HUD Acquisition Regulation (HUDAR), 15101-15117 [2018-06362]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 83, Number 68 (Monday, April 9, 2018)]
[Proposed Rules]
[Pages 15101-15117]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-06362]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

48 CFR Parts 2402, 2416, 2437, 2442, and 2452

[Docket No. FR-6041-P-01]
RIN 2501-AD85


HUD Acquisition Regulation (HUDAR)

AGENCY: Office of the Chief Procurement Officer, HUD.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would amend the HUD Acquisition Regulation 
(HUDAR) to implement miscellaneous changes. These changes include 
incorporation of several clauses and associated additions to the HUDAR 
matrix, replacement of references to Government Technical 
Representatives (GTRs) with references to Contracting Officer's 
Representatives (CORs), codification of deviations approved by HUD's 
Chief Procurement Officer (CPO) and minor corrections to clauses, 
provisions, and the HUDAR matrix.

DATES: Comment due date: June 8, 2018.

ADDRESSES: Interested persons are invited to submit comments regarding 
this proposed rule to the Regulations Division, Office of General 
Counsel, Department of Housing and Urban Development, 451 7th Street 
SW, Room 10276, Washington, DC 20410-0500. Communications and comment 
submissions must refer to the above docket number and title. There are 
two methods for submitting public comments.
    1. Submission of Comments by Mail. Comments may be submitted by 
mail to the Regulations Division, Office of General Counsel, Department 
of Housing and Urban Development, 451 7th Street SW, Room 10276, 
Washington, DC 20410-0500.
    2. Electronic Submission of Comments. Interested persons may submit 
comments electronically through the Federal eRulemaking Portal at 
www.regulations.gov. HUD strongly encourages commenters to submit 
comments electronically. Electronic submission of comments allows the 
commenter maximum time to prepare and submit a comment, ensures timely 
receipt by HUD, and enables HUD to make comments immediately available 
to the public. Comments submitted electronically through the 
www.regulations.gov website can be viewed by other commenters and 
interested members of the public. To submit comments electronically, 
commenters should follow the instructions provided on the website.

    Note:  To receive consideration as public comments, comments 
must be submitted through one of the two methods specified above. 
Again, all submissions must refer to the docket number and title of 
the rule.

    No Facsimile Comments. Facsimile (FAX) comments are not acceptable.
    Public Inspection of Public Comments. All properly submitted 
comments and communications submitted to HUD will be available for 
public inspection and copying between 8 a.m. and 5 p.m. weekdays at the 
above address. Due to security measures at the HUD Headquarters 
building, an advance appointment to review the public comments must be 
scheduled by calling the Regulations Division at 202-402-3055 (this is 
not a toll-free number). Individuals with speech or hearing impairments 
may access this number via TTY by calling the Federal Information Relay 
Service, toll-free, at 800-877-8339. Copies of all comments submitted 
are available for inspection and downloading at www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Dr. Akinsola A. Ajayi, Acting 
Assistant Chief Procurement Officer for Policy, Systems and Risk 
Management, 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), fax 
number 202-708-8912. Persons with hearing or speech impairments may 
access Dr. Ajayi's telephone number via TTY by calling the toll-free 
Federal Relay Service at 800-877-8339.

SUPPLEMENTARY INFORMATION:

[[Page 15102]]

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 Housing and Urban 
Development 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 March 15, 2016 (81 FR 13747).

II. This Proposed Rule

    This proposed rule would amend the HUDAR, 48 CFR chapter 24, to 
propose revising all clause and provision references to the Government 
Technical Representative or GTR to Contracting Officer's Representative 
or COR. Accordingly, the definition in 48 CFR 2402.101 of ``Government 
Technical Representative'' would be removed. Also, the obsolete term 
``Government Technical Monitor'' would be removed. HUD is also 
proposing to codify certain agency-specific clauses, include class 
deviations in certain clauses, and make several administrative, 
nonsubstantive corrections, such as typographical corrections and 
updated applicability dates.
    In part 2416, the rule would correct the prescription for 2416.506-
70 to change ``provision'' to ``clause,'' instruct the Contracting 
Officer to insert the clause at 2452.216-77, add prescriptions for 
clause 2452.216-81 and provision 2452.216-82 to codify agency-specific 
clauses. These clauses relate to estimated quantities, level of effort 
and fee payment, and labor categories.
    In part 2437, the rule would revise 2437.110(e) to add 
prescriptions for provision 2452.237-82 and clause 2452.237-83 relating 
to controlled unclassified information to codify a class deviation 
previously approved by the CPO on June 18, 2015.
    In part 2442, the rule would revise 2442.1107 to codify a class 
deviation previously approved by the CPO on April 1, 2016, to (1) 
revise the procurement instruments, types of contracts, and types of 
services being acquired to those to which the clause will be 
applicable, (2) adjust the threshold at which the clause becomes 
applicable, and (3) make other minor changes.
    In part 2452, the rule would:
    Make minor typographical, nonsubstantive corrections to clauses 
2452.203-70, 2452.208-71, 2452.215-70, 2452.216-80, 2452.219-72, 
2452.232-70, and 2452.242-71;
    Change references to Government Technical Representative or GTR to 
Contracting Officer's Representative or COR respectively;
    Add clause 2452.216-81, Level of Effort and Fee Payment, and clause 
2452.216-82, Labor Categories, Requirements, and Estimated Level of 
Effort. These are previously agency-specific clauses that HUD now 
wishes to codify. Clause 2452.216-81 provides contractors with the 
total level of effort to be provided and the method for calculating the 
fee. Clause 2452.216-82 provides estimated hours and labor categories 
to assist vendors in developing proposals for immediate requirements; 
these estimates are not binding upon the Government;
    Codify a class deviation approved by the CPO on October 19, 2016, 
to clause 2452.232-71 at paragraph (b)(2) to require contractors to 
provide supporting documentation with vouchers that adequately prove 
the legitimacy and compliance of costs claimed, and the ability to 
appropriately allocate costs claimed;
    Revise clause 2452.237-73 to remove the second sentence of 
paragraph (b). In the current codification, that sentence relates to 
notification of a change in status of the Government Technical 
Representative;
    Add provision 2452.237-82, Access to Controlled Unclassified 
Information (CUI), pursuant to a class deviation previously approved by 
the CPO on June 18, 2015;
    Codify clause 2452.237-83, Access to Controlled Unclassified 
Information (CUI), pursuant to a class deviation previously approved by 
the CPO on June 18, 2015;
    Pursuant to a class deviation signed by the CPO on October 16, 
2015, codify a class deviation to clauses 2452.237-75, Access to HUD 
Facilities, and 2452.239-70, Access to HUD Systems, to add a 
requirement for contractors to report the status of PIV cards to the 
Government on a quarterly basis. Additionally, in 2452.237-75 and 
2452.239-70, a definition of ``contract'' is added;
    In 2452.246-70, a clause relating to inspection and acceptance of 
work is added as prescribed in 2446.246-70.
    In the matrix, four clauses or provisions are added relating to 
level of effort and fee payment, labor categories, requirements and 
estimated level of effort, and access to controlled unclassified 
information. Additionally, some corrections of ``Provision or Clause'' 
(P/C) and ``Uniform Contract Format'' (UCF) designations are made.

III. Findings and Certifications

Paperwork Reduction Act Statement

    The information collection requirements contained in this proposed 
rule are being submitted to the Office of Management and Budget (OMB) 
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). 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.
    The burden of the information collections in this proposed rule is 
estimated as follows:

                                                           Reporting and Recordkeeping Burden
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Number of     Frequency of    Responses per    Burden hour    Annual burden
                 Information collection                     respondents      response          annum       per response        hours        Annual cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
HUDAR:
    2452.204-70.........................................              20               1              20              16             320      $14,080.00
    2452.209-70.........................................              10               1              10             0.5               5          220.00
    2452.209-72.........................................               2               1               2               1               2           88.00
    2452.215-70.........................................             150               1             150              80          12,000      528,000.00
    2452.215-70, Alt I..................................              25               1              25              40           1,000       44,000.00
    2453.215-72.........................................              25               4             100               2             200        8,800.00
    2452.216-72.........................................               2               4               8               2              16          704.00

[[Page 15103]]

 
    2452.216-75.........................................               2               4               8              40             320       14,080.00
    2452.216-78, Alt II.................................               5               1               5               4              20          880.00
    2452.219-70.........................................              50               1              50             0.5              25        1,100.00
    2452.219-74.........................................               1               1               1              16              16          704.00
    2452.227-70.........................................               5               1               5              40             200        8,800.00
    2452.237-70.........................................             150               1             150               1             150        6,600.00
    2452.237-75 (initial)...............................             100               1             100               8             800       35,200.00
    2452.237-75 (report)................................             100               4             400               8           3,200      140,800.00
    2451.237-81.........................................              20               1              20             0.5              10          440.00
    2452.239-70 (initial)...............................             100               1             100               8             800       35,200.00
    2452.239-70 (report)................................             100               4             400               8           3,200      140,800.00
    2452.242-71 (plan)..................................              40               4             160               8             320       14,080.00
    2452.242-71 (report)................................              10               4              40               6             240       10,560.00
    2453.227-70.........................................               1               1               1               8               8          352.00
    Contractor Release..................................              15               1              15               1              15          660.00
    Contractor Assignment of Rebates, Credits...........               1               1               1               1               1           44.00
                                                         -----------------------------------------------------------------------------------------------
        Total Costs.....................................  ..............  ..............  ..............  ..............  ..............    1,006,192.00
--------------------------------------------------------------------------------------------------------------------------------------------------------

    In accordance with 5 CFR 1320.8(d)(1), HUD is soliciting comments 
from members of the public and affected agencies concerning this 
collection of information to:
    (1) Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
    (2) Evaluate the accuracy of the agency's estimate of the burden of 
the proposed collection of information;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the collection of information on those 
who are to respond, including through the use of appropriate automated 
collection techniques or other forms of information technology, e.g., 
permitting electronic submission of responses.
    Interested persons are invited to submit comments regarding the 
information collection requirements in this rule. Under the provisions 
of 5 CFR part 1320, OMB is required to make a decision concerning this 
collection of information between 30 and 60 days after the publication 
date. Therefore, a comment on the information collection requirements 
is best assured of having its full effect if OMB receives the comment 
within 30 days of the publication date. This time frame does not affect 
the deadline for comments to the agency on the proposed rule, however. 
Comments must refer to the proposal by name and docket number (FR-6041-
P-01) and must be sent to:

HUD Desk Officer, Office of Management and Budget, New Executive 
Office Building, Washington, DC 20503, Fax number: 202-395-6947

and to one of the two options below:

Ms. Colette Pollard, HUD Reports Liaison Officer, Office of the 
Chief Information Officer, Department of Housing and Urban 
Development, 451 7th Street SW, Room 2204, Washington, DC 20410

or

    Interested persons may submit comments regarding the information 
collection requirements electronically via the Federal eRulemaking 
Portal at https://www.regulations.gov. HUD strongly encourages 
commenters to submit comments electronically. Electronic submission of 
comments allows the commenter maximum time to prepare and submit 
comments, ensures timely receipt by HUD, and enables HUD to make 
comments immediately available to the public. Comments submitted 
electronically via the https://www.regulations.gov website can be viewed 
by other commenters and interested members of the public. To submit 
comments electronically, commenters should follow the instructions 
provided on the website.

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 proposed 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. Notwithstanding HUD's determination that this 
rule will not have a significant economic impact on a substantial 
number of small entities, HUD specifically invites comments regarding 
less burdensome alternatives to this rule that will meet HUD's 
objectives as described in this preamble.

Environmental Impact

    This proposed 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 
proposed rule is categorically excluded from environmental review under 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321).

[[Page 15104]]

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 proposed 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.

List of Subjects in 48 CFR Parts 2402, 2416, 2437, 2442, and 2452

    Government procurement.

    For the reasons discussed in the preamble, HUD proposes to amend 48 
CFR chapter 24 as follows:

PART 2402--DEFINITIONS OF WORDS AND TERMS

0
1. The authority citation for part 2402 continues to read as follows:

    Authority:  40 U.S.C. 121(c); 42 U.S.C. 3535(d).

2402.101   [Amended]

0
2. Amend 2402.101 by removing the definitions of ``Government Technical 
Monitor (GTM)'' and ``Government Technical Representative (GTR)''.

PART 2416--TYPES OF CONTRACTS

0
3. The authority citation for part 2416 continues to read as follows:

    Authority:  40 U.S.C. 121(c); 41 U.S.C. 253; 42 U.S.C. 3535(d).

0
4. Amend 2416.506-70 by revising paragraph (c) and adding paragraphs 
(e) and (f) to read as follows:


2416.506-70   Solicitation provisions and contract clauses.

* * * * *
    (c) Estimated quantities--requirements contract. The Contracting 
Officer shall insert the clause at 2452.216-77, Estimated Quantities--
Requirements Contract, in all solicitations for requirements contracts.
* * * * *
    (e) Level of effort and fee payment. The Contracting Officer shall 
insert clause 2452.216-81, Level of Effort and Fee Payment, in all 
level-of-effort term contracts.
    (f) Labor categories, requirements, and estimated level of effort. 
The Contracting Officer shall insert provision 2452.216-82, Labor 
Categories, Requirements, and Estimated Level of Effort, in all level-
of-effort solicitations. Contracting Officer's Representatives will 
provide the labor descriptions and estimated number of hours. 
Contracting Officers will obtain wage rate determinations for any 
classifications covered by the Service Contract Act.

PART 2437--SERVICE CONTRACTING

0
5. The authority citation for part 2437 continues to read as follows:

    Authority:  40 U.S.C. 121(c); 42 U.S.C. 3535(d).

0
6. Amend 2437.110 by adding paragraphs (e)(7) and (8) to read as 
follows:


2437.110   Solicitation provisions and contract clauses.

* * * * *
    (e) * * *
    (7) The Contracting Officer shall insert provision 2452.237-82, 
Access to Controlled Unclassified Information (CUI), in Section L of 
solicitations when controlled unclassified information (``CUI''), as 
defined in the provision, will be provided to potential offerors for 
the purpose of preparing offers.
    (8) The Contracting Officer shall insert clause 2452.237-83 in 
Section H, Access to Controlled Unclassified Information (CUI), of 
solicitations and contracts under which contractor and/or subcontractor 
employees will be granted access to controlled unclassified information 
(CUI) as defined in the clause.

PART 2442--CONTRACT ADMINISTRATION AND AUDIT SERVICES

0
7. The authority citation for part 2442 continues to read as follows:

    Authority:  40 U.S.C. 121(c); 42 U.S.C. 3535(d).

0
8. Revise 2442.1107 to read as follows:


2442.1107   Contract clause.

    (a) For purposes of clause 2452.242-71, the term ``contract'' shall 
also include task orders and purchase orders.
    (b) The Contracting Officer shall insert a clause substantially the 
same as the clause at 2452.242-71, Contract Management System, in 
solicitations and contracts when all of the following conditions apply:
    (1) A contract exceeds $1,000,000, including all options; and
    (2) The contract is a completion type that requires the delivery of 
an overall end deliverable or solution (e.g., evaluation, study, 
model).
    (c) To the extent the clause will not normally be included in 
commercial contracts meeting the requirements stated in paragraphs (a) 
and (b) of this section, and in instances where the clause is to be 
incorporated, pursuant to FAR 12.301(f), a waiver to the standard 
commercial requirements, to include the clause, is not required.
    (d) The Contracting Officer shall use the basic clause for cost 
type, labor-hour, and time and materials contracts for the services 
described in paragraph (b) of this section. The clause shall be used 
with its alternate for fixed-price type contracts for the services 
described in paragraph (b). The Contracting Officer may elect to 
incorporate the clause into contracts below the established threshold.
    (e) The clause is not applicable to contracts that only expend a 
level of effort without a completion deliverable/product due, e.g., 
temporary services.
    (f) This clause is not applicable to Information Technology service 
contracts being managed through Earned Value Management techniques that 
require reporting of Earned Value Management.

PART 2452--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
9. The authority citation for part 2452 continues to read as follows:

    Authority:  40 U.S.C. 121(c); 42 U.S.C. 3535(d).

Subpart 2452.2--Texts of Provisions and Clauses

0
10. Revise 2452.203-70 to read as follows:


2452.203-70  Prohibition against the use of federal employees.

    As prescribed in 2403.670, insert the following clause in 
solicitations and contracts:

PROHIBITION AGAINST THE USE OF FEDERAL EMPLOYEES ([ABBREVIATED MONTH 
AND YEAR OF DATE OF PUBLICATION OF FINAL RULE])

    In accordance with Federal Acquisition Regulation 3.601, 
contracts are not to be awarded to Federal employees or a business 
concern or other organization owned or substantially owned or 
controlled by one or more Federal employees. For the purposes of 
this contract, this prohibition against the use of Federal employees 
includes any work performed by the contractor or any of its 
employees, subcontractors, or consultants.

(End of clause)

0
11. Revise 2452.208-71 to read as follows:


2452.208-71  Reproduction of reports.

    As prescribed in 2408.802-70, insert the following clause in 
solicitations and

[[Page 15105]]

contracts where the contractor is required to produce, as an end 
product, publications or other written materials:

REPRODUCTION OF REPORTS ([ABBREVIATED MONTH AND YEAR OF DATE OF 
PUBLICATION OF FINAL RULE])

    In accordance with Title I of the Government Printing and 
Binding Regulations, printing of reports, data or other written 
material, if required herein, is authorized provided that the 
material produced does not exceed 5,000 production units of any page 
and that items consisting of multiple pages do not exceed 25,000 
production units in aggregate. The aggregate number of production 
units is determined by multiplying the number of pages by the number 
of copies. A production unit is one sheet, size 8.5 by 11 inches or 
less, printed on one side only and in one color. All copy 
preparation to produce camera-ready copy for reproduction must be 
set by methods other than hot metal typesetting. The reports should 
be produced by methods employing stencils, masters and plates which 
are to be used on single unit duplicating equipment no larger than 
11 by 17 inches with a maximum image of 10\3/4\ by 14\1/4\ inches 
and are prepared by methods or devices that do not utilize reusable 
contact negatives and/or positives prepared with a camera requiring 
a darkroom. All reproducibles (camera ready copies for reproduction 
by photo offset methods) shall become the property of the Government 
and shall be delivered to the Government with the report, data, or 
other written materials.

(End of clause)

0
12. Amend 2452.215-70 by revising Alternate II to read as follows:


2452.215-70   Proposal content.

* * * * *

Alternate II

    As prescribed in 2415.209(a), add the following paragraph (e) when 
the size of any proposal Part I or Part II will be limited:

PROPOSAL CONTENT ALTERNATE II ([ABBREVIATED MONTH AND YEAR OF DATE OF 
PUBLICATION OF FINAL RULE])

    (e) Size limits of Parts I and II. (1) Offerors shall limit 
submissions of Parts I and II of their initial proposals to the page 
limitations identified in the Instructions to Offerors. Offerors are 
cautioned that, if any Part of their proposal exceeds the stipulated 
limits for that Part, 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 8.5'' 
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) Any exemptions from this limitation are stipulated under the 
Instructions to Offerors.
    (4) Offerors are encouraged to use recycled paper and to use 
both sides of the paper (see the FAR clause at 52.204-4).

(End of Provision)

0
13. Revise 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 ([ABBREVIATED MONTH AND YEAR OF DATE OF 
PUBLICATION OF FINAL RULE])

    (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
14. Add 2452.216-81 to read as follows:


2452.216-81   Level of effort and fee payment.

    As prescribed in 2416.506-70(f), insert the following clause in all 
level-of-effort term contracts:

LEVEL OF EFFORT AND FEE PAYMENT ([ABBREVIATED MONTH AND YEAR OF DATE OF 
PUBLICATION OF FINAL RULE])

    (a) The total level of effort to be provided under this contract 
is __ hours. The contractor shall be reimbursed for the actual labor 
costs incurred.
    (b) The contractor shall be paid the fixed fee specified in B. 
__, Estimated Cost and Fixed Fee, herein, on a prorated basis in 
proportion to the percentage of the level of effort (LOE) performed 
at the time of billing in accordance with the following formula:
    (Number of acceptable hours delivered) divided by (Total hours 
in level of effort) X (Total fixed fee) = Fee payment
    (e.g., 1,000 hours delivered/10,000 hours (LOE) x $15,000 = 
$1,500)
    (c) In no event shall the amount of fee paid under the contract 
exceed the total fixed fee specified in B.[ ], Estimated Cost and 
Fixed Fee, herein.

(End of clause)

0
15. Add 2452.216-82 to read as follows:


2452.216-82  Labor categories, requirements, and estimated level of 
effort.

    As prescribed in 2416.506-70(g), insert the following provision in 
all level-of-effort solicitations:

LABOR CATEGORIES, REQUIREMENTS, AND ESTIMATED LEVEL OF EFFORT 
([ABBREVIATED MONTH AND YEAR OF DATE OF PUBLICATION OF FINAL RULE])

    (a) The Government anticipates that the following categories of 
labor shall be necessary to provide the services required by any 
contract resulting from this solicitation. Offerors must provide 
evidence that proposed staff meet the technical requirements for 
each category.
    (1) [Insert labor titles and technical requirements]
    (b) To assist offerors in the preparation of proposals, the 
Government estimates that the following levels of effort (staff 
hours) will be necessary to provide the services required by any 
contract resulting from this solicitation. These estimates are not 
binding on the Government. Offerors must break out their proposed 
costs by labor category. The contract performance period is intended 
to be for a total of [ ] months (a base period of [ ] months with [ 
][insert number of options] [ ][insert number of months per option]-
month option periods. The actual duration of the base period may be 
different. Offerors may propose labor at different rates per 
contract period.

                                                   Staff Hours
----------------------------------------------------------------------------------------------------------------
                                                    1st option      2nd option      3rd option      4th option
         Labor category             Base period       period          period          period          period
----------------------------------------------------------------------------------------------------------------
                           [Insert titles and estimated number of hours per category]
----------------------------------------------------------------------------------------------------------------

(End of provision)

0
16. Revise 2452.219-72 to read as follows:


2452.219-72   Section 8(a) direct awards.

    As prescribed in 2419.811-3(f), insert the following clause:

[[Page 15106]]

SECTION 8(A) DIRECT AWARD ([ABBREVIATED MONTH AND YEAR OF DATE OF 
PUBLICATION OF FINAL RULE])

    (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) 
contractor] 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(s). 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
17. Revise Alternate II of 2452.232-70 to read as follows:


2452.232-70   Payment schedule and invoice submission (Fixed-Price).

* * * * *

ALTERNATE II ([ABBREVIATED MONTH AND YEAR OF DATE OF PUBLICATION OF 
FINAL RULE])

    As prescribed in HUDAR Section 2432.908(c)(2), replace 
paragraphs (b)(1) and (2) of the HUDAR Clause 2452.232-70 Payment 
Schedule and Invoice Submission (Fixed-price) with the following 
Alternate II language in all fixed price solicitations and contracts 
when requiring invoices to be submitted electronically to the 
Department of Treasury's Bureau of Fiscal Services Invoice 
Processing Platform (IPP) system:
    (b) Submission of invoices. (1) The Contractor shall obtain 
access and submit invoices to the Department of Treasury Bureau of 
Fiscal Services' Invoice Platform Processing System via the Web at 
URL: https://arc.publicdebt.treas.gov/ipp/fsippqrg.htm in accordance 
with the instructions on the website. 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).

(End of Alternate II)

0
18. Revise 2452.232-71 to read as follows:


2452.232-71  Voucher submission (cost-reimbursement, time-and-
materials, and labor hour).

    As prescribed in HUDAR Section 2432.908(c)(3), insert the following 
clause in all cost-reimbursable, time-and-materials, and labor-hour 
solicitations and contracts where vouchering and payments will NOT be 
made through the Department of Treasury's Bureau of Fiscal Services 
Invoice Processing Platform (IPP) system:

2452.232-71 VOUCHER SUBMISSION (COST-REIMBURSEMENT, TIME-AND-MATERIALS, 
AND LABOR HOUR) ([ABBREVIATED MONTH AND YEAR OF DATE OF PUBLICATION OF 
FINAL RULE])

    (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 
Contracting Officer's Representative (COR) 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) The Contractor shall submit all necessary supporting 
documentation with vouchers that adequately demonstrate that costs 
claimed (1) have been incurred (including time sheets from the prime 
and subcontractor's automated or manual time tracking records and 
paid invoices for materials acquired), (2) reflect that they are 
allocable to the contract tasks, and (3) comply with cost principles 
in the Federal Acquisition Regulation and HUD Acquisition 
Regulation. The Contracting Officer may disallow all or part of a 
claimed cost that is inadequately supported.
    (3) 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)

ALTERNATE I ([ABBREVIATED MONTH AND YEAR OF DATE OF PUBLICATION OF 
FINAL RULE])

    As prescribed in HUDAR Section 2432.908(c)(3), replace 
paragraphs (a)(1) and (2) with the following Alternate I paragraphs 
to HUDAR Clause 2452.232-71, Voucher Submission (Cost Reimbursement, 
Time-And-Materials, and Labor Hour) in time and material, cost-
reimbursable and labor hour solicitations and contracts other than 
performance-based under which performance-based payments will be 
used and where invoices are to be submitted electronically by email, 
but will not be paid through the Department of Treasury's Bureau of 
Fiscal Services Invoice Processing Platform (IPP) system.
    (a) Voucher submission. (1) The Contractor shall submit vouchers 
electronically via email to the email addresses shown on the 
contract award document (e.g., block 12 of the Standard Form (SF) 
26, block 25 of the SF-33, or block 18a of the SF-1449) and carbon 
copy the Contracting Officer and the Contracting Officer's 
Representative (COR). 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 clearly include in the Subject line of 
the email: VOUCHER INCLUDED; CONTRACT/ORDER #: ___ and CONTRACT LINE 
ITEM NUMBER(S) ___.
    (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).

(End of Alternate I)

    As prescribed in HUDAR Section 2432.908(c)(3), replace 
paragraphs (a)(1) and (2) of the HUDAR Clause 2452.232-71, Voucher 
Submission (Cost-Reimbursement, Time-And-Materials, And Labor Hour) 
with the following Alternate II language in all cost-reimbursement, 
time-and-materials, and labor-hour type solicitations and contracts 
when requiring vouchers to be submitted electronically to the 
Department of Treasury's Bureau of Fiscal Services Invoice 
Processing Platform (IPP) system.

ALTERNATE II ([ABBREVIATED MONTH AND YEAR OF DATE OF PUBLICATION OF 
FINAL RULE])

    (a) Voucher submission. (1) The Contractor shall obtain access 
and submit invoices to the

[[Page 15107]]

Department of Treasury Bureau of Fiscal Services' Invoice Platform 
Processing System via the Web at URL: https://arc.publicdebt.treas.gov/ipp/fsippqrg.htm in accordance with the 
instructions on the website. To constitute a proper 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.
    (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).

(End of Alternate II)

0
19. Revise 2452.237-73 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 ([ABBREVIATED MONTH AND YEAR OF 
DATE OF PUBLICATION OF FINAL RULE])

    (a) The Contracting Officer will provide the contractor with the 
name and contact information of the Contracting Officer's 
Representative (COR) assigned to this contract. The COR 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 COR's status or 
the designation of a successor COR.
    (b) The COR for liaison with the Contractor as to the conduct of 
work is [to be inserted at time of award] or a successor designated 
by the Contracting Officer.
    (c) The COR will provide guidance to the Contractor on the 
technical performance of the contract. Such guidance shall not be of 
a nature which:
    (1) Causes the Contractor to perform work outside the statement 
of work or specifications of the contract;
    (2) Constitutes a change as defined in FAR 52.243-1;
    (3) Causes an increase or decrease in the cost of the contract;
    (4) Alters the period of performance or delivery dates; or
    (5) Changes any of the other express terms or conditions of the 
contract.
    (d) The COR will issue technical guidance in writing or, if 
issued orally, he/she will confirm such direction in writing within 
five (5) calendar days after oral issuance. The COR may issue such 
guidance via telephone, facsimile (fax), or electronic mail.
    (e) Other specific limitations [to be inserted by Contracting 
Officer]:
    (f) The Contractor shall promptly notify the Contracting Officer 
whenever the Contractor believes that guidance provided by any 
government personnel, whether or not specifically provided pursuant 
to this clause, is of a nature described in paragraph (b) of this 
clause.

(End of clause)

0
20. Revise 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 ([ABBREVIATED MONTH AND YEAR OF DATE OF 
PUBLICATION OF FINAL RULE])

    (a) Definitions. As used in this clause--
    ``Access'' means physical entry into and, to the extent 
authorized, mobility within a Government facility.
    ``Contract'' means any authorized contractual instrument, 
including, but not restricted to, task orders, purchase orders, 
Blanket Purchase Agreement calls, etc.
    ``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 the performance of this contract.
    Unescorted 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 unescorted 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: Electronic Standard Form 
(SF) 85, ``Questionnaire for Non-Sensitive Positions via e-QIP,'' 
completed USAccess enrollment (electronic fingerprinting) and 
Optional Form (OF) 306 (Items 1 through 17). Forms SF-85 and OF-306 
are available from OPM's website, https://www.opm.gov. The electronic 
questionnaire is available on OPM's e-QIP site, https://www.opm.gov/investigations/e-qip-application/. The COR 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 COR as secure as 
possible.
    (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 
COR 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: 
completed PIV and Pre-Security Form.
    (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 (1) successfully cleared the FBI National 
Criminal History Fingerprint Check, (2) HUD has initiated the 
background investigation for the contractor employee, and (3) a 
Security Approval Notice from HUD PSD via [email protected] has been received. 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 three 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 for the employee, including 
adjudication of the investigation results, 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 COR 
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 COR immediately whenever 
any contractor

[[Page 15108]]

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 COR will 
instruct the Contractor on how to return the PIV Card, and upon 
expiration of this contract, the COR will instruct the Contractor on 
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 COR.
    (4) The Contractor shall submit a report to the Contracting 
Officer and COR no later than five (5) calendar days after the end 
of each calendar quarter that provides the status of each employee 
who is required to work in a HUD facility during the performance of 
the contract. At a minimum, the report shall identify the contractor 
and the contract number, and list for each employee the following 
information:
    (i) Employee name;
    (ii) Name of HUD facility where employee works;
    (iii) Date background check submitted;
    (iv) Date PIV Card issued;
    (v) PIV card number;
    (vi) Date employee no longer has need of the HUD PIV Card;
    (vii) Date Contracting Officer and COR were notified that 
employee no longer had need of the HUD PIV Card; and
    (viii) Date PIV Card was returned to COR.
    (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 COR 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
21. Add 2452.237-82 to read as follows:


2452.237-82   Access to controlled unclassified information (CUI).

    As prescribed in HUDAR 2437.110(e)(7), the Contracting Officer 
shall insert provision 2452.237-82 in Section L of solicitations when 
controlled unclassified information (CUI), as defined in the provision, 
will be provided to potential offerors for the purpose of preparing 
offers.

ACCESS TO CONTROLLED UNCLASSIFIED INFORMATION (CUI) ([ABBREVIATED MONTH 
AND YEAR OF DATE OF PUBLICATION OF FINAL RULE])

    (a) For the sole purpose of preparing an offer in response to 
this solicitation, HUD may make certain controlled unclassified 
information (CUI) available to prospective offerors.
    (b) CUI:
    (1) Is any information which the loss, misuse, or modification 
of, or unauthorized access to, could adversely affect the national 
interest or 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;
    (2) Is not available to the general public;
    (3) May include:
    (i) Government acquisition-sensitive information, including 
source selection information as defined at section 2.101 of the 
Federal Acquisition Regulation (48 CFR chapter 1); contractor bid or 
proposal information;
    (ii) Information contained in individual contracts that is not 
public information and such contract information that is contained 
in Government databases; proprietary economic, financial, or 
business information (e.g., salary information) provided to the 
Government by other parties (e.g., other contractors) or belonging 
to HUD;
    (iii) Personally identifiable information (PII) that includes, 
but is not limited to, Social Security numbers, names, dates of 
birth, places of birth, parents' names, credit card numbers, 
applications for entitlements, and information relating to a 
person's private financial, income, employment, and tax records; and
    (iv) Other information that the HUD Contracting Officer (CO) or 
other authorized HUD employee explicitly identifies as CUI.
    (4) May exist in various physical media (e.g., paper, electronic 
file, audio, or video disc), may be transmitted orally, developed 
under or pre-exist any related contract, and may be in its original 
form, or a derivative form (i.e., where the information has been 
included in contractor-generated work, or where it is discernible 
from materials incorporating or based upon such information).
    (c) As a prior condition to being provided access to any CUI, 
each prospective offeror shall execute the following nondisclosure 
agreements and deliver the executed agreements to the Contracting 
Officer:
    (1) Nondisclosure Agreement between the Department of Housing 
and Urban Development (``HUD'') and Offeror Granting Conditional 
Access to Controlled Unclassified Information (``Offeror 
Agreement'') (see Attachment J-__ [contracting officer insert 
attachment number]). This agreement must be executed by an officer 
or other representative of the company authorized to bind the firm 
to the commitments made by the agreement and the individual 
nondisclosure agreements executed by those offeror employees or 
representatives to whom the sensitive information will be provided.
    (2) Nondisclosure Agreement between the Department of Housing 
and Urban Development and Offeror Employee or Other External Party 
Granting Conditional Access to Controlled Unclassified Information 
(``Nondisclosure Agreement'') (see Attachment J__ [contracting 
officer insert attachment number]). A separate agreement must be 
executed by each person to whom access to CUI will be provided, 
regardless of whether HUD or the Offeror provides such access. The 
offeror is responsible for ensuring that each individual who is 
provided access to CUI executes a nondisclosure agreement.
    (3) NDAs must be submitted to the CO and COR within ten (10) 
days after contract award or as otherwise specified by the CO.
    (d) CUI will be provided to prospective offerors as follows: 
[describe how information will be provided including: the party 
responsible for providing access to information, the procedure for 
obtaining access, and the format in which the information is 
contained; e.g., ``by the contracting officer on compact disk (CD) 
at the pre-proposal meeting].
    (e) The offeror's failure to comply with any part of this 
provision or with the terms of the required nondisclosure agreements 
may disqualify the offeror for consideration of any contract awarded 
under this solicitation.

(End of Provision)

0
22. Add 2452.237-83 to read as follows:


2452.237-83   Access to controlled unclassified information (CUI).

    As prescribed in HUDAR 2437.110(e)(8), the Contracting Officer 
shall insert clause 2452.237-83 in Section H of solicitations and 
contracts under which contractor and/or subcontractor employees will be 
granted access to controlled unclassified information as defined in the 
clause.

ACCESS TO CONTROLLED UNCLASSIFIED INFORMATION (CUI) ([ABBREVIATED MONTH 
AND YEAR OF DATE OF PUBLICATION OF FINAL RULE])

    (a) For the sole purpose of performing work required under this 
contract, the contracting officer may grant the contractor-including 
contractor employees, subcontractors, and subcontractor employees-
access to controlled unclassified information (CUI).
    (b) CUI:
    (1) Is any information which the loss, misuse, or modification 
of, or unauthorized access to, could adversely affect the national 
interest or 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;
    (2) Is not available to the general public;

[[Page 15109]]

    (3) May include:
    (i) Government acquisition-sensitive information, including 
source selection information as defined at section 2.101 of the 
Federal Acquisition Regulation (48 CFR chapter 1); contractor bid or 
proposal information;
    (ii) Information contained in individual contracts that is not 
public information and such contract information that is contained 
in Government databases; proprietary economic, financial, or 
business information (e.g., salary information) provided to the 
Government by other parties (e.g., other contractors) or belonging 
to HUD;
    (iii) Personally identifiable information (PII) that includes, 
but is not limited to social security numbers, names, dates of 
birth, places of birth, parents' names, credit card numbers, 
applications for entitlements, and information relating to a 
person's private financial, income, employment, and tax records; and
    (iv) Other information that the HUD contracting officer or other 
authorized HUD employee explicitly identifies as CUI; and
    (4) May exist in various physical media (e.g., paper, electronic 
file, audio or video disc) or be transmitted orally, may be 
developed under or pre-exist any related contract, and may be in its 
original form or a derivative form (i.e., where the information has 
been included in contractor-generated work, or where it is 
discernible from materials incorporating or based upon such 
information).
    (c) As a prior condition to being provided access to any CUI, 
each contractor or subcontractor employee shall execute the 
nondisclosure agreement in attachment J.__ [contracting officer 
insert attachment number] to this contract and deliver the executed 
agreement to the contracting officer.
    (d) The contractor shall include this clause in all 
subcontracts.
    (e) The contractor's failure to comply with any part of this 
clause or with the terms of the required nondisclosure agreements 
may result in the termination of this contract for default.

(End of Clause)

0
23. Revise 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 ([ABBREVIATED MONTH AND YEAR OF DATE OF 
PUBLICATION OF FINAL RULE])

    (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 Office of Management and Budget (OMB) 
Circular A-130).
    ``Contract'' means any authorized contractual instrument, 
including, but not restricted to, task orders, purchase orders, 
Blanket Purchase Agreement calls, etc.
    ``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 the Office of 
Personnel Management (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 Contracting 
Officer's Representative (COR) 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: Electronic Standard Form (SF) 85, 
``Questionnaire for Non-sensitive Positions'' via e-QIP, completed 
USAccess enrollment (electronic fingerprinting) and Optional Form 
(OF) 306 (Items 1 through 17). The SF-85 and OF-306 are available 
from the OPM website, https://www.opm.gov. The electronic 
questionnaire is available on OPM's e-QIP site, https://www.opm.gov/investigations/e-qip-application/.
    (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: Electronic SF-85P, 
``Questionnaire for Public Trust Positions'' via e-QIP;'' Electronic 
Standard Form (SF) 85, ``Questionnaire for Non-sensitive Positions 
via e-QIP,'' completed USAccess enrollment (electronic 
fingerprinting) and Optional Form (OF) 306 (Items 1 through 17). The 
SF-85 and OF-306 are available from the OPM website, https://www.opm.gov. The Electronic questionnaire is available on OPM's e-
QIP site, https://www.opm.gov/investigations/e-qip-application/; and 
a Fair Credit Reporting Act form (authorization for the credit-check 
portion of the investigation). Contractor employees shall complete 
the Medical Release behind the SF-85P.
    (iii) The electronic questionnaires (e-QIP) SF-85, 85P, and OF-
306 are available from OPM's websites https://www.opm.gov/investigations/e-qip-application/ and https://www.opm.gov. The COR 
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 COR as securely 
as possible.
    (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: PIV and Pre-Security Form.

[[Page 15110]]

    (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 COR 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 COR's notification.
    (6) Failure of the COR to notify the Contractor (see paragraph 
(d)(1) of this clause) 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 COR. Any such employee who is identified and is working 
under the contract, without having had the appropriate background 
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 to the COR for the employee, as required in paragraph (d)(1) 
of this clause.
    (7) The Contractor shall notify the COR 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 (1) successfully cleared an FBI National Criminal 
History Fingerprint Check, (2) HUD has initiated the background 
investigation for the contractor employee, and (3) a Security 
Approval Notice from HUD PSD via [email protected] has 
been received. 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 three 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 for the employee, including adjudication of 
the investigation results, 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 COR 
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 COR 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 COR will instruct the Contractor as to how to return 
the PIV Card. Upon expiration of this contract, the COR 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 COR.
    (4) The Contractor shall submit a report to the Contracting 
Officer and COR no later than five (5) calendar days after the end 
of each calendar quarter that provides the status of each employee 
who is required to work in a HUD facility during the performance of 
the contract. At a minimum, the report shall identify the Contractor 
and the contract number, and list for each employee the following 
information:
    (i) Employee name;
    (ii) Name of HUD facility where employee works;
    (iii) Date background check submitted;
    (iv) Date PIV Card issued;
    (v) PIV card number;
    (vi) Date employee no longer has need of the HUD PIV Card;
    (vii) Date Contracting Officer and COR were notified that 
employee no longer has need of the HUD PIV Card; and
    (viii) Date PIV Card returned to COR.
    (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 COR 
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 COR 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 COR.
    (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);
    (ii) Office of Management and Budget (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 COR.
    (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.

[[Page 15111]]

    (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 clause are applicable to performance of the subcontract.

(End of clause)

0
24. Amend 2452.242-71 by revising the introductory text and main clause 
to read as follows:


2452.242-71  Contract management system.

    As prescribed in 2442.1107, insert the following clause:

CONTRACT MANAGEMENT SYSTEM ([ABBREVIATED MONTH AND YEAR OF DATE OF 
PUBLICATION OF FINAL RULE])

    (a) The Contractor shall use contract management baseline 
planning and progress reporting as described herein.
    (b) The contract management system shall consist of two parts:
    (1) Baseline plan. The baseline plan shall consist of:
    (i) A narrative portion that:
    (A) Identifies each task and significant activity required for 
completing the contract work, critical path activities, task 
dependencies, task milestones, and related deliverables;
    (B) Describes the contract schedule, including the period of 
time needed to accomplish each task and activity (see paragraph 
(b)(1)(ii)(B) of this clause);
    (C) Describes staff (e.g., hours per individual), financial, and 
other resources allocated to each task and significant activity; and
    (D) Provides the rationale for contract work organization and 
resource allocation.
    (ii) A graphic portion showing:
    (A) Cumulative planned or budgeted costs of work scheduled for 
each reporting period over the life of the contract (i.e., the 
budgeted baseline); and
    (B) The planned start and completion dates of all planned and 
budgeted tasks and activities.
    (2) Progress reports. Progress reports shall consist of:
    (i) A narrative portion that:
    (A) Provides a brief, concise summary of technical progress made 
and the costs incurred for each task during the reporting period; 
and
    (B) Identifies problems, or potential problems, that will affect 
the contract's cost or schedule, the causes of the problems, and the 
Contractor's proposed corrective actions.
    (ii) A graphic portion showing:
    (A) The original time-phased, budgeted baseline;
    (B) The schedule status and degree of completion of the tasks, 
activities, and deliverables shown in the baseline plan for the 
reporting period, including actual start and completion dates for 
all tasks and activities in the baseline plan; and
    (C) The costs incurred during the reporting period, the current 
total amount of costs incurred through the end date of the reporting 
period for budgeted work, and the projected costs required to 
complete the work under the contract.
    (3) Reporting frequency. The reports described in paragraph 
(b)(2) of this clause shall be submitted [insert period, e.g., 
monthly, quarterly, or schedule based on when payments will be made 
under the contract].
    (c) The formats, forms, and/or software to be used for the 
contract management system under this contract shall be [Contracting 
Officer insert appropriate language, such as ``as prescribed in the 
schedule;'' ``a format, forms and/or software designated by the 
COR'' or, ``the Contractor's own format, forms and/or software, 
subject to the approval of the COR.''].
    (d) When this clause applies to individual task orders under the 
contract, the word ``contract'' shall mean ``task order.''

(End of clause)
* * * * *
0
25. Revise 2452.246-70 to read as follows:


2452.246-70  Inspection and acceptance.

    As prescribed in 2446.502-70, insert the following clause in all 
solicitations and contracts:

INSPECTION AND ACCEPTANCE ([ABBREVIATED MONTH AND YEAR OF DATE OF 
PUBLICATION OF FINAL RULE])

    Inspection and acceptance of all work required under this 
contract shall be performed by the Contracting Officer's 
Representative (COR) or other individual as designated by the 
Contracting Officer or COR.

(End of clause)

0
26. Revise 2452.3 to read as follows:


2452.3  Provision and clause matrix.

 BILLING CODE 4210-67-P

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 BILLING CODE 4210-67-C


[[Page 15117]]


    Dated: February 28, 2018.
Keith W. Surber,
Chief Procurement Officer.
[FR Doc. 2018-06362 Filed 4-6-18; 8:45 am]
 BILLING CODE 4210-67-P