and contracts exceeding the
simplified acquisition threshold. The
contracting officer shall use the basic
clause with its Alternate I in costreimbursement type contracts. The
contracting officer shall use the basic
clause with its Alternate II in labor-hour
and time-and-materials contracts.
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PART 2406—COMPETITION
REQUIREMENTS
14. The authority citation for part
2406 is revised to read as follows:
Policy.
PART 2409—CONTRACTOR
QUALIFICATIONS
20. The authority citation for part
2409 is revised to read as follows:
■
Authority: 40 U.S.C. 121(c); 42 U.S.C.
3535(d).
21. Add subpart 2409.4 to read as
follows:
■
Subpart 2409.4—Debarment,
Suspension, and Ineligibility
Sec.
2409.405 Effect of listing.
2409.407–1 General.
2409.470 HUD regulations on debarment,
suspension, and ineligibility.
2409.405
Authority: 40 U.S.C. 121(c); 41 U.S.C. 253;
42 U.S.C. 3535(d).
(3) The Senior Procurement Executive
is the agency head’s designee under
FAR 9.405(d)(3).
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2415.203
Requests for proposals.
(a)(3) The contracting officer may
limit the size of the technical and
management portion of offers submitted
in response to a request for proposals
when the contracting officer determines
that it is in the Government’s best
interest to do so.
■ 27. Revise 2415.204 to read as follows:
2415.204
Contract format.
(e) The HCA shall be responsible for
making exemptions pursuant to FAR
15.204(e).
■ 28. Revise section 2415.209 to read as
follows:
2415.209 Solicitation provisions and
contract clauses.
■
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26. Add section 2415.203 to read as
follows:
(a)(1) The Contracting Officer shall
insert a provision substantially the same
as the provision at 2452.215–70,
Proposal Content, in all solicitations for
negotiated procurements using the
tradeoff selection process (see FAR
15.101–1) expected to exceed the
simplified acquisition limit. The
Contracting Officer shall adapt
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paragraph (c) of the provision (i.e.,
include, delete, revise, or further
supplement subparagraphs) to address
the particular requirements of the
immediate solicitation. The provision
may be used in simplified acquisitions
when it is necessary to obtain technical
and management information in making
the award selection. When award
selection will be made through the
lowest-priced technically acceptable
source selection process, the provision
shall be used with its Alternate I. If the
proposed contract requires work on, or
access to, HUD systems or applications
(see the clause at 2452.239–70), the
provision shall be used with its
Alternate II. When the contracting
officer has determined that it is
necessary to limit the size of the
technical and management portion of
offers submitted by offerors, the
provision shall be used with its
Alternate III. The contracting officer
shall clearly identify in the provision
any contents of the technical and
management portion of offers that are
excluded from the size limitation (e.g.,
proposed contractor staff resumes).
(2) The contracting officer shall insert
the provision at 2452.215–71, Relative
Importance of Technical Evaluation
Factors to Cost or Price, in solicitations
for contracts to be awarded using the
tradeoff selection process (see FAR
15.101–1) expected to exceed the
simplified acquisition limit.
contract, whether as a joint venture,
teaming arrangement, or subcontractor,
shall be addressed in the source
selection for contracts to be awarded
using the tradeoff source selection
process (see FAR 15.101–1) that require
the use of the clause at FAR 52.219–9,
Small Business Subcontracting Plan.
(d) The solicitation shall state the
basis for the source selection decision as
either the ‘‘lowest price technically
acceptable’’ (LPTA) process or the
‘‘tradeoff’’ process (as defined at FAR
subpart 15.1).
■ 31. Revise section 2415.305(a)(3) to
read as follows:
2415.305
Proposal evaluation.
29. Revise section 2415.303 to read as
follows:
(a) * * *
(3) Technical evaluation. The TEP
shall rate each proposal based on the
evaluation factors specified in the
solicitation. The TEP shall identify each
proposal as being acceptable,
unacceptable but capable of being made
acceptable, or unacceptable. A proposal
shall be considered unacceptable if it is
so clearly deficient that it cannot be
corrected through written or oral
discussions. Under the tradeoff process,
predetermined threshold levels of
technical acceptability for proposals
shall not be employed. A technical
evaluation report, which complies with
FAR 15.305(a)(3), shall be prepared and
signed by the technical evaluators,
furnished to the contracting officer, and
maintained as a permanent record in the
official procurement file.
■ 32. Add section 2415.370 to read as
follows:
2415.303
2415.370
Subpart 2415.3—Source Selection
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■
Responsibilities.
(a) The Senior Procurement Executive
is the agency head for the purposes of
FAR 15.303(a).
(b)(1) The technical evaluation
requirements related to source selection
shall be performed by a Technical
Evaluation Panel (TEP). The TEP may
consist of any number of members as
appropriate to the acquisition, with one
member serving as the chairperson. As
needed, the TEP may include advisors
and committees to focus on specific
technical areas or concerns. The TEP is
responsible for fully documenting the
evaluation of all proposals as
appropriate to the source selection
approach in use and for making the
source selection recommendation to the
source selection authority.
■ 30. Revise section 2415.304 to read as
follows:
Solicitation provision.
The contracting officer shall insert the
provision at 2452.215–72, Evaluation of
Small Business Participation, in
solicitations for contracts that require
the use of the FAR clause in 52.219–9,
‘‘Small Business Subcontracting Plan,’’
that will be awarded using the tradeoff
source selection process (see FAR
15.101–1).
PART 2416—TYPES OF CONTRACTS
33. The authority citation for part
2416 is revised to read as follows:
■
Authority: 40 U.S.C. 121(c); 41 U.S.C. 253;
42 U.S.C. 3535(d).
34. Add subpart 2416.3 to read as
follows:
■
Subpart 2416.3—Cost-Reimbursement
Contracts
2415.304 Evaluation factors and
significant subfactors.
2416.307
(c)(3)(i) The extent of participation of
small businesses in performance of the
(a) The contracting officer shall insert
the clause at 2452.216–79, Estimated
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73527
Cost (No Fee), in all cost-reimbursement
(no fee) type solicitations and contracts.
(b) The contracting officer shall insert
the clause at 2452.216–80, Estimated
Cost and Fixed-Fee, in all cost-plusfixed fee type solicitations and
contracts.
Subpart 2416.5—Indefinite-Delivery
Contracts
35. Revise section 2416.505 to read as
follows:
■
2416.505
Ordering.
(a) The contracting officer shall be the
ordering official for all task orders
except as provided for herein. The
contracting officer may designate an
ordering official when orders are to be
placed on a firm fixed-price basis, the
prices of the specific services or
supplies to be provided under the order
are set forth in the contract, and there
is no negotiation of order terms. The
contracting officer shall not designate
ordering officials:
(1) For contracts for services where
prices are not tied to delivery of a
completed service;
(2) For any contracts where discounts
need to be negotiated; or
(3) In any other circumstances where
adjustment of contract price or any
other terms and conditions is necessary.
(b)(6) The Departmental competition
advocate also serves as the
Departmental task and delivery order
ombudsman in accordance with FAR
16.505(b)(6). In addition to the duties
set forth at FAR 16.505(b)(6), the
ombudsman shall recommend any
corrective action regarding affording fair
opportunity to contractors to compete
for orders to the responsible contracting
officer.
36. In section 2416.506–70, revise
paragraph (b) to read as follows:
■
2416.506–70 Solicitation provisions and
contract clauses.
*
*
*
*
*
(b) Minimum and maximum
quantities or amounts for order. The
contracting officer shall insert a clause
substantially the same as 2452.216–76,
Minimum and Maximum Quantities or
Amounts for Order, in all indefinitequantity and requirements solicitations
and contracts. When the clause is used
for requirements solicitations and
contracts, the contracting officer may
either delete paragraph (a) or insert
‘‘none’’ for the minimum quantity or
amount.
*
*
*
*
*
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PART 2417—SPECIAL CONTRACTING
METHODS
37. The authority citation for part
2417 is revised to read as follows:
■
Authority: 31 U.S.C. 1535; 40 U.S.C.
121(c); 42 U.S.C. 3535(d).
Subpart 2417.2—Options
38. Revise section 2417.204 to read as
follows:
■
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2417.204
Contracts.
(e)(1) The Senior Procurement
Executive (SPE) is authorized to
approve contract periods for other than
information technology contracts that
exceed the 5-year limit set forth at FAR
17.204(e) that are not otherwise limited
by statute (e.g., the Service Contract
Act). Except as provided for in
paragraphs (e)(2) and (4) of this section,
the SPE shall approve any contract
period that will exceed 5 years,
including all option periods, prior to the
award of the basic contract.
(2) With regard to HUD indefinitedelivery contracts, the ‘‘contract period’’
requiring the SPE’s prior approval in
paragraph (e)(1) of this section shall
mean the ordering period of a contract.
Unless otherwise specified within the
contract, the 5-year limit shall not apply
to the period that any task or delivery
order issued within the contract’s
ordering period extends beyond the
final end date of the contract’s ordering
period, regardless of whether the
performance period of the order causes
the total period of the contract to exceed
5 years. The issuance of any such task
or delivery order does not require the
SPE’s approval. Task or delivery orders
with end dates extending beyond the
ordering period of the contract may not
exceed the final delivery date that the
contracting officer has stated in the
applicable indefinite-delivery FAR
clause included in the contract (i.e.,
52.216–20, ‘‘Definite Quantity,’’
paragraph (d); 52.216–21,
‘‘Requirements,’’ paragraph (f); or
52.216–22, ‘‘Indefinite Quantity,’’
paragraph (d)).
(3) The SPE’s authority described in
paragraphs (e)(1) and (2) of this section
shall not be used as the basis to
retroactively increase or extend the
period of any existing contract.
(4) The SPE is not required to approve
any option properly exercised pursuant
to the FAR clause at 52.217–8, ‘‘Option
to Extend Services,’’ that extends the
contract period beyond 5 years;
provided that the total length of all
options exercised pursuant to FAR
clause 52.217–8 may not exceed 6
months; and provided that exercise of
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any such options shall be in accordance
with FAR 37.111. Any proposed
extension of a contract beyond the 6month maximum permitted by FAR
52.217–8 shall be considered a new
requirement and shall be subject to the
competition requirements of FAR part 6.
PART 2419—SMALL BUSINESS
PROGRAMS
39. The authority citation for part
2419 is revised to read as follows:
■
Authority: 40 U.S.C. 121(c); 42 U.S.C.
3535(d).
Subpart 2419.2—Policies
40. In section 2419.201, redesignate
paragraphs (c) and (d) as paragraphs (d)
and (e), respectively, and revise newly
designated paragraphs (d), (e)
introductory text, and (e)(1), to read as
follows:
■
2419.201
General policy.
(d) The Director of HUD’s Office of
Small and Disadvantaged Business
Utilization (OSDBU) is responsible for
the administration of the HUD small
business program and for performing all
functions and duties prescribed in FAR
19.201(d). This includes Departmentwide responsibility for developing,
implementing, executing, and managing
these programs; providing advice on
these programs; and representing HUD
before other government agencies on
matters primarily affecting small, small
disadvantaged, and women-owned
small business; HUBZone small
business; veteran-owned small business;
and service-disabled veteran-owned
small business concerns.
(e) The Director of OSDBU shall
designate small business specialists who
shall advise and assist HUD’s
contracting activity and small business
concerns as described in paragraph (d)
on all matters related to small business
participation in HUD acquisitions.
Small business specialists shall perform
the following functions:
(1) Maintain a program designed to
locate capable small-business sources as
referenced in paragraph (d) of this
section for current and future
procurements;
*
*
*
*
*
Subpart 2419.7—The Small Business
Subcontracting Program
42. Revise section 2419.708 to read as
follows:
■
2419.708 Solicitation provisions and
contract clauses.
(b) The contracting officer shall insert
clause at 2452.219–73, ‘‘Incorporation of
Subcontracting Plan,’’ in solicitations
and contracts when a subcontracting
plan is required. The contracting officer
shall insert the provision at 2452.219–
74, ‘‘Small Business Subcontracting
Goals,’’ in solicitations for contracts that
are required to include the FAR clauses
at 52.219–8, ‘‘Utilization of Small
Business Concerns,’’ and 52.219–9,
‘‘Small Business Subcontracting Plan.’’
(d) The contracting officer shall insert
the provision at 2452.219–70, Small
Business Subcontracting Plan
Compliance, in solicitations for
contracts that are expected to exceed the
dollar thresholds set forth at FAR 19.702
and are required to include the clause
at FAR 52.219–9, Small Business
Subcontracting Plan.
Subpart 2419.8—Contracting With the
Small Business Administration (the
8(a) Program)
43. Revise section 2419.800 to read as
follows:
■
2419.800
General.
(f) By Partnership Agreement between
the SBA and HUD, the SBA delegated to
HUD’s Senior Procurement Executive its
authority under paragraph 8(a)(1)(A) of
the Small Business Act (5 U.S.C. 637(a))
to enter into 8(a) prime contracts, and
its authority under 8(a)(1)(B) of the
Small Business Act to award the
performance of those contracts to
eligible 8(a) Program participants.
Under the Partnership Agreement, a
contract may be awarded directly to an
8(a) firm on either a sole-source or
competitive basis. The SBA reserves the
right to withdraw the delegation issued
as a result of the Partnership Agreement;
however, any such withdrawal shall
have no effect on contracts already
awarded under the Partnership
Agreement.
44. Add section 2419.803 to read as
follows:
■
Subpart 2419.5—Set-Asides for Small
Business
2419.503
[Removed and Reserved]
41. Remove and reserve section
2419.503.
■
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2419.803 Selecting acquisitions for the
8(a) Program.
45. Add section 2419.803–70 to read
as follows:
■
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2419.803–70 Procedures for simplified
acquisitions under the partnership
agreement.
(a) HUD contracting officers may use
the procedures of FAR part 13 and
HUDAR part 2413 to make purchases
not exceeding the simplified acquisition
threshold from 8(a) Participants. The
following apply to such acquisitions:
(1) Neither offering letters to, nor
acceptance letters from the SBA are
required.
(2) The contracting officer will use the
Central Contractor Registration (CCR)
database on the Internet (https://
www.ccr.gov) to establish that the
selected 8(a) firm is a current program
participant.
(b) Once an 8(a) contractor has been
identified, the contracting officer will
establish the price with the selected 8(a)
contractor.
(c) For acquisitions requiring an
award document (e.g., purchase order),
the contracting officer will:
(1) Prepare and issue an award
document in accordance with the
applicable provisions of FAR part 13
and HUDAR part 2413. The applicable
clauses prescribed in 2419.811–3 shall
be included in the award document.
The contracting officer will issue the
award document directly to the 8(a)
firm; and
(2) Forward to the SBA District Office
serving the 8(a) firm a copy of the award
document within 5 days after the award
is issued.
■ 46. Add section 2419.804 to read as
follows:
47. Add section 2419.804–2 to read as
follows:
■
Agency offering.
(d) When applicable, the notification
must identify that the offering is in
accordance with the Partnership
Agreement identified in 2419.800.
■ 48. Add section 2419.804–3 to read as
follows:
2419.804–3
SBA acceptance.
49. Add section 2419.804–370 to read
as follows:
■
tkelley on DSK3SPTVN1PROD with
2419.804–370 SBA acceptance under
partnership agreements for acquisitions
exceeding the simplified acquisition
threshold.
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Competitive 8(a).
51. Add section 2419.805–2 to read as
follows:
■
2419.811
Preparing the contracts.
56. Add section 2419.811–1 to read as
follows:
■
2419.811–1
Sole source.
(a) For contracts awarded under the
Partnership Agreement cited in
2419.800, when required by FAR
subpart 15.4, the contracting officer
shall obtain certified cost or pricing data
directly from the 8(a) contractor.
■ 53. Add section 2419.808 to read as
follows:
(e) If the award is to be made under
the Partnership Agreement cited in
2419.800, the contracting officer shall
prepare the instrument to be awarded to
the 8(a) firm in accordance with the
normal HUD procedures for non-8(a)
contracts, except for the following:
(1) The award form shall cite 41
U.S.C. 253(c)(5) and 15 U.S.C. 637(a) as
the authority for use of other than full
and open competition.
(2) The contracting officer shall
include appropriate contract clauses, as
necessary, to reflect that the acquisition
is an 8(a) contract awarded under the
authority of the Partnership Agreement
cited in 2419.800.
(3) The contracting officer shall
include SBA’s requirement number on
the contract unless the acquisition does
not exceed the simplified acquisition
threshold.
(4) A single award document shall be
used between HUD and the 8(a)
contractor. As such, no signature on the
part of the SBA is required; a single
signature by the HUD contracting officer
shall suffice. The 8(a) contractor’s
signature shall be placed on the award
document as the prime contractor. The
8(a) contractor’s name and address shall
be placed in the ‘‘awarded to’’ or
‘‘contractor name’’ block on the
appropriate forms.
■ 57. Add section 2419.811–2 to read as
follows:
2419.811–2
2419.805–2
Procedures.
(b)(3) For requirements exceeding the
simplified acquisition threshold that are
processed under the Partnership
Agreement cited in 2419.800, the
contracting officer shall submit the
name, address, and telephone number of
the low bidder (sealed bid requirements)
or the apparent successful offeror
(negotiated acquisitions) to the SBA
Business Opportunity Specialist at the
field office servicing the identified 8(a)
firm. The SBA will determine the
eligibility of the firm(s) and advise the
contracting officer within 2 working
days of the receipt of the request. If the
firm is determined to be ineligible, the
contracting officer will submit
information on the next low offeror or
next apparent successful offeror (as
applicable) to the cognizant SBA field
office.
■ 52. Add section 2419.806 to read as
follows:
2419.806
Pricing the 8(a) contract.
Contract negotiation.
54. Add section 2419.808–1 to read as
follows:
■
(a) The following procedures apply to
the acceptance of requirements covered
by the Partnership Agreement for
acquisitions that exceed the simplified
acquisition threshold.
(1) The SBA’s decision whether to
accept the requirement will be
VerDate Mar<15>2010
2419.805
contracting officer. If the 8(a) contractor
does not negotiate within the
established time frame, and HUD cannot
allow additional time, HUD, after
notification and approval by SBA, may
proceed with the acquisition from other
sources.
(b) If the acquisition is conducted
under the Partnership Agreement cited
in 2419.800, HUD is delegated the
authority to negotiate directly with the
8(a) participant; however, if requested
by the 8(a) participant, the SBA may
participate in negotiations.
■ 55. Add section 2419.811 to read as
follows:
2419.808
2419.804 Evaluation, offering, and
acceptance.
2419.804–2
transmitted to HUD in writing within 5
working days of receipt of the offer.
(2) The SBA may request, and HUD
may grant, an extension beyond the 5day limit.
(3) SBA’s acceptance letters should be
faxed or emailed to HUD.
(4) If HUD has not received an
acceptance or rejection of the offering
from SBA within 5 days of SBA’s
receipt of the offering letter, the
contracting officer may assume that the
requirement has been accepted and
proceed with the acquisition.
(b) The contents of SBA’s acceptance
letter shall be limited to the eligibility
of the recommended 8(a) contractor.
■ 50. Add section 2419.805 to read as
follows:
73529
2419.808–1
Sole source.
(a) If the acquisition is conducted
under the Partnership Agreement cited
in 2419.800, the 8(a) contractor is
responsible for negotiating with HUD
within the time frame established by the
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Competitive.
(a) If the award is to be made under
the Partnership Agreement cited in
2419.800, competitive contracts for 8(a)
firms shall be prepared in accordance
with the same standards as 8(a) solesource contracts as set forth in
2419.811–1.
(b) If the acquisition is conducted
under the Partnership Agreement cited
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in 2419.800, the process for obtaining
signatures shall be as specified in
2419.811–1(e).
Subpart 2427.3—Patent Rights Under
Government Contracts
58. Add section 2419.811–3 to read as
follows:
■
2419.811–3
64. Revise the section heading of
section 2427.305–2 to read as follows:
■
2427.305–2 Administration by the
Government.
Contract clauses.
(d)(3) The contracting officer shall use
the clause at FAR 52.219–18,
‘‘Notification of Competition Limited to
Eligible 8(a) Concerns,’’ with the clause
at 2452.219–71, ‘‘Notification of
Competition Limited to Eligible 8(a)
Concerns—Alternate III to FAR 52.219–
18,’’ for competitive 8(a) acquisitions
processed under the Partnership
Agreement cited in 2419.800.
(f) In contracts and purchase orders
awarded under the Partnership
Agreement cited at 2419.800, the
contracting officer shall substitute the
clause at 2452.219–72, Section 8(a)
Direct Award, for the clauses at FAR
52.219–11, ‘‘Special 8(a) Contract
Conditions;’’ FAR 52.219–12, ‘‘Special
8(a) Subcontract Conditions;’’ and FAR
52.219–17, ‘‘Section 8(a) Award.’’
*
59. Add section 2419.812 to read as
follows:
PART 2428—BONDS AND INSURANCE
■
2419.812
*
*
*
*
■ 65. Add subpart 2427.4 to read as
follows:
Subpart 2427.4—Rights in Data and
Copyrights
2427.470
Contract clause.
The contracting officer shall insert the
clause 2452.227–70, Government
Information, in all solicitations and
contracts when the Government will
provide information to the contractor,
and/or when the contractor will obtain
information on the Government’s behalf
to perform work required under the
contract. The contracting officer shall
describe all information to be provided
to the contractor in paragraph (d)(1) of
the clause.
2432.006–2
2432.006–3
Contract administration.
Procedures.
The Senior Procurement Executive is
the agency head for the purposes of FAR
32.006–4.
■ 74. Add section 2432.007 to read as
follows:
(e) Awards under the Partnership
Agreement cited in 2419.800 are subject
to 15 U.S.C. 637(a)(21). These contracts
contain the clause at 2452.219–71,
Section 8(a) Direct Award (Deviation),
which requires the 8(a) contractor to
notify the SBA and the HUD contracting
officer when ownership of the firm is
being transferred.
Authority: 40 U.S.C. 121(c); 42 U.S.C.
3535(d).
PART 2426—OTHER
SOCIOECONOMIC PROGRAMS
PART 2432—CONTRACT FINANCING
■
68. The authority citation for part
2432 is revised to read as follows:
2432.703–1
Subpart 2428.1—Bonds
67. Revise the heading of section
2428.106 to read as follows:
■
2428.106
*
Administration.
*
*
*
*
60. The authority citation for part
2426 is revised to read as follows:
■
Authority: 40 U.S.C. 121(c); 42 U.S.C.
3535(d).
Subpart 2426.70—Minority Business
Enterprises
2426.7001
[Removed and Reserved]
61. Remove and reserve section
2426.7001.
■
2426.7002
[Removed and Reserved]
62. Remove and reserve section
2426.7002.
■
PART 2427—PATENTS, DATA, AND
COPYRIGHTS
63. The authority citation for part
2427 is revised to read as follows:
■
Authority: 40 U.S.C. 121(c); 42 U.S.C.
3535(d).
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Authority: 31 U.S.C. 3901–3905; 40 U.S.C.
121(c); 42 U.S.C. 3535(d).
69. Add section 2432.006 before
subpart 2432.1 to read as follows:
■
2432.006 Reduction or suspension of
contract payments upon finding of fraud.
70. Add section 2432.006–1 to read as
follows:
■
2432.006–1
General.
The Senior Procurement Executive is
the agency head for the purposes of FAR
32.006–1. In accordance with FAR
32.006–1(c), the Senior Procurement
Executive may delegate the remedy
coordination official duties to personnel
in the Office of the Chief Procurement
Officer at or above the Level IV of the
Executive Service.
■ 71. Add section 2432.006–2 to read as
follows:
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2432.007
Contract financing payments.
(a) The Senior Procurement Executive
is the agency head for the purposes of
FAR 32.007(a).
Subpart 2432.7—Contract Funding
■
tkelley on DSK3SPTVN1PROD with
Responsibilities.
(b) HUD personnel shall report
immediately in writing when a
contractor’s request for advance, partial,
or progress payments is suspected to be
fraudulent. The report shall be made to
the contracting officer and the remedy
coordination official. The report shall
describe the events, acts, and conditions
that indicate the apparent or suspected
violation and include all pertinent
documents. The remedy coordination
official will consult with, and refer
cases to, the Office of the Inspector
General for investigation, as
appropriate. If appropriate, the Office of
the Inspector General will provide a
report to the Senior Procurement
Executive.
■ 73. Add section 2432.006–4 to read as
follows:
2432.006–4
66. The authority citation for part
2428 is revised to read as follows:
■
Definitions.
‘‘Remedy coordination official’’
means the Senior Procurement
Executive.
■ 72. Add section 2432.006–3 to read as
follows:
75. Add section 2432.703–1 to read as
follows:
General.
(b)(1) Except as described herein, a
fixed-price contract may be funded
incrementally only if—
(i) Sufficient funds are not available to
the Department at the time of contract
award or exercise of option to fully fund
the contract or option;
(ii) The contract (excluding any
options) or any exercised option—
(A) Is for severable services;
(B) Does not exceed one year in
length; and
(C) Is incrementally funded using
funds available (unexpired) as of the
date the funds are obligated; or
(iii) The contract uses funds available
from multiple (2 or more) fiscal years
and Congress has otherwise authorized
incremental funding.
(2) An incrementally funded fixedprice contract shall be fully funded as
soon as funds are available.
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76. Add section 2432.704 to read as
follows:
■
2432.704
Subpart 2432.9—Prompt Payment
80. Revise section 2432.903 to read as
follows:
2432.704–70 Incrementally funded fixedprice contracts.
(a) Upon receipt of the contractor’s
notice under paragraph (c) of the clause
at 2452.232–72, Limitation of
Government’s Obligation, the
contracting officer shall promptly
provide written notice to the contractor
that the Government is—
(1) Allotting additional funds for
continued performance and increasing
the Government’s limitation of
obligation in a specified amount;
(2) Terminating the affected contract
line items (CLINs) or contract, as
applicable; or
(3) Considering whether to allot
additional funds; and
(i) The contractor is required by the
contract terms to stop work when the
Government’s limitation of obligation is
reached; and
(ii) Any costs expended beyond the
Government’s limitation of obligation
are at the contractor’s risk.
(b) Upon learning that the contract
will receive no further funds, the
contracting officer shall promptly give
the contractor written notice of the
Government’s decision and terminate
the affected CLINs or contract, as
applicable, for the convenience of the
Government.
(c) The contracting officer shall
ensure that, in accordance with
paragraph (b) of the clause at 2452.232–
72, ‘‘Limitation of Government’s
obligation,’’ sufficient funds are allotted
to the contract to cover the total amount
payable to the contractor in the event of
termination for the convenience of the
Government.
■ 78. Add section 2432.705 to read as
follows:
Contract clauses.
79. Add section 2432.705–70 to read
as follows:
■
tkelley on DSK3SPTVN1PROD with
2432.705–70 Clause for limitation of
Government’s obligation.
The contracting officer shall insert the
clause at 2452.232–72, ‘‘Limitation of
Government’s Obligation,’’ in
solicitations and resultant incrementally
funded fixed-price contracts as
authorized by 2432.703–1. The
contracting officer shall insert the
information required in the table in
paragraph (b) and the notification
period in paragraph (c) of the clause.
18:42 Dec 07, 2012
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■
2432.903
77. Add section 2432.704–70 to read
as follows:
VerDate Mar<15>2010
PART 2437—SERVICE CONTRACTING
Authority: 40 U.S.C. 121(c); 42 U.S.C.
3535(d).
■
Limitation of cost or funds.
■
2432.705
73531
Policy.
(a) The Senior Procurement Executive
is the agency head’s designee for the
purposes of FAR 32.903(a).
■ 81. Revise section 2432.906 to read as
follows:
2432.906
Making payments.
(a) General. The authority to make the
determination prescribed in FAR
32.906(a) is delegated to the HCA.
Before making this determination, the
HCA shall consult with the appropriate
payment office to ensure that
procedures are in place to permit timely
payment.
■ 82. In 2432.908, redesignate
paragraphs (c)(1) through (3) as (c)(2)
through (4), respectively; add new
paragraph (c)(1); and revise newly
redesignated paragraphs (c)(2) through
(c)(4).
The addition and revisions read as
follows:
2432.908
Contract clauses.
(c) * * *
(1) The contracting officer shall insert
the clause at 2452.232–73, Constructive
Acceptance Period, in solicitations and
contracts when the contracting officer
has determined that an acceptance
period longer than the 7 days provided
for in the FAR clause at 52.232–25,
‘‘Prompt Payment,’’ is needed.
(2) The contracting officer shall insert
a clause substantially the same as
provided at 2452.232–70, Payment
Schedule and Invoice Submission
(Fixed-price), in fixed-price contracts
other than performance-based contracts
under which performance-based
payments will be used.
(3) The contracting officer shall insert
a clause substantially the same as
provided at 2452.232–71, Voucher
Submission, in all cost-reimbursement,
time-and-materials, and labor-hour type
solicitations and contracts. The
contracting officer shall insert the
billing period agreed upon with the
contractor (see also the FAR clause at
52.216–7, ‘‘Allowable Cost and
Payment’’).
(4) The Contracting Officer may
substitute appropriate language for the
clauses in paragraph (c)(2) and (3) of
this clause when payment under the
contract will be made on the basis of
other than the submission of an invoice
or voucher; e.g., directly from proceeds
of property sales.
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83. The authority citation for part
2437 is revised to read as follows:
Subpart 2437.1—Service Contracts—
General
84. Revise section 2437.110 to read as
follows:
■
2437.110 Solicitation provisions and
contract clauses.
(e)(1) The Contracting Officer shall
insert the clause at 2452.237–70, Key
Personnel, in solicitations and contracts
when it is necessary for contract
performance to identify Contractor Key
personnel.
(2) The Contracting Officer shall
insert the clause at 2452.237–73,
Conduct of Work and Technical
Guidance, in all solicitations contracts
for services other than commercial
services awarded pursuant to FAR part
12.
(3) The contracting officer shall insert
the clause at 2452.237–75, Access to
HUD Facilities, in all solicitations and
contracts when contractor employees,
including subcontractors and
consultants, will be required to
regularly work in or have access to any
HUD facilities (as distinct from
nongovernment employee visitors to
government facilities).
(4) The Contracting Officer shall
insert the clause at 2452.237–77,
Temporary Closure of HUD Facilities, in
all solicitations and contracts where
contractor personnel will be working
on-site in any HUD office.
PART 2439—ACQUISITION OF
INFORMATION TECHNOLOGY
85. The authority citation for part
2439 is revised to read as follows:
■
Authority: 40 U.S.C. 121(c); 42 U.S.C.
3535(d).
Subpart 2439.1—General
86. In section 2439.107, revise
paragraph (a) to read as follows:
■
2439.107
Contract clauses.
(a) The contracting officer shall insert
the clause at 2452.239–70, Access to
HUD Systems, in solicitations and
contracts when the contract will require
contractor employees, including
subcontractors and consultants, to have
access to any HUD information
system(s) as defined in the clause.
*
*
*
*
*
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PART 2442—CONTRACT
ADMINISTRATION AND AUDIT
SERVICES
87. The authority citation for part
2442 is revised to read as follows:
■
Authority: 40 U.S.C. 121(c); 42 U.S.C.
3535(d).
88. The heading for part 2442 is
revised to read as set forth above.
■ 89. Add subpart 2442.3 to read as
follows:
■
Subpart 2442.3—Contract
Administration Office Functions
2442.302–70
Contract clause.
The contracting officer shall include
clause 2452.242–72, Post-award
Orientation Conference, in solicitations
and contracts when the contractor will
be required to attend a post-award
orientation conference. The contracting
officer shall indicate whether the
contractor must attend the conference in
person or via electronic communication.
PART 2452—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
90. The authority citation for part
2452 is revised to read as follows:
■
Authority: 40 U.S.C. 121(c); 42 U.S.C.
3535(d).
91. Add section 2452.204–70 to read
as follows:
■
2452.204–70 Preservation of, and access
to, contract records (tangible and
electronically stored information (ESI)
formats).
As prescribed in 2404.7001, insert the
following clause:
tkelley on DSK3SPTVN1PROD with
PRESERVATION OF, AND ACCESS
TO, CONTRACT RECORDS
(TANGIBLE AND ELECTRONICALLY
STORED INFORMATION (ESI)
FORMATS) (DEC 2012)
(a) For the purposes of this clause—
Contract records means information
created or maintained by the contractor in
the performance of the contract. Contract
records include documents required to be
retained in accordance with FAR 4.703 and
other information generated or maintained by
the contractor that is pertinent to the contract
and its performance including, but not
limited to: email and attachments, formal and
informal correspondence, calendars, notes,
reports, memoranda, spreadsheets, tables,
telephone logs, forms, survey, books, papers,
photographs, drawings, machine-readable
materials, and data. Contract records may be
maintained as electronically stored
information or as tangible materials. Contract
records may exist in either final or any
interim version (e.g., drafts that have been
circulated for official purposes and contain
unique information, such as notes, edits,
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comments, or highlighting). Contract records
may be located or stored on the contractor’s
premises or at off-site locations.
Electronically stored information (ESI)
means any contract records that are stored
on, or generated by, an electronic device, or
contained in electronically accessible media,
either owned by the contractor,
subcontractor(s), or employees of the
contractor or subcontractor(s) regardless of
the physical location of the device or media
(e.g., offsite servers or data storage).
ESI devices and media include, but are not
be limited to:
(1) Computers (mainframe, desktop, and
laptop);
(2) Network servers, including shared and
personal drives;
(3) Individual email accounts of the
contractor’s principals, officers, and
employees, including all folders contained in
each email account such as ‘‘inbox,’’
‘‘outbox,’’ ‘‘drafts,’’ ‘‘sent,’’ ‘‘trash,’’
‘‘archive,’’ and any other folders;
(4) Personal data assistants (PDAs);
(5) External data storage devices including
portable devices (e.g., flash drive); and
(6) Data storage media (magnetic, e.g., tape;
optical, e.g., compact disc, microfilm, etc.).
Tangible materials means contract records
that exist in a physical (i.e., non-electronic)
state.
(b) If during the period of performance of
this contract, HUD becomes, or anticipates
becoming, a party to any litigation
concerning matters related to records
maintained or generated by the Contractor in
the performance of this contract, the
Contracting Officer may provide the
contractor with a written (either hardcopy or
email) preservation hold notice and
certification of compliance with the
preservation hold notice. Upon receipt of the
hold notice, the Contractor shall immediately
take the following actions—
(1) Discontinue any alteration, overwriting,
deletion, or destruction of all tangible
materials and ESI.
(2) Preserve tangible materials and ESI. The
contractor shall preserve ESI in its ‘‘native’’
form to preserve metadata (i.e., creation and
modification history of a document).
(3) Identify all individuals who possess or
may possess tangible materials and ESI
related to this matter, including contractor
employees, subcontractors, and subcontractor
employees. The contractor shall provide the
names of all such individuals via email to the
HUD official indicated in the notice.
(4) Document in writing the contractor’s
efforts to preserve tangible materials and ESI.
It may be useful to maintain a log
documenting preservation efforts.
(5) Complete the certification of
compliance with the preservation hold notice
upon receipt and return it to the identified
contact person; and
(6) Upon the request of the Contracting
Officer, provide the Contracting Officer or
other HUD official designated by the
Contracting Officer with any of the
information described in this clause. The
contractor shall immediately confirm receipt
of such request. The contractor shall describe
in detail any records that the contractor
knows or believes to be unavailable and
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provide a detailed explanation of why they
are unavailable, and if known, their location.
(c)(1) If any request for records pursuant to
paragraph (b)(6) of this clause causes an
increase in the estimated cost or price or the
time required for performance of any part of
the work under this contract, or otherwise
affects any other terms and conditions of this
contract, the Contracting Officer shall make
an equitable adjustment in the contract price,
the delivery schedule, or both, and shall
modify the contract.
(2) The Contractor must assert its right to
an adjustment under this clause within __
[Contracting Officer insert period; 30 days if
no other period inserted] from the date of
receipt of the Contracting Officer’s request
made pursuant to paragraph (b)(6) of this
clause. However, if the Contracting Officer
decides that the facts justify it, the
Contracting Officer may receive and act upon
a request submitted before final payment of
the contract.
(3) Failure to agree to any adjustment shall
be a dispute under the ‘‘Disputes’’ clause of
this contract. However, nothing in this clause
shall excuse the contractor from providing
the records requested by the Contracting
Officer.
(e) The Contractor shall include this clause
in all subcontracts.
(End of clause)
Alternate I (DEC 2012)
For cost-reimbursement type
contracts, substitute the following
paragraph (c)(1) for paragraph (c)(1) of
the basic clause:
(c)(1) If any request for records pursuant to
paragraph (b)(6) of this clause causes an
increase in the estimated cost or price or the
time required for performance of any part of
the work under this contract, or otherwise
affects any other terms and conditions of this
contract, the Contracting Officer shall make
an equitable adjustment in any one of the
following and modify the contract
accordingly—
(i) Estimated cost;
(ii) Delivery or completion schedule, or
both; (ii) Amount of any fixed fee; or
(iii) Other affected terms.
Alternate II (DEC 2012)
For labor-hour or time-and-materials
type contracts, substitute the following
paragraph (c)(1) for paragraph (c)(1) of
the basic clause:
(c)(1) If any request for records pursuant to
paragraph (b)(6) of this clause causes an
increase in the estimated cost or price or the
time required for performance of any part of
the work under this contract, or otherwise
affects any other terms and conditions of this
contract, the Contracting Officer shall make
an equitable adjustment in any one or more
of the following and will modify the contract
accordingly:
(i) Ceiling price;
(ii) Hourly rates;
(iii) Delivery schedule; or
(iv) Other affected terms.
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EVALUATION OF SMALL BUSINESS
PARTICIPATION (DEC 2012)
92. In section 2452.215–70, add
Alternate III immediately following
Alternate II, to read as follows:
■
2452.215–70
*
*
*
Proposal content.
*
*
Alternate III (DEC 2012)
As prescribed in 2415.209(a), add the
following paragraph (e) when the size of
Part I, Technical and Management,
offers will be limited:
(e) Size limit of Part I, Technical and
Management.
(1) Offerors shall limit Part I, Technical
and Management, of their initial offers to __
[Contracting Officer insert number] pages,
except for the information specifically
exempted in paragraph (e)(3) of this clause.
Offerors are cautioned that if Part I of their
offers exceeds this limit, the Government will
evaluate only the information contained in
the pages up through the permitted number.
Pages beyond that limit will not be evaluated.
(2) A page shall consist of one side of a
single sheet of 81⁄2″ × 11″ paper, single
spaced, using not smaller than 12 point type
font, and having margins at the top, bottom,
and sides of the page of no less than one inch
in width.
(3) The following information is exempt
from the limitation set forth in paragraph (1):
[Contracting Officer list exemptions or enter
‘‘None’’].
(4) Offerors are encouraged to use recycled
paper and to use both sides of the paper (see
the FAR clause at 52.204–4).
(a) In addition to the technical and
management evaluation factors set forth in
this solicitation, the Government will
evaluate the extent to which all offerors
identify and commit to using small
businesses in the performance of the
contract, whether through joint ventures or
teaming arrangements, or as subcontractors.
The evaluation shall consider the following:
(1) The extent to which small businesses
are specifically identified in proposals;
(2) The extent of commitment to use small
businesses (for example, enforceable
commitments will be weighted more heavily
than non-enforceable ones);
(3) The complexity and variety of the work
small businesses are to perform;
(4) The realism of the proposal;
(5) Past performance of the offerors (other
than small businesses) in complying with
requirements of the clauses at FAR 52.219–
8, Utilization of Small Business Concerns,
and 52.219–9, Small Business Subcontracting
Plan; and
(6) The extent of participation of small
businesses in terms of the total value of the
contract.
(b) Offerors that are required to submit a
subcontracting plan pursuant to the clause at
FAR 52.219–9 shall include the small
businesses proposed as subcontractors for
evaluation under this provision in their
subcontracting plan.
(End of Provision)
■ 95. Revise section 2452.216–76 to
read as follows:
■
93. Add section 2452.215–71 to read
as follows:
2452.216–76 Minimum and maximum
quantities or amounts for order.
2452.215–71 Relative importance of
technical evaluation factors to cost or price.
As prescribed in 2416.506–70(b),
insert the following clause:
As prescribed in 2415.209(a)(2), insert
the following provision:
MINIMUM AND MAXIMUM
QUANTITIES OR AMOUNTS FOR
ORDER (DEC 2012)
RELATIVE IMPORTANCE OF
TECHNICAL EVALUATION FACTORS
TO COST OR PRICE (DEC 2012)
For the purposes of evaluating offers and
the selection of the contractor or contractors
under this solicitation, the relative merit of
the offeror’s technical proposal as evaluated
in accordance with the technical evaluation
factors listed herein shall be considered
[Contracting Officer insert one of the
following: ‘‘significantly more important
than,’’ ‘‘approximately equal to,’’ or
‘‘significantly less important than’’] cost or
price. While the proposed cost or price will
not be assigned a specific weight, it shall be
considered a significant criterion in the
overall evaluation of proposals.
94. Add section 2452.215–72 to read
as follows:
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■
2452.215–72 Evaluation of small business
participation.
As prescribed in 2415.370, insert the
following provision:
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(a) The minimum quantity or amount to be
ordered under this contract shall not be less
than [contracting officer insert quantity or
amount].
(b) The maximum quantity or amount to be
ordered under this contract shall not exceed
[contracting officer insert quantity or
amount].
(End of clause)
96. Add section 2452.216–79 to read
as follows:
■
2452.216–79
Estimated cost (no fee).
As prescribed in 2416.307(b), insert
the following clause:
73533
(1) Total funds currently available for
payment and allotted to this contract are $__
[Contracting Officer insert amount] (see also
the clause at FAR 52.232–22, ‘‘Limitation of
Funds’’ herein).
(2) If and when the contract is fully
funded, as specified in paragraph (a) of this
clause, the clause at FAR 52.232–20,
Limitation of Cost, herein, shall become
applicable.
(3) The Contracting Officer may allot
additional funds to the contract up to the
total specified in paragraph (a) of this clause
without the concurrence of the contractor.
(End of clause)
97. Add section 2452.216–80 to read
as follows:
■
2452.216–80
Estimated cost and fixed-fee.
As prescribed in 2416.307(b), insert
the following clause:
ESTIMATED COST AND FIXED-FEE
(DEC 2012)
(a) It is estimated that the total cost to the
Government for full performance of this
contract will be $__ [Contracting Officer
insert amount], of which $__ [Contracting
Officer insert amount] represents the
estimated reimbursable costs, and $__
[Contracting Officer insert amount]
represents the fixed fee.
(b) If this contract is incrementally funded,
the following shall apply:
(1) Total funds currently available for
payment and allotted to this contract are $__
[Contracting Officer insert amount], of which
__ [Contracting Officer insert amount]
represents the limitation for reimbursable
costs and $ __ [Contracting Officer insert
amount] represents the prorated amount of
the fixed fee (see also the clause at FAR
52.232–22, ‘‘Limitation of Funds’’ herein).
(2) If and when the contract is fully
funded, as specified in paragraph (a) of this
clause, the clause at FAR 52.232–20,
‘‘Limitation of Cost,’’ herein, shall become
applicable.
(3) The Contracting Officer may allot
additional funds to the contract up to the
total specified in paragraph (a) of this clause
without the concurrence of the contractor.
(End of clause)
■ 98. Add section 2452.219–71 to read
as follows:
2452.219–71 Notification of competition
limited to eligible 8(a) concerns—Alternate
III to FAR 52.219–18.
As prescribed in 2419.811–3(d)(3),
insert the following clause:
ESTIMATED COST (NO FEE) (DEC
2012)
NOTIFICATION OF COMPETITION
LIMITED TO ELIGIBLE 8(a)
CONCERNS—ALTERNATE III TO FAR
5219–18 (DEC 2012)
(a) It is estimated that the total
reimbursable cost to the Government for full
performance of this contract will be $__
[Contracting Officer insert amount].
(b) If this contract is incrementally funded,
the following shall apply:
The following paragraph (c) replaces
paragraph (c) of the clause at FAR 52.219–18,
Notification of Competition Limited to
Eligible 8(a) Concerns:
(c) Any award resulting from this
solicitation will be made directly by the HUD
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73534
Federal Register / Vol. 77, No. 237 / Monday, December 10, 2012 / Rules and Regulations
Contracting Officer to the successful 8(a)
offeror selected through the evaluation
criteria set forth in this solicitation.
(End of clause)
■ 101. Add section 2452.219–74 to read
as follows:
99. Add section 2452.219–72 to read
as follows:
■
2452.219–72
(Deviation).
2452.219–74 Small business
subcontracting goals.
Section 8(a) direct awards
As prescribed in 2419.811–3(f), insert
the following clause:
SECTION 8(A) DIRECT AWARD (DEC
2012)
(a) This contract is issued as a direct award
between the Department of Housing and
Urban Development (HUD) and the 8(a)
Contractor pursuant to a Partnership
Agreement (Agreement) between the Small
Business Administration (SBA) and HUD.
The SBA retains responsibility for 8(a)
certification, 8(a) eligibility determinations
and related issues, and providing counseling
and assistance to the 8(a) contractor under
the 8(a) program. The cognizant SBA district
office is: [To be completed by Contracting
Officer at time of award].
(b) SBA is the prime contractor and __
[insert name of 8(a) contactor] is the
subcontractor under this contract. Under the
terms of the Agreement, HUD is responsible
for administering the contract and taking any
action on behalf of the Government under the
terms and conditions of the contract.
However, the HUD Contracting Officer shall
give advance notice to the SBA before issuing
a final notice terminating performance, either
in whole or in part, under the contract. The
HUD Contracting Officer shall also
coordinate with SBA prior to processing any
novation agreement. HUD may assign
contract administration functions to a
contract administration office.
(c) __ [insert name of 8(a) contractor]
agrees:
(1) To notify the HUD Contracting Officer,
simultaneously with its notification to SBA
(as required by SBA’s 8(a) regulations), when
the owner or owners upon whom 8(a)
eligibility is based, plan to relinquish
ownership or control of the concern.
Consistent with 15 U.S.C. 637(a)(21), transfer
of ownership or control shall result in
termination of the contract for convenience,
unless SBA waives the requirement for
termination prior to the actual relinquishing
of ownership or control.
(2) To adhere to the requirements of FAR
52.219–14, ‘‘Limitations on Subcontracting.’’
(End of Clause)
■ 100. Add section 2452.219–73 to read
as follows:
2452.219–73 Incorporation of
subcontracting plan.
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As prescribed in 2419.708(b), insert
the following clause:
INCOPORATION OF
SUBCONTRACTING PLAN (DEC 2012)
The Contractor’s approved subcontracting
plan, dated __ [Contracting Officer insert
date] is hereby incorporated by reference and
made a part of this contract.
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Jkt 229001
As prescribed in 2419.708(b), insert
the following provision:
SMALL BUSINESS
SUBCONTRACTING GOALS (DEC
2012)
(a) This provision does not apply to
offerors that are small businesses.
(b) The offeror’s attention is directed to the
FAR clause at 52.219–9, ‘‘Small Business
Subcontracting Plan,’’ herein. HUD will
evaluate proposed subcontracting plans using
the Departmental small business
subcontracting goals set forth in paragraph (c)
of this clause. Offerors that are unable to
propose subcontracting that meets HUD’s
established goals must provide the rationale
for their proposed level of subcontracting.
(c) HUD’s subcontracting goals are as
follows:
(i) Small Business—l% [Contracting
Officer insert HUD small business
subcontracting goal percentage]
(ii) The total Small Business goal shown in
paragraph (c)(i) of this clause contains the
following subordinate goals [Contracting
Officer insert percentages]:
(A) Small Disadvantaged Business—l%
(B) Women-Owned Small Business—l%
(C) Service-Disabled Veteran-Owned Small
Business—l%
(D) HUBZone Small Business—l%
(End of Provision)
■ 102. Add section 2452.227–70 to read
as follows:
2452.227–70
Government information.
As prescribed in 2427.470, use the
following clause:
GOVERNMENT INFORMATION (DEC
2012)
(a) Definitions. As used in this clause,
‘‘Government information’’ includes—
Contractor-acquired information, which
means information acquired or otherwise
collected by the Contractor on behalf of the
Government in the context of the Contractor’s
duties under the contract.
Government-furnished information (GFI),
which means information in the possession
of, or directly acquired by, the Government
and subsequently furnished to the Contractor
for performance of a contract. GFI also
includes contractor-acquired information if
the contractor-acquired information is a
deliverable under the contract and is for
continued use under the contract. Otherwise,
GFI does not include information that is
created by the Contractor and delivered to
the Government in accordance with the
requirements of the work statement or
specifications of the contract. The type,
quantity, quality, and delivery requirements
of such deliverable information are set forth
elsewhere in the contract schedule.
(b) Information Management and
Information Security.
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(1) The Contractor shall manage, account
for, and secure all Government information
provided or acquired by the contractor. The
Contractor shall be responsible for all
Government information provided to its
subcontractors. The Contractor agrees to
include a requirement in each subcontract
under this contract that flows down the
protection from disclosure requirements.
(2) The Contractor’s responsibility for
Government information extends from the
initial provision or acquisition and receipt of
information, through stewardship, custody,
and use until returned to, or otherwise
disposed of, as directed by the Contracting
Officer. This requirement applies to all
Government information under the
Contractor’s accountability, stewardship,
possession or control, including its
subcontractors.
(c) Use of Government information. (1) The
Contractor shall not use any information
provided or acquired under this contract for
any purpose other than in the performance of
this contract.
(2) The Contractor shall not modify or alter
the Government information, unless
authorized in writing, in advance, by the
Contracting Officer.
(d) Government-furnished information. (1)
The Government shall deliver to the
Contractor the information described
below—
Description
Date to be Provided
[Contracting Officer insert]
(2) The delivery and/or performance dates
specified in this contract are based upon the
expectation that the Government-furnished
information will be suitable for contract
performance and will be delivered to the
Contractor by the dates stated in paragraph
(d)(1) of this clause.
(i) The Government does not warrant the
validity or accuracy of the Governmentfurnished information unless otherwise
noted.
(ii) In the event that information received
by the Contractor is not in a condition
suitable for its intended use, the Contractor
shall immediately notify the Contracting
Officer in writing. Upon receipt of the
Contractor’s notification, the Contracting
Officer shall advise the Contractor on a
course of action to remedy the problem.
(iii) If either the failure of the Government
to provide information to the Contractor by
the dates shown in this clause or the
remedial action taken under this clause to
correct defective information causes an
increase or decrease in the Contractor’s cost
of, or the time required for, the performance
of any part of the work under this contract,
the Contracting Officer shall consider an
equitable adjustment to the contract. The
Contractor shall provide to the Contracting
Officer its written statement describing the
general nature and amount of the equitable
adjustment proposal within 30 days after the
remedial action described in paragraph (ii)
herein is completed, or within 30 days after
the date upon which the Government failed
to provide information, unless the
Contracting Officer extends this period.
(3)(i) The Contracting Officer may, by
written notice, at any time—
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(A) Increase or decrease the amount of
Government-furnished information under
this contract;
(B) Substitute other Government-furnished
information for the information previously
furnished, to be furnished, or to be acquired
by the Contractor for the Government under
this contract; or
(C) Withdraw authority to use the
information.
(ii) Upon completion of any action(s) under
paragraph (d)(3)(i) of this clause, and the
Contractor’s timely written request, the
Contracting Officer shall consider an
equitable adjustment to the contract.
(e) Rights in information. Government
information is the property of the U.S.
Government unless otherwise specifically
identified. The specific rights in any other
information acquired or created by the
Contractor under this contract shall be as
expressed in the ‘‘Rights in Data’’ clause
contained in this contract.
(f) Government access to information. The
Government shall have the right to access
any Government information maintained by
the contractor and any subcontractors. The
Contractor shall provide the Contracting
Officer, and other duly authorized
Government representatives, with access to
all Government information, including access
to the Contractor’s facilities, as necessary,
promptly upon written notification by the
Contracting Officer. Such notification may be
by electronic mail.
(g) Contractor liability for Government
information. (1) Unless otherwise provided
for in the contract, the Contractor shall not
be liable for loss, theft, damage, or
destruction to the Government information
furnished or acquired under this contract,
except when the loss, theft, damage, or
destruction is the result of the Contractor’s
failure to properly manage, account for, and
safeguard the information in accordance with
this clause.
(2) In the event of any loss, theft, damage,
or destruction of Government information,
the Contractor shall immediately take all
reasonable actions necessary to protect the
Government information from further loss,
theft, damage, or destruction.
(3) The Contractor shall do nothing to
prejudice the Government’s rights to recover
against third parties for any loss, theft,
damage, or destruction of Government
information.
(h) Information alteration and disposal.
Except as otherwise provided for in this
contract, the Contractor shall not alter,
destroy, or otherwise dispose of any
Government information unless expressly
directed by the Contracting Officer to do so.
(i) Return of Government information to
the Government. (1) The Government may
require the Contractor to return Government
Information to the Government at any time.
Upon demand by the Contracting Officer or
his/her representative, the Contractor shall
return all Government information to the
Government as directed by the Contracting
Officer or other individual designated by the
Contracting Officer.
(2) The Contractor’s failure to return all
information as directed, including directions
regarding the time frames for delivery back
to the Government and directions prescribing
the form in which the data must be returned,
shall be considered a breach of contract, and
the Government shall have the right to
physically remove the Government
information from the Contractor, including
removal of such information from the
Contractor’s physical premises and from any
electronic media (e.g., Contractor’s computer
systems).
(3) When required to return Government
information to the Government, the
Contractor shall do so at no cost to the
Government. The Government shall not be
responsible for the cost of data format
conversion and the cost of delivery, if any.
(4) The Contractor shall ensure that all
Government information provided to
subcontractors is returned to the
Government.
(j) Equitable adjustment. Equitable
adjustments under this clause shall be made
in accordance with the procedures of the
Changes clause. However, the Government
shall not be liable for breach of contract for
the following:
(1) Any delay in delivery of Governmentfurnished information.
(2) Delivery of Government-furnished
information in a condition not suitable for its
intended use.
(3) An increase, decrease, or substitution of
Government-furnished information.
73535
(4) Failure to correct or replace
Government information for which the
Government is responsible.
(k) Subcontracts. The Contractor shall
ensure that all subcontracts under which
Government information is provided to a
subcontractor include the basic terms and
conditions set forth in paragraphs (a), (b), (c),
(f), and (h) of this clause in each subcontract.
Subcontracts shall clearly describe the
Government information provided to the
subcontractor. The Contractor shall be
responsible for all Government information
provided to subcontractors.
Alternate I. When the contracting officer
determines that the failure to return
Government information as provided for in
paragraph (i) of this clause shall result in a
monetary damage to the Government, the
contracting officer shall include the
following additional paragraph (i)(5) of this
clause. The contracting officer shall consult
the requiring activity to determine an amount
or percentage that accurately reflects the
damages to the Government.
(5) In the event of Contractor delay in
returning the Government Information to the
Government, for each calendar day late, the
Contracting Officer has the discretion to
deduct ___ [Contracting Officer insert dollar
amount or percentage] from the total value of
the contract, and/or withhold payment from
the Contractor.
(End of clause)
103. Revise section 2452.232–70 to
read as follows:
■
2452.232–70 Payment schedule and
invoice submission (Fixed-price).
As prescribed in 2432.908(c)(1), insert
the following clause in all fixed-price
solicitations and contracts:
PAYMENT SCHEDULE AND INVOICE
SUBMISSION (FIXED–PRICE) (DEC
2012)
(a) Payment Schedule. Payment of the
contract price (see Section B of the contract)
will be made upon completion and
acceptance of all work unless a partial
payment schedule is included below
[Contracting Officer insert schedule
information]:
Partial payment number
Applicable
contract
deliverable
Delivery date
Payment
amount
1. ..................................................................................................................................................
2. ..................................................................................................................................................
3. ..................................................................................................................................................
........................
........................
........................
........................
........................
........................
........................
........................
........................
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[Continue as necessary]
(b) Submission of Invoices. (1) The
Contractor shall submit invoices as follows:
original to the payment office and one copy
each to the Contracting Officer and a copy to
the Government Technical Representative
(GTR) identified in the contract. To
constitute a proper invoice, the invoice must
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18:42 Dec 07, 2012
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include all items required by the FAR clause
at 52.232–25, ‘‘Prompt Payment.’’
(2) To assist the government in making
timely payments, the contractor is also
requested to include on each invoice the
appropriation number shown on the contract
award document (e.g., block 14 of the
Standard Form (SF) 26, block 21 of the SF–
PO 00000
Frm 00013
Fmt 4701
Sfmt 4700
33, or block 25 of the SF–1449). The
contractor is also requested to clearly
indicate on the mailing envelope that an
invoice is enclosed.
(c) Contractor Remittance Information. The
contractor shall provide the payment office
with all information required by other
payment clauses or other supplemental
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information (e.g., contracts for commercial
services) contained in this contract.
(d) Final Invoice Payment. The final
invoice shall not be paid prior to certification
by the Contracting Officer that all work has
been completed and accepted.
(End of clause)
■ 104. Revise section 2452.232–71 to
read as follows:
2452.232–71
Voucher submission.
As prescribed in 2432.908(c)(3), insert
the following clause in all costreimbursement, time-and-materials, and
labor-hour solicitations and contracts:
VOUCHER SUBMISSION (DEC 2012)
(a) Voucher Submission.
(1) The contractor shall submit, ll
[Contracting Officer insert billing period, e.g.,
monthly], an original and two copies of each
voucher. In addition to the items required by
the clause at FAR 52.232–25, Prompt
Payment, the voucher shall show the
tkelley on DSK3SPTVN1PROD with
Contract line item number
Total price
The contracting officer will revise this
table as funds are allotted to the contract.
(b) For the incrementally funded line
item(s) in paragraph (a) of this clause, the
Contractor agrees to perform up to the point
at which the total amount payable by the
Government, including reimbursement in the
event of termination of those item(s) for the
Government’s convenience, approximates the
total amount currently allotted to the contract
for these contract line items. The Contractor
is not authorized to continue work on the
incrementally funded line item(s) beyond
that point. The Government will in no event
be obligated to reimburse the Contractor in
excess of the amount allotted to the contract
for the incrementally funded line item(s)
regardless of anything to the contrary in the
clause entitled ‘‘Termination for
Convenience of the Government.’’ As used in
this clause, the total amount payable by the
Government in the event of termination for
convenience of applicable line item(s)
includes costs, profit, and estimated
termination settlement costs for those line
item(s).
(c) Notwithstanding the dates specified in
the allotment schedule in paragraph (a) of
this clause, the Contractor will notify the
Contracting Officer in writing at least ll
[90 days unless the Contracting Officer
inserts a different number] days prior to the
date when, in the Contractor’s best judgment,
the work will reach the point at which the
VerDate Mar<15>2010
18:42 Dec 07, 2012
elements of cost for the billing period and the
cumulative costs to date. The Contractor
shall submit all vouchers, except for the final
voucher, as follows: original to the payment
office and one copy each to the Contracting
Officer and the Government Technical
Representative (GTR) identified in the
contract. The contractor shall submit all
copies of the final voucher to the Contracting
Officer.
(2) To assist the government in making
timely payments, the contractor is requested
to include on each voucher the applicable
appropriation number(s) shown on the award
or subsequent modification document (e.g.,
block 14 of the Standard Form (SF) 26, or
block 21 of the SF–33). The contractor is also
requested to clearly indicate on the mailing
envelope that a payment voucher is enclosed.
(b) Contractor Remittance Information. (1)
The Contractor shall provide the payment
office with all information required by other
payment clauses contained in this contract.
(2) For time-and-materials and labor-hour
contracts, the Contractor shall aggregate
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Frm 00014
(End of clause)
105. Add section 2452.232–72 to read
as follows:
■
2452.232–72
obligation.
Fmt 4701
Sfmt 4700
Limitation of Government’s
As prescribed in 2432.705–70, use the
following clause:
LIMITATION OF GOVERNMENT’S
OBLIGATION (DEC 2012)
(a) Funds are not available for full funding
of all contract line items under this contract.
The incrementally funded line items and
their anticipated funding schedule are as
follows:
Anticipated date(s) of future
funding
Amount of current funding
total amount payable by the Government,
including any cost for termination for
convenience, will approximate 85 percent of
the total amount then allotted to the contract
for performance of the applicable line
item(s). This notification will state: the
estimated date when that point will be
reached; and an estimate of the amount of
additional funding, if any, needed to
continue performance of the applicable line
items up to the next scheduled date for
allotment of funds identified in paragraph (a)
of this clause (or to another mutually agreedupon date). The notification will also advise
the Contracting Officer of the estimated
amount of additional funds that will be
required for the timely performance of the
line item(s) funded pursuant to this clause,
for a subsequent period as may be specified
in the allotment schedule in paragraph (a) of
this clause or otherwise agreed to by the
parties. If after such notification additional
funds are not allotted by the date identified
in the Contractor’s notification, or by an
agreed-upon date, the Contracting Officer
will terminate any line item(s) for which
additional funds have not been allotted,
pursuant to the clause of this contract
entitled ‘‘Termination for Convenience of the
Government.’’
(d) When additional funds are allotted for
continued performance of the incrementally
funded line item(s), the parties will agree to
the period of contract performance covered
PO 00000
vouchered costs by the individual task for
which the costs were incurred and clearly
identify the task or job.
(c) Final Payment. The final payment shall
not be made until the Contracting Officer has
certified that the contractor has complied
with all terms of the contract.
by the funds. The provisions of paragraphs
(b) through (d) of this clause will apply in
like manner to the additional allotted funds
and agreed-upon date(s), and the contract
will be modified accordingly.
(e) If the Contractor incurs additional costs
or is delayed in the performance of the work
under this contract solely by reason of the
failure of the Government to allot additional
funds in amounts sufficient for timely
performance of the incrementally funded line
item(s), and then additional funds are
allotted, an equitable adjustment will be
made in the line item price(s) or in the time
of delivery, or both. Failure to agree to any
such equitable adjustment hereunder shall be
considered a dispute subject to the
‘‘Disputes’’ clause in this contract.
(f) The Government may allot additional
funds for the performance of the
incrementally-funded line item(s) at any time
prior to termination.
(g) The termination provisions of this
clause do not limit the rights of the
Government under the clause entitled
‘‘Default.’’ The provisions of this clause are
limited to the work and allotment of funds
for the incrementally funded line item(s) and
will no longer apply once the contract is fully
funded except with regard to the rights or
obligations of the parties concerning
equitable adjustments negotiated under
paragraphs (d) and (e) of this clause.
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(h) Nothing in this clause affects the right
of the Government to terminate this contract
pursuant to the clause of this contract
entitled ‘‘Termination for Convenience of the
Government.’’
(i) Nothing in this clause shall be
construed as authorization of voluntary
services whose acceptance is otherwise
prohibited under 31 U.S.C. 1342.
(End of clause)
106. Add section 2452.232–73 to read
as follows:
■
2452.232–73
period.
Constructive acceptance
As prescribed in 2432.908, insert the
following clause:
CONSTRUCTIVE ACCEPTANCE
PERIOD (DEC 2012)
As authorized by FAR 32.908(c)(1), the
constructive acceptance period in paragraph
(a)(5)(i) of the clause at FAR 52.232–25,
‘‘Prompt Payment,’’ under this contract is
ll [Contracting Officer insert number]
calendar days.
(End of clause)
107. In section 2452.237–70, revise
the introductory text to read as follows:
■
2452.237–70
Key personnel.
As prescribed in 2437.110(e)(1), insert
the following clause in solicitations and
contracts when it is necessary for
contract performance to identify the
contractor’s key personnel:
*
*
*
*
*
2452.237–72
70]
[Redesignated as 2452.201–
108. Redesignate section 2452.237–72
as 2452.201–70, and revise the
introductory text to read as follows:
■
2452.201–70 Coordination of data
collection activities.
As prescribed in 2401.106–70, insert
the following clause in solicitations and
contracts where the contractor is
required to collect identical information
from ten or more public respondents:
*
*
*
*
*
■ 109. In section 2452.237–73, revise
the introductory text and paragraph (a)
to read as follows:
2452.237–73 Conduct of work and
technical guidance.
As prescribed in 2437.110(e)(2), insert
the following clause in all contracts for
services:
tkelley on DSK3SPTVN1PROD with
CONDUCT OF WORK AND
TECHNICAL GUIDANCE (DEC 2012)
(a) The Contracting Officer will provide the
contractor with the name and contact
information of the Government Technical
Representative (GTR) assigned to this
contract. The GTR will serve as the
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18:42 Dec 07, 2012
Jkt 229001
contractor’s liaison with the Contracting
Officer with regard to the conduct of work.
The Contracting Officer will notify the
contractor in writing of any change to the
current GTR’s status or the designation of a
successor GTR.
*
*
*
*
*
110. Revise section 2452.237–75 to
read as follows:
■
2452.237–75
Access to HUD facilities.
As prescribed in 2437.110(e)(3), insert
the following clause in solicitations and
contracts:
ACCESS TO HUD FACILITIES (DEC
2012)
(a) Definitions. As used in this clause—
Access means physical entry into and, to
the extent authorized, mobility within a
Government facility.
Contractor employee means an employee
of the prime contractor or of any
subcontractor, affiliate, partner, joint venture,
or team members with which the contractor
is associated. It also includes consultants
engaged by any of those entities.
Facility and Government facility mean
buildings, including areas within buildings
that are owned, leased, shared, occupied, or
otherwise controlled by the Federal
Government.
NACI means National Agency Check with
Inquiries, the minimum background
investigation prescribed by the U.S. Office of
Personnel Management.
PIV Card means the Personal Identity
Verification (PIV) Card, the Federal
Government-issued identification credential
(identification badge).
(b) General. The performance of this
contract requires contractor employees to
have access to HUD facilities. All such
employees who do not already possess a
current PIV Card acceptable to HUD shall be
required to provide personal background
information, undergo a background
investigation (NACI or other OPM-required
or approved investigation), including an FBI
National Criminal History Fingerprint Check,
and obtain a PIV Card prior to being
permitted access to any such facility in
performance of this contract. HUD may
accept a PIV Card issued by another Federal
Government agency but shall not be required
to do so. No contractor employee will be
permitted access to a HUD facility without a
proper PIV Card.
(c) Background information. (1) For each
contractor employee subject to the
requirements of this clause and not in
possession of a current PIV Card acceptable
to HUD, the contractor shall submit the
following properly completed forms:
Standard Form (SF) 85, ‘‘Questionnaire for
Non-sensitive Positions,’’ FD 258
(Fingerprint Chart), and a partial Optional
Form (OF) 306 (Items 1, 2, 6, 8–13, 16, and
17). The SF–85 and OF–306 are available
from the OPM Web site, https://www.opm.gov.
The GTR will provide all other forms that are
not obtainable via the Internet.
(2) The contractor shall deliver the forms
and information required in paragraph (c)(1)
of this clause to the GTR.
PO 00000
Frm 00015
Fmt 4701
Sfmt 4700
73537
(3) The information provided in
accordance with paragraph (c)(1) of this
clause will be used to perform a background
investigation to determine the suitability of
the contractor employees to have access to
Government facilities. After completion of
the investigation, the GTR will notify the
contractor in writing when any contractor
employee is determined to be unsuitable for
access to a Government facility. The
contractor shall immediately remove such
employee(s) from work on this contract that
requires physical presence in a Government
facility.
(4) Affected contractor employees who
have had a federal background investigation
without a subsequent break in federal
employment or federal contract service
exceeding 2 years may be exempt from the
investigation requirements of this clause
subject to verification of the previous
investigation. For each such employee, the
contractor shall submit the following
information in lieu of the forms and
information listed in paragraph (c)(1) of this
clause: Employee’s full name, Social Security
Number, and place and date of birth.
(d) PIV Cards. (1) HUD will issue a PIV
Card to each contractor employee who is to
be given access to HUD facilities and who
does not already possess a PIV Card
acceptable to HUD (see paragraph (b) of this
clause). HUD will not issue the PIV Card
until the contractor employee has
successfully cleared the FBI National
Criminal History Fingerprint Check and HUD
has initiated the background investigation for
the contractor employee. Initiation is defined
to mean that all background information
required in paragraph (c)(1) of this clause has
been delivered to HUD. The employee may
not be given access prior to those two events.
HUD may issue a PIV Card and grant access
pending the completion of the background
investigation. HUD will revoke the PIV Card
and the employee’s access if the background
investigation process (including adjudication
of investigation results) for the employee has
not been completed within 6 months after the
issuance of the PIV Card.
(2) PIV Cards shall identify individuals as
contractor employees. Contractor employees
shall display their PIV Cards on their persons
at all times while working in a HUD facility,
and shall present cards for inspection upon
request by HUD officials or HUD security
personnel.
(3) The contractor shall be responsible for
all PIV Cards issued to the contractor’s
employees and shall immediately notify the
GTR if any PIV Card(s) cannot be accounted
for. The contractor shall promptly return PIV
Cards to HUD as required by the FAR clause
at 52.204–9. The contractor shall notify the
GTR immediately whenever any contractor
employee no longer has a need for his/her
HUD-issued PIV Card (e.g., employee
terminates employment with the contractor,
employee’s duties no longer require access to
HUD facilities). The GTR will instruct the
contractor as to how to return the PIV Card.
Upon expiration of this contract, the GTR
will instruct the contractor as to how to
return all HUD-issued PIV Cards not
previously returned. Unless otherwise
directed by the Contracting Officer, the
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contractor shall not return PIV Cards to any
person other than the GTR.
(e) Control of access. HUD shall have, and
exercise, complete control over granting,
denying, withholding, and terminating access
of contractor employees to HUD facilities.
The GTR will notify the contractor
immediately when HUD has determined that
an employee is unsuitable or unfit to be
permitted access to a HUD facility. The
contractor shall immediately notify such
employee that he/she no longer has access to
any HUD facility, remove the employee from
any such facility that he/she may be in, and
provide a suitable replacement in accordance
with the requirements of this clause.
(f) Access to HUD information systems. If
this contract requires contractor employees to
have access to HUD information system(s),
application(s), or information contained in
such systems, the contractor shall comply
with all requirements of HUDAR clause
2452.239–70, Access to HUD Systems,
including providing for each affected
employee any additional background
investigation forms prescribed in that clause.
(g) Subcontracts. The contractor shall
incorporate this clause in all subcontracts
where the requirements specified in
paragraph (b) of this section are applicable to
performance of the subcontract.
(End of clause)
■ 111. In section 2452.237–77, revise
the section heading, the introductory
text, and the clause heading to read as
follows:
2452.237–77
facilities.
Temporary closure of HUD
As prescribed in 2437.110(e)(4), insert
the following clause:
TEMPORARY CLOSURE OF HUD
FACILITIES (DEC 2012)
*
*
*
*
*
112. Revise section 2452.239–70 to
read as follows:
■
2452.239–70
Access to HUD systems.
As prescribed in 2439.107(a), insert
the following clause:
tkelley on DSK3SPTVN1PROD with
ACCESS TO HUD SYSTEMS (DEC
2012)
(a) Definitions: As used in this clause—
Access means the ability to obtain, view,
read, modify, delete, and/or otherwise make
use of information resources.
Application means the use of information
resources (information and information
technology) to satisfy a specific set of user
requirements (see OMB Circular A–130).
Contractor employee means an employee
of the prime contractor or of any
subcontractor, affiliate, partner, joint venture,
or team members with which the contractor
is associated. It also includes consultants
engaged by any of those entities.
Mission-critical system means an
information technology or
telecommunications system used or operated
by HUD or by a HUD contractor, or
organization on behalf of HUD, that processes
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18:42 Dec 07, 2012
Jkt 229001
any information, the loss, misuse, disclosure,
or unauthorized access to, or modification of
which would have a debilitating impact on
the mission of the agency.
NACI means a National Agency Check with
Inquiries, the minimum background
investigation prescribed by OPM.
PIV Card means the Personal Identity
Verification (PIV) Card, the Federal
Government-issued identification credential
(i.e., identification badge).
Sensitive information means any
information of which the loss, misuse, or
unauthorized access to, or modification of,
could adversely affect the national interest,
the conduct of federal programs, or the
privacy to which individuals are entitled
under section 552a of title 5, United States
Code (the Privacy Act), but which has not
been specifically authorized under criteria
established by an Executive Order or an Act
of Congress to be kept secret in the interest
of national defense or foreign policy.
System means an interconnected set of
information resources under the same direct
management control, which shares common
functionality. A system normally includes
hardware, software, information, data,
applications, communications, and people
(see OMB Circular A–130). System includes
any system owned by HUD or owned and
operated on HUD’s behalf by another party.
(b) General. (1) The performance of this
contract requires contractor employees to
have access to a HUD system or systems. All
such employees who do not already possess
a current PIV Card acceptable to HUD shall
be required to provide personal background
information, undergo a background
investigation (NACI or other OPM-required
or approved investigation), including an FBI
National Criminal History Fingerprint Check,
and obtain a PIV Card prior to being
permitted access to any such system in
performance of this contract. HUD may
accept a PIV Card issued by another Federal
Government agency but shall not be required
to do so. No contractor employee will be
permitted access to any HUD system without
a PIV Card.
(2) All contractor employees who require
access to mission-critical systems or sensitive
information contained within a HUD system
or application(s) are required to have a more
extensive background investigation. The
investigation shall be commensurate with the
risk and security controls involved in
managing, using, or operating the system or
applications(s).
(c) Citizenship-related requirements. Each
affected contractor employee as described in
paragraph (b) of this clause shall be:
(1) A United States (U.S.) citizen; or,
(2) A national of the United States (see 8
U.S.C. 1408); or,
(3) An alien lawfully admitted into, and
lawfully permitted to be employed in the
United States, provided that for any such
individual, the Government is able to obtain
sufficient background information to
complete the investigation as required by this
clause. Failure on the part of the contractor
to provide sufficient information to perform
a required investigation or the inability of the
Government to verify information provided
for affected contractor employees will result
in denial of their access.
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Fmt 4701
Sfmt 4700
(d) Background investigation process.
(1) The Government Technical
Representative (GTR) shall notify the
contractor of those contractor employee
positions requiring background
investigations.
(i) For each contractor employee requiring
access to HUD information systems, the
contractor shall submit the following
properly completed forms: Standard Form
(SF) 85, ‘‘Questionnaire for Non-Sensitive
Positions,’’ FD 258 (Fingerprint Chart), and a
partial Optional Form (OF) 306 (Items 1, 2,
6, 8–13, 16, and 17).
(ii) For each contractor employee requiring
access to mission-critical systems and/or
sensitive information contained within a
HUD system and/or application(s), the
contractor shall submit the following
properly completed forms: SF–85P,
‘‘Questionnaire for Public Trust Positions;’’
FD 258; and a Fair Credit Reporting Act form
(authorization for the credit-check portion of
the investigation). Contractor employees
shall not complete the Medical Release
behind the SF–85P.
(iii) The SF–85, 85P, and OF–306 are
available from OPM’s Web site, https://
www.opm.gov. The GTR will provide all
other forms that are not obtainable via the
Internet.
(2) The contractor shall deliver the forms
and information required in paragraph (d)(1)
of this clause to the GTR.
(3) Affected contractor employees who
have had a federal background investigation
without a subsequent break in federal
employment or federal contract service
exceeding 2 years may be exempt from the
investigation requirements of this clause
subject to verification of the previous
investigation. For each such employee, the
contractor shall submit the following
information in lieu of the forms and
information listed in paragraph (d)(1) of this
clause: Employee’s full name, Social Security
number, and place and date of birth.
(4) The investigation process shall consist
of a range of personal background inquiries
and contacts (written and personal) and
verification of the information provided on
the investigative forms described in
paragraph (d)(1) of this clause.
(5) Upon completion of the investigation
process, the GTR will notify the contractor if
any contractor employee is determined to be
unsuitable to have access to the system(s),
application(s), or information. Such an
employee may not be given access to those
resources. If any such employee has already
been given access pending the results of the
background investigation, the contractor
shall ensure that the employee’s access is
revoked immediately upon receipt of the
GTR’s notification.
(6) Failure of the GTR to notify the
contractor (see subparagraph (d)(1)) of any
employee who should be subject to the
requirements of this clause and is known, or
should reasonably be known, by the
contractor to be subject to the requirements
of this clause, shall not excuse the contractor
from making such employee(s) known to the
GTR. Any such employee who is identified
and is working under the contract, without
having had the appropriate background
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investigation or furnished the required forms
for the investigation, shall cease to perform
such work immediately and shall not be
given access to the system(s)/application(s)
described in paragraph (b) of this clause until
the contractor has provided the investigative
forms required in paragraph (d)(1) of this
clause for the employee to the GTR
(7) The contractor shall notify the GTR in
writing whenever a contractor employee for
whom a background investigation package
was required and submitted to HUD, or for
whom a background investigation was
completed, terminates employment with the
contractor or otherwise is no longer
performing work under this contract that
requires access to the system(s),
application(s), or information. The contractor
shall provide a copy of the written notice to
the Contracting Officer.
(e) PIV Cards. (1) HUD will issue a PIV
Card to each contractor employee who is to
be given access to HUD systems and does not
already possess a PIV Card acceptable to
HUD (see paragraph (b) of this clause). HUD
will not issue the PIV Card until the
contractor employee has successfully cleared
an FBI National Criminal History Fingerprint
Check, and HUD has initiated the
background investigation for the contractor
employee. Initiation is defined to mean that
all background information required in
paragraph (d)(1) of this clause has been
delivered to HUD. The employee may not be
given access prior to those two events. HUD
may issue a PIV Card and grant access
pending the completion of the background
investigation. HUD will revoke the PIV Card
and the employee’s access if the background
investigation process (including adjudication
of investigation results) for the employee has
not been completed within 6 months after the
issuance of the PIV Card.
(2) PIV Cards shall identify individuals as
contractor employees. Contractor employees
shall display their PIV Cards on their persons
at all times while working in a HUD facility,
and shall present cards for inspection upon
request by HUD officials or HUD security
personnel.
(3) The contractor shall be responsible for
all PIV Cards issued to the contractor’s
employees and shall immediately notify the
GTR if any PIV Card(s) cannot be accounted
for. The contractor shall promptly return PIV
Cards to HUD as required by the FAR clause
at 52.204–9. The contractor shall notify the
GTR immediately whenever any contractor
employee no longer has a need for his/her
HUD-issued PIV Card (e.g., the employee
terminates employment with the contractor,
the employee’s duties no longer require
access to HUD systems). The GTR will
instruct the contractor as to how to return the
PIV Card. Upon expiration of this contract,
the GTR will instruct the contractor as to
how to return all HUD-issued PIV Cards not
previously returned. Unless otherwise
directed by the Contracting Officer, the
contractor shall not return PIV Cards to any
person other than the GTR.
(f) Control of access. HUD shall have and
exercise full and complete control over
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granting, denying, withholding, and
terminating access of contractor employees to
HUD systems. The GTR will notify the
contractor immediately when HUD has
determined that an employee is unsuitable or
unfit to be permitted access to a HUD system.
The contractor shall immediately notify such
employee that he/she no longer has access to
any HUD system, physically retrieve the
employee’s PIV Card from the employee, and
provide a suitable replacement employee in
accordance with the requirements of this
clause.
(g) Incident response notification. An
incident is defined as an event, either
accidental or deliberate, that results in
unauthorized access, loss, disclosure,
modification, or destruction of information
technology systems, applications, or data.
The contractor shall immediately notify the
GTR and the Contracting Officer of any
known or suspected incident, or any
unauthorized disclosure of the information
contained in the system(s) to which the
contractor has access.
(h) Nondisclosure of information. (1)
Neither the contractor nor any of its
employees shall divulge or release data or
information developed or obtained during
performance of this contract, except to
authorized government personnel with an
established need to know, or upon written
approval of the Contracting Officer.
Information contained in all source
documents and other media provided by
HUD is the sole property of HUD.
(2) The contractor shall require that all
employees who may have access to the
system(s)/applications(s) identified in
paragraph (b) of this clause sign a pledge of
nondisclosure of information. The employees
shall sign these pledges before they are
permitted to perform work under this
contract. The contractor shall maintain the
signed pledges for a period of 3 years after
final payment under this contract. The
contractor shall provide a copy of these
pledges to the GTR.
(i) Security procedures. (1) The Contractor
shall comply with applicable federal and
HUD statutes, regulations, policies, and
procedures governing the security of the
system(s) to which the contractor’s
employees have access including, but not
limited to:
(i) The Federal Information Security
Management Act (FISMA) of 2002;
(ii) OMB Circular A–130, Management of
Federal Information Resources, Appendix III,
Security of Federal Automated Information
Resources;
(iii) HUD Handbook 2400.25, Information
Technology Security Policy;
(iv) HUD Handbook 732.3, Personnel
Security/Suitability;
(v) Federal Information Processing
Standards 201 (FIPS 201), Sections 2.1 and
2.2;
(vi) Homeland Security Presidential
Directive 12 (HSPD–12); and
(vii) OMB Memorandum M–05–24,
Implementing Guidance for HSPD–12.
PO 00000
Frm 00017
Fmt 4701
Sfmt 9990
73539
The HUD Handbooks are available online
at: https://www.hud.gov/offices/adm/
hudclips/ or from the GTR.
(2) The contractor shall develop and
maintain a compliance matrix that lists each
requirement set forth in paragraphs, (b), (c),
(d), (e), (f), (g), (h), (i)(1), and (m) of this
clause with specific actions taken, and/or
procedures implemented, to satisfy each
requirement. The contractor shall identify an
accountable person for each requirement, the
date upon which actions/procedures were
initiated/completed, and certify that
information contained in this compliance
matrix is correct. The contractor shall ensure
that information in this compliance matrix is
complete, accurate, and up-to-date at all
times for the duration of this contract. Upon
request, the contractor shall provide copies of
the current matrix to HUD.
(3) The Contractor shall ensure that its
employees, in performance of the contract,
receive annual training (or once if the
contract is for less than one year) in HUD
information technology security policies,
procedures, computer ethics, and best
practices in accordance with HUD Handbook
2400.25.
(j) Access to contractor’s systems. The
Contractor shall afford HUD, including the
Office of Inspector General, access to the
Contractor’s facilities, installations,
operations, documentation (including the
compliance matrix required under paragraph
(i)(2) of this clause), databases, and personnel
used in performance of the contract. Access
shall be provided to the extent required to
carry out, but not limited to, any information
security program activities, investigation, and
audit to safeguard against threats and hazards
to the integrity, availability, and
confidentiality of HUD data and systems, or
to the function of information systems
operated on behalf of HUD, and to preserve
evidence of computer crime.
(k) Contractor compliance with this clause.
Failure on the part of the contractor to
comply with the terms of this clause may
result in termination of this contract for
default.
(l) Physical access to Federal Government
facilities. The contractor and any
subcontractor(s) shall also comply with the
requirements of HUDAR clause 2452.237–75
when the contractor’s or subcontractor’s
employees will perform any work under this
contract on site in a HUD or other Federal
Government facility.
(m) Subcontracts. The contractor shall
incorporate this clause in all subcontracts
where the requirements specified in
paragraph (b) of this section are applicable to
performance of the subcontract.
(End of clause)
Dated: November 27, 2012.
Jemine A. Bryon,
Chief Procurement Officer.
[FR Doc. 2012–29324 Filed 12–7–12; 8:45 am]
BILLING CODE 4210–67–P
E:\FR\FM\10DER3.SGM
10DER3
Agencies
[Federal Register Volume 77, Number 237 (Monday, December 10, 2012)]
[Rules and Regulations]
[Pages 73523-73539]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-29324]
[[Page 73523]]
Vol. 77
Monday,
No. 237
December 10, 2012
Part III
Department of Housing and Urban Development
-----------------------------------------------------------------------
48 CFR Parts 2401, 2402, 2403 et al.
HUD Acquisition Regulations (HUDAR); Final Rule
Federal Register / Vol. 77 , No. 237 / Monday, December 10, 2012 /
Rules and Regulations
[[Page 73524]]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
48 CFR Parts 2401, 2402, 2403, 2404, 2406, 2407, 2409, 2415, 2416,
2417, 2419, 2426, 2427, 2428, 2432, 2437, 2439, 2442, and 2452
[Docket No FR-5571-F-02]
RIN 2501-AD56
HUD Acquisition Regulations (HUDAR)
AGENCY: Office of the Chief Procurement Officer, HUD.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule amends the HUDAR to implement miscellaneous
changes. These changes include, for example, such amendments as
removing provisions that are now obsolete, refining provisions to
approve requests for deviation from the HUDAR, updating provisions that
address the organizational structure of HUD, and adding provisions on
contractor record retention.
DATES: Effective date: January 9, 2013.
FOR FURTHER INFORMATION CONTACT: David S. Blocker, Deputy Assistant
Chief Procurement Officer for Policy, Oversight, and Systems, Office of
the Chief Procurement Officer, Department of Housing and Urban
Development, 451 7th Street SW., Washington, DC 20410; telephone number
202-708-0294 (this is not a toll-free number) and fax number 202-708-
8912. Persons with hearing or speech impairments may access Mr.
Blocker's telephone number via TTY by calling the toll-free Federal
Relay Service at 800-877-8339.
SUPPLEMENTARY INFORMATION: This final rule follows a proposed rule. No
public comments were received on the proposed rule, and this final rule
implements the proposed rule with only minor technical changes.
I. Background
The uniform regulation for the procurement of supplies and services
by federal departments and agencies, the Federal Acquisition Regulation
(FAR), was promulgated on September 19, 1983 (48 FR 42102). The FAR is
codified in title 48, chapter 1, of the Code of Federal Regulations.
HUD promulgated its regulation to implement the FAR on March 1, 1984
(49 FR 7696).
The HUDAR (title 48, chapter 24 of the Code of Federal Regulations)
is prescribed under section 7(d) of the Department of HUD Act (42
U.S.C. 3535(d)); section 205(c) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 121(c)); and the general
authorization in FAR 1.301. HUDAR was last revised by final rule
published on January 13, 2006 (71 FR 2432).
II. Public Comments
The proposed rule was published on March 16, 2012 (77 FR 15681),
and the public comment period closed on May 15, 2012. As of the close
of the public comment period, no public comments were received.
III. This Final Rule
This final rule implements without substantive change (there are
minor corrections) the proposed amendments to the HUDAR, made by
proposed rule published on March 16, 2012 (77 FR 15681). The proposed
rule inadvertently omitted, in 2432.908, a paragraph prescribing the
usage of HUDAR clause 2452.232-70. This necessary paragraph is now
added at 2432.908(c)(2). The subsequent paragraphs are accordingly
redesignated. In the newly designated 2432.908(c)(2), which is
2432.908(c)(1) in the currently codified HUDAR, a revision is made to
reflect that the indicated clause is not used in performance-based
contracts under which performance-based payments will be used. This is
not a change in policy or contracting practice. The authority citations
for certain sections are revised in this final rule because they were
improperly worded (the authorities cited were and are correct,
however). A reference to paragraph (a) in Sec. 2432.908 was incorrect.
The reference is corrected in this final rule to (c)(1).
The preamble to the proposed rule explained in detail the changes
proposed; see 77 FR 15682 et seq. for a full description of the
substantive changes made to the HUDAR that are implemented in this
final rule.
IV. Findings and Certifications
Paperwork Reduction Act Statement
The information collection requirements contained in this final
rule are currently approved by the Office of Management and Budget
(OMB) in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3501-3520) and assigned OMB control number 2535-0091. The information
collection requirements for the HUDAR are currently approved by OMB
under control number 2535-0091. In accordance with the Paperwork
Reduction Act, an agency may not conduct or sponsor, and a person is
not required to respond to, a collection of information, unless the
collection displays a currently valid OMB control number.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
1531-1538) (UMRA) establishes requirements for federal agencies to
assess the effects of their regulatory actions on state, local, and
tribal governments and the private sector. This rule does not impose
any federal mandate on any state, local, or tribal government or the
private sector within the meaning of UMRA.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.)
generally requires an agency to conduct a regulatory flexibility
analysis of any rule subject to notice and comment rulemaking
requirements, unless the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
This final rule makes technical changes to existing contracting
procedures and does not make any major changes that would significantly
impact businesses. Accordingly, the undersigned certifies that this
rule will not have a significant economic impact on a substantial
number of small entities.
Environmental Impact
This final rule does not direct, provide for assistance or loan and
mortgage insurance for, or otherwise govern or regulate real property
acquisition, disposition, leasing, rehabilitation, alteration,
demolition, or new construction, or establish, revise, or provide for
standards for construction or construction materials, manufactured
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this
final rule is categorically excluded from environmental review under
the National Environmental Policy Act of 1969 (42 U.S.C. 4321).
Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') prohibits an agency
from publishing any rule that has federalism implications if the rule
imposes substantial direct compliance costs on state and local
governments and is not required by statute, or the rule preempts state
law, unless the agency meets the consultation and funding requirements
of section 6 of the Executive Order. This final rule would not have
federalism implications and would not impose substantial direct
compliance costs on state and local governments or preempt state law
within the meaning of the Executive Order.
[[Page 73525]]
List of Subjects
48 CFR Part 2401
Government procurement, Reporting and recordkeeping requirements.
48 CFR Part 2402
Government procurement.
48 CFR Part 2403
Conflict of interests, Government procurement.
48 CFR Part 2404
Government procurement.
48 CFR Parts 2406, 2407, and 2409
Government procurement.
48 CFR Parts 2415, 2416, and 2417
Government procurement.
48 CFR Part 2419
Government procurement, Small business.
48 CFR Part 2426
Colleges and universities, Government procurement, Minority
businesses.
48 CFR Part 2427
Government procurement, Inventions and patents.
48 CFR Part 2428
Government procurement, Surety bonds.
48 CFR Part 2432
Government procurement.
48 CFR Part 2437
Government procurement.
48 CFR Part 2439
Computer technology, Government procurement.
48 CFR Part 2442
Government procurement.
48 CFR Part 2452
Government procurement.
For the reasons discussed in the preamble, HUD amends 48 CFR
chapter 24 as follows:
PART 2401--FEDERAL ACQUISITION REGULATION SYSTEM
0
1. The authority citation for part 2401 is revised to read as follows:
Authority: 40 U.S.C. 121(c); 42 U.S.C. 3535(d).
Subpart 2401.1--Purpose, Authority, Issuance
0
2. Add section 2401.106-70 to read as follows:
2401.106-70 Contract clause.
The contracting officer shall insert the clause at 2452.201-70,
Coordination of Data Collection Activities, in solicitations and
contracts where the Contractor is required to collect information from
ten or more public respondents.
Subpart 2401.4--Deviations From the FAR
0
3. Revise section 2401.403 to read as follows:
2401.403 Individual deviations.
The Senior Procurement Executive is the agency head's designee for
the purposes of FAR 1.403.
0
4. Revise section 2401.404 to read as follows:
2401.404 Class deviations.
(a) The Senior Procurement Executive is the agency head's designee
for the purposes of FAR 1.404(a).
0
5. Add section 2401.470 to read as follows:
2401.470 Deviations from the HUDAR.
The Senior Procurement Executive is authorized to approve
deviations from the HUDAR.
0
6. Add section 2401.471 to read as follows:
2401.471 Requests for deviations--FAR and HUDAR.
(a) Requests for deviations from the FAR or HUDAR shall be
submitted in writing to the Chief Procurement Officer.
(b) Each request for authorization of a deviation from the FAR or
HUDAR shall:
(1) Identify the deviation as individual or class;
(2) Identify the FAR or the HUDAR requirement from which a
deviation is sought;
(3) Fully describe the deviation, its intended effect, and the
circumstances in which it will be used;
(4) Explain why a deviation is required and include pertinent
background and supporting information;
(5) State whether the deviation has been requested previously and
if so, the circumstances and result of the previous request; and
(6) Identify the contractor(s) and the contract(s) (including
dollar values) that would be affected.
(c) At his or her discretion, the Chief Procurement Officer will
consider requests for deviations on an expedited basis and, in urgent
situations, may authorize deviations via telephone or electronic mail.
Such authorizations will be confirmed in writing.
(d) The contracting officer shall include a copy of each authorized
deviation in the contract file(s) to which it pertains.
Subpart 2401.6--Career Development, Contracting Authority and
Responsibilities
0
7. In section 2401.602-3, revise paragraphs (b)(1) and (3) and remove
paragraph (c)(7).
The revisions read as follows:
2401.602-3 Ratification of unauthorized commitments.
(b)(1) Requests for ratification of unauthorized commitments shall
be submitted in writing through the contracting officer to the
ratification approval officials identified in paragraph (b)(3) of this
section. The Assistant Secretary or equivalent official for the office
that created the unauthorized commitment shall sign the request for
ratification.
(3) In accordance with FAR 1.602-3(b)(3), the Senior Procurement
Executive may delegate the authority to approve ratifications of
individual unauthorized commitments down to, but not below, the level
of an Assistant Chief Procurement Officer.
* * * * *
PART 2402--DEFINITIONS OF WORDS AND TERMS
0
8. The authority citation for part 2402 is revised to read as follows:
Authority: 40 U.S.C. 121(c); 42 U.S.C. 3535(d).
Subpart 2402.1--Definitions
0
9. In section 2402.101, add in alphabetical order a definition of
``Contracting Activity,'' remove the definition of ``Head of
Contracting Activity (HCA)'' and add in its place the definition of
``Head of the Contracting Activity (HCA)'' and revise the definition of
``Legal Counsel'' to read as follows:
2402.101 Definitions.
* * * * *
Contracting activity means the Office of the Chief Procurement
Officer.
* * * * *
Head of the contracting activity (HCA) means the Chief Procurement
Officer. As permitted by the FAR and the HUD Acquisition Regulation,
the Chief Procurement Officer, acting within his or her authority as
the Senior Procurement Executive, may delegate HCA authority for
specific actions or classes of actions down to, but not below, the
level of the Assistant Chief
[[Page 73526]]
Procurement Officers. Delegated HCA authority may not be further
redelegated.
Legal counsel means HUD's Office of General Counsel and its field-
based components.
* * * * *
PART 2403--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
INTEREST
0
10. The authority citation for part 2403 continues to read as follows:
Authority: 42 U.S.C. 3535(d).
Subpart 2403.4--Contingent Fees
0
11. Revise section 2403.405(b) to read as follows:
2403.405 Misrepresentations or violations of the covenant against
contingent fees.
* * * * *
(b) When there is specific evidence or other reasonable basis to
suspect one or more of the violations in paragraph (a) of this section,
the HCA shall review the facts and, if appropriate, take or direct one
or more of the actions set forth at FAR 3.405(b). The HCA shall refer
suspected fraudulent or criminal matters to HUD's Office of the
Inspector General for possible referral to the Department of Justice.
PART 2404--ADMINISTRATIVE MATTERS
0
12. The authority citation for part 2404 continues to read as follows:
Authority: 42 U.S.C. 3535(d).
0
13. Add subpart 2404.7 to read as follows:
Subpart 2404.7--Contractor Records Retention
2404.7001 Contract clause.
The contracting officer shall insert the clause at 2452.204-72,
Preservation of, and Access to, Contract Records (Tangible and
Electronically Stored Information (ESI) Formats), in all solicitations
and contracts exceeding the simplified acquisition threshold. The
contracting officer shall use the basic clause with its Alternate I in
cost-reimbursement type contracts. The contracting officer shall use
the basic clause with its Alternate II in labor-hour and time-and-
materials contracts.
PART 2406--COMPETITION REQUIREMENTS
0
14. The authority citation for part 2406 is revised to read as follows:
Authority: 40 U.S.C. 121(c); 41 U.S.C. 253; 42 U.S.C. 3535(d).
Subpart 2406.3--Other Than Full and Open Competition
0
15. Add section 2406.302-2 to read as follows:
2406.302-2 Unusual and compelling urgency.
(d)(1)(ii) The HCA is the agency head's designee for the purposes
of FAR 6.302-2(d)(1)(ii).
2406.304-70 [Removed]
0
16. Remove section 2406.304-70.
Subpart 2406.5--Competition Advocates
0
17. Revise section 2406.501 to read as follows:
2406.501 Requirement.
The Senior Procurement Executive is the head of the agency for the
purposes of FAR 6.501 and designates the Departmental competition
advocate.
PART 2407--ACQUISITION PLANNING
0
18. The authority citation for part 2404 continues to read as follows:
Authority: Sec. 7(d) of the Department of Housing and Urban
Development Act (42 U.S.C. 3535(d)).
Subpart 2407.1--Acquisition Plans
0
19. Revise section 2407.102 to read as follows:
2407.102 Policy.
The Senior Procurement Executive is responsible for establishing
and maintaining internal procedures that meet the criteria contained in
FAR subpart 7.1 for acquisition planning and acquisition plan content.
PART 2409--CONTRACTOR QUALIFICATIONS
0
20. The authority citation for part 2409 is revised to read as follows:
Authority: 40 U.S.C. 121(c); 42 U.S.C. 3535(d).
0
21. Add subpart 2409.4 to read as follows:
Subpart 2409.4--Debarment, Suspension, and Ineligibility
Sec.
2409.405 Effect of listing.
2409.407-1 General.
2409.470 HUD regulations on debarment, suspension, and
ineligibility.
2409.405 Effect of listing.
(3) The Senior Procurement Executive is the agency head's designee
under FAR 9.405(d)(3).
2409.407-1 General.
(d) The Senior Procurement Executive is the agency head's designee
under FAR 9.407-1(d).
2409.470 HUD regulations on debarment, suspension, and ineligibility.
HUD's policies and procedures concerning debarment and suspension
are contained in 2 CFR part 2424.
Subpart 2409.5--Organizational and Consultant Conflicts of Interest
0
22. Revise section 2409.503 to read as follows:
2409.503 Waiver.
The Senior Procurement executive is the agency head's designee
under FAR 9.503.
Subpart 2409.70--[Removed]
0
23. Remove subpart 2409.70.
PART 2415--CONTRACTING BY NEGOTIATION
0
24. The authority citation for part 2415 is revised to read as follows:
Authority: 40 U.S.C. 121(c); 41 U.S.C. 253; 42 U.S.C. 3535(d).
0
25. Revise the heading for subpart 2415.2 to read as follows:
Subpart 2415.2--Solicitation and Receipt of Proposals and
Quotations
0
26. Add section 2415.203 to read as follows:
2415.203 Requests for proposals.
(a)(3) The contracting officer may limit the size of the technical
and management portion of offers submitted in response to a request for
proposals when the contracting officer determines that it is in the
Government's best interest to do so.
0
27. Revise 2415.204 to read as follows:
2415.204 Contract format.
(e) The HCA shall be responsible for making exemptions pursuant to
FAR 15.204(e).
0
28. Revise section 2415.209 to read as follows:
2415.209 Solicitation provisions and contract clauses.
(a)(1) The Contracting Officer shall insert a provision
substantially the same as the provision at 2452.215-70, Proposal
Content, in all solicitations for negotiated procurements using the
tradeoff selection process (see FAR 15.101-1) expected to exceed the
simplified acquisition limit. The Contracting Officer shall adapt
[[Page 73527]]
paragraph (c) of the provision (i.e., include, delete, revise, or
further supplement subparagraphs) to address the particular
requirements of the immediate solicitation. The provision may be used
in simplified acquisitions when it is necessary to obtain technical and
management information in making the award selection. When award
selection will be made through the lowest-priced technically acceptable
source selection process, the provision shall be used with its
Alternate I. If the proposed contract requires work on, or access to,
HUD systems or applications (see the clause at 2452.239-70), the
provision shall be used with its Alternate II. When the contracting
officer has determined that it is necessary to limit the size of the
technical and management portion of offers submitted by offerors, the
provision shall be used with its Alternate III. The contracting officer
shall clearly identify in the provision any contents of the technical
and management portion of offers that are excluded from the size
limitation (e.g., proposed contractor staff resumes).
(2) The contracting officer shall insert the provision at 2452.215-
71, Relative Importance of Technical Evaluation Factors to Cost or
Price, in solicitations for contracts to be awarded using the tradeoff
selection process (see FAR 15.101-1) expected to exceed the simplified
acquisition limit.
Subpart 2415.3--Source Selection
0
29. Revise section 2415.303 to read as follows:
2415.303 Responsibilities.
(a) The Senior Procurement Executive is the agency head for the
purposes of FAR 15.303(a).
(b)(1) The technical evaluation requirements related to source
selection shall be performed by a Technical Evaluation Panel (TEP). The
TEP may consist of any number of members as appropriate to the
acquisition, with one member serving as the chairperson. As needed, the
TEP may include advisors and committees to focus on specific technical
areas or concerns. The TEP is responsible for fully documenting the
evaluation of all proposals as appropriate to the source selection
approach in use and for making the source selection recommendation to
the source selection authority.
0
30. Revise section 2415.304 to read as follows:
2415.304 Evaluation factors and significant subfactors.
(c)(3)(i) The extent of participation of small businesses in
performance of the contract, whether as a joint venture, teaming
arrangement, or subcontractor, shall be addressed in the source
selection for contracts to be awarded using the tradeoff source
selection process (see FAR 15.101-1) that require the use of the clause
at FAR 52.219-9, Small Business Subcontracting Plan.
(d) The solicitation shall state the basis for the source selection
decision as either the ``lowest price technically acceptable'' (LPTA)
process or the [l x dquo]tradeoff'' process (as defined at
FAR subpart 15.1).
0
31. Revise section 2415.305(a)(3) to read as follows:
2415.305 Proposal evaluation.
(a) * * *
(3) Technical evaluation. The TEP shall rate each proposal based on
the evaluation factors specified in the solicitation. The TEP shall
identify each proposal as being acceptable, unacceptable but capable of
being made acceptable, or unacceptable. A proposal shall be considered
unacceptable if it is so clearly deficient that it cannot be corrected
through written or oral discussions. Under the tradeoff process,
predetermined threshold levels of technical acceptability for proposals
shall not be employed. A technical evaluation report, which complies
with FAR 15.305(a)(3), shall be prepared and signed by the technical
evaluators, furnished to the contracting officer, and maintained as a
permanent record in the official procurement file.
0
32. Add section 2415.370 to read as follows:
2415.370 Solicitation provision.
The contracting officer shall insert the provision at 2452.215-72,
Evaluation of Small Business Participation, in solicitations for
contracts that require the use of the FAR clause in 52.219-9, ``Small
Business Subcontracting Plan,'' that will be awarded using the tradeoff
source selection process (see FAR 15.101-1).
PART 2416--TYPES OF CONTRACTS
0
33. The authority citation for part 2416 is revised to read as follows:
Authority: 40 U.S.C. 121(c); 41 U.S.C. 253; 42 U.S.C. 3535(d).
0
34. Add subpart 2416.3 to read as follows:
Subpart 2416.3--Cost-Reimbursement Contracts
2416.307 Contract clauses.
(a) The contracting officer shall insert the clause at 2452.216-79,
Estimated Cost (No Fee), in all cost-reimbursement (no fee) type
solicitations and contracts.
(b) The contracting officer shall insert the clause at 2452.216-80,
Estimated Cost and Fixed-Fee, in all cost-plus-fixed fee type
solicitations and contracts.
Subpart 2416.5--Indefinite-Delivery Contracts
0
35. Revise section 2416.505 to read as follows:
2416.505 Ordering.
(a) The contracting officer shall be the ordering official for all
task orders except as provided for herein. The contracting officer may
designate an ordering official when orders are to be placed on a firm
fixed-price basis, the prices of the specific services or supplies to
be provided under the order are set forth in the contract, and there is
no negotiation of order terms. The contracting officer shall not
designate ordering officials:
(1) For contracts for services where prices are not tied to
delivery of a completed service;
(2) For any contracts where discounts need to be negotiated; or
(3) In any other circumstances where adjustment of contract price
or any other terms and conditions is necessary.
(b)(6) The Departmental competition advocate also serves as the
Departmental task and delivery order ombudsman in accordance with FAR
16.505(b)(6). In addition to the duties set forth at FAR 16.505(b)(6),
the ombudsman shall recommend any corrective action regarding affording
fair opportunity to contractors to compete for orders to the
responsible contracting officer.
0
36. In section 2416.506-70, revise paragraph (b) to read as follows:
2416.506-70 Solicitation provisions and contract clauses.
* * * * *
(b) Minimum and maximum quantities or amounts for order. The
contracting officer shall insert a clause substantially the same as
2452.216-76, Minimum and Maximum Quantities or Amounts for Order, in
all indefinite-quantity and requirements solicitations and contracts.
When the clause is used for requirements solicitations and contracts,
the contracting officer may either delete paragraph (a) or insert
``none'' for the minimum quantity or amount.
* * * * *
[[Page 73528]]
PART 2417--SPECIAL CONTRACTING METHODS
0
37. The authority citation for part 2417 is revised to read as follows:
Authority: 31 U.S.C. 1535; 40 U.S.C. 121(c); 42 U.S.C. 3535(d).
Subpart 2417.2--Options
0
38. Revise section 2417.204 to read as follows:
2417.204 Contracts.
(e)(1) The Senior Procurement Executive (SPE) is authorized to
approve contract periods for other than information technology
contracts that exceed the 5-year limit set forth at FAR 17.204(e) that
are not otherwise limited by statute (e.g., the Service Contract Act).
Except as provided for in paragraphs (e)(2) and (4) of this section,
the SPE shall approve any contract period that will exceed 5 years,
including all option periods, prior to the award of the basic contract.
(2) With regard to HUD indefinite-delivery contracts, the
``contract period'' requiring the SPE's prior approval in paragraph
(e)(1) of this section shall mean the ordering period of a contract.
Unless otherwise specified within the contract, the 5-year limit shall
not apply to the period that any task or delivery order issued within
the contract's ordering period extends beyond the final end date of the
contract's ordering period, regardless of whether the performance
period of the order causes the total period of the contract to exceed 5
years. The issuance of any such task or delivery order does not require
the SPE's approval. Task or delivery orders with end dates extending
beyond the ordering period of the contract may not exceed the final
delivery date that the contracting officer has stated in the applicable
indefinite-delivery FAR clause included in the contract (i.e., 52.216-
20, ``Definite Quantity,'' paragraph (d); 52.216-21, ``Requirements,''
paragraph (f); or 52.216-22, ``Indefinite Quantity,'' paragraph (d)).
(3) The SPE's authority described in paragraphs (e)(1) and (2) of
this section shall not be used as the basis to retroactively increase
or extend the period of any existing contract.
(4) The SPE is not required to approve any option properly
exercised pursuant to the FAR clause at 52.217-8, ``Option to Extend
Services,'' that extends the contract period beyond 5 years; provided
that the total length of all options exercised pursuant to FAR clause
52.217-8 may not exceed 6 months; and provided that exercise of any
such options shall be in accordance with FAR 37.111. Any proposed
extension of a contract beyond the 6-month maximum permitted by FAR
52.217-8 shall be considered a new requirement and shall be subject to
the competition requirements of FAR part 6.
PART 2419--SMALL BUSINESS PROGRAMS
0
39. The authority citation for part 2419 is revised to read as follows:
Authority: 40 U.S.C. 121(c); 42 U.S.C. 3535(d).
Subpart 2419.2--Policies
0
40. In section 2419.201, redesignate paragraphs (c) and (d) as
paragraphs (d) and (e), respectively, and revise newly designated
paragraphs (d), (e) introductory text, and (e)(1), to read as follows:
2419.201 General policy.
(d) The Director of HUD's Office of Small and Disadvantaged
Business Utilization (OSDBU) is responsible for the administration of
the HUD small business program and for performing all functions and
duties prescribed in FAR 19.201(d). This includes Department-wide
responsibility for developing, implementing, executing, and managing
these programs; providing advice on these programs; and representing
HUD before other government agencies on matters primarily affecting
small, small disadvantaged, and women-owned small business; HUBZone
small business; veteran-owned small business; and service-disabled
veteran-owned small business concerns.
(e) The Director of OSDBU shall designate small business
specialists who shall advise and assist HUD's contracting activity and
small business concerns as described in paragraph (d) on all matters
related to small business participation in HUD acquisitions. Small
business specialists shall perform the following functions:
(1) Maintain a program designed to locate capable small-business
sources as referenced in paragraph (d) of this section for current and
future procurements;
* * * * *
Subpart 2419.5--Set-Asides for Small Business
2419.503 [Removed and Reserved]
0
41. Remove and reserve section 2419.503.
Subpart 2419.7--The Small Business Subcontracting Program
0
42. Revise section 2419.708 to read as follows:
2419.708 Solicitation provisions and contract clauses.
(b) The contracting officer shall insert clause at 2452.219-73,
``Incorporation of Subcontracting Plan,'' in solicitations and
contracts when a subcontracting plan is required. The contracting
officer shall insert the provision at 2452.219-74, ``Small Business
Subcontracting Goals,'' in solicitations for contracts that are
required to include the FAR clauses at 52.219-8, ``Utilization of Small
Business Concerns,'' and 52.219-9, ``Small Business Subcontracting
Plan.''
(d) The contracting officer shall insert the provision at 2452.219-
70, Small Business Subcontracting Plan Compliance, in solicitations for
contracts that are expected to exceed the dollar thresholds set forth
at FAR 19.702 and are required to include the clause at FAR 52.219-9,
Small Business Subcontracting Plan.
Subpart 2419.8--Contracting With the Small Business Administration
(the 8(a) Program)
0
43. Revise section 2419.800 to read as follows:
2419.800 General.
(f) By Partnership Agreement between the SBA and HUD, the SBA
delegated to HUD's Senior Procurement Executive its authority under
paragraph 8(a)(1)(A) of the Small Business Act (5 U.S.C. 637(a)) to
enter into 8(a) prime contracts, and its authority under 8(a)(1)(B) of
the Small Business Act to award the performance of those contracts to
eligible 8(a) Program participants. Under the Partnership Agreement, a
contract may be awarded directly to an 8(a) firm on either a sole-
source or competitive basis. The SBA reserves the right to withdraw the
delegation issued as a result of the Partnership Agreement; however,
any such withdrawal shall have no effect on contracts already awarded
under the Partnership Agreement.
0
44. Add section 2419.803 to read as follows:
2419.803 Selecting acquisitions for the 8(a) Program.
0
45. Add section 2419.803-70 to read as follows:
[[Page 73529]]
2419.803-70 Procedures for simplified acquisitions under the
partnership agreement.
(a) HUD contracting officers may use the procedures of FAR part 13
and HUDAR part 2413 to make purchases not exceeding the simplified
acquisition threshold from 8(a) Participants. The following apply to
such acquisitions:
(1) Neither offering letters to, nor acceptance letters from the
SBA are required.
(2) The contracting officer will use the Central Contractor
Registration (CCR) database on the Internet (https://www.ccr.gov) to
establish that the selected 8(a) firm is a current program participant.
(b) Once an 8(a) contractor has been identified, the contracting
officer will establish the price with the selected 8(a) contractor.
(c) For acquisitions requiring an award document (e.g., purchase
order), the contracting officer will:
(1) Prepare and issue an award document in accordance with the
applicable provisions of FAR part 13 and HUDAR part 2413. The
applicable clauses prescribed in 2419.811-3 shall be included in the
award document. The contracting officer will issue the award document
directly to the 8(a) firm; and
(2) Forward to the SBA District Office serving the 8(a) firm a copy
of the award document within 5 days after the award is issued.
0
46. Add section 2419.804 to read as follows:
2419.804 Evaluation, offering, and acceptance.
0
47. Add section 2419.804-2 to read as follows:
2419.804-2 Agency offering.
(d) When applicable, the notification must identify that the
offering is in accordance with the Partnership Agreement identified in
2419.800.
0
48. Add section 2419.804-3 to read as follows:
2419.804-3 SBA acceptance.
0
49. Add section 2419.804-370 to read as follows:
2419.804-370 SBA acceptance under partnership agreements for
acquisitions exceeding the simplified acquisition threshold.
(a) The following procedures apply to the acceptance of
requirements covered by the Partnership Agreement for acquisitions that
exceed the simplified acquisition threshold.
(1) The SBA's decision whether to accept the requirement will be
transmitted to HUD in writing within 5 working days of receipt of the
offer.
(2) The SBA may request, and HUD may grant, an extension beyond the
5-day limit.
(3) SBA's acceptance letters should be faxed or emailed to HUD.
(4) If HUD has not received an acceptance or rejection of the
offering from SBA within 5 days of SBA's receipt of the offering
letter, the contracting officer may assume that the requirement has
been accepted and proceed with the acquisition.
(b) The contents of SBA's acceptance letter shall be limited to the
eligibility of the recommended 8(a) contractor.
0
50. Add section 2419.805 to read as follows:
2419.805 Competitive 8(a).
0
51. Add section 2419.805-2 to read as follows:
2419.805-2 Procedures.
(b)(3) For requirements exceeding the simplified acquisition
threshold that are processed under the Partnership Agreement cited in
2419.800, the contracting officer shall submit the name, address, and
telephone number of the low bidder (sealed bid requirements) or the
apparent successful offeror (negotiated acquisitions) to the SBA
Business Opportunity Specialist at the field office servicing the
identified 8(a) firm. The SBA will determine the eligibility of the
firm(s) and advise the contracting officer within 2 working days of the
receipt of the request. If the firm is determined to be ineligible, the
contracting officer will submit information on the next low offeror or
next apparent successful offeror (as applicable) to the cognizant SBA
field office.
0
52. Add section 2419.806 to read as follows:
2419.806 Pricing the 8(a) contract.
(a) For contracts awarded under the Partnership Agreement cited in
2419.800, when required by FAR subpart 15.4, the contracting officer
shall obtain certified cost or pricing data directly from the 8(a)
contractor.
0
53. Add section 2419.808 to read as follows:
2419.808 Contract negotiation.
0
54. Add section 2419.808-1 to read as follows:
2419.808-1 Sole source.
(a) If the acquisition is conducted under the Partnership Agreement
cited in 2419.800, the 8(a) contractor is responsible for negotiating
with HUD within the time frame established by the contracting officer.
If the 8(a) contractor does not negotiate within the established time
frame, and HUD cannot allow additional time, HUD, after notification
and approval by SBA, may proceed with the acquisition from other
sources.
(b) If the acquisition is conducted under the Partnership Agreement
cited in 2419.800, HUD is delegated the authority to negotiate directly
with the 8(a) participant; however, if requested by the 8(a)
participant, the SBA may participate in negotiations.
0
55. Add section 2419.811 to read as follows:
2419.811 Preparing the contracts.
0
56. Add section 2419.811-1 to read as follows:
2419.811-1 Sole source.
(e) If the award is to be made under the Partnership Agreement
cited in 2419.800, the contracting officer shall prepare the instrument
to be awarded to the 8(a) firm in accordance with the normal HUD
procedures for non-8(a) contracts, except for the following:
(1) The award form shall cite 41 U.S.C. 253(c)(5) and 15 U.S.C.
637(a) as the authority for use of other than full and open
competition.
(2) The contracting officer shall include appropriate contract
clauses, as necessary, to reflect that the acquisition is an 8(a)
contract awarded under the authority of the Partnership Agreement cited
in 2419.800.
(3) The contracting officer shall include SBA's requirement number
on the contract unless the acquisition does not exceed the simplified
acquisition threshold.
(4) A single award document shall be used between HUD and the 8(a)
contractor. As such, no signature on the part of the SBA is required; a
single signature by the HUD contracting officer shall suffice. The 8(a)
contractor's signature shall be placed on the award document as the
prime contractor. The 8(a) contractor's name and address shall be
placed in the ``awarded to'' or ``contractor name'' block on the
appropriate forms.
0
57. Add section 2419.811-2 to read as follows:
2419.811-2 Competitive.
(a) If the award is to be made under the Partnership Agreement
cited in 2419.800, competitive contracts for 8(a) firms shall be
prepared in accordance with the same standards as 8(a) sole-source
contracts as set forth in 2419.811-1.
(b) If the acquisition is conducted under the Partnership Agreement
cited
[[Page 73530]]
in 2419.800, the process for obtaining signatures shall be as specified
in 2419.811-1(e).
0
58. Add section 2419.811-3 to read as follows:
2419.811-3 Contract clauses.
(d)(3) The contracting officer shall use the clause at FAR 52.219-
18, ``Notification of Competition Limited to Eligible 8(a) Concerns,''
with the clause at 2452.219-71, ``Notification of Competition Limited
to Eligible 8(a) Concerns--Alternate III to FAR 52.219-18,'' for
competitive 8(a) acquisitions processed under the Partnership Agreement
cited in 2419.800.
(f) In contracts and purchase orders awarded under the Partnership
Agreement cited at 2419.800, the contracting officer shall substitute
the clause at 2452.219-72, Section 8(a) Direct Award, for the clauses
at FAR 52.219-11, ``Special 8(a) Contract Conditions;'' FAR 52.219-12,
``Special 8(a) Subcontract Conditions;'' and FAR 52.219-17, ``Section
8(a) Award.''
0
59. Add section 2419.812 to read as follows:
2419.812 Contract administration.
(e) Awards under the Partnership Agreement cited in 2419.800 are
subject to 15 U.S.C. 637(a)(21). These contracts contain the clause at
2452.219-71, Section 8(a) Direct Award (Deviation), which requires the
8(a) contractor to notify the SBA and the HUD contracting officer when
ownership of the firm is being transferred.
PART 2426--OTHER SOCIOECONOMIC PROGRAMS
0
60. The authority citation for part 2426 is revised to read as follows:
Authority: 40 U.S.C. 121(c); 42 U.S.C. 3535(d).
Subpart 2426.70--Minority Business Enterprises
2426.7001 [Removed and Reserved]
0
61. Remove and reserve section 2426.7001.
2426.7002 [Removed and Reserved]
0
62. Remove and reserve section 2426.7002.
PART 2427--PATENTS, DATA, AND COPYRIGHTS
0
63. The authority citation for part 2427 is revised to read as follows:
Authority: 40 U.S.C. 121(c); 42 U.S.C. 3535(d).
Subpart 2427.3--Patent Rights Under Government Contracts
0
64. Revise the section heading of section 2427.305-2 to read as
follows:
2427.305-2 Administration by the Government.
* * * * *
0
65. Add subpart 2427.4 to read as follows:
Subpart 2427.4--Rights in Data and Copyrights
2427.470 Contract clause.
The contracting officer shall insert the clause 2452.227-70,
Government Information, in all solicitations and contracts when the
Government will provide information to the contractor, and/or when the
contractor will obtain information on the Government's behalf to
perform work required under the contract. The contracting officer shall
describe all information to be provided to the contractor in paragraph
(d)(1) of the clause.
PART 2428--BONDS AND INSURANCE
0
66. The authority citation for part 2428 is revised to read as follows:
Authority: 40 U.S.C. 121(c); 42 U.S.C. 3535(d).
Subpart 2428.1--Bonds
0
67. Revise the heading of section 2428.106 to read as follows:
2428.106 Administration.
* * * * *
PART 2432--CONTRACT FINANCING
0
68. The authority citation for part 2432 is revised to read as follows:
Authority: 31 U.S.C. 3901-3905; 40 U.S.C. 121(c); 42 U.S.C.
3535(d).
0
69. Add section 2432.006 before subpart 2432.1 to read as follows:
2432.006 Reduction or suspension of contract payments upon finding of
fraud.
0
70. Add section 2432.006-1 to read as follows:
2432.006-1 General.
The Senior Procurement Executive is the agency head for the
purposes of FAR 32.006-1. In accordance with FAR 32.006-1(c), the
Senior Procurement Executive may delegate the remedy coordination
official duties to personnel in the Office of the Chief Procurement
Officer at or above the Level IV of the Executive Service.
0
71. Add section 2432.006-2 to read as follows:
2432.006-2 Definitions.
``Remedy coordination official'' means the Senior Procurement
Executive.
0
72. Add section 2432.006-3 to read as follows:
2432.006-3 Responsibilities.
(b) HUD personnel shall report immediately in writing when a
contractor's request for advance, partial, or progress payments is
suspected to be fraudulent. The report shall be made to the contracting
officer and the remedy coordination official. The report shall describe
the events, acts, and conditions that indicate the apparent or
suspected violation and include all pertinent documents. The remedy
coordination official will consult with, and refer cases to, the Office
of the Inspector General for investigation, as appropriate. If
appropriate, the Office of the Inspector General will provide a report
to the Senior Procurement Executive.
0
73. Add section 2432.006-4 to read as follows:
2432.006-4 Procedures.
The Senior Procurement Executive is the agency head for the
purposes of FAR 32.006-4.
0
74. Add section 2432.007 to read as follows:
2432.007 Contract financing payments.
(a) The Senior Procurement Executive is the agency head for the
purposes of FAR 32.007(a).
Subpart 2432.7--Contract Funding
0
75. Add section 2432.703-1 to read as follows:
2432.703-1 General.
(b)(1) Except as described herein, a fixed-price contract may be
funded incrementally only if--
(i) Sufficient funds are not available to the Department at the
time of contract award or exercise of option to fully fund the contract
or option;
(ii) The contract (excluding any options) or any exercised option--
(A) Is for severable services;
(B) Does not exceed one year in length; and
(C) Is incrementally funded using funds available (unexpired) as of
the date the funds are obligated; or
(iii) The contract uses funds available from multiple (2 or more)
fiscal years and Congress has otherwise authorized incremental funding.
(2) An incrementally funded fixed-price contract shall be fully
funded as soon as funds are available.
[[Page 73531]]
0
76. Add section 2432.704 to read as follows:
2432.704 Limitation of cost or funds.
0
77. Add section 2432.704-70 to read as follows:
2432.704-70 Incrementally funded fixed-price contracts.
(a) Upon receipt of the contractor's notice under paragraph (c) of
the clause at 2452.232-72, Limitation of Government's Obligation, the
contracting officer shall promptly provide written notice to the
contractor that the Government is--
(1) Allotting additional funds for continued performance and
increasing the Government's limitation of obligation in a specified
amount;
(2) Terminating the affected contract line items (CLINs) or
contract, as applicable; or
(3) Considering whether to allot additional funds; and
(i) The contractor is required by the contract terms to stop work
when the Government's limitation of obligation is reached; and
(ii) Any costs expended beyond the Government's limitation of
obligation are at the contractor's risk.
(b) Upon learning that the contract will receive no further funds,
the contracting officer shall promptly give the contractor written
notice of the Government's decision and terminate the affected CLINs or
contract, as applicable, for the convenience of the Government.
(c) The contracting officer shall ensure that, in accordance with
paragraph (b) of the clause at 2452.232-72, ``Limitation of
Government's obligation,'' sufficient funds are allotted to the
contract to cover the total amount payable to the contractor in the
event of termination for the convenience of the Government.
0
78. Add section 2432.705 to read as follows:
2432.705 Contract clauses.
0
79. Add section 2432.705-70 to read as follows:
2432.705-70 Clause for limitation of Government's obligation.
The contracting officer shall insert the clause at 2452.232-72,
``Limitation of Government's Obligation,'' in solicitations and
resultant incrementally funded fixed-price contracts as authorized by
2432.703-1. The contracting officer shall insert the information
required in the table in paragraph (b) and the notification period in
paragraph (c) of the clause.
Subpart 2432.9--Prompt Payment
0
80. Revise section 2432.903 to read as follows:
2432.903 Policy.
(a) The Senior Procurement Executive is the agency head's designee
for the purposes of FAR 32.903(a).
0
81. Revise section 2432.906 to read as follows:
2432.906 Making payments.
(a) General. The authority to make the determination prescribed in
FAR 32.906(a) is delegated to the HCA. Before making this
determination, the HCA shall consult with the appropriate payment
office to ensure that procedures are in place to permit timely payment.
0
82. In 2432.908, redesignate paragraphs (c)(1) through (3) as (c)(2)
through (4), respectively; add new paragraph (c)(1); and revise newly
redesignated paragraphs (c)(2) through (c)(4).
The addition and revisions read as follows:
2432.908 Contract clauses.
(c) * * *
(1) The contracting officer shall insert the clause at 2452.232-73,
Constructive Acceptance Period, in solicitations and contracts when the
contracting officer has determined that an acceptance period longer
than the 7 days provided for in the FAR clause at 52.232-25, ``Prompt
Payment,'' is needed.
(2) The contracting officer shall insert a clause substantially the
same as provided at 2452.232-70, Payment Schedule and Invoice
Submission (Fixed-price), in fixed-price contracts other than
performance-based contracts under which performance-based payments will
be used.
(3) The contracting officer shall insert a clause substantially the
same as provided at 2452.232-71, Voucher Submission, in all cost-
reimbursement, time-and-materials, and labor-hour type solicitations
and contracts. The contracting officer shall insert the billing period
agreed upon with the contractor (see also the FAR clause at 52.216-7,
``Allowable Cost and Payment'').
(4) The Contracting Officer may substitute appropriate language for
the clauses in paragraph (c)(2) and (3) of this clause when payment
under the contract will be made on the basis of other than the
submission of an invoice or voucher; e.g., directly from proceeds of
property sales.
PART 2437--SERVICE CONTRACTING
0
83. The authority citation for part 2437 is revised to read as follows:
Authority: 40 U.S.C. 121(c); 42 U.S.C. 3535(d).
Subpart 2437.1--Service Contracts--General
0
84. Revise section 2437.110 to read as follows:
2437.110 Solicitation provisions and contract clauses.
(e)(1) The Contracting Officer shall insert the clause at 2452.237-
70, Key Personnel, in solicitations and contracts when it is necessary
for contract performance to identify Contractor Key personnel.
(2) The Contracting Officer shall insert the clause at 2452.237-73,
Conduct of Work and Technical Guidance, in all solicitations contracts
for services other than commercial services awarded pursuant to FAR
part 12.
(3) The contracting officer shall insert the clause at 2452.237-75,
Access to HUD Facilities, in all solicitations and contracts when
contractor employees, including subcontractors and consultants, will be
required to regularly work in or have access to any HUD facilities (as
distinct from nongovernment employee visitors to government
facilities).
(4) The Contracting Officer shall insert the clause at 2452.237-77,
Temporary Closure of HUD Facilities, in all solicitations and contracts
where contractor personnel will be working on-site in any HUD office.
PART 2439--ACQUISITION OF INFORMATION TECHNOLOGY
0
85. The authority citation for part 2439 is revised to read as follows:
Authority: 40 U.S.C. 121(c); 42 U.S.C. 3535(d).
Subpart 2439.1--General
0
86. In section 2439.107, revise paragraph (a) to read as follows:
2439.107 Contract clauses.
(a) The contracting officer shall insert the clause at 2452.239-70,
Access to HUD Systems, in solicitations and contracts when the contract
will require contractor employees, including subcontractors and
consultants, to have access to any HUD information system(s) as defined
in the clause.
* * * * *
[[Page 73532]]
PART 2442--CONTRACT ADMINISTRATION AND AUDIT SERVICES
0
87. The authority citation for part 2442 is revised to read as follows:
Authority: 40 U.S.C. 121(c); 42 U.S.C. 3535(d).
0
88. The heading for part 2442 is revised to read as set forth above.
0
89. Add subpart 2442.3 to read as follows:
Subpart 2442.3--Contract Administration Office Functions
2442.302-70 Contract clause.
The contracting officer shall include clause 2452.242-72, Post-
award Orientation Conference, in solicitations and contracts when the
contractor will be required to attend a post-award orientation
conference. The contracting officer shall indicate whether the
contractor must attend the conference in person or via electronic
communication.
PART 2452--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
90. The authority citation for part 2452 is revised to read as follows:
Authority: 40 U.S.C. 121(c); 42 U.S.C. 3535(d).
0
91. Add section 2452.204-70 to read as follows:
2452.204-70 Preservation of, and access to, contract records (tangible
and electronically stored information (ESI) formats).
As prescribed in 2404.7001, insert the following clause:
PRESERVATION OF, AND ACCESS TO, CONTRACT RECORDS (TANGIBLE AND
ELECTRONICALLY STORED INFORMATION (ESI) FORMATS) (DEC 2012)
(a) For the purposes of this clause--
Contract records means information created or maintained by the
contractor in the performance of the contract. Contract records
include documents required to be retained in accordance with FAR
4.703 and other information generated or maintained by the
contractor that is pertinent to the contract and its performance
including, but not limited to: email and attachments, formal and
informal correspondence, calendars, notes, reports, memoranda,
spreadsheets, tables, telephone logs, forms, survey, books, papers,
photographs, drawings, machine-readable materials, and data.
Contract records may be maintained as electronically stored
information or as tangible materials. Contract records may exist in
either final or any interim version (e.g., drafts that have been
circulated for official purposes and contain unique information,
such as notes, edits, comments, or highlighting). Contract records
may be located or stored on the contractor's premises or at off-site
locations.
Electronically stored information (ESI) means any contract
records that are stored on, or generated by, an electronic device,
or contained in electronically accessible media, either owned by the
contractor, subcontractor(s), or employees of the contractor or
subcontractor(s) regardless of the physical location of the device
or media (e.g., offsite servers or data storage).
ESI devices and media include, but are not be limited to:
(1) Computers (mainframe, desktop, and laptop);
(2) Network servers, including shared and personal drives;
(3) Individual email accounts of the contractor's principals,
officers, and employees, including all folders contained in each
email account such as ``inbox,'' ``outbox,'' ``drafts,'' ``sent,''
``trash,'' ``archive,'' and any other folders;
(4) Personal data assistants (PDAs);
(5) External data storage devices including portable devices
(e.g., flash drive); and
(6) Data storage media (magnetic, e.g., tape; optical, e.g.,
compact disc, microfilm, etc.).
Tangible materials means contract records that exist in a
physical (i.e., non-electronic) state.
(b) If during the period of performance of this contract, HUD
becomes, or anticipates becoming, a party to any litigation
concerning matters related to records maintained or generated by the
Contractor in the performance of this contract, the Contracting
Officer may provide the contractor with a written (either hardcopy
or email) preservation hold notice and certification of compliance
with the preservation hold notice. Upon receipt of the hold notice,
the Contractor shall immediately take the following actions--
(1) Discontinue any alteration, overwriting, deletion, or
destruction of all tangible materials and ESI.
(2) Preserve tangible materials and ESI. The contractor shall
preserve ESI in its ``native'' form to preserve metadata (i.e.,
creation and modification history of a document).
(3) Identify all individuals who possess or may possess tangible
materials and ESI related to this matter, including contractor
employees, subcontractors, and subcontractor employees. The
contractor shall provide the names of all such individuals via email
to the HUD official indicated in the notice.
(4) Document in writing the contractor's efforts to preserve
tangible materials and ESI. It may be useful to maintain a log
documenting preservation efforts.
(5) Complete the certification of compliance with the
preservation hold notice upon receipt and return it to the
identified contact person; and
(6) Upon the request of the Contracting Officer, provide the
Contracting Officer or other HUD official designated by the
Contracting Officer with any of the information described in this
clause. The contractor shall immediately confirm receipt of such
request. The contractor shall describe in detail any records that
the contractor knows or believes to be unavailable and provide a
detailed explanation of why they are unavailable, and if known,
their location.
(c)(1) If any request for records pursuant to paragraph (b)(6)
of this clause causes an increase in the estimated cost or price or
the time required for performance of any part of the work under this
contract, or otherwise affects any other terms and conditions of
this contract, the Contracting Officer shall make an equitable
adjustment in the contract price, the delivery schedule, or both,
and shall modify the contract.
(2) The Contractor must assert its right to an adjustment under
this clause within ---- [Contracting Officer insert period; 30 days
if no other period inserted] from the date of receipt of the
Contracting Officer's request made pursuant to paragraph (b)(6) of
this clause. However, if the Contracting Officer decides that the
facts justify it, the Contracting Officer may receive and act upon a
request submitted before final payment of the contract.
(3) Failure to agree to any adjustment shall be a dispute under
the ``Disputes'' clause of this contract. However, nothing in this
clause shall excuse the contractor from providing the records
requested by the Contracting Officer.
(e) The Contractor shall include this clause in all
subcontracts.
(End of clause)
Alternate I (DEC 2012)
For cost-reimbursement type contracts, substitute the following
paragraph (c)(1) for paragraph (c)(1) of the basic clause:
(c)(1) If any request for records pursuant to paragraph (b)(6)
of this clause causes an increase in the estimated cost or price or
the time required for performance of any part of the work under this
contract, or otherwise affects any other terms and conditions of
this contract, the Contracting Officer shall make an equitable
adjustment in any one of the following and modify the contract
accordingly--
(i) Estimated cost;
(ii) Delivery or completion schedule, or both; (ii) Amount of
any fixed fee; or
(iii) Other affected terms.
Alternate II (DEC 2012)
For labor-hour or time-and-materials type contracts, substitute the
following paragraph (c)(1) for paragraph (c)(1) of the basic clause:
(c)(1) If any request for records pursuant to paragraph (b)(6)
of this clause causes an increase in the estimated cost or price or
the time required for performance of any part of the work under this
contract, or otherwise affects any other terms and conditions of
this contract, the Contracting Officer shall make an equitable
adjustment in any one or more of the following and will modify the
contract accordingly:
(i) Ceiling price;
(ii) Hourly rates;
(iii) Delivery schedule; or
(iv) Other affected terms.
[[Page 73533]]
0
92. In section 2452.215-70, add Alternate III immediately following
Alternate II, to read as follows:
2452.215-70 Proposal content.
* * * * *
Alternate III (DEC 2012)
As prescribed in 2415.209(a), add the following paragraph (e) when
the size of Part I, Technical and Management, offers will be limited:
(e) Size limit of Part I, Technical and Management.
(1) Offerors shall limit Part I, Technical and Management, of
their initial offers to ---- [Contracting Officer insert number]
pages, except for the information specifically exempted in paragraph
(e)(3) of this clause. Offerors are cautioned that if Part I of
their offers exceeds this limit, the Government will evaluate only
the information contained in the pages up through the permitted
number. Pages beyond that limit will not be evaluated.
(2) A page shall consist of one side of a single sheet of 8\1/
2\'' x 11'' paper, single spaced, using not smaller than 12 point
type font, and having margins at the top, bottom, and sides of the
page of no less than one inch in width.
(3) The following information is exempt from the limitation set
forth in paragraph (1): [Contracting Officer list exemptions or
enter ``None''].
(4) Offerors are encouraged to use recycled paper and to use
both sides of the paper (see the FAR clause at 52.204-4).
0
93. Add section 2452.215-71 to read as follows:
2452.215-71 Relative importance of technical evaluation factors to
cost or price.
As prescribed in 2415.209(a)(2), insert the following provision:
RELATIVE IMPORTANCE OF TECHNICAL EVALUATION FACTORS TO COST OR PRICE
(DEC 2012)
For the purposes of evaluating offers and the selection of the
contractor or contractors under this solicitation, the relative
merit of the offeror's technical proposal as evaluated in accordance
with the technical evaluation factors listed herein shall be
considered [Contracting Officer insert one of the following:
``significantly more important than,'' ``approximately equal to,''
or ``significantly less important than''] cost or price. While the
proposed cost or price will not be assigned a specific weight, it
shall be considered a significant criterion in the overall
evaluation of proposals.
0
94. Add section 2452.215-72 to read as follows:
2452.215-72 Evaluation of small business participation.
As prescribed in 2415.370, insert the following provision:
EVALUATION OF SMALL BUSINESS PARTICIPATION (DEC 2012)
(a) In addition to the technical and management evaluation
factors set forth in this solicitation, the Government will evaluate
the extent to which all offerors identify and commit to using small
businesses in the performance of the contract, whether through joint
ventures or teaming arrangements, or as subcontractors. The
evaluation shall consider the following:
(1) The extent to which small businesses are specifically
identified in proposals;
(2) The extent of commitment to use small businesses (for
example, enforceable commitments will be weighted more heavily than
non-enforceable ones);
(3) The complexity and variety of the work small businesses are
to perform;
(4) The realism of the proposal;
(5) Past performance of the offerors (other than small
businesses) in complying with requirements of the clauses at FAR
52.219-8, Utilization of Small Business Concerns, and 52.219-9,
Small Business Subcontracting Plan; and
(6) The extent of participation of small businesses in terms of
the total value of the contract.
(b) Offerors that are required to submit a subcontracting plan
pursuant to the clause at FAR 52.219-9 shall include the small
businesses proposed as subcontractors for evaluation under this
provision in their subcontracting plan.
(End of Provision)
0
95. Revise section 2452.216-76 to read as follows:
2452.216-76 Minimum and maximum quantities or amounts for order.
As prescribed in 2416.506-70(b), insert the following clause:
MINIMUM AND MAXIMUM QUANTITIES OR AMOUNTS FOR ORDER (DEC 2012)
(a) The minimum quantity or amount to be ordered under this
contract shall not be less than [contracting officer insert quantity
or amount].
(b) The maximum quantity or amount to be ordered under this
contract shall not exceed [contracting officer insert quantity or
amount].
(End of clause)
0
96. Add section 2452.216-79 to read as follows:
2452.216-79 Estimated cost (no fee).
As prescribed in 2416.307(b), insert the following clause:
ESTIMATED COST (NO FEE) (DEC 2012)
(a) It is estimated that the total reimbursable cost to the
Government for full performance of this contract will be $----
[Contracting Officer insert amount].
(b) If this contract is incrementally funded, the following
shall apply:
(1) Total funds currently available for payment and allotted to
this contract are $---- [Contracting Officer insert amount] (see
also the clause at FAR 52.232-22, ``Limitation of Funds'' herein).
(2) If and when the contract is fully funded, as specified in
paragraph (a) of this clause, the clause at FAR 52.232-20,
Limitation of Cost, herein, shall become applicable.
(3) The Contracting Officer may allot additional funds to the
contract up to the total specified in paragraph (a) of this clause
without the concurrence of the contractor.
(End of clause)
0
97. Add section 2452.216-80 to read as follows:
2452.216-80 Estimated cost and fixed-fee.
As prescribed in 2416.307(b), insert the following clause:
ESTIMATED COST AND FIXED-FEE (DEC 2012)
(a) It is estimated that the total cost to the Government for
full performance of this contract will be $---- [Contracting Officer
insert amount], of which $---- [Contracting Officer insert amount]
represents the estimated reimbursable costs, and $---- [Contracting
Officer insert amount] represents the fixed fee.
(b) If this contract is incrementally funded, the following
shall apply:
(1) Total funds currently available for payment and allotted to
this contract are $---- [Contracting Officer insert amount], of
which ---- [Contracting Officer insert amount] represents the
limitation for reimbursable costs and $ ---- [Contracting Officer
insert amount] represents the prorated amount of the fixed fee (see
also the clause at FAR 52.232-22, ``Limitation of Funds'' herein).
(2) If and when the contract is fully funded, as specified in
paragraph (a) of this clause, the clause at FAR 52.232-20,
``Limitation of Cost,'' herein, shall become applicable.
(3) The Contracting Officer may allot additional funds to the
contract up to the total specified in paragraph (a) of this clause
without the concurrence of the contractor.
(End of clause)
0
98. Add section 2452.219-71 to read as follows:
2452.219-71 Notification of competition limited to eligible 8(a)
concerns--Alternate III to FAR 52.219-18.
As prescribed in 2419.811-3(d)(3), insert the following clause:
NOTIFICATION OF COMPETITION LIMITED TO ELIGIBLE 8(a) CONCERNS--
ALTERNATE III TO FAR 5219-18 (DEC 2012)
The following paragraph (c) replaces paragraph (c) of the clause
at FAR 52.219-18, Notification of Competition Limited to Eligible
8(a) Concerns:
(c) Any award resulting from this solicitation will be made
directly by the HUD
[[Page 73534]]
Contracting Officer to the successful 8(a) offeror selected through
the evaluation criteria set forth in this solicitation.
0
99. Add section 2452.219-72 to read as follows:
2452.219-72 Section 8(a) direct awards (Deviation).
As prescribed in 2419.811-3(f), insert the following clause:
SECTION 8(A) DIRECT AWARD (DEC 2012)
(a) This contract is issued as a direct award between the
Department of Housing and Urban Development (HUD) and the 8(a)
Contractor pursuant to a Partnership Agreement (Agreement) between
the Small Business Administration (SBA) and HUD. The SBA retains
responsibility for 8(a) certification, 8(a) eligibility
determinations and related issues, and providing counseling and
assistance to the 8(a) contractor under the 8(a) program. The
cognizant SBA district office is: [To be completed by Contracting
Officer at time of award].
(b) SBA is the prime contractor and ---- [insert name of 8(a)
contactor] is the subcontractor under this contract. Under the terms
of the Agreement, HUD is responsible for administering the contract
and taking any action on behalf of the Government under the terms
and conditions of the contract. However, the HUD Contracting Officer
shall give advance notice to the SBA before issuing a final notice
terminating performance, either in whole or in part, under the
contract. The HUD Contracting Officer shall also coordinate with SBA
prior to processing any novation agreement. HUD may assign contract
administration functions to a contract administration office.
(c) ---- [insert name of 8(a) contractor] agrees:
(1) To notify the HUD Contracting Officer, simultaneously with
its notification to SBA (as required by SBA's 8(a) regulations),
when the owner or owners upon whom 8(a) eligibility is based, plan
to relinquish ownership or control of the concern. Consistent with
15 U.S.C. 637(a)(21), transfer of ownership or control shall result
in termination of the contract for convenience, unless SBA waives
the requirement for termination prior to the actual relinquishing of
ownership or control.
(2) To adhere to the requirements of FAR 52.219-14,
``Limitations on Subcontracting.''
(End of Clause)
0
100. Add section 2452.219-73 to read as follows:
2452.219-73 Incorporation of subcontracting plan.
As prescribed in 2419.708(b), insert the following clause:
INCOPORATION OF SUBCONTRACTING PLAN (DEC 2012)
The Contractor's approved subcontracting plan, dated ----
[Contracting Officer insert date] is hereby incorporated by
reference and made a part of this contract.
(End of clause)
0
101. Add section 2452.219-74 to read as follows:
2452.219-74 Small business subcontracting goals.
As prescribed in 2419.708(b), insert the following provision:
SMALL BUSINESS SUBCONTRACTING GOALS (DEC 2012)
(a) This provision does not apply to offerors that are small
businesses.
(b) The offeror's attention is directed to the FAR clause at
52.219-9, ``Small Business Subcontracting Plan,'' herein. HUD will
evaluate proposed subcontracting plans using the Departmental small
business subcontracting goals set forth in paragraph (c) of this
clause. Offerors that are unable to propose subcontracting that
meets HUD's established goals must provide the rationale for their
proposed level of subcontracting.
(c) HUD's subcontracting goals are as follows:
(i) Small Business----% [Contracting Officer insert HUD small
business subcontracting goal percentage]
(ii) The total Small Business goal shown in paragraph (c)(i) of
this clause contains the following subordinate goals [Contracting
Officer insert percentages]:
(A) Small Disadvantaged Business----%
(B) Women-Owned Small Business----%
(C) Service-Disabled Veteran-Owned Small Business----%
(D) HUBZone Small Business----%
(End of Provision)
0
102. Add section 2452.227-70 to read as follows:
2452.227-70 Government information.
As prescribed in 2427.470, use the following clause:
GOVERNMENT INFORMATION (DEC 2012)
(a) Definitions. As used in this clause, ``Government
information'' includes--
Contractor-acquired information, which means information
acquired or otherwise collected by the Contractor on behalf of the
Government in the context of the Contractor's duties under the
contract.
Government-furnished information (GFI), which means information
in the possession of, or directly acquired by, the Government and
subsequently furnished to the Contractor for performance of a
contract. GFI also includes contractor-acquired information if the
contractor-acquired information is a deliverable under the contract
and is for continued use under the contract. Otherwise, GFI does not
include information that is created by the Contractor and delivered
to the Government in accordance with the requirements of the work
statement or specifications of the contract. The type, quantity,
quality, and delivery requirements of such deliverable information
are set forth elsewhere in the contract schedule.
(b) Information Management and Information Security.
(1) The Contractor shall manage, account for, and secure all
Government information provided or acquired by the contractor. The
Contractor shall be responsible for all Government information
provided to its subcontractors. The Contractor agrees to include a
requirement in each subcontract under this contract that flows down
the protection from disclosure requirements.
(2) The Contractor's responsibility for Government information
extends from the initial provision or acquisition and receipt of
information, through stewardship, custody, and use until returned
to, or otherwise disposed of, as directed by the Contracting
Officer. This requirement applies to all Government information
under the Contractor's accountability, stewardship, possession or
control, including its subcontractors.
(c) Use of Government information. (1) The Contractor shall not
use any information provided or acquired under this contract for any
purpose other than in the performance of this contract.
(2) The Contractor shall not modify or alter the Government
information, unless authorized in writing, in advance, by the
Contracting Officer.
(d) Government-furnished information. (1) The Government shall
deliver to the Contractor the information described below--
Description Date to be Provided
[Contracting Officer insert]
(2) The delivery and/or performance dates specified in this
contract are based upon the expectation that the Government-
furnished information will be suitable for contract performance and
will be delivered to the Contractor by the dates stated in paragraph
(d)(1) of this clause.
(i) The Government does not warrant the validity or accuracy of
the Government-furnished information unless otherwise noted.
(ii) In the event that information received by the Contractor is
not in a condition suitable for its intended use, the Contractor
shall immediately notify the Contracting Officer in writing. Upon
receipt of the Contractor's notification, the Contracting Officer
shall advise the Contractor on a course of action to remedy the
problem.
(iii) If either the failure of the Government to provide
information to the Contractor by the dates shown in this clause or
the remedial action taken under this clause to correct defective
information causes an increase or decrease in the Contractor's cost
of, or the time required for, the performance of any part of the
work under this contract, the Contracting Officer shall consider an
equitable adjustment to the contract. The Contractor shall provide
to the Contracting Officer its written statement describing the
general nature and amount of the equitable adjustment proposal
within 30 days after the remedial action described in paragraph (ii)
herein is completed, or within 30 days after the date upon which the
Government failed to provide information, unless the Contracting
Officer extends this period.
(3)(i) The Contracting Officer may, by written notice, at any
time--
[[Page 73535]]
(A) Increase or decrease the amount of Government-furnished
information under this contract;
(B) Substitute other Government-furnished information for the
information previously furnished, to be furnished, or to be acquired
by the Contractor for the Government under this contract; or
(C) Withdraw authority to use the information.
(ii) Upon completion of any action(s) under paragraph (d)(3)(i)
of this clause, and the Contractor's timely written request, the
Contracting Officer shall consider an equitable adjustment to the
contract.
(e) Rights in information. Government information is the
property of the U.S. Government unless otherwise specifically
identified. The specific rights in any other information acquired or
created by the Contractor under this contract shall be as expressed
in the ``Rights in Data'' clause contained in this contract.
(f) Government access to information. The Government shall have
the right to access any Government information maintained by the
contractor and any subcontractors. The Contractor shall provide the
Contracting Officer, and other duly authorized Government
representatives, with access to all Government information,
including access to the Contractor's facilities, as necessary,
promptly upon written notification by the Contracting Officer. Such
notification may be by electronic mail.
(g) Contractor liability for Government information. (1) Unless
otherwise provided for in the contract, the Contractor shall not be
liable for loss, theft, damage, or destruction to the Government
information furnished or acquired under this contract, except when
the loss, theft, damage, or destruction is the result of the
Contractor's failure to properly manage, account for, and safeguard
the information in accordance with this clause.
(2) In the event of any loss, theft, damage, or destruction of
Government information, the Contractor shall immediately take all
reasonable actions necessary to protect the Government information
from further loss, theft, damage, or destruction.
(3) The Contractor shall do nothing to prejudice the
Government's rights to recover against third parties for any loss,
theft, damage, or destruction of Government information.
(h) Information alteration and disposal. Except as otherwise
provided for in this contract, the Contractor shall not alter,
destroy, or otherwise dispose of any Government information unless
expressly directed by the Contracting Officer to do so.
(i) Return of Government information to the Government. (1) The
Government may require the Contractor to return Government
Information to the Government at any time. Upon demand by the
Contracting Officer or his/her representative, the Contractor shall
return all Government information to the Government as directed by
the Contracting Officer or other individual designated by the
Contracting Officer.
(2) The Contractor's failure to return all information as
directed, including directions regarding the time frames for
delivery back to the Government and directions prescribing the form
in which the data must be returned, shall be considered a breach of
contract, and the Government shall have the right to physically
remove the Government information from the Contractor, including
removal of such information from the Contractor's physical premises
and from any electronic media (e.g., Contractor's computer systems).
(3) When required to return Government information to the
Government, the Contractor shall do so at no cost to the Government.
The Government shall not be responsible for the cost of data format
conversion and the cost of delivery, if any.
(4) The Contractor shall ensure that all Government information
provided to subcontractors is returned to the Government.
(j) Equitable adjustment. Equitable adjustments under this
clause shall be made in accordance with the procedures of the
Changes clause. However, the Government shall not be liable for
breach of contract for the following:
(1) Any delay in delivery of Government-furnished information.
(2) Delivery of Government-furnished information in a condition
not suitable for its intended use.
(3) An increase, decrease, or substitution of Government-
furnished information.
(4) Failure to correct or replace Government information for
which the Government is responsible.
(k) Subcontracts. The Contractor shall ensure that all
subcontracts under which Government information is provided to a
subcontractor include the basic terms and conditions set forth in
paragraphs (a), (b), (c), (f), and (h) of this clause in each
subcontract. Subcontracts shall clearly describe the Government
information provided to the subcontractor. The Contractor shall be
responsible for all Government information provided to
subcontractors.
Alternate I. When the contracting officer determines that the
failure to return Government information as provided for in
paragraph (i) of this clause shall result in a monetary damage to
the Government, the contracting officer shall include the following
additional paragraph (i)(5) of this clause. The contracting officer
shall consult the requiring activity to determine an amount or
percentage that accurately reflects the damages to the Government.
(5) In the event of Contractor delay in returning the Government
Information to the Government, for each calendar day late, the
Contracting Officer has the discretion to deduct ------ [Contracting
Officer insert dollar amount or percentage] from the total value of
the contract, and/or withhold payment from the Contractor.
(End of clause)
0
103. Revise section 2452.232-70 to read as follows:
2452.232-70 Payment schedule and invoice submission (Fixed-price).
As prescribed in 2432.908(c)(1), insert the following clause in all
fixed-price solicitations and contracts:
PAYMENT SCHEDULE AND INVOICE SUBMISSION (FIXED-PRICE) (DEC 2012)
(a) Payment Schedule. Payment of the contract price (see Section
B of the contract) will be made upon completion and acceptance of
all work unless a partial payment schedule is included below
[Contracting Officer insert schedule information]:
----------------------------------------------------------------------------------------------------------------
Applicable
Partial payment number contract Delivery date Payment amount
deliverable
----------------------------------------------------------------------------------------------------------------
1............................................................... .............. .............. ..............
2............................................................... .............. .............. ..............
3............................................................... .............. .............. ..............
----------------------------------------------------------------------------------------------------------------
[Continue as necessary]
----------------------------------------------------------------------------------------------------------------
(b) Submission of Invoices. (1) The Contractor shall submit
invoices as follows: original to the payment office and one copy
each to the Contracting Officer and a copy to the Government
Technical Representative (GTR) identified in the contract. To
constitute a proper invoice, the invoice must include all items
required by the FAR clause at 52.232-25, ``Prompt Payment.''
(2) To assist the government in making timely payments, the
contractor is also requested to include on each invoice the
appropriation number shown on the contract award document (e.g.,
block 14 of the Standard Form (SF) 26, block 21 of the SF-33, or
block 25 of the SF-1449). The contractor is also requested to
clearly indicate on the mailing envelope that an invoice is
enclosed.
(c) Contractor Remittance Information. The contractor shall
provide the payment office with all information required by other
payment clauses or other supplemental
[[Page 73536]]
information (e.g., contracts for commercial services) contained in
this contract.
(d) Final Invoice Payment. The final invoice shall not be paid
prior to certification by the Contracting Officer that all work has
been completed and accepted.
(End of clause)
0
104. Revise section 2452.232-71 to read as follows:
2452.232-71 Voucher submission.
As prescribed in 2432.908(c)(3), insert the following clause in all
cost-reimbursement, time-and-materials, and labor-hour solicitations
and contracts:
VOUCHER SUBMISSION (DEC 2012)
(a) Voucher Submission.
(1) The contractor shall submit, ---- [Contracting Officer
insert billing period, e.g., monthly], an original and two copies of
each voucher. In addition to the items required by the clause at FAR
52.232-25, Prompt Payment, the voucher shall show the elements of
cost for the billing period and the cumulative costs to date. The
Contractor shall submit all vouchers, except for the final voucher,
as follows: original to the payment office and one copy each to the
Contracting Officer and the Government Technical Representative
(GTR) identified in the contract. The contractor shall submit all
copies of the final voucher to the Contracting Officer.
(2) To assist the government in making timely payments, the
contractor is requested to include on each voucher the applicable
appropriation number(s) shown on the award or subsequent
modification document (e.g., block 14 of the Standard Form (SF) 26,
or block 21 of the SF-33). The contractor is also requested to
clearly indicate on the mailing envelope that a payment voucher is
enclosed.
(b) Contractor Remittance Information. (1) The Contractor shall
provide the payment office with all information required by other
payment clauses contained in this contract.
(2) For time-and-materials and labor-hour contracts, the
Contractor shall aggregate vouchered costs by the individual task
for which the costs were incurred and clearly identify the task or
job.
(c) Final Payment. The final payment shall not be made until the
Contracting Officer has certified that the contractor has complied
with all terms of the contract.
(End of clause)
0
105. Add section 2452.232-72 to read as follows:
2452.232-72 Limitation of Government's obligation.
As prescribed in 2432.705-70, use the following clause:
LIMITATION OF GOVERNMENT'S OBLIGATION (DEC 2012)
(a) Funds are not available for full funding of all contract
line items under this contract. The incrementally funded line items
and their anticipated funding schedule are as follows:
----------------------------------------------------------------------------------------------------------------
Amount of current Anticipated date(s) of
Contract line item number Total price funding future funding
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
The contracting officer will revise this table as funds are
allotted to the contract.
(b) For the incrementally funded line item(s) in paragraph (a)
of this clause, the Contractor agrees to perform up to the point at
which the total amount payable by the Government, including
reimbursement in the event of termination of those item(s) for the
Government's convenience, approximates the total amount currently
allotted to the contract for these contract line items. The
Contractor is not authorized to continue work on the incrementally
funded line item(s) beyond that point. The Government will in no
event be obligated to reimburse the Contractor in excess of the
amount allotted to the contract for the incrementally funded line
item(s) regardless of anything to the contrary in the clause
entitled ``Termination for Convenience of the Government.'' As used
in this clause, the total amount payable by the Government in the
event of termination for convenience of applicable line item(s)
includes costs, profit, and estimated termination settlement costs
for those line item(s).
(c) Notwithstanding the dates specified in the allotment
schedule in paragraph (a) of this clause, the Contractor will notify
the Contracting Officer in writing at least ---- [90 days unless the
Contracting Officer inserts a different number] days prior to the
date when, in the Contractor's best judgment, the work will reach
the point at which the total amount payable by the Government,
including any cost for termination for convenience, will approximate
85 percent of the total amount then allotted to the contract for
performance of the applicable line item(s). This notification will
state: the estimated date when that point will be reached; and an
estimate of the amount of additional funding, if any, needed to
continue performance of the applicable line items up to the next
scheduled date for allotment of funds identified in paragraph (a) of
this clause (or to another mutually agreed-upon date). The
notification will also advise the Contracting Officer of the
estimated amount of additional funds that will be required for the
timely performance of the line item(s) funded pursuant to this
clause, for a subsequent period as may be specified in the allotment
schedule in paragraph (a) of this clause or otherwise agreed to by
the parties. If after such notification additional funds are not
allotted by the date identified in the Contractor's notification, or
by an agreed-upon date, the Contracting Officer will terminate any
line item(s) for which additional funds have not been allotted,
pursuant to the clause of this contract entitled ``Termination for
Convenience of the Government.''
(d) When additional funds are allotted for continued performance
of the incrementally funded line item(s), the parties will agree to
the period of contract performance covered by the funds. The
provisions of paragraphs (b) through (d) of this clause will apply
in like manner to the additional allotted funds and agreed-upon
date(s), and the contract will be modified accordingly.
(e) If the Contractor incurs additional costs or is delayed in
the performance of the work under this contract solely by reason of
the failure of the Government to allot additional funds in amounts
sufficient for timely performance of the incrementally funded line
item(s), and then additional funds are allotted, an equitable
adjustment will be made in the line item price(s) or in the time of
delivery, or both. Failure to agree to any such equitable adjustment
hereunder shall be considered a dispute subject to the ``Disputes''
clause in this contract.
(f) The Government may allot additional funds for the
performance of the incrementally-funded line item(s) at any time
prior to termination.
(g) The termination provisions of this clause do not limit the
rights of the Government under the clause entitled ``Default.'' The
provisions of this clause are limited to the work and allotment of
funds for the incrementally funded line item(s) and will no longer
apply once the contract is fully funded except with regard to the
rights or obligations of the parties concerning equitable
adjustments negotiated under paragraphs (d) and (e) of this clause.
[[Page 73537]]
(h) Nothing in this clause affects the right of the Government
to terminate this contract pursuant to the clause of this contract
entitled ``Termination for Convenience of the Government.''
(i) Nothing in this clause shall be construed as authorization
of voluntary services whose acceptance is otherwise prohibited under
31 U.S.C. 1342.
(End of clause)
0
106. Add section 2452.232-73 to read as follows:
2452.232-73 Constructive acceptance period.
As prescribed in 2432.908, insert the following clause:
CONSTRUCTIVE ACCEPTANCE PERIOD (DEC 2012)
As authorized by FAR 32.908(c)(1), the constructive acceptance
period in paragraph (a)(5)(i) of the clause at FAR 52.232-25,
``Prompt Payment,'' under this contract is ---- [Contracting Officer
insert number] calendar days.
(End of clause)
0
107. In section 2452.237-70, revise the introductory text to read as
follows:
2452.237-70 Key personnel.
As prescribed in 2437.110(e)(1), insert the following clause in
solicitations and contracts when it is necessary for contract
performance to identify the contractor's key personnel:
* * * * *
2452.237-72 [Redesignated as 2452.201-70]
0
108. Redesignate section 2452.237-72 as 2452.201-70, and revise the
introductory text to read as follows:
2452.201-70 Coordination of data collection activities.
As prescribed in 2401.106-70, insert the following clause in
solicitations and contracts where the contractor is required to collect
identical information from ten or more public respondents:
* * * * *
0
109. In section 2452.237-73, revise the introductory text and paragraph
(a) to read as follows:
2452.237-73 Conduct of work and technical guidance.
As prescribed in 2437.110(e)(2), insert the following clause in all
contracts for services:
CONDUCT OF WORK AND TECHNICAL GUIDANCE (DEC 2012)
(a) The Contracting Officer will provide the contractor with the
name and contact information of the Government Technical
Representative (GTR) assigned to this contract. The GTR will serve
as the contractor's liaison with the Contracting Officer with regard
to the conduct of work. The Contracting Officer will notify the
contractor in writing of any change to the current GTR's status or
the designation of a successor GTR.
* * * * *
0
110. Revise section 2452.237-75 to read as follows:
2452.237-75 Access to HUD facilities.
As prescribed in 2437.110(e)(3), insert the following clause in
solicitations and contracts:
ACCESS TO HUD FACILITIES (DEC 2012)
(a) Definitions. As used in this clause--
Access means physical entry into and, to the extent authorized,
mobility within a Government facility.
Contractor employee means an employee of the prime contractor or
of any subcontractor, affiliate, partner, joint venture, or team
members with which the contractor is associated. It also includes
consultants engaged by any of those entities.
Facility and Government facility mean buildings, including areas
within buildings that are owned, leased, shared, occupied, or
otherwise controlled by the Federal Government.
NACI means National Agency Check with Inquiries, the minimum
background investigation prescribed by the U.S. Office of Personnel
Management.
PIV Card means the Personal Identity Verification (PIV) Card,
the Federal Government-issued identification credential
(identification badge).
(b) General. The performance of this contract requires
contractor employees to have access to HUD facilities. All such
employees who do not already possess a current PIV Card acceptable
to HUD shall be required to provide personal background information,
undergo a background investigation (NACI or other OPM-required or
approved investigation), including an FBI National Criminal History
Fingerprint Check, and obtain a PIV Card prior to being permitted
access to any such facility in performance of this contract. HUD may
accept a PIV Card issued by another Federal Government agency but
shall not be required to do so. No contractor employee will be
permitted access to a HUD facility without a proper PIV Card.
(c) Background information. (1) For each contractor employee
subject to the requirements of this clause and not in possession of
a current PIV Card acceptable to HUD, the contractor shall submit
the following properly completed forms: Standard Form (SF) 85,
``Questionnaire for Non-sensitive Positions,'' FD 258 (Fingerprint
Chart), and a partial Optional Form (OF) 306 (Items 1, 2, 6, 8-13,
16, and 17). The SF-85 and OF-306 are available from the OPM Web
site, https://www.opm.gov. The GTR will provide all other forms that
are not obtainable via the Internet.
(2) The contractor shall deliver the forms and information
required in paragraph (c)(1) of this clause to the GTR.
(3) The information provided in accordance with paragraph (c)(1)
of this clause will be used to perform a background investigation to
determine the suitability of the contractor employees to have access
to Government facilities. After completion of the investigation, the
GTR will notify the contractor in writing when any contractor
employee is determined to be unsuitable for access to a Government
facility. The contractor shall immediately remove such employee(s)
from work on this contract that requires physical presence in a
Government facility.
(4) Affected contractor employees who have had a federal
background investigation without a subsequent break in federal
employment or federal contract service exceeding 2 years may be
exempt from the investigation requirements of this clause subject to
verification of the previous investigation. For each such employee,
the contractor shall submit the following information in lieu of the
forms and information listed in paragraph (c)(1) of this clause:
Employee's full name, Social Security Number, and place and date of
birth.
(d) PIV Cards. (1) HUD will issue a PIV Card to each contractor
employee who is to be given access to HUD facilities and who does
not already possess a PIV Card acceptable to HUD (see paragraph (b)
of this clause). HUD will not issue the PIV Card until the
contractor employee has successfully cleared the FBI National
Criminal History Fingerprint Check and HUD has initiated the
background investigation for the contractor employee. Initiation is
defined to mean that all background information required in
paragraph (c)(1) of this clause has been delivered to HUD. The
employee may not be given access prior to those two events. HUD may
issue a PIV Card and grant access pending the completion of the
background investigation. HUD will revoke the PIV Card and the
employee's access if the background investigation process (including
adjudication of investigation results) for the employee has not been
completed within 6 months after the issuance of the PIV Card.
(2) PIV Cards shall identify individuals as contractor
employees. Contractor employees shall display their PIV Cards on
their persons at all times while working in a HUD facility, and
shall present cards for inspection upon request by HUD officials or
HUD security personnel.
(3) The contractor shall be responsible for all PIV Cards issued
to the contractor's employees and shall immediately notify the GTR
if any PIV Card(s) cannot be accounted for. The contractor shall
promptly return PIV Cards to HUD as required by the FAR clause at
52.204-9. The contractor shall notify the GTR immediately whenever
any contractor employee no longer has a need for his/her HUD-issued
PIV Card (e.g., employee terminates employment with the contractor,
employee's duties no longer require access to HUD facilities). The
GTR will instruct the contractor as to how to return the PIV Card.
Upon expiration of this contract, the GTR will instruct the
contractor as to how to return all HUD-issued PIV Cards not
previously returned. Unless otherwise directed by the Contracting
Officer, the
[[Page 73538]]
contractor shall not return PIV Cards to any person other than the
GTR.
(e) Control of access. HUD shall have, and exercise, complete
control over granting, denying, withholding, and terminating access
of contractor employees to HUD facilities. The GTR will notify the
contractor immediately when HUD has determined that an employee is
unsuitable or unfit to be permitted access to a HUD facility. The
contractor shall immediately notify such employee that he/she no
longer has access to any HUD facility, remove the employee from any
such facility that he/she may be in, and provide a suitable
replacement in accordance with the requirements of this clause.
(f) Access to HUD information systems. If this contract requires
contractor employees to have access to HUD information system(s),
application(s), or information contained in such systems, the
contractor shall comply with all requirements of HUDAR clause
2452.239-70, Access to HUD Systems, including providing for each
affected employee any additional background investigation forms
prescribed in that clause.
(g) Subcontracts. The contractor shall incorporate this clause
in all subcontracts where the requirements specified in paragraph
(b) of this section are applicable to performance of the
subcontract.
(End of clause)
0
111. In section 2452.237-77, revise the section heading, the
introductory text, and the clause heading to read as follows:
2452.237-77 Temporary closure of HUD facilities.
As prescribed in 2437.110(e)(4), insert the following clause:
TEMPORARY CLOSURE OF HUD FACILITIES (DEC 2012)
* * * * *
0
112. Revise section 2452.239-70 to read as follows:
2452.239-70 Access to HUD systems.
As prescribed in 2439.107(a), insert the following clause:
ACCESS TO HUD SYSTEMS (DEC 2012)
(a) Definitions: As used in this clause--
Access means the ability to obtain, view, read, modify, delete,
and/or otherwise make use of information resources.
Application means the use of information resources (information
and information technology) to satisfy a specific set of user
requirements (see OMB Circular A-130).
Contractor employee means an employee of the prime contractor or
of any subcontractor, affiliate, partner, joint venture, or team
members with which the contractor is associated. It also includes
consultants engaged by any of those entities.
Mission-critical system means an information technology or
telecommunications system used or operated by HUD or by a HUD
contractor, or organization on behalf of HUD, that processes any
information, the loss, misuse, disclosure, or unauthorized access
to, or modification of which would have a debilitating impact on the
mission of the agency.
NACI means a National Agency Check with Inquiries, the minimum
background investigation prescribed by OPM.
PIV Card means the Personal Identity Verification (PIV) Card,
the Federal Government-issued identification credential (i.e.,
identification badge).
Sensitive information means any information of which the loss,
misuse, or unauthorized access to, or modification of, could
adversely affect the national interest, the conduct of federal
programs, or the privacy to which individuals are entitled under
section 552a of title 5, United States Code (the Privacy Act), but
which has not been specifically authorized under criteria
established by an Executive Order or an Act of Congress to be kept
secret in the interest of national defense or foreign policy.
System means an interconnected set of information resources
under the same direct management control, which shares common
functionality. A system normally includes hardware, software,
information, data, applications, communications, and people (see OMB
Circular A-130). System includes any system owned by HUD or owned
and operated on HUD's behalf by another party.
(b) General. (1) The performance of this contract requires
contractor employees to have access to a HUD system or systems. All
such employees who do not already possess a current PIV Card
acceptable to HUD shall be required to provide personal background
information, undergo a background investigation (NACI or other OPM-
required or approved investigation), including an FBI National
Criminal History Fingerprint Check, and obtain a PIV Card prior to
being permitted access to any such system in performance of this
contract. HUD may accept a PIV Card issued by another Federal
Government agency but shall not be required to do so. No contractor
employee will be permitted access to any HUD system without a PIV
Card.
(2) All contractor employees who require access to mission-
critical systems or sensitive information contained within a HUD
system or application(s) are required to have a more extensive
background investigation. The investigation shall be commensurate
with the risk and security controls involved in managing, using, or
operating the system or applications(s).
(c) Citizenship-related requirements. Each affected contractor
employee as described in paragraph (b) of this clause shall be:
(1) A United States (U.S.) citizen; or,
(2) A national of the United States (see 8 U.S.C. 1408); or,
(3) An alien lawfully admitted into, and lawfully permitted to
be employed in the United States, provided that for any such
individual, the Government is able to obtain sufficient background
information to complete the investigation as required by this
clause. Failure on the part of the contractor to provide sufficient
information to perform a required investigation or the inability of
the Government to verify information provided for affected
contractor employees will result in denial of their access.
(d) Background investigation process.
(1) The Government Technical Representative (GTR) shall notify
the contractor of those contractor employee positions requiring
background investigations.
(i) For each contractor employee requiring access to HUD
information systems, the contractor shall submit the following
properly completed forms: Standard Form (SF) 85, ``Questionnaire for
Non-Sensitive Positions,'' FD 258 (Fingerprint Chart), and a partial
Optional Form (OF) 306 (Items 1, 2, 6, 8-13, 16, and 17).
(ii) For each contractor employee requiring access to mission-
critical systems and/or sensitive information contained within a HUD
system and/or application(s), the contractor shall submit the
following properly completed forms: SF-85P, ``Questionnaire for
Public Trust Positions;'' FD 258; and a Fair Credit Reporting Act
form (authorization for the credit-check portion of the
investigation). Contractor employees shall not complete the Medical
Release behind the SF-85P.
(iii) The SF-85, 85P, and OF-306 are available from OPM's Web
site, https://www.opm.gov. The GTR will provide all other forms that
are not obtainable via the Internet.
(2) The contractor shall deliver the forms and information
required in paragraph (d)(1) of this clause to the GTR.
(3) Affected contractor employees who have had a federal
background investigation without a subsequent break in federal
employment or federal contract service exceeding 2 years may be
exempt from the investigation requirements of this clause subject to
verification of the previous investigation. For each such employee,
the contractor shall submit the following information in lieu of the
forms and information listed in paragraph (d)(1) of this clause:
Employee's full name, Social Security number, and place and date of
birth.
(4) The investigation process shall consist of a range of
personal background inquiries and contacts (written and personal)
and verification of the information provided on the investigative
forms described in paragraph (d)(1) of this clause.
(5) Upon completion of the investigation process, the GTR will
notify the contractor if any contractor employee is determined to be
unsuitable to have access to the system(s), application(s), or
information. Such an employee may not be given access to those
resources. If any such employee has already been given access
pending the results of the background investigation, the contractor
shall ensure that the employee's access is revoked immediately upon
receipt of the GTR's notification.
(6) Failure of the GTR to notify the contractor (see
subparagraph (d)(1)) of any employee who should be subject to the
requirements of this clause and is known, or should reasonably be
known, by the contractor to be subject to the requirements of this
clause, shall not excuse the contractor from making such employee(s)
known to the GTR. Any such employee who is identified and is working
under the contract, without having had the appropriate background
[[Page 73539]]
investigation or furnished the required forms for the investigation,
shall cease to perform such work immediately and shall not be given
access to the system(s)/application(s) described in paragraph (b) of
this clause until the contractor has provided the investigative
forms required in paragraph (d)(1) of this clause for the employee
to the GTR
(7) The contractor shall notify the GTR in writing whenever a
contractor employee for whom a background investigation package was
required and submitted to HUD, or for whom a background
investigation was completed, terminates employment with the
contractor or otherwise is no longer performing work under this
contract that requires access to the system(s), application(s), or
information. The contractor shall provide a copy of the written
notice to the Contracting Officer.
(e) PIV Cards. (1) HUD will issue a PIV Card to each contractor
employee who is to be given access to HUD systems and does not
already possess a PIV Card acceptable to HUD (see paragraph (b) of
this clause). HUD will not issue the PIV Card until the contractor
employee has successfully cleared an FBI National Criminal History
Fingerprint Check, and HUD has initiated the background
investigation for the contractor employee. Initiation is defined to
mean that all background information required in paragraph (d)(1) of
this clause has been delivered to HUD. The employee may not be given
access prior to those two events. HUD may issue a PIV Card and grant
access pending the completion of the background investigation. HUD
will revoke the PIV Card and the employee's access if the background
investigation process (including adjudication of investigation
results) for the employee has not been completed within 6 months
after the issuance of the PIV Card.
(2) PIV Cards shall identify individuals as contractor
employees. Contractor employees shall display their PIV Cards on
their persons at all times while working in a HUD facility, and
shall present cards for inspection upon request by HUD officials or
HUD security personnel.
(3) The contractor shall be responsible for all PIV Cards issued
to the contractor's employees and shall immediately notify the GTR
if any PIV Card(s) cannot be accounted for. The contractor shall
promptly return PIV Cards to HUD as required by the FAR clause at
52.204-9. The contractor shall notify the GTR immediately whenever
any contractor employee no longer has a need for his/her HUD-issued
PIV Card (e.g., the employee terminates employment with the
contractor, the employee's duties no longer require access to HUD
systems). The GTR will instruct the contractor as to how to return
the PIV Card. Upon expiration of this contract, the GTR will
instruct the contractor as to how to return all HUD-issued PIV Cards
not previously returned. Unless otherwise directed by the
Contracting Officer, the contractor shall not return PIV Cards to
any person other than the GTR.
(f) Control of access. HUD shall have and exercise full and
complete control over granting, denying, withholding, and
terminating access of contractor employees to HUD systems. The GTR
will notify the contractor immediately when HUD has determined that
an employee is unsuitable or unfit to be permitted access to a HUD
system. The contractor shall immediately notify such employee that
he/she no longer has access to any HUD system, physically retrieve
the employee's PIV Card from the employee, and provide a suitable
replacement employee in accordance with the requirements of this
clause.
(g) Incident response notification. An incident is defined as an
event, either accidental or deliberate, that results in unauthorized
access, loss, disclosure, modification, or destruction of
information technology systems, applications, or data. The
contractor shall immediately notify the GTR and the Contracting
Officer of any known or suspected incident, or any unauthorized
disclosure of the information contained in the system(s) to which
the contractor has access.
(h) Nondisclosure of information. (1) Neither the contractor nor
any of its employees shall divulge or release data or information
developed or obtained during performance of this contract, except to
authorized government personnel with an established need to know, or
upon written approval of the Contracting Officer. Information
contained in all source documents and other media provided by HUD is
the sole property of HUD.
(2) The contractor shall require that all employees who may have
access to the system(s)/applications(s) identified in paragraph (b)
of this clause sign a pledge of nondisclosure of information. The
employees shall sign these pledges before they are permitted to
perform work under this contract. The contractor shall maintain the
signed pledges for a period of 3 years after final payment under
this contract. The contractor shall provide a copy of these pledges
to the GTR.
(i) Security procedures. (1) The Contractor shall comply with
applicable federal and HUD statutes, regulations, policies, and
procedures governing the security of the system(s) to which the
contractor's employees have access including, but not limited to:
(i) The Federal Information Security Management Act (FISMA) of
2002;
(ii) OMB Circular A-130, Management of Federal Information
Resources, Appendix III, Security of Federal Automated Information
Resources;
(iii) HUD Handbook 2400.25, Information Technology Security
Policy;
(iv) HUD Handbook 732.3, Personnel Security/Suitability;
(v) Federal Information Processing Standards 201 (FIPS 201),
Sections 2.1 and 2.2;
(vi) Homeland Security Presidential Directive 12 (HSPD-12); and
(vii) OMB Memorandum M-05-24, Implementing Guidance for HSPD-12.
The HUD Handbooks are available online at: https://www.hud.gov/offices/adm/hudclips/ or from the GTR.
(2) The contractor shall develop and maintain a compliance
matrix that lists each requirement set forth in paragraphs, (b),
(c), (d), (e), (f), (g), (h), (i)(1), and (m) of this clause with
specific actions taken, and/or procedures implemented, to satisfy
each requirement. The contractor shall identify an accountable
person for each requirement, the date upon which actions/procedures
were initiated/completed, and certify that information contained in
this compliance matrix is correct. The contractor shall ensure that
information in this compliance matrix is complete, accurate, and up-
to-date at all times for the duration of this contract. Upon
request, the contractor shall provide copies of the current matrix
to HUD.
(3) The Contractor shall ensure that its employees, in
performance of the contract, receive annual training (or once if the
contract is for less than one year) in HUD information technology
security policies, procedures, computer ethics, and best practices
in accordance with HUD Handbook 2400.25.
(j) Access to contractor's systems. The Contractor shall afford
HUD, including the Office of Inspector General, access to the
Contractor's facilities, installations, operations, documentation
(including the compliance matrix required under paragraph (i)(2) of
this clause), databases, and personnel used in performance of the
contract. Access shall be provided to the extent required to carry
out, but not limited to, any information security program
activities, investigation, and audit to safeguard against threats
and hazards to the integrity, availability, and confidentiality of
HUD data and systems, or to the function of information systems
operated on behalf of HUD, and to preserve evidence of computer
crime.
(k) Contractor compliance with this clause. Failure on the part
of the contractor to comply with the terms of this clause may result
in termination of this contract for default.
(l) Physical access to Federal Government facilities. The
contractor and any subcontractor(s) shall also comply with the
requirements of HUDAR clause 2452.237-75 when the contractor's or
subcontractor's employees will perform any work under this contract
on site in a HUD or other Federal Government facility.
(m) Subcontracts. The contractor shall incorporate this clause
in all subcontracts where the requirements specified in paragraph
(b) of this section are applicable to performance of the
subcontract.
(End of clause)
Dated: November 27, 2012.
Jemine A. Bryon,
Chief Procurement Officer.
[FR Doc. 2012-29324 Filed 12-7-12; 8:45 am]
BILLING CODE 4210-67-P