Department of State Acquisition Regulation (DOSAR)

Federal RegisterDec 28, 1994

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DEPARTMENT OF STATE

Office of the Procurement Executive

48 CFR Parts 601, 602, 603, 604, 605, 606, 608, 609, 610, 613, 614,

615, 616, 617, 619, 622, 623, 625, 627, 628, 631, 632, 633, 634, 636,

637, 639, 642, 643, 647, 649, 651, 652, 653, and 670

[Public Notice 2120]

RIN 1400-AA31

Department of State Acquisition Regulation (DOSAR)

AGENCY: Office of the Procurement Executive, Department of State.

ACTION: Final rule.

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SUMMARY: This rule makes final a proposed rule published for comment on

September 16, 1994 (59 FR 47584) amending the Department of State

Acquisition Regulation (DOSAR). The final rule also contains

miscellaneous amendments and corrections not proposed on September 16,

1994, as outlined below.

EFFECTIVE DATE: December 28, 1994.

FOR FURTHER INFORMATION CONTACT:

Gladys Gines, Senior Procurement Analyst, Department of State, Office

of the Procurement Executive, 2201 C Street NW, Suite 603, State Annex

Number 6, Washington, DC 20522-0602, telephone (703) 516-1691. This is

not a toll-free number.

SUPPLEMENTARY INFORMATION:

I. Background

On September 16, 1994 (59 FR 47584), the Department of State (DOS)

proposed amendments to the DOSAR to reflect numerous miscellaneous

changes, additions, and deletions dealing with internal or

administrative matters. The proposed rule also set forth policies and

procedures for implementing procurement integrity requirements, the DOS

standardization program, the metric system for DOS procurements, the

Governmentwide commercial purchase card, an affirmative procurement

program for recovered materials, Defense Base Act insurance

requirements, and alternative dispute resolution. Finally, it raised

the threshold for major systems acquisitions from $10,000,000 to

$30,000,000.

Comments were received from an association during the public

comment period, which ended on November 15, 1994. The comments were

primarily editorial in nature, and most of the comments were

incorporated. This rule makes final the amendments, as revised,

proposed on September 16.

II. Disposition of Comments

Comments received which were not editorial in nature dealt with the

Department's determination to establish a threshold of $10 million for

the public announcement of contract awards by the Office of Legislative

Affairs and section 615.413 of the DOSAR authorizing the release of

proposals outside the Government for evaluation purposes.

With respect to the first comment, FAR 5.303(a) establishes a

threshold of $3 million for public announcement unless agency

regulations specify another dollar threshold. DOSAR 605.303(a)

specified a threshold of $10 million. The commenter stated that the

Department's $10 million threshold defeats a purpose of public

announcement of contract awards, i.e., making information available to

the taxpayer, Congress, and the companies interested in doing business

with the winning contractor. However, we believe that companies

interested in doing business with the winning contractor receive most

of their information on contract awards through the Commerce Business

Daily award synopsis. Since the Department's most visible contracts

exceed $10 million, we believe that the threshold is appropriate.

The commenter questioned the inclusion of DOSAR 615.413 in light of

the recently enacted Federal Acquisition Streamlining Act, section

6002, which places restrictions on the use of paying non-Government

personnel to evaluate proposals. The commenter is correct; the Act

states that the Government must determine that Government personnel

with adequate training are not readily available. The commenter

suggested that this section of the DOSAR be deferred until the proposed

regulations implementing section 6002 are published. The DOSAR, as well

as all other agency procurement regulations, will need to be revised

when the regulations implementing the Federal Acquisition Streamlining

Act are published. In light of this, we prefer to proceed with the

implementation of this section, which will be revised, if necessary,

along with other sections of the DOSAR to implement the requirements of

the Act.

III. Amendments Not Contained in Proposed Rule

The final rule also contains amendments or corrections to the

proposed rule. These amendments are a result of several internal

changes which have taken place during the comment period. They are as

follows: 601.602-3-70(e) (to add language distinguishing ratifications

under $1,000, which was inadvertently omitted from the proposed rule);

601.603-70(a)(1) (to add language allowing the Procurement Executive,

or designee, to delegate to a contracting officer, on a case-by-case

basis, the authority to award a contract which exceeds the contracting

officer's warrant authority); 601.603-70(a)(8) (to add the words ``as

the HCA'' which were inadvertently omitted from the proposed rule);

604.7002(a) (to clarify when options are to be reviewed by A/OPE);

606.101-70 (to add language clarifying that a Commerce Business Daily

synopsis is not required for domestic leases); 606.302-1 (to delete the

language in paragraph (b)(1) of the proposed rule); 606.302-4 (to add

language that clarifies that when guard services can only be obtained

from the host government, the exemption under FAR 6.302-4,

International Agreement, applies); 606.302-6 (to change the language to

reflect current clearance points); 606.304(a)(2) (to clarify that the

Department Competition Advocate must approve proposed contracts over

$100,000 but not exceeding $1,000,000 for domestic contracting

activities that do not have a competition advocate. This section also

removes the requirement for approvals above the contracting officer for

contracts under $100,000); 610.002-70(c) (to re-arrange the definitions

in alphabetical order); 613.505-2 (to allow the use of the OF-206 and

OF-206A for overseas contracting activities); 614.201-7-70(c), 615.106-

70 and 652.214-71 (to add DOSAR provision 614.214-71, Authorization to

Perform. This was a previous DOSAR clause which had been deleted in the

proposed rule. It has been decided to re-instate it as a solicitation

provision as opposed to a contract clause); 623.302-70 (to clarify that

only work which affects the safety/health of post personnel shall be

required to comply with the Department's safety/health guidelines);

623.480 (b), (d), (e), (f), (g), (h), and (i) (to add the words

``solicitations and'' preceding the word ``contract''); 628.305,

628.306, and 628.307 (to add the words ``or residents'' after the words

``United States citizens'', which was inadvertently omitted from the

proposed rule. Section 628.305(d) is also revised to add language

pertaining to a recent waiver received from the Department of Labor for

certain contract employees); 634.001(c) (to change the $10,000,000

amount to $30,000,000 which was inadvertently omitted from the proposed

rule); 652.228-71(c) (to clarify that the Department has obtained a

waiver from the Department of Labor); 652.232-70 and 652.232-71 (to

correct the introductory text as stated in the prescriptions); and,

652.237-71 (to add language as to where contractors may submit packages

when overseas). These amendments and corrections do not affect the

public, and therefore good cause exists to publish the amendments for

effect without first soliciting public comment because prior public

comment is unnecessary. The amendments are for the purpose of

implementing internal changes.

IV. Impact

The Department of State certifies that this regulation will not

have a significant economic impact on a substantial number of small

entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).

V. Paperwork Reduction Act

The information collection requirements contained in this rule were

approved under the Paperwork Reduction Act of 1980 by OMB, and were

assigned control number 1405-0050.

List of Subjects in 48 CFR Parts 601, 602, 603, 604, 605, 606, 608,

609, 610, 613, 614, 615, 616, 617, 619, 622, 623, 625, 627, 628,

631, 632, 633, 634, 636, 637, 639, 642, 643, 647, 649, 651, 652,

653, 670

Government procurement, Department of State Acquisition Regulation

(DOSAR).

Accordingly, title 48, chapter 6 of the Code of Federal Regulations

is amended as follows:

1. The authority citation for 48 CFR Parts 601, 602, 603, 604, 605,

606, 608, 609, 613, 614, 615, 616, 617, 619, 622, 623, 625, 628, 632,

633, 634, 636, 637, 642, 643, 652, and 653 is revised to read as

follows:

Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

SUBCHAPTER A--GENERAL

PART 601--DEPARTMENT OF STATE ACQUISITION REGULATIONS

601.000 [Amended]

2. Section 601.000 is amended by removing the last sentence.

3. A new subpart 601.1, consisting of sections 601.101 and 601.105

is added to read as follows:

Subpart 601.1--Purpose, Authority, Issuance

Sec.

601.101 Purpose.

601.105 OMB approval under the Paperwork Reduction Act.

Subpart 601.1--Purpose, Authority, Issuance

The DOSAR is issued to provide Department guidance in accordance

with the policy cited in FAR 1.301(a)(2). The portions of this

regulation that affects the relationship between a Department of State

organization and a contractor or potential contractor are published in

this Chapter 6 of title 48 of the Code of Federal Regulations, in

accordance with FAR 1.301(b).

601.105 OMB Approval under the Paperwork Reduction Act.

The Paperwork Reduction Act of 1980 (44 U.S.C. 3501-3520) requires

that Federal agencies obtain approval from the Office of Management and

Budget (OMB) before collecting information from ten (10) or more

members of the public. The information and recordkeeping requirements

contained in this regulation have been approved by OMB under OMB

Control Number 1405-0050.

4. Section 601.201-1 is amended by inserting the parenthetical

``(A/OPE)'' after the phrase ``The Office of the Procurement

Executive'' in the first sentence; by removing the word ``said'' and

inserting ``a'' in its place in the second sentence; and by removing

the words ``The Office of Procurement Executive'' and inserting the

acronym ``A/OPE'' in their place in the third sentence.

5. Section 601.301 is revised to read as follows:

601.301 Policy.

(a)(1) The Assistant Secretary of State for Administration is the

agency head for the purposes of FAR 1.301 (see Delegation of Authority

No. 120 (34 FR 18095, October 30, 1969), as amended by Delegation of

Authority No. 120-4 (59 FR 38022, July 26, 1994)). Under Delegation of

Authority No. 120-5 (59 FR 62771, December 6, 1994), the Assistant

Secretary of State for Administration redelegated to the Procurement

Executive the authority to prescribe, promulgate, and amend DOS

acquisition policies, rules, and regulations.

(2) The Department's procurement directives system consists of the

following components:

(i) The DOSAR;

(ii) Procurement Policy Directives (PPDs), which provide basic

policy or procedural guidance and direction. PPDs are issued on an

interim basis, and are subsequently incorporated into the next revision

of the DOSAR; and

(iii) Procurement Information Bulletins, which provide general

information on topics of interest to contracting personnel.

(b) The Department of State Acquisition Regulation (DOSAR) is

prescribed under the authority of 22 U.S.C. 2658 and 40 U.S.C. 486(c).

6. Section 601.302 is amended in paragraph (a) by adding the phrase

``and leases of real and personal property,'' after the words

``including construction''; removing the comma after the word

``construction''; and adding the following phrase to the end of the

paragraph:'', or the Foreign Service Buildings Act of 1926, as amended

(22 U.S.C. 292 et seq.).''

7. Section 601.303 is amended by revising paragraph (c) to read as

follows:

601.303 Publication and codification.

* * * * *

at FAR 1.104-2(c).

601.403 [Amended]

8. Section 601.403 is amended by removing the second sentence.

601.404 [Amended]

9. Section 601.404 is amended by removing the second sentence.

601.405 [Amended]

10. Section 601.405 is amended by removing the second sentence.

601.470 [Amended]

11. Section 601.470 is amended by removing the second sentence.

601.471 [Amended]

12. Section 601.471 is amended by removing the parenthetical ``(see

601.603-70)'' in the first sentence of paragraph (a) introductory text;

and by revising paragraphs (a)(1) and (b) to read as follows:

601.471 Procedures.

(a) * * *

(1) The nature of the deviation requested, including whether it is

an individual or class deviation;

* * * * *

(b) The head of the contracting activity shall also submit all

pertinent documentation supporting the request.

* * * * *

13. Section 601.570 is revised to read as follows:

601.570 Rulemaking.

(a) The DOSAR is promulgated and may be revised, as necessary, in

accordance with FAR part 1.

(b) The Procurement Executive shall issue all DOS acquisition

regulations.

14. Section 601.602-1 is amended in paragraph (a) by removing the

word ``let'' and inserting the word ``awarded'' in its place; by

removing the words ``including interagency agreements'' and inserting

in their place the words ``including FAR-covered interagency

acquisition agreements'' in the first sentence in paragraph (b); and by

adding the words ``real and'' preceding ``personal property'' in

paragraph (b) in the first instance of appearance.

15. Section 601.602-3 is amended by adding at the end of paragraph

(b)(1) the words ``, e.g., withdrawal of a contracting officer's

warrant or a Contracting Officer's Representative delegation or

collection action.''

16. Section 601.602-3 is further amended by revising paragraph

(b)(2) to read as follows; and by adding the following sentence to the

end of paragraph (c) as follows:

601.602-3 Ratification of unauthorized commitments.

* * * * *

(b) * * *

(2) The head of the contracting activity is delegated the authority

to serve as the ratifying official for unauthorized contractual

commitments not exceeding $1,000. The head of the contracting activity

may refer such actions to the Procurement Executive for ratification if

he/she so chooses. All unauthorized commitments in excess of $1,000

shall be ratified by the Procurement Executive.

* * * * *

legal concurrence if there is a question of proprietary or a legal

issue.

17. Section 601.602-3-70 is revised to read as follows:

601.602-3-70 Procedures.

(a)(1) The person who made the unauthorized commitment shall submit

all records and documents concerning the unauthorized commitment to the

contracting officer assigned the ratification action. That person shall

provide a complete written, signed statement of the facts, including

why normal acquisition procedures were not followed, why and how the

vendor was selected, a list of other sources considered, a description

of work or products, a statement regarding the status of performance,

an estimated or agreed price, certified funding citations, and a

statement as to why he/she should not be personally liable for the

cost, e.g., a public purpose was served and no personal benefit was

received.

(2) When the person who made the unauthorized commitment is no

longer available to attest to the circumstances of the unauthorized

commitment, an officer from the responsible office shall accomplish the

requirements of this paragraph; the statement shall identify the

individual responsible for the unauthorized commitment.

(3) In addition, a cognizant management official from the office

which employed the individual who made the unauthorized commitment at

the time the unauthorized commitment was made shall provide a statement

detailing actions that he/she will take to ensure that such commitments

will not occur again under the same or similar circumstances.

(b) The contracting officer assigned the ratification action shall

prepare and execute a recommendation to the ratifying official. The

contracting officer shall either recommend that the ratifying official

approve and ratify the unauthorized commitment; or, disapprove the

ratification of the unauthorized commitment.

(1) The recommendation shall include the facts and circumstances of

the unauthorized commitment; the information prescribed in FAR 1.602-

3(c)(1) and (c)(3) through (c)(6); and a recommendation to the

ratifying official as to whether the unauthorized commitment should be

ratified.

(2) Following the signature of the contracting officer, the

recommendation shall include a statement that the ratifying official

could have granted authority to enter into a contractual commitment at

the time it was made and still has the authority to do so; that the

ratifying official hereby ratifies (or disapproves) the unauthorized

commitment in the amount specified; and a date and signature block for

the ratifying official.

shall be supported by factual findings included or referenced in the

recommendation.

(d) The contracting officer shall submit the complete file to the

ratifying official. For actions exceeding $1,000, the file shall be

submitted through the head of the contracting activity to the

Procurement Executive.

(e) Upon receipt and review of the complete file, if the ratifying

official ratifies the unauthorized commitment, the file shall be

returned, through the head of the contracting activity if the action

exceeds $1,000, to the contracting officer for issuance of the

appropriate contractual document(s). If the request for ratification is

not justified, the ratifying official shall return the request to the

head of the contracting activity (if over $1,000) or to the contracting

officer if under $1,000) with a written explanation for the decision

and a recommendation for disposition of the action.

(f)(1) When a ratification is approved, the ratifying official

shall prepare a letter to the contractor involved in the ratification.

The letter shall state the reason(s) why the ratification was approved

and provide cautionary language to the contractor regarding future

instances of ratification actions.

(2) When a ratification is not approved, the head of the

contracting activity shall prepare a letter to the contractor advising

that the ratification was not approved. The letter shall cite the

reasons for the disapproval.

18. Section 601.603-3 is revised to read as follows:

601.603-3 Appointment.

(a) There is no contracting officer authority conferred upon any

DOS employee by virtue of position. The Procurement Executive appoints

all DOS contracting officers, in conformance with FAR 1.603-3. The

contracting officer shall retain the original copy of the Standard Form

1402, Certificate of Appointment, signed by the Procurement Executive.

Only qualified employees shall be appointed as contracting officers. A/

OPE is responsible for providing guidance and oversight in managing

such appointments.

(b) Contracting officers shall be appointed in accordance with the

Procurement Career Management Guidebook, available from A/OPE.

hire employees who are U.S. citizens shall be appointed as contracting

officers. Personal services contractors, Foreign Service Nationals, and

Third Country Nationals are not eligible for appointment as DOS

contracting officers.

19. Section 601.603-70 is revised to read as follows:

601.603-70 Delegations of authority.

(a) Delegations. As stated in 601.603-3(a), there is no contracting

officer authority conferred by virtue of position. Pursuant to 601.602-

1(b), the Procurement Executive has designated the following as

contracting activities as defined in FAR 2.101. These authorities are

not redelegable. In addition, specific individuals are designated as

heads of contracting activities (HCAs) (see FAR 2.101):

(1) Overseas posts. Each overseas post shall be regarded as a

contracting activity to enter into and administer contracts for the

expenditure of funds involved in the acquisition of supplies,

equipment, publications, and services; to sell personal property; and

to lease real property. The Principal Officer, the Administrative

Officer, or the Supervisory General Services Officer are designated as

HCAs; provided, that he/she has a contracting officer's warrant issued

by the Procurement Executive. The Procurement Executive (or authorized

A/OPE staff) may delegate to a contracting officer, on a case-by-case

basis, the authority to award a contract or modification which exceeds

the contracting officer's warrant level.

(i) No authority is delegated to enter into cost-reimbursement,

fixed-price incentive, or fixed-price redeterminable contracts.

(ii) When expressly authorized by a U.S. Government agency which

does not have a contracting officer at the post, the officers named in

paragraph (a)(1) introductory text of this section may enter into

contracts for that agency. Use of this authority is subject to the

statutory authority of that agency and any special contract terms or

other requirements necessary for compliance with any conditions or

limitations applicable to the funds of that agency. The agency's

authorization shall cite the statute(s) and state any special contract

terms or other requirements with which the acquisition so authorized

must comply. In view of the contracting officer's responsibility for

the legal, technical, and administrative sufficiency of contracts,

questions regarding the propriety of contracting actions that the post

is required to take pursuant to this authority may be referred to the

Department for resolution with the headquarters of the agency

concerned.

(2) Office of Foreign Buildings. The authority to enter into and

administer contracts pursuant to the Foreign Service Buildings Act of

1926, as amended (22 U.S.C. 292 et seq.), is delegated to the Deputy

Assistant Secretary of State for Foreign Buildings and to the Director

for Acquisitions as the HCA.

(3) Office of Acquisition. The authority to enter into and

administer contracts for the expenditure of funds involved in the

acquisition of supplies and nonpersonal services is delegated to the

Director and Deputy Director as the HCA.

(4) Foreign Service Institute. The authority to enter into and

administer contracts pursuant to Chapter 7, Title I, of the Foreign

Service Act of 1980, as amended (22 U.S.C. 4021 et seq.), is delegated

to the Director of the Foreign Service Institute, the Executive

Director, the Deputy Executive Director, and the Supervisory

Contracting Officer as the HCA.

(5) Office of Foreign Missions. The authority to enter into and

administer contracts pursuant to Title II of the State Department Basic

Authorities Act of 1956, as amended (22 U.S.C. 4301 et seq.), is

delegated to the Director, Office of Foreign Missions, and the

Administrative Officer as the HCA.

(6) U.S. Mission to the United Nations. The authority to enter into

and administer contracts pursuant to the United Nations Participation

Act of 1945, as amended (22 U.S.C. 287), is delegated to the Counselor

for Administration as the HCA.

(7) Moscow Embassy Building Control Office. The authority to enter

into and administer contracts for the planning, design, and

construction of the embassy office building in Moscow is delegated to

the Director, Moscow Embassy Building Control Office as the HCA.

(8) Diplomatic Telecommunication Service--Program Office. The

authority to enter into and administer contracts for the leasing or

purchase of telecommunications services, circuits, subsystems, and

associated professional services is delegated to the Chief, Acquisition

Branch as the HCA.

(9) Regional Procurement Support Offices. (i) The authority to

enter into and administer contracts for the expenditure of funds

involved in the acquisition of supplies, equipment, publications,

services, execute leases for real property, and to sell personal

property on behalf of overseas posts is delegated to each Director,

Regional Procurement Support Office (RPSO) as the HCA at the following

locations:

(A) RPSO Bonn in conjunction with Embassy Bonn;

(B) RPSO Tokyo in conjunction with Embassy Tokyo;

(D) RPSO Miami in conjunction with the Miami Regional Center.

(ii) The RPSOs are under the purview and guidance of A/OPE.

(b) Other delegations. Several DOS offices have been delegated

limited procurement authority, although they have not been designated

as HCAs. Matters requiring HCA resolution are referred to the Office of

Acquisition. These delegations are provided only to warranted

contracting officers in the respective offices. They are as follows:

(1) Office of Language Services. The authority to enter into and

administer simplified acquisition transactions under FAR Part 13 and

orders against schedule contracts for interpreting, translating,

conference reporting, and related language support and escort services.

(2) Office of Overseas Schools. The authority to enter into and

administer simplified acquisition transactions under FAR Part 13 and

orders against schedule contracts pursuant to section 29 of the State

Department Basic Authorities Act of 1956, as amended.

(3) Library. The authority to enter into and administer simplified

acquisition transactions under FAR Part 13 and orders against schedule

contracts pursuant to the provisions of the Public Printing and

Documents Act of 1968, as amended, and for the acquisition of

newspapers, books, maps, and periodicals.

(4) Office of International Conferences. The authority to enter

into and administer simplified acquisition transactions under FAR Part

13 and orders against schedule contracts pursuant to section 5, Title

I, of the Department of State Basic Authorities Act of 1956, as

amended.

(5) Bureau for Refugee Programs. The authority to enter into and

administer simplified acquisition transactions under FAR Part 13 and

orders against schedule contracts pursuant to the Migration and Refugee

Assistance Act of 1962, as amended, and Executive Order 11077, dated

January 22, 1963.

(6) Bureau of International Narcotics Matters. The authority to

enter into and administer simplified acquisition transactions under FAR

Part 13, orders against schedule contracts and personal services

contracts pursuant to the Foreign Assistance Act of 1961, as amended;

and, 48 CFR Chapter 7, Agency for International Development Acquisition

Regulation, including any amendments thereto.

20. Section 601.670 is added to read as follows:

601.670 Procurement Career Management Program.

(a) Policy. The Department's Procurement Career Management Program

is designed to improve the quality of contracting in the Department

through the development and maintenance of professional contracting

skills in accordance with the Federal Acquisition Institute's Contract

Specialist Workbook and related guidance.

(b) Procedures. Details of the Department's Procurement Career

Management Program are described in the Department of State Procurement

Career Management Guidebook. A/OPE shall provide guidance and

oversight.

PART 602--DEFINITIONS OF WORDS AND TERMS

602.101-70 [Amended]

21. In section 602.101-70, the definition of ``Consolidated

Receiving Point'' is amended in the first sentence by removing the

words ``packing firm employed by'' and inserting the words ``contractor

under contract to'' in their place, and by removing the second

sentence; the definition of ``Despatch Agency'' is amended by removing

the words ``Office of Supply, Transportation and Procurement'' and

inserting the words ``Office of Supply and Transportation'' in their

place, by removing the word ``and'' preceding ``San Francisco,

California'', and by adding the words ``; and, Seattle, Washington.''

to the end of the second sentence; and, the definition of ``Third

Country Procurement'' is removed.

Subpart 602.2 (602.201 and 602.201-70) [Removed]

22. Subpart 602.2, consisting of sections 602.201 and 602.201-70,

is removed.

PART 603--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF

INTEREST

23. Subpart 603.1 is added to read as follows:

Subpart 603.1--Safeguards

Sec.

603.104 Procurement integrity.

603.104-5 Disclosure, protection, and marking of proprietary and

source selection information.

603.104-9-70 Certification requirements.

603.104-11 Processing violations or possible violations.

Subpart 603.1--Safeguards

603.104 Procurement integrity.

603.104-5 Disclosure, protection, and marking of proprietary and

source selection information

(d)(1) The head of the contracting activity is the agency head's

designee for the purposes of FAR 3.104-5(d)(1).

(2) The following classes of persons may be authorized access to

proprietary or source selection information by the contracting officer

or head of the contracting activity when such access is necessary to

the conduct of a procurement:

(i) Clerical personnel directly involved in the procurement;

(ii) Supervisors in the contracting officer's chain of command;

(iii) Contracting personnel involved in reviewing or approving the

solicitation, contract, or contract modification; and

(iv) Personnel in the following offices: Office of Small and

Disadvantaged Business Utilization (A/SDBU), Office of the Legal

Adviser (L/BA), Office of Legislative Affairs, Office of the Inspector

General, the Small Business Administration, and the Office of Federal

Contract Compliance Programs (Department of Labor).

603.104-9-70 Certification requirements.

(b) Competing contractors are required to complete the

``Certificate of Procurement Integrity'' and submit it with their bids

under IFBs. For RFPs, the apparent successful offeror only need submit

the certification. For RFPs, the contracting officer shall contact the

apparent successful offeror before award and request that the

certificate be submitted within five (5) working days if the

certificate was not submitted with the initial proposal. A bid

submitted under an IFB that lacks a signed certificate is

nonresponsive, and an apparent successful offeror under an RFP who does

not submit the required certificate is ineligible for award.

603.104-11 Processing violations or possible violations.

(a) The contract specialist shall report any violation or possible

violation of the procurement integrity requirements immediately to the

contracting officer and the Office of the Inspector General. The

contracting officer shall follow the procedures in FAR 3.104-11

regarding such violations.

603.203 [Amended]

24. Section 603.203 is amended by removing the parenthetical ``(see

601.603-70)'' in the last sentence.

603.303 [Amended]

25. Section 603.303 is amended by removing the parenthetical ``(see

601.603-70)'' from the first sentence of paragraph (c).

26. Section 603.601 is added to read as follows:

603.601 Policy.

(a) It is Department policy not to award contracts to Federal

employees, or businesses substantially owned or controlled by Federal

employees.

27. Section 603.670 is added to read as follows:

603.670 Solicitation provision and contract clause.

The contracting officer shall insert the clause at 652.203-70,

Prohibition Against the Use of Federal Employees, in all solicitations

and contracts, and the provision at 652.203-71, Certification Regarding

Federal Employment, in all solicitations.

28. Subpart 603.7 is added to read as follows:

Subpart 603.7--Voiding and Rescinding Contracts

Sec.

603.704 Policy.

603.705 Procedures.

Subpart 603.7--Voiding and Rescinding Contracts

603.704 Policy.

The Procurement Executive is the agency head's designee for the

purposes of FAR 3.704.

603.705 Procedures.

The Procurement Executive is the agency head's designee for the

purposes of FAR 3.705.

PART 604--ADMINISTRATIVE MATTERS

29. Section 603.202 is amended in the first sentence by revising

the words ``Despatch Office'' to read ``Despatch Agent''; and, by

adding the following sentence to the end of the section:

604.202 Agency distribution requirements.

* * * Copies of contracts and modifications awarded as small

business or 8(a) set-asides shall be sent to A/SDBU.

30. Section 604.7002 is amended by revising paragraphs (a) and (b)

to read as follows; and, by removing the words ``the Office of the

Procurement Executive'' in paragraph (c) and substituting ``A/OPE'' in

their place:

604.7002 Procedures.

(a) Prior to issuance of a solicitation or a solicitation amendment

which constitutes a substantive change, award of a contract, or

execution of a contract modification, any of which is estimated to

exceed the thresholds indicated below, the contracting officer shall

forward the proposed contractual action to A/OPE for review. For

contract modifications, the contracting officer shall submit such

actions in accordance with 643.102-70(b). Modifications exercising

contract options, where the options were part of the original

solicitation/contract which was reviewed and approved by A/OPE, are

exempt from this review requirement:

(1) For domestic contracting activities, all actions over

$5,000,000. There is no review threshold when the contracting

activity's quality assurance plan has been approved by A/OPE;

(2) For overseas posts with contracting officers who have been

issued standard name warrants, all actions over $250,000, with the

exception of those actions for local guard services, which require

review at $100,000 and above; and

(3) For overseas posts with contracting officers who have been

issued provisional name warrants, all actions over $100,000.

(4) When calculating the threshold for application of paragraphs

(a)(1) through (3) of this section, include the value of the base year

plus all option years.

(b) A/OPE shall document the scope and extent of the review and

shall submit written recommendations to the contracting officer on each

proposed contract action reviewed. In the event the contracting officer

and the reviewer cannot reach agreement on the recommendation(s), the

contracting officer shall prepare an appeal file to be transmitted to

the Procurement Executive. The appeal shall be approved by an

individual one management level above the contracting officer prior to

its transmission to the Procurement Executive. A resolution shall be

worked out between the contracting activity and the Procurement

Executive. For purposes of this section, the officer who may transmit

the appeal file to the Procurement Executive shall not be the same

individual who will sign the contractual document. For overseas posts,

where the contracting officer is the head of the contracting activity,

the approval authority shall be the Principal Officer.

* * * * *

SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING

PART 605--PUBLICIZING CONTRACT ACTIONS

31. Section 605.202-70 is amended to add the phrase ``, and work is

performed outside'' preceding the words ``the United States'' in the

second sentence of paragraph (a); by revising paragraph (b); by

amending paragraph (c)(1) to add the phrase ``or other agency'' after

the words ``the requirements office'' in the first sentence; by

amending paragraph (c)(2) introductory text to remove the parenthetical

``(see 601.603-70)''; revising paragraphs (c)(2) (i) and (ii); by

revising paragraph (d); and by adding new paragraph (e) to read as

follows:

605.202-70 Foreign acquisitions.

* * * * *

(b) Policy. Under certain conditions, waiver of the requirement to

publish in the CBD notices of proposed procurement actions is necessary

for acquisitions by overseas posts when these acquisitions are made

from sources outside, and work is performed outside the United States,

its possessions and Puerto Rico. This policy is pursuant to 41 U.S.C.

416 et seq. and 15 U.S.C. 637 et seq. This policy applies only to DOS

contracts and any contracts awarded in behalf of other Federal agencies

using appropriated funds.

(2) * * * (i) If the head of the contracting activity determines

that publication of a CBD notice is appropriate and reasonable, the

notice shall be published in accordance with FAR 5.2.

(ii) If the head of the contracting activity determines that

publication of a CBD notice is inappropriate or unreasonable, that

official may waive the CBD notice requirements of FAR Subpart 5.1.

Delay, due to poor acquisition planning, is not a sufficient reason to

waive the CBD notice. This determination shall be in writing and made

in consideration of such factors as overseas delivery, installation,

maintenance or replacement requirements, special product of performance

specifications, and security clearance requirements. The determination

and findings shall be included in the contract file. Competition in

such acquisitions, including the use of written solicitations, shall be

obtained in all cases to the extent feasible and consistent with FAR

Part 6 and DOSAR Part 606. If there are known U.S. firms or firms with

U.S. affiliations in local residence capable of supplying the required

supplies or services, the contracting activity shall ensure that those

firms are included in the source list for the acquisition.

* * * * *

(d) Policy exclusions. CBD waiver authority does not apply to guard

service contracts that exceed $250,000. Guard service contracts that

exceed $250,000 shall be synopsized in the CBD. Option year prices

shall be included when computing the applicability of this threshold.

(e) Limitations. If the head of the contracting activity waives the

CBD synopsis on the basis of urgent or compelling reasons, the

acquisition may only fulfill the immediate requirements. Therefore,

option periods of performance, or quantities which exceed immediate

needs, are not allowable.

32. Section 605.207 is amended by adding a new paragraph (a)(1) to

read as follows:

605.207 Preparation and transmittal of synopsis.

(a)(1) Contracting officers at overseas posts shall submit synopses

of proposed contract actions to A/OPE for electronic transmittal to the

CBD.

33. Subpart 605.3 is added to read as follows:

Subpart 605.3--Synopses of Contract Awards

605.303 Announcement of contract awards.

(a) Contracting officers shall make information available on awards

over $10 million to the Office of Legislative Affairs in sufficient

time for an announcement by 5:00 p.m. Washington, DC time on the day of

the award. This requirement applies only to awards made by domestic

contracting activities where performance will take place within the

United States or its possessions.

34. Section 605.403 is added to read as follows:

605.403 Requests from members of Congress.

(a) The Procurement Executive is the agency head for the purposes

of FAR 5.403(a).

35. Section 605.502 is revised to read as follows:

605.502 Authority.

(a) For paid advertisements in newspapers within the United States,

the head of the contracting activity is the agency head's designee for

the purposes of FAR 5.502(a). For acquisitions by overseas posts

necessitating paid advertisements in newspapers outside the United

States, the head of the contracting activity is the agency's head's

designee for the purposes of FAR 5.502(a). When the head of the

contracting activity is the contracting officer for the acquisition, no

further approvals are necessary.

PART 606--COMPETITION REQUIREMENTS

36. Section 606.101-70 is amended by revising the second sentence

to read as follows:

606.101-70 Foreign acquisitions not synopsized.

* * * A Commerce Business Daily synopsis is not required for

domestic leases, pursuant to 48 CFR 505.202 and 570.202(a).

37. Section 606.302-1 is added to read as follows:

606.302-1 Only one responsible source and no other supplies or

services will satisfy agency requirements.

(b)(4) The Procurement Executive is the agency head for the

purposes of FAR 6.302-1(b)(4).

38. Section 606.302-4 is added to read as follows:

606.302-4 International agreement.

(b)(2) In accordance with FAR 6.302-4, guard services shall be

acquired from the host government only when it is the sole available

source.

39. Section 606.302-6 is added to read as follows:

606.302-6 National security.

(b) This subsection applies to all acquisitions involving national

security information, regardless of dollar amount. In no case shall

information be classified in order to restrict competition. Information

may be classified only when its authorized disclosure could be expected

to cause damage to national security.

Liaison, Directorate for Coordination, Bureau of Intelligence and

Research, is responsible for reviewing and certifying on any proposed

acquisitions derived from or funded or administered by intelligence

community agencies that involve sensitive compartmented information and

ensuring that the provisions of E.O. 12356 and FAR 6.302-6 have been

met. The Chief, Information Security Programs Division, Office of

Information Security Technology, Bureau of Diplomatic Security, is

responsible for reviewing and certifying on all other proposed

acquisitions funded by the Department of State that involve national

security information and ensuring that the provisions of E.O. 12356 and

FAR 6.302-6 have been met. When disclosure of the Department's needs

through full and open competition would compromise national security,

the Justification for Other than Full and Open Competition shall

include the following specific information:

(i) How national security would be compromised if the Department of

State's (or other agencies') needs were disclosed in the Commerce

Business Daily;

(ii) Why the CBD synopsis cannot be worded in such a manner that

national security would not be compromised;

(iii) Necessity for access to classified information to prepare

technical and/or cost proposal and level of security clearance

required;

(iv) Necessity for access to classified information to perform the

proposed contract and level of security clearance required;

(v) Number and value of contracts that the justification covers;

and

(vi) A statement as follows: ``I hereby certify that the national

security concerns of the referenced acquisition(s) meet the criteria

set forth in Executive Order 12356 and FAR 6.302-6''.

(2) Any acquisition involving national security information shall

be publicized in the Commerce Business Daily unless disclosure of the

agency's needs would compromise national security.

(3) The contracting officer is responsible for soliciting offers

from as many potential sources as is practicable under the

circumstances. However, given the sensitivity required for acquisitions

involving national security information, it is expected that

requirements offices will work closely with the contracting officer in

maximizing competition.

606.303-1 [Amended]

40. Section 606.303-1 is amended by removing the words ``the Office

of the Procurement Executive'' and inserting the acronym ``A/OPE'' in

their place.

41. Section 606.304 is amended by adding new paragraphs (a)(2) and

(d) to read as follows:

606.304 Approval of the justification.

(a) (2) The approval authority for a proposed contract over

$100,000 but not exceeding $1,000,000 for domestic contracting

activities that do not have a competition advocate is the Department

Competition Advocate.

(d) The estimated dollar value of all options shall be included in

determining the approval level of a justification.

42. Section 606.304-70 is revised to read as follows:

606.304-70 Acquisitions by overseas posts.

The Departmental Competition Advocate is the approval authority for

the purposes of FAR 6.304(a)(3). This authority is not redelegable. Any

such justification must be transmitted through the Principal Officer at

the overseas post.

43. Section 606.370 is added to read as follows:

606.370 Department of State standardization program.

(a) It is the Department's policy to promote full and open

competition in all procurement actions. The authority at 41 U.S.C.

253(c)(1) shall be used with respect to standardization when only

specified makes and models of equipment will satisfy the Department's

needs and only one source is available. This policy applies to all

acquisitions involving standardization, regardless of dollar amount.

(b) Contracts awarded under the authority at 41 U.S.C. 253(c)(1)

shall be supported by the written justification described in FAR 6.303.

The contracting officer, requirements office, procuring activity

competition advocate, and the Procurement Executive shall approve all

Justifications for Other than Full and Open Competition that cite

standardization of technical equipment as justification to restrict

competition. The Administrative Officer at each post is the procuring

activity competition advocate for that post and the requirements office

at post is the embassy functional office responsible for identifying

the need to contract.

equipment and systems, for which there is only one source of supply, is

considered other than full and open competition. Such procurements

shall be supported by an approved Justification for Other than Full and

Open Competition. The justification shall include the content

requirements of FAR 6.303-2. The justification shall also address

potential cost savings in areas such as inventory, operations,

training, maintenance, repairs, and administrative and management

support. Areas of consideration for potential cost savings shall be

supported by detailed estimates as attachments to the justification.

Justifications shall specify an effective period, which shall bear a

reasonable relationship to the life of the technical equipment. The

effective period shall not exceed six years with a review at the end of

the first three years. Periodic reviews shall be made during the

standardization period to determine whether the standardization should

be continued, revised or canceled.

44. Section 606.501 is revised to read as follows:

606.501 Requirement.

(a) The Procurement Executive is the head of the agency for the

purposes of FAR 6.501 and designates the Department Competition

Advocate.

(b) Contracting activity competition advocates have been designated

for A/FBO and A/OPR/ACQ. The Department Competition Advocate is the

activity competition advocate for all other domestic contracting

activities.

45. Section 606.570 is added to read as follows:

606.570 Solicitation provision.

The contracting officer shall insert the provision at 652.206-70,

Competition Advocacy/Ombudsman, in all solicitations over the

simplified acquisition limitation.

PART 608--REQUIRED SOURCES OF SUPPLIES AND SERVICES

Subpart 608.4 (608.402, 608.402-70)--[Removed]

46. Subpart 608.4, consisting of sections 608.402 and 608.402-70,

is removed.

PART 609--CONTRACTOR QUALIFICATIONS

609.202 [Amended]

47. Section 609.202 is amended by removing the parenthetical ``(see

601.603-70)''.

609.404 [Amended]

48. Section 609.404 is amended by removing the words ``The Office

of the Procurement Executive'' and inserting the acronym ``A/OPE'' in

their place in the first sentence.

49. Section 609.405 is revised to read as follows:

609.405 Effect of listing.

(a) The Procurement Executive is the agency head's designee for the

purposes of FAR 9.405(a).

(d) In accordance with a FAR class deviation granted by the

Procurement Executive, the following actions apply to actions awarded

by DOS contracting activities:

(1) (i) Contracting officers at overseas contracting activities may

rely on the debarment certification submitted by bidders/offerors (FAR

52.209-5) as proof of eligibility for award when access to the current

``Lists of Parties Excluded from Procurement Programs'' is not

reasonably available. For contracts which require A/OPE review and

approval, the contracting officer should request that A/OPE perform the

required review if the list is not available.

(4) (i) For procurement actions (both domestic and overseas) that

do not exceed the simplified acquisition limitation, contracting

officers need not consult the ``List of Parties Excluded from

Procurement Programs'' prior to award. The list should be consulted

whenever the contracting officer has reason to believe that a proposed

contractor may appear on the list.

(ii) Contracting officers at domestic contracting activities shall

review the ``List of Parties Excluded from Procurement Programs'',

either in hard copy or electronic form, prior to award.

50. Section 609.405-70 is amended by removing paragraph (c); by

designating paragraphs (a) and (b) as (b) and (c), respectively; and by

designating the introductory paragraph as paragraph (a) and revising it

to read as follows:

609.405-70 Termination action decision.

(a) Prior to making a decision to terminate, based on the

consideration listed below, the contracting officer shall have the

proposed action reviewed and approved by:

(1) The Office of the Legal Adviser;

(2) An individual one level above the contracting officer; and

(3) For overseas posts, A/OPE.

* * * * *

51. Part 610 is added to subchapter B to read as follows:

PART 610--SPECIFICATIONS, STANDARDS, AND OTHER PURCHASE

DESCRIPTIONS

Sec.

610.002 Policy.

610.002-70 Metric system implementation.

Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

610.002 Policy.

610.002-70 Metric system implementation.

(a) Policy. The Omnibus Trade and Competitiveness Act of 1988 (Pub.

L. 100-418) requires Federal agencies to establish implementing

guidelines pursuant to metric policy established under Sec. 5164 of the

Act to adopt the metric system as the preferred system of weights and

measurements for United States trade and commerce. This subsection

establishes the Department of State metric conversion guidelines for

transition from the traditional system to the metric system of weights

and measurements.

(b) Applicability. This subsection applies to all DOS procurements,

except to the extent that such use is impractical or is likely to cause

significant inefficiencies or loss of markets to United States firms.

Dual systems means the use of both traditional and metric systems.

For example, an item is designated, produced and described in inch-

pound values with soft metric values also shown for information or

comparison.

Hard metric means the use of only standard metric (SI) measurements

in specifications, standards, supplies and services.

Hybrid systems means the use of both traditional and hard metric

values in specifications, standards, supplies and services. For

example, an engine with internal parts in metric dimensions and

external fittings or attachments in inch-pound dimensions.

Measurement sensitive means any item whose application or meaning

depends substantially on some measured quantity. For example,

measurement sensitive items include product or performance criteria and

standards binding on others, such as emission levels, size and weight

limitations on items in commerce.

Metrication means any act that increases metric system use,

including metric training and initiation or conversion of measurement-

sensitive processes and systems to the metric system.

Metric system means the International System of Units (Le System

International d'Unites (SI)) of the International Bureau of Weights and

Measures. The units are listed in Federal Standard 376A, Preferred

Metric Units for General Use by the Federal Government.

Soft metric means the result of mathematical conversion of inch-

pound measurements to metric equivalents in specifications, standards,

supplies and services. The physical dimensions, however, are not

changed.

Traditional system of weights and measurements means the

predominant weight and measurement system currently used in the United

States, also referred to as the ``inch-pound system''. The traditional

system includes such commonly used units as inch, foot, yard, mile,

pint, quart, gallon, bushel, ounce (fluid and avoirdupois), pound,

degree Fahrenheit, ampere, candela, and second.

(d) Procedures. (1) DOS contracting activities shall implement the

metric system in a manner consistent with Pub. L. 100-418.

(2) All DOS contracting activities shall use the metric system in

procurement consistent with security, operations, economic, technical,

logistical, training and safety requirements.

(3) The Department shall encourage industry to adopt the metric

system, by acquiring commercially available metric products and

services that meet the Department's needs whenever practical. Toward

this end, solicitations for DOS acquisitions shall:

(i) State all measurement sensitive requirements in metric terms

whenever possible. Alternatives to hard metric are soft, dual and

hybrid metric terms. The Metric Handbook for Federal Officials

regarding the selection of proper metric units and symbols is available

for the National Technical Information Service (#PB89-226922); and

(ii) Contracting officers shall return all statements of work/

specifications that are not expressed in some form of metric terms to

the requirements office that prepared the documents, if the contract is

expected to exceed $500,000, unless the requirements office has

forwarded to the contracting activity for approval, in a waiver format

prescribed by the head of the contracting activity, a justification for

the use of non-metric specifications/statements of work. Option year

prices shall be considered when computing the $500,000 threshold.

(4) Waivers are not required when ordering from Federal Supply

Schedules, or if the contract is not expected to exceed $500,000.

(5) Valid justifications for non-metric specifications/word

statements include, but are not limited to:

(i) Existing specifications and standards in inch-pound units,

unless conversions is necessary or advantageous to the Government.

Unnecessary retrofit of existing systems with new metric components

shall be avoided if the total cost of the retrofit, including redesign

costs, exceeds $25,000;

(ii) When metric is not the accepted industry system with respect

to a business-related activity, soft metric, hybrid or dual system may

be used during transition to hard metric; and

(iii) When the use of metric is impractical or is likely to cause

significant inefficiencies or loss of markets to United States firms.

(6) The contracting officer shall review and, if acceptable,

approve the waiver prepared by the requirements office prior to the

release of a solicitation that incorporates a specification that is not

written in some form of metric, if the resultant contract is expected

to exceed $500,000. The waiver shall be placed in the contract file. If

the waiver is not approved, the contracting officer shall return it to

the requirements office with an explanation.

(7) The Department's direct in-house operating metric conversion

costs shall be handled as normal operating expenses rather than as

special one time costs or included as a budget line item. However,

these costs are to be identified. Identification includes, but is not

limited to, the cost of metric aids, tools, equipment, training and

increased cost to develop metric specifications. All contracting

activities and requirements offices shall maintain a record of any

costs and/or savings brought about by metric conversion.

(8) Bulk (loose, unpacked) materials shall be specified and

purchased in metric or dual units.

(9) Measuring devices, shop and laboratory equipment shall be

purchased in metric or dual units.

(10) Shipping allowances, bills of lading and other shipping

documents shall be expressed in metric or dual units.

SUBCHAPTER C--SUBCONTRACTING METHODS AND CONTRACT TYPES

PART 613--SMALL PURCHASE AND OTHER SIMPLIFIED PURCHASE PROCEDURES

613.103-70 [Amended]

52. Section 613.103-70 is amended by removing paragraph (a) and

removing the paragraph ``(b)'' designation from paragraph (b).

53. Section 613.505-1 is added to read as follows:

613.505-1 Optional Form (OF) 347, Order for Supplies or Services, and

Optional Form 348, Order for Supplies or Services--Continuation.

The OF-347 and OF-348 shall be mandatory for use by domestic

contracting activities for issuing simplified acquisitions and delivery

orders, unless ordering against another Federal agency contract which

stipulates a different form (e.g., DD-1155, Order for Supplies or

Services). The OF-347 and OF-348 are the preferred forms for issuing

simplified acquisitions and delivery orders by overseas contracting

activities; however, use of the OF-206 is authorized until such time

that electronic commerce requires use of the OF-347 or related form.

The OF-347 may also be used as a voucher.

54. Section 613.502-2 is revised to read as follows:

613.505-2 Agency order forms in lieu of Optional Forms 347 and 348.

(a) In lieu of the OF-347 and OF-348, DOS overseas contracting

activities may use the Optional Form 206, Purchase Order, Receiving

Report and Voucher, and Optional Form 206A, Continuation Sheet

(illustrated at 653.303-206 and 653.303-206A, respectively).

(b) When using the OF-206, contracting activities may use Optional

Form 127, Receiving and Inspection Report (illustrated at 653.303-127),

for that purpose.

55. Section 613.505-70 is added to read as follows:

613.505-70 File folders for simplified acquisitions, delivery orders,

and blanket purchase agreements.

Contracting officers shall use Forms DST-1918, Purchase Order File;

DST-1919, Delivery Order File; and, DST-1920, Blanket Purchase

Agreement (BPA) File, to record relevant data and document those

purchases, respectively.

56. Section 613.507-70 is amended by adding the following sentence

at the end to read as follows:

613.507-70 DOSAR clauses.

* * * The DOSAR clauses may be incorporated without setting out full

text.

57. Subpart 613.6-70 is added to read as follows:

Subpart 613.6-70--Governmentwide Commercial Purchase Card Program

613.601-70 Policy.

(a) Scope. This subsection sets forth policy for use of the

Government purchase card when making small purchases.

(b) Policy. It is the Department's policy that:

(1) The purchase card shall be used in preference to other methods

of procurement (particularly BPAs) for purchases up to $2,500;

(2) The purchase card shall be issued primarily to personnel

outside of procurement offices to purchase products and services up to

ten percent of the small purchase threshold quickly with a minimum of

paperwork and without having to send an individual requisition to a

procurement office;

(3) The purchase card may be used in procurement offices for

purchases up to the small purchase limitation; and,

(4) Open market purchases made with the purchase card shall be from

small business, unless otherwise exempted by the FAR.

developed by each contracting activity that wishes to participate in

the program. These procedures shall be approved by A/OPE prior to

implementation.

Subpart 614--Sealed Bidding

614.201-7-70 [Amended]

58. Section 614.201-7-70 is amended by removing paragraph (a)(1);

by redesignating paragraph (a)(2) as paragraph (a); by deleting the

clause number ``652.214-71'' and inserting ``652.214.-70'' in its place

paragraph (b); by revising paragraph (c) to read as follows; and by

removing paragraph (d):

614.201-7-70 DOSAR contract clauses.

(a) * * *

(b) * * *

shall insert the provision at 652.214-71, Authorization to Perform, in

all solicitations for contracts to be awarded or performed overseas.

614.404-1 [Amended]

59. Section 614.404-1 is amended by removing the parenthetical

``(see 601.603-70)''.

PART 615--CONTRACTING BY NEGOTIATION

615.106-70 [Amended]

60. Section 615.106-70 is amended by removing the phrase ``652.214-

70, Language Version,''; and by redesignating clause numbers

``652.214.71'' and ``652.214-72'' to read ``652.214-70'' and ``652.214-

71'', respectively.

61. Subparts 615.4 and 615.5 are added to read as follows:

Subpart 615.4--Solicitation and Receipt of Proposals and Quotations

Sec.

615.403 Solicitation mailing lists.

615.404 Presolicitation notices and conferences.

615.406 Preparing requests for proposals (RFP's) and requests for

quotations (RFQ's).

615.406-1 Uniform contract format.

615.413 Disclosure and use of information before award.

615.413-2 Alternate II.

Subpart 615.4--Solicitation and Receipt of Proposals and Quotations

615.403 Solicitation mailing lists.

Contracting officers shall release copies of solicitation mailing

lists in accordance with FAR 14.205-5(a). However, the list of those

firms which actually submitted proposals is not releasable. Requests

for information other than solicitation mailing lists shall be handled

by the Department's Office of Freedom of Information.

615.404 Presolicitation notices and conferences.

(c)(1) The Procurement Executive has approved a class deviation

from the requirements of FAR 15.404(c)(1). Approval for presolicitation

conferences at one level above the contracting officer is not required.

615.406 Preparing requests for proposals (RFP's) and requests for

quotations (RFQ's).

615.406-1 Uniform contract format.

(a) The uniform contract format shall be mandatory for all

acquisitions outside the United States, its possessions, its

territories, and Puerto Rico, with the exception of those contracts

listed in FAR 15.406-1(a) (1) through (8), unless a waiver is granted

by the Procurement Executive. The Procurement Executive is the agency

head's designee for the purposes of FAR 15.406-1(a)(7).

615.413 Disclosure and use of information before award.

615.413-2 Alternate II.

Contracting officers may determine to use the alternate procedures

listed in FAR 15.413-2 in cases deemed appropriate. These procedures

must be used when releasing proposals outside the Government for

evaluation purposes.

(e) Contracting officers shall place the notice specified in FAR

15.413-2(e) on all proposals when using these alternate procedures.

(f) Release of proposals outside the Government is authorized.

(1) The Procurement Executive is the agency head's designee for the

purposes of FAR 15.413-2(f)(1).

Subpart 615.5--Unsolicited Proposals

Sec.

615.504 Advance guidance.

615.506 Agency procedures.

Subpart 615.5--Unsolicited Proposals

615.504 Advance guidance.

(a) The contact points for unsolicited proposals are the heads of

the contracting activities.

615.506 Agency procedures.

(a) The contact points shall ensure that unsolicited proposals are

controlled, evaluated, safeguarded, and disposed of in accordance with

FAR Subpart 15.5.

62. Section 615.604 is added to read as follows:

615.604 Responsibilities.

(a) The head of the contracting activity is the agency head's

designee for the purposes of FAR 15.604(a).

615.607 [Amended]

63. Section 615.607 is amended by removing the parenthetical ``(see

601.603-70)'' in the first sentence, and by removing the words ``a

legal review from'' and inserting ``the concurrence of'' in their place

in the second sentence.

615.608 [Amended]

64. Section 615.608 is amended by removing the parenthetical ``(see

601.603-70)'' in the first sentence.

PART 616--TYPES OF CONTRACTS

65. Section 616.102-70 is revised to read as follows:

616.102-70 Overseas posts.

Pursuant to 601.603-70(a)(1)(i), no authority is delegated to

overseas posts to enter into cost-reimbursement, fixed-price incentive,

or fixed-price redeterminable contracts, unless the Procurement

Executive's approval is obtained. Such requests shall be submitted by

the head of the contracting activity on a case-by-case basis.

66. Section 616.203-4 is amended by removing the words ``The

contracting officer'' and inserting ``Contracting officers at domestic

contracting activities'' in their place in the first sentence; and by

adding the following sentences:

616.203-4 Contract clauses.

* * * Overseas posts may use the clause at 652.216-71, Price

Adjustment, when procuring continuing services (e.g., guard,

janitorial, building maintenance, and gardening). Posts shall obtain A/

OPE approval for any price adjustment clause that differs from the

clause at 652.216-71.

616.301-3 [Amended]

67. Section 616.301-3 is amended by removing the words ``and

approved at a level above the contracting officer''.

68. Section 616.306 is amended by removing the words ``, without

power of redelegation,'' and by adding the following sentence:

616.306 Cost-plus-fixed-fee contracts.

* * * This authority may be redelegated.

69. Section 616.603-2 is amended by adding the following sentence:

616.603-2 Application.

* * * For cases where the contracting officer is also the head of the

contracting activity, the Procurement Executive shall approve the

determination and findings.

PART 617--SPECIAL CONTRACTING METHODS

617.102-2 [Amended]

70. Section 617.102-2 is amended by adding the words ``, unless

approved by the Procurement Executive in accordance with DOSAR

617.204(e).'' to paragraph (d).

71. Section 617.102-3 is added to read as follows:

617.102-3 Objectives.

(d)(3) The head of the contracting activity is the agency head's

designee for the purposes of FAR 17.102-3(d)(3). For those cases where

the contracting officer is also the head of the contracting activity,

the Procurement Executive shall be the agency head's designee.

72. Section 617.201-70 is amended by revising the definition of

``Priced option'' to read as follows:

617.201-70 DOSAR definitions.

* * * * *

Price option means an option where the amount for the option is

specified in or is reasonably determinable from the terms of the basic

contract, as described in FAR 17.207(f) (1) through (5).

* * * * *

73. Section 617.204 is added to read as follows:

617.204 Contracts.

(e) The Procurement Executive shall approve any solicitations or

contracts which exceed the five (5) year maximum length for supplies or

services.

617.207, 617.207-70 [Removed]

74. Sections 617.207 and 617.207-70 are removed.

617.502 [Amended]

75. Section 617.502 is amended by removing the parenthetical ``(see

601.603-70)''.

76. Section 617.504-70 is added to read as follows:

617.504-70 Ordering procedures.

(a) Department deputy assistant secretaries are authorized to

execute Economy Act IAAs. Department contracting officers also are

authorized to execute Economy Act IAAs, as prescribed in FAR 17.504(a).

(b) Department of State form DS-1921, Award/Modification of

Interagency Acquisition Agreement (illustrated in part 653), shall be

used for all Economy Act IAAs where the Department is the requesting

agency. It shall also be used for Economy Act IAAs where the Department

is the servicing agency if the requesting agency does not have a

similar form that provides the same information.

SUBCHAPTER D--SOCIOECONOMIC PROGRAMS

PART 619--SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS

77. Part 619 is amended by revising the word ``Director'' to read

``Operations Director'' wherever it appears in the text; and revising

the acronym ``OSDBU'' to read ``A/SDBU'' wherever it appears in the

text.

619.201 [Amended]

78. Section 619.201 is amended by removing ``The Under Secretary

for Management'' and inserting ``The Assistant Secretary of State for

Administration'' in its place in paragraph (c); by removing ``$25,000''

and inserting ``the simplified acquisition limitation'' in its place in

paragraph (d)(5); by removing the semicolon at the end of paragraph

(d)(5) after the word ``set-asides'' and inserting a period in its

place; and by adding the following sentences to paragraph (d)(5):

619.201 General policy.

* * * * *

(d) * * * (5) * * * This includes proposed contract modifications

for new or additional requirements which do not fall within the

original scope of the contract and which exceed the simplified

acquisition limitation. This does not include the exercising of

contract options;

79. Section 619.501 is added to read as follows:

619.501 General.

1910, Small Business/Labor Surplus Area Review--Actions Above the Small

Purchase Limitation, to document set-aside decisions.

80. Section 619.506 is added to read as follows:

619.506 Withdrawing or modifying set asides.

(b) The Procurement Executive shall resolve disagreements between

the A/SDBU Operations Director and the contracting officer.

81. Section 619.705-1 is added to read as follows:

619.705-1 General support of the program.

It is the Department's policy to incorporate its current fiscal

year goals as negotiated with the SBA into all pertinent Department

solicitations, in addition to the standard subcontract clauses.

Incorporation of the goals does not require that large business prime

contractors must subcontract, but does require that to the extent they

plan to subcontract, specific goals be established for doing business

with small, small disadvantaged, and women-owned firms. Where funds are

available, an incentive clause such as that found in FAR 52.219-10,

Incentive Subcontracting Program for Small and Small Disadvantaged

Business Concerns, is encouraged.

82. Section 619.705-3 is amended by adding the following sentence:

619.705-3 Preparing the solicitation.

* * * To further promote the use of small, disadvantaged, and women-

owned firms by large prime contractors, contracting officers are

encouraged to consider the adequacy of the subcontracting plans, and/or

past performance in achieving negotiated subcontract goals, as part of

the overall evaluation of the technical proposals.

619.705-6-70 [Amended]

83. Section 619.705-6-70 is amended by removing the word

``quarterly'' wherever it appears in paragraph (b) and inserting the

words ``annually'' and ``annual'' in its place, respectively.

84. Section 619.708-70 is added to read as follows:

619.708-70 Solicitation provisions and contract clauses.

The contracting officer shall insert a provision substantially the

same as the provision at 652.219-70, Department of State Subcontracting

Goals, in solicitations whenever the clause at FAR 52.219-9, Small

Business and Small Disadvantaged Business Subcontracting Plan, is used.

85. Section 619.801 is revised to read as follows:

619.801 Definitions.

National buy requirements includes all 8(a) contracts performed

outside the United States and processed by the Small Business

Administration.

86. Sections 619.810 and 619.812 are added to read as follows:

619.810 SBA appeals.

The Procurement Executive is the agency head for the purposes of

FAR 19.810.

619.812 Contract administration.

(d) The Procurement Executive is the agency head for the purposes

of FAR 19.812(d).

87. Section 619.870 is amended in paragraph (b) by revising the

first sentence and by adding a new second sentence to read as follows:

619.870 Acquisition of technical requirements.

(a) * * *

(b) The contracting officer has greater latitude in holding

discussions with the concerns solicited under an 8(a) program

acquisition if under the $3 million competitive threshold for 8(a)

competition than under a non-8(a) program acquisition. Informal

assessments of 8(a) concerns shall be within the parameters of 13 CFR

124.308(g). * * *

PART 622--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

88. Section 622.401 is added to read as follows:

622.401 Definitions.

(b) Apprentices, trainees, helpers, and, in the case of contracts

subject to the Contract Work Hours and Safety Standards Act, watchmen

and guards. The terms ``apprentice'' and ``trainee'' are defined as

follows:

(1) Apprentice has the same definition as in FAR 22.401(b)(1).

(2) Trainee has the same definition as in FAR 22.401(b)(2).

(3) The definition for helper as described in FAR 22.401 paragraph

(b)(3) of the definition of Laborers or mechanics is reserved.

89. Section 622.404-6 is amended by adding a new paragraph (b)(6)

to read as follows:

622.404-6 Modifications of wage determinations.

* * * * *

(b)(6) The head of the contracting activity is the agency head's

designee for the purposes of FAR 22.404-6(b)(6).

90. Section 622.406-3 is added to read as follows:

622.406-3 Additional Classifications.

(b)(4) FAR 22.406-3 paragraph (b)(4) is reserved.

PART 623--ENVIRONMENT, CONSERVATION, OCCUPATIONAL SAFETY, AND DRUG-

FREE WORKPLACE

91. Subparts 623.3 and 623.4 are added to read as follows:

Subpart 623.3--Hazardous Material Identification and Material

Safety Data

623.302-70 Policy.

Any work which affects the safety and/or health of post personnel,

including the handling of hazardous materials, shall comply with the

applicable requirements of the Department of State Safety/Health and

Environmental Management Resource Guide (6 FAM 606.7). Requirements

offices shall ensure that any contractor operations and activities,

whether sponsored by the post or other Department organization, are

closely coordinated with the Post Occupational Safety and Health

Officer during both planning and implementation phases.

Subpart 623.4--Use of Recovered Materials

Sec.

623.470 Affirmative procurement program for recovered materials.

623.471 Purpose.

623.472 Applicability.

623.473 Definitions.

623.474 EPA guidelines.

623.475 Responsibilities.

623.476 Preference programs for guideline items.

623.476-1 Preference program for the purchase of cement and

concrete containing fly ash.

623.476-2 Preference program for building insulation products

containing recovered materials.

623.476-3 Preference program for lubricating oils containing

recovered materials.

623.476-4 Preference program for retread tires.

623.476-5 Preference program for paper and paper products

containing recovered materials.

623.477 Promotion program.

623.478 Evaluation and certification.

623.479 Annual review and monitoring.

623.480 Solicitation provisions and contract clauses.

Subpart 623.4--Use of Recovered Materials

623.470 Affirmative procurement program for recovered materials.

623.471 Purpose.

This section establishes the Department of State's Affirmative

Procurement Program for Recovered Materials in accordance with Section

6002 of the Resource Conservation and Recovery Act (RCRA) (42 U.S.C.

6962, Pub. L. 94-580). Section 6002 requires that each agency develop

an affirmative procurement plan to assure that items composed of

recovered materials will be purchased to the maximum extent practical

and which is consistent with Federal procurement law. It requires that

preference be given in procurement programs to the purchase of items

containing recycled materials identified in guidelines promulgated by

the Environmental Protection Agency (EPA). Executive Order 12780,

Federal Agency Recycling and the Council on Federal Recycling and

Procurement Policy, directed implementation of cost effective

affirmative procurement programs for recycled items.

623.472 Applicability.

The affirmative procurement program is applicable to all domestic

acquisition of items currently designated by an EPA guideline or by

future guidelines promulgated by EPA. The requirements of this section

are not applicable to acquisitions made and/or performed outside the

United States or its possessions.

623.473 Definitions.

Affirmative procurement program is a program which ensures that

items composed of recovered materials will be purchased to the maximum

extent practicable, consistent with Federal procurement law. There are

four components to an affirmative procurement program: (1) A preference

program; (2) a promotion program; (3) procedures for requiring,

obtaining and verifying estimates and certifications of recovered

materials content; and, (4) an annual review and monitoring.

Designated item is an item that has been designated in an EPA

procurement guideline as an item that is or can be produced using

recovered materials whose procurement will advance the purpose of RCRA.

Minimum-content standard is the minimum content of recovered

materials that a designated item must contain pursuant to

specifications implementing the Department's preference program.

Postconsumer recovered materials are waste materials recovered from

retail stores, office buildings, homes, and so forth after they have

passed through their end usage as a consumer item. Waste paper includes

all items from the first two categories above in addition to forest

residues, and manufacturing and other wastes.

Procurement guidelines are guidelines issued by the EPA pursuant to

Section 6002 of RCRA: (1) Identifying items that are or can be produced

with recovered materials and where procurement will advance the

objectives of the Act; and, (2) providing recommended practices for the

procurement of such items.

Recovered materials are waste materials and by-products that have

been recovered or diverted from solid waste, not including those

materials and by-products generated from, and commonly reused within,

an original manufacturing process.

Unreasonable price is the price for products containing recovered

materials which exceeds alternatives made with virgin materials by 10

percent or more, and which the requirements office initiating the

acquisition substantiates as exorbitant.

623.474 EPA guidelines.

(a) The EPA has published five guidelines that designate the

following items that are or can be produced using recovered materials.

Accordingly, contracting activities shall procure items produced using

recovered materials to the maximum extent possible when procuring these

designated items:

(1) Cement and concrete containing fly ash, 40 CFR part 249;

(2) Paper and paper products, 40 CFR part 250;

(3) Lubricating oils, 40 CFR part 252;

(4) Retread tires, 40 CFR part 253; and,

(5) Building insulation products, 40 CFR part 248.

(b) Copies of these guidelines, as well as future guidelines

promulgated by EPA, may be obtained by calling EPA's Recycled Products

Information Clearinghouse at (703) 941-4452.

more than $10,000 worth of a designated item, or if the cost of all

such items purchased by the Department during the preceding Fiscal Year

was $10,000 or more.

Sec. 623.475 Responsibilities.

(a) The requirements office initiating an acquisition is

responsible for determining whether recovered materials should be

included in the specifications. Requirements offices may purchase items

subject to the guidelines containing other than recovered materials

only if:

(1) The price of items with recovered materials is unreasonable;

(2) The requirement for items produced with recovered materials

results in inadequate competition or adversely affects small business

or the Department's metrication program;

(3) Obtaining items with recovered materials results in unusual and

unreasonable delays; or

(4) Items produced with recovered materials do not meet all

reasonable performance specifications.

(b) If the requirements office chooses to procure designated items

that do not contain recovered materials, a written justification must

be submitted to the contracting officer.

623.476 Preference programs for guideline items.

623.476-1 Preference program for the purchase of cement and concrete

containing fly ash.

Domestic contracts requiring the purchase of cement and concrete

shall specify the performance requirements of the products required

under the contract using appropriate standards/specifications when

available. Consistent with such performance specifications, such

contracts shall allow the contractor to deliver cement and concrete

products that contain fly ash, a component of coal resulting from its

combustion in electrical generating plants. Architects/Engineers shall

specify performance requirements for the concrete to be supplied.

623.476-2 Preference program for building insulation products

containing recovered materials.

Minimum content standards for building insulation products have

been established by EPA guidelines. Domestic contracts for the design

of structures that will utilize building insulation products shall

require that the Architect/Engineer include, as a design consideration,

the Department preference for the use of building insulation produced

with recovered materials. Such contracts shall require that the

Architect/Engineer specify the type of building insulation products to

be supplied and shall require the Architect/Engineer to justify, in

writing, the basis of the selected product type if it is not in

accordance with the EPA guideline.

623.476-3 Preference program for lubricating oils containing recovered

materials.

Contracts requiring the supply of lubricating oils, hydraulic

fluids and gear oils shall require that products conform to the EPA

guideline.

623.476-4 Preference program for retread tires.

Contracts requiring replacement tires for automobiles, light and

heavy trucks and trailers, and off-road tires shall specify that

retreading services shall be obtained if the carcass is retreadable. If

such retreading services are not practicable, replacement tires shall

be procured in accordance with the EPA guideline.

623.476-5 Preference program for paper and paper products containing

recovered materials.

(a) All contracts requiring the purchase of paper and paper

products shall require that paper and paper products delivered to the

Department meet the EPA guideline for recycled paper.

(b) Contracting officers shall require contractors to use recycled

paper when submitting reports and other deliverables to the Department,

when feasible.

proposals/bids on recycled paper, double-sided copying to the maximum

extent possible.

623.477 Promotion program.

Items composed of recovered materials shall be purchased under all

new domestic contracts to the maximum extent practicable. Contracting

officers shall promote the fact that the Department is seeking to buy

items containing recovered materials at pre-proposal and pre-bid

conferences when appropriate.

623.478 Evaluation and certification.

(a) Contracting officers shall ensure that vendors estimate in

their offers/bids the percentage of recovered material of the total

content of designated items to be used under the contract.

(b) Contracting officers shall ensure that contractors certify the

percentage of recovered materials contained in designated items

actually supplied under the contract.

623.479 Annual review and monitoring.

The effectiveness of the preference program shall be reviewed

annually by A/OPE. An assessment will be made to determine if greater

use of recovered material is possible for the existing requirements or

if recovered materials are causing undue delay, lack of competition,

unreasonable prices or an unacceptable level of performance.

623.480 Solicitation provisions and contract clauses.

(a) The contracting officer shall insert the provision at 652.223-

70, Estimates of the Total Percentage of Recovered Materials to be

Utilized in the Performance of the Contract, in all domestic

contracting activity solicitations using recovered materials in the

performance of the work.

(b) The contracting officer shall insert the clause at 652.223-71,

Certification of Minimum Content Actually Utilized in the Performance

of the Contract, in all domestic solicitations and contracts requiring

the use of recovered materials.

72, Use of Double-Sided Copying in the Submission of Bids or Proposals,

in all domestic solicitations for supplies or services.

(d) The contracting officer shall insert the clause at 652.223-73,

Use of Double-Sided Copying in the Submission of Reports, in all

domestic solicitations and contracts for supplies or services.

(e) The contracting officer shall insert the clause at 652.233-74,

Use of Fly Ash as a Partial Replacement for Cement and Concrete, in all

domestic solicitations and contracts for Architect/Engineer services

for the design of structures or works that will use cement and concrete

products, unless the requirements office provides a written

justification for using virgin materials.

(f) The contracting officer shall insert the clause at 652.223-75,

Use of Recovered Materials in Building Insulation Products, in all

domestic solicitations and contracts for Architect/Engineer services

for the design of structures or works that will utilize or incorporate

building insulation products containing recovered materials, unless the

program office provides a written justification for using virgin

materials.

(g) The contracting officer shall insert the clause at 652.223-76,

Use of Lubricating Oils Containing Re-Refined Oils, in all domestic

solicitations and contracts that require the delivery of lubricating

oils, unless the program office provides a written justification for

using virgin materials.

(h) The contracting officer shall insert the clause at 652.223-77,

Use of Retread Tires, in all domestic solicitations and contracts that

require the replacement of tires for automobiles, light and heavy

trucks and trailers, and off-road vehicles, unless the program office

provides a written justification for not using retread tires. This

clause does not apply to the purchase of original equipment tires.

(i) The contracting officer shall insert the clause at 652.233-78,

Use of Recovered Materials in Paper and Paper Products, in all domestic

solicitations and contracts that require the delivery of reports or

other paper products, unless the program office provides a written

justification for the use of virgin materials.

PART 625--FOREIGN ACQUISITION

92. Section 625.102 is revised to read as follows:

625.102 Policy.

(a)(3) The authority to make the determination prescribed in FAR

25.102(a)(3) is delegated, without power of redelegation, to the head

of the contracting activity.

(b)(2) The authority to make the determination prescribed in FAR

25.102(b)(2) is delegated, without power of redelegation, to the head

of the contracting activity.

625.108 [Amended]

93. Section 625.108 is amended by removing the words ``The Office

of the Procurement Executive'' and inserting the acronym ``A/OPE'' in

their place.

94. Section 625.202 is revised to read as follows:

625.202 Policy.

(a)(2) The authority to make the determination prescribed in FAR

25.202(a)(2) is delegated, without power of redelegation, to the head

of the contracting activity.

(b) The authority to make the determination prescribed in FAR

25.202(b) is delegated, without power of redelegation, to the head of

the contracting activity.

95. Section 625.203 is added to read as follows:

625.203 Evaluating offers.

The head of the contracting activity is the agency head for the

purposes of FAR 25.203 (a) and (b).

625.304 [Amended]

96. Section 625.304 is amended by adding after ``activity'' the

words ``without power of redelegation.''

97. Section 625.901 is revised to read as follows:

625.901 Omission of examination of records clause.

(a) The Procurement Executive is the agency head for the purposes

of FAR 25.901.

(b) Each determination and findings to omit FAR clause 52.215-1,

Examination of Records by Comptroller General, shall be prepared in

writing by the contracting officer and submitted to the Procurement

Executive for approval.

determination and findings to the requesting contracting activity for

inclusion in the contract file, or inform the contracting activity in

writing if the determination and findings is not approved, as

appropriate.

(1)(ii) The report required by FAR 25.901(c)(1)(ii) shall be

prepared and forwarded to the Assistant Secretary of State for

Administration by the Procurement Executive.

Subpart 625.10 (625.1003)--[Removed]

98. Subpart 625.10, consisting of section 625.1003, is removed.

PART 627--PATENTS, DATA, AND COPYRIGHTS

99. Part 627 is added, to read as follows:

PART 627--PATENTS, DATA, AND COPYRIGHTS

Subpart 627.2--Patents

Sec.

627.203 Patent indemnification of Government by contractor.

627.203-6 Clause for Government waiver of indemnity.

Subpart 627.3--Patent Rights Under Government Contracts

627.303 Contract clauses.

627.304 Procedures.

627.304-1 General.

627.304-5 Appeals.

Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

Subpart 627.2--Patents

627.203 Patent indemnification of Government by contractor.

627.203-6 Clause for Government waiver of indemnity.

The Procurement Executive is the agency head's designee for the

purposes of FAR 27.203-6.

Subpart 627.3--Patent Rights Under Government Contracts

627.303 Contract clauses.

The Procurement Executive is the agency head's designee for the

purposes of FAR 27.303. Determinations issued by the Procurement

Executive shall be reviewed by the Office of the Legal Adviser.

627.304 Procedures.

627.304-1 General.

The Procurement Executive is the agency head's designee for the

purposes of FAR 27.304-1. Questions regarding fact-finding procedures

as specified in FAR 27.304-1(a)(4) shall be referred to A/OPE.

Determinations issued by the Procurement Executive shall be reviewed by

the Office of the Legal Adviser.

627.304-5 Appeals.

The Procurement Executive is the agency head's designee for the

purposes of FAR 27.304-5. Questions regarding the appeals procedure as

specified in FAR 27.304-5(b) shall be referred to A/OPE.

PART 628--BONDS AND INSURANCE

100. Part 628 is amended by adding Subparts 628.1, 628.2, and 628.3

to read as follows:

Subpart 628.1--Bonds

628.101 Bid guarantees.

628.101-1 Policy on use.

628.106-6 Furnishing information.

Subpart 628.2--Sureties

628.203 Acceptability of individual surety.

628.203-7 Exclusion of individual sureties.

Subpart 628.3--Insurance

628.305 Overseas workers' compensation and war-hazard insurance.

628.306 Insurance under fixed-price contracts.

628.307 Insurance under cost-reimbursement contracts.

628.307-70 Insurance under labor-hour and time-and-materials

contracts.

Subpart 628.1--Bonds

628.101 Bid guarantees.

628.101-1 Policy on use.

purposes of FAR 28.101-1(c).

628.106-6 Furnishing information.

designee for the purposes of FAR 28.106-6(c).

Subpart 628.2--Sureties

628.203 Acceptability of individual surety.

(g) Evidence of possible criminal or fraudulent activities by an

individual surety shall be referred to the Office of the Inspector

General.

628.203-7 Exclusion of individual sureties.

The Procurement Executive is the agency head's designee for the

purposes of FAR 28.203-7.

Subpart 628.3--Insurance

628.305 Overseas workers' compensation and war-hazard insurance.

(a) It is the Department's policy that acquisitions for services,

including construction but excluding personal services contracts, which

require contractor personnel to perform work outside of the United

States, shall include the contractual obligation for coverage under the

Defense Base Act (42 U.S.C. Sections 1651-1654, as amended). For the

purpose of this section only, ``contractor personnel'' includes

individuals who are either:

(1) United States citizens or residents, or

(2) Hired in the United States or its possessions.

(b) The Department of State has entered into a contract with an

insurance broker and carrier to provide Defense Base Act insurance, at

a fixed rate for services and construction, to cover DOS contracts

which will require performance overseas by United States citizens,

residents, or those employed in the United States. In countries where

local nationals and/or third country nationals will be employed to

perform the contract, such countries may be waived by the Secretary of

Labor. Whenever such insurance is required under the contract, the

contracting officer shall insert:

(1) The clause at 652.228-71, Worker's Compensation Insurance

(Defense Base Act)--Services;

(2) The clause at 652.228-72, Worker's Compensation Insurance

(Defense Base Act)--Construction; and,

(3) The clause at 652.228-73, Waiver of Defense Base Act.

insurance, the contracting officer shall notify the successful offeror

of the name of the insurance broker from which the contractor should

acquire insurance.

(d) The authority to request a waiver from the Secretary of Labor

of a particular country, as set forth in FAR 28.305(d), is reserved to

the Secretary of State. The Department has obtained blanket waivers

from the Secretary of Labor for all contracts for services, including

construction, awarded and/or performed overseas. The waivers apply to

all individuals who are not employees hired in the United States, or

who are not United States citizens or residents.

628.306 Insurance under fixed-price contracts.

(a) The contracting officer shall insert the provision at:

(1) 652.228-74, Defense Base Act Insurance Rates--Limitation--

Services, in solicitations for fixed-price service contracts to be

performed outside the United States by United States citizens or

residents and/or those hired in the United States; or

(2) 652.228-75, Defense Base Act Insurance Rates--Limitation--

Construction, in solicitations for fixed-price construction contracts

to be performed outside the United States by United States citizens or

residents and/or those hired in the United States.

628.307 Insurance under cost-reimbursement contracts.

The contracting officer shall insert the provision at 652.228-76,

Defense Base Act Insurance Rates--Limitation--Cost-Reimbursement, in

solicitations for cost-reimbursement type contracts to be performed

outside the United States by United States citizens or residents and/or

those hired in the United States.

628.307-70 Insurance under labor-hour and time-and-materials

contracts.

The contracting officer shall insert the provision at 652.228-77,

Defense Base Act Insurance Rates--Limitation--Labor-Hour and Time-and-

Material, in solicitations for labor-hour or time-and-material type

contracts to be performed outside the United States by United States

citizens or residents and/or those hired in the United States.

PART 631--CONTRACT COST PRINCIPLES AND PROCEDURES

101. Part 631 is added to read as follows:

PART 631--CONTRACT COST PRINCIPLES AND PROCEDURES

Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

Subpart 631.1--Applicability

631.101 Objectives.

The Procurement Executive is the agency head's designee for the

purposes of FAR 31.101.

PART 632--CONTRACT FINANCING

Subpart 632.1 (632.111, 632.111-70)--[Removed]

102. Subpart 632.1, consisting of sections 632.111 and 632.111-70,

is removed.

103. Section 632.402 is amended by designating the existing text as

paragraph (c)(1)(iii), and by adding a new paragraph (b) to read as

follows:

632.402 General.

(b) Advance payments shall be authorized sparingly. Contracting

officers should consider the use of partial payments, fast payments, or

more frequent payments as alternatives to advance payments.

* * * * *

104. Section 632.407 is added to read as follows:

632.407 Interest.

(d) The Procurement Executive is the agency head's designee for the

purposes of FAR 32.407(d).

105. Subparts 632.7 and 632.8 are added to read as follows:

Subpart 632.7--Contract Funding

632.703 Contract funding requirements.

632.703-3 Contracts crossing fiscal years.

(a) The State Department Basic Authorities Act of 1956, as amended

(22 U.S.C. 2696(e)), allows funds from annual appropriations to extend

beyond the fiscal year in which the acquisition was funded. This

authority may be used for acquisitions of supplies or services,

regardless of dollar amount or contract type. Use of this authority

requires that:

(1) The acquisition normally would be considered severable (i.e.,

the services are repetitive and can be started or stopped any time;

would normally be funded and performed within a fiscal year; and are

not services integral to the creation of an end product. An example is

janitorial services);

(2) The base performance period is twelve months, begins in the

current fiscal year, and crosses into the next fiscal year; and,

(3) Full funding for twelve months is available in the current

year.

(b) If the acquisition involves more than one source of funds, the

contract shall be priced to identify the source of funds (by allotment)

with the relevant portion of the total supplies or services. For

current Department contracts, bilateral modifications are authorized

where necessary to convert to a performance period that crosses fiscal

years, as long as the requisite funding is available as described in

paragraph (a), and provided that the total contract length does not

increase.

and be included as part of the Advance Acquisition Plan and Price

Negotiation Memorandum. If neither document is relevant to the

acquisition, the contracting officer shall prepare a written document

to the file indicating compliance with this subsection.

(d) For acquisitions conducted by overseas posts that are funded by

another agency, the contracting officer shall ensure that funding for

the full twelve-month period is available at time of award if the

authority in 22 U.S.C. 2696(e) will be used.

Subpart 632.8--Assignment of Claims

632.803 Policies.

(b) The assignment of claims shall be prohibited for all personal

services contracts. The assignment of claims shall also be prohibited

for all contracts awarded and performed overseas, unless approval is

received from the Procurement Executive.

Subpart 632.9--Prompt Payment

106. Section 632.908 is added to read a follows:

632.908 Contract clauses.

(a) The contracting officer may insert a clause substantially the

same as the clause at 652.232-70, Payment Schedule and Invoice

Submission (Fixed-Price), in fixed-price type solicitations and

contracts.

(b) The contracting officer may insert a clause substantially the

same as the clause at 652.232-71, Voucher Submission (cost-

Reimbursement), in cost-reimbursement type solicitations and contracts.

PART 633--PROTESTS, DISPUTES AND APPEALS

633.104 [Amended]

107. Section 633.104 is amended by removing the introductory text

and the parenthetical ``(see 601.603-70'' in the first sentence of

paragraph (a)(1); and by revising the phrase ``Deputy Assistant

Secretary for Information Systems'' to read ``Deputy Assistant

Secretary for Information Management'' in the second sentence of

paragraph (a)(1).

633.105 [Amended]

108. Section 633.105 is amended by removing the introductory text

and by revising the phrase ``Deputy Assistant Secretary for Information

Systems'' to read ``Deputy Assistant Secretary for Information

Management'' in the first sentence of paragraph (a) and the second

sentence of paragraph (c).

109. Section 633.214-70 is added to read as follows:

633.214-70 Alternative dispute resolution.

(a) Policy. The Department's goal is to resolve contract disputes

before the issuance of a contracting officer's final decision under the

Contract Disputes Act. Contracting officers shall consider all possible

means of reaching a negotiated settlement, consistent with the

Government's best interests, before issuing a final decision on a

contractor claim under the process outlined in FAR 33.206 through

33.211.

(b) When to use ADR. (1) Factors favoring ADR. Contracting officers

should consider using ADR in those cases where:

(i) Only facts are in dispute;

(ii) The facts are clearly not favorable to the Government;

(iii) The anticipated costs (in time and money) are less than the

anticipated costs of litigation;

(iv) Settlement attempts have reached an impasse;

(v) ADR techniques have been used successfully in similar

situations;

(vi) There is a need for independent expert analysis; or,

(vii) The claim has merit but its value is overstated.

(2) Factors disfavoring ADR. The following circumstances do not

favor use of ADR:

(i) Cases involving disputes controlled by clear legal precedent,

making compromise difficult;

(ii) The resolution will have a significant impact on other pending

cases or on the future conduct of Department business;

(iii) The dispute is primarily over issues of law;

(iv) A decision of precedential value is needed;

(v) A significant policy question is involved;

(vi) A full public record of the proceeding is important;

(vii) The outcome could significantly involve persons who are not

parties to the contract;

(viii) The costs of pursuing an ADR procedure (in time and money)

exceed the cost of litigation;

(ix) The nature of the case may cause ADR to be used merely for

delay or discovery; or,

(x) The case involves criminal violations.

(3) Initial action. Immediately upon receipt of a claim, the

contracting officer shall send a letter acknowledging receipt of the

claim and soliciting the contractor's views on submitting this claim

for ADR. In every dispute, the first step toward resolution shall be

unassisted negotiations, in which the parties try to work out the

disagreement among themselves. If this fails, before issuing a final

decision, the contracting officer shall consult first with the head of

the contracting activity, and contact the Office of the Legal Adviser

and A/OPE to determine whether the disagreement appears susceptible to

resolution by ADR. Consideration shall be given to pursuing additional

fact-finding or designating a neutral expert in the disputed issue to

provide an advisory opinion.

fails, and the contracting officer issues a final decision which is

appealed, ADR may still be feasible. The ASBCA issues a notice

regarding ADR to all contractors who file appeals under the Contract

Disputes Act. This notice describes the following ADR techniques, which

contracting officers are urged to discuss with contractors at any time:

(1) Settlement judge. A settlement judge is either an

administrative judge or hearing examiner who is appointed by the

parties in dispute for the purpose of facilitating settlement. The

agenda is flexible and based on the specifics of the individual

dispute. By holding a frank, in-depth discussion of the strengths and

weaknesses of each party's position, the settlement judge may be able

to foster a settlement of the dispute. The settlement judge may meet

with the parties jointly or individually, and the settlement judge's

recommendations are not binding. Typically, the settlement judge's

opinions, based on his or her experience in handling prior disputes,

will help the parties realize whether their arguments have merit or

not.

(2) Minitrial. A minitrial is not an actual trial but rather a

flexible, expedited, but structured procedure in which each party

presents an abbreviated version of its position both to a neutral

advisor (who may be appointed by the ASBCA) and to principals of the

parties who have full contractual authority to conclude a settlement.

The parties mutually decide on the form of presentation without regard

to traditional judicial proceedings or rules of evidence. An advance

agreement by the parties specifies the procedure to be followed in

making presentations, as well as the role of the neutral advisor. Upon

conclusion of the presentations, settlement negotiations are conducted.

The neutral advisor may assist the parties in negotiating settlement,

including making non-binding recommendations.

(3) Summary trial with binding decision. A summary trial with

binding decision is a procedure in which the scheduling of an appeal is

expedited and the parties try their appeal informally before an

administrative judge or panel of judges. The length of the trial and

the time for presentation and decision are tailored to the needs of the

particular case. Trial procedures and rules applicable to appeals are

modified or eliminated to expedite resolution of the appeal. The

parties must agree, however, that all decisions, rulings, and orders by

the judge(s) are final, conclusive, and not appealable, and may not be

set aside, except for fraud. A summary ``bench'' decision is issued at

the conclusion of the trial or a summary written decision will be

issued within ten (10) days of either the trial's conclusion or receipt

of a trial transcript.

(4) Mediation. Mediation is a process in which a neutral and

impartial third party assists the Government and the contractor in

conflict to negotiate an acceptable settlement of contested issues. The

mediator is jointly selected and is asked by the disputing parties to

assist them to reach a voluntary agreement. The mediator has no

decisionmaking authority and cannot impose a decision. Mediation

assistance involves working with the parties to improve their

communications, clarify or interpret data, identify key issues to be

discussed, design an effective negotiation process, generate settlement

options, or help to identify or formulate areas of agreement.

Additional information is available in Army Corps of Engineers IWR

Pamphlet 91-ADR-P-3, Mediation, September 1991; and Administrative

Conference of the U.S., Mediation: A Primer for Federal Agencies,

available from A/OPE.

(5) Arbitration. Non-binding arbitration is a process in which a

dispute is jointly submitted by the Government and a contractor to an

impartial and neutral person or panel who provides a written, non-

binding opinion used as a guide for negotiations toward a settlement.

Although the Administrative Dispute Resolution Act of 1990 (Pub. L.

101-552) allows agencies to use binding arbitration, the law provides

that the agency head may vacate any arbitration award within 30 days

after it is served on all parties. For this reason, non-binding

arbitration is preferable. Additional information is available in Army

Corps of Engineers IWR Pamphlet 91-ADR-P-2, Non-Binding Arbitration,

September 1990, available from A/OPE.

(6) Partnering. Partnering involves an agreement in principle to

share the risks involved in completing a project, and to establish and

promote a partnership environment. Partnering itself is not a

contractual agreement and it does not create any legally enforceable

rights, but instead partnering seeks to create a new cooperative

attitude in completing Government contracts. The three basic steps in

partnering are:

(i) Establish the new relationship through personal contact among

the principals for the Government and the contractor before the work

begins;

(ii) Prepare a joint statement of goals establishing common

objectives in specific detail for reaching the goals; and,

(iii) Identify specific dispute prevention processes designed to

head off problems, evaluate performance, and promote cooperation.

Additional information is available in Army Corps of Engineers IWR

Pamphlet 91-ADR-P-4, Partnering, December 1991, available from A/OPE.

(d) ADR procedures. The ADR method shall be selected voluntarily by

both the Government and the contractor. Both parties shall agree on the

procedures to be followed, including the agenda and amount of time

allowed for each party to present its case. The parties may choose not

to have a written transcript or hearing on the record, as this might

inhibit settlement. Also, the decision rendered, if any, should not be

considered to establish any precedent for future litigation unless the

parties agree otherwise. In cases where the parties agree to pay

jointly for a third-party neutral advisor, it is recommended that the

parties and the advisor agree on a fair and reasonable price. The

Government would then issue a simplified acquisition (if the dollar

amount does not exceed the simplified acquisition limitation) for 50%

of the agreed price, and the advisor would submit separate invoices

(each for 50% of the price) to the Government and the contractor.

SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING

PART 634--MAJOR SYSTEMS ACQUISITION

634.001 [Amended]

110. Section 634.001 is amended by removing ``$10,000,000'' and

inserting ``$30,000,000'' in its place in paragraphs (b) and (c); and

by removing the words ``agency head'' and inserting ``Under Secretary

for Management'' in their place in the first sentence of paragraph (c).

111. Section 634.001-70 is amended by adding the following

definition:

634.001-70 Supplemental definitions.

* * * * *

Major Acquisition Program Office (A/IM/MAPO) is located within the

Office of Information Management. It has managerial and operational

responsibilities relative to all major information resource

acquisitions.

112. Section 634.003 is amended by revising paragraph (a) to read

as follows; and, by removing the words ``The Deputy Assistant Secretary

for Operations'' and inserting ``The Under Secretary for Management''

in their place in paragraph (b):

634.003 Responsibilities.

(a) The Procurement Executive is the agency head's designee for the

purposes of FAR 34.003(a). Written procedures for acquiring Federal

Information Processing (FIP) resources by A/IM/MAPO are contained in

the ``Source Selection Procedures Guide'', issued by that Office.

* * * * *

113. Sections 634.005 and 634.005-6 are added to read as follows:

634.005 General requirements.

634.005-6 Full production.

The Deputy Secretary is the agency head for the purposes of FAR

34.005-6.

PART 636--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

636.101-70 [Amended]

114. Section 636.101-70 is amended by removing the words ``are

excepted'' and inserting the words ``may be excepted'' in their place.

115. Section 636.602 is revised to read as follows:

636.602 Selection of firms for architect-engineer contracts.

636.602-4 Selection authority.

(a) The final selection decision shall be made as designated by the

Deputy Assistant Secretary for Foreign Buildings Operations for

acquisitions issued by that office; the Director, Moscow Embassy

Buildings Control Office, for Moscow chancery building(s) only; and,

the appropriate head of the contracting activity for all other actions.

636.602-5 Short selection processes for contracts not to exceed the

simplified acquisition limitation.

The short selection process described in FAR 36.602-5 is authorized

for use for contracts not expected to exceed the simplified acquisition

limitation.

PART 637--SERVICE CONTRACTING

637.104 [Amended]

116. Section 637.104-70 is amended by adding the words ``and the

Moscow Embassy Control Office'' after ``For the Office of Foreign

Buildings'' in paragraph (f).

117. Section 637.106 is added to read as follows:

637.106 Funding and term of service contracts.

The Department's statutory authority for authorizing contracts for

services funded by annual appropriations to be performed in two fiscal

years, if the total amount for such contracts is obligated in the

earlier fiscal year, is 22 U.S.C. 2696(e). See DOSAR 632.703-3.

118. Section 637.110 is revised to read as follows:

637.110 Solicitation provisions and contract clauses.

(a) The contracting officer shall insert the clause at 652.237-70,

Compensatory Time Off, in personal services contracts awarded in

support of International Narcotics Control programs overseas, if the

contracting officer determines its use appropriate.

(b) The contracting officer shall insert the clause at 652.237-71,

Identification/Building Pass, in all solicitations and contracts where

contractor personnel require frequent and continuing access to

Department of State facilities.

same as the clause at 652.237-72, Observance of Legal Holidays and

Administrative Leave, in all solicitations and contracts where

contractor personnel will be working on-site in any Department of State

facility.

Subpart 637.2 (637.204, 637.204-70, 637.270)--[Removed]

119. Subpart 637.2, consisting of sections 637.204, 637.204-70, and

637.270, is removed.

PART 639--ACQUISITION OF INFORMATION RESOURCES

120. Part 639 is added to read as follows:

PART 639--ACQUISITION OF INFORMATION RESOURCES

Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

639.001-70 Policy.

(a) The Assistant Secretary of State for Administration is the

Department's Designated Senior Official as defined in the Federal

Information Resources Management Regulation (FIRMR) 201-39.201.

SUBCHAPTER G--CONTRACT MANAGEMENT

PART 642--CONTRACT ADMINISTRATION

121. Section 642.270 is revised to read as follows:

642.270 Contracting Officer's Representative (COR).

(a) Scope. Contracting officers may designate technically qualified

personnel as their authorized representatives to assist in the

administration of contracts. This section is mandatory for domestic

contracting activities and recommended for overseas contracting

activities.

(b) Policy. It is Department policy that only Department of State

employees who have completed adequate training and have the necessary

experience and judgment shall be appointed as CORs. This policy shall

be reinforced by contracting officers and administered jointly by A/OPE

and FSI. Required training shall be funded by the COR's office.

642.271 [amended]

122. Section 642.271 is amended to add the words ``a clause

substantially the same as'' after the word ``insert''.

PART 643--CONTRACT MODIFICATIONS

123. Section 643.102-70 is amended by revising paragraph (b) to

read as follows:

643.102-70 Contract compliance and review.

(a) * * *

(b) Subpart 604.70 prescribes the review requirements for modifying

contracts for supplies and services, including construction. The

contracting officer shall submit such contract modifications to A/OPE

when:

(i) The modification itself exceeds the thresholds established in

604.7002(a);

(ii) The modification will cause the contract to exceed the

thresholds established in 604.7002(a); or,

(iii) Any proposed change under the modification results in an

increase or decrease exceeding the thresholds in 604.7002(a) in any of

the individual cost elements of the existing contract.

PART 647--TRANSPORTATION

124. Part 647 is added to read as follows:

PART 647--TRANSPORTATION

Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

647.000 Scope of part.

The FAR and DOSAR do not apply to the acquisition of transportation

services via Government bill of lading (GBL) or other similar forms.

PART 649--TERMINATION OF CONTRACTS

125. Part 649 is added to read as follows:

PART 649--TERMINATION OF CONTRACTS

Subpart 649.1--General Principles

649.106 Fraud or other criminal conduct.

649.111 Review of proposed settlements.

Authority: 40 U.S.C. 485(c); 22 U.S.C. 2658.

Subpart 649.1--General Principles.

649.106 Fraud or other criminal conduct.

If the Termination Contracting Officer (TCO) suspects fraud or

other criminal conduct related to the settlement of a terminated

contract, the TCO shall discontinue negotiations and report the facts

to the Office of the Inspector General.

649.111 Review of proposed settlements.

All proposed termination settlements shall be reviewed and approved

by the Office of the Legal Adviser for legal sufficiency. In addition,

(a) All proposed termination settlements from domestic contracting

activities shall be approved by the head of the contracting activity;

and,

(b) All proposed termination settlements from overseas contracting

activities shall be approved by the Procurement Executive.

PART 651--USE OF GOVERNMENT SOURCES BY CONTRACTORS

126. Part 651 is added to read as follows:

PART 651--USE OF GOVERNMENT SOURCES BY CONTRACTORS

Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.

Subpart 651.70--Contractor Use of Travel Advances, Official Travel

Orders, and Government Travel Requisitions

651.701 Policy.

(a) It is the Department's policy that contractors shall not:

(1) Receive travel advances from the Department for contract-

related travel;

(2) Travel under official travel orders; or,

(3) Receive Government Travel Requisitions (GTRs) for

transportation.

(b) All contract-related travel shall be performed on the

contractor's account with reimbursement provided after submission of a

proper voucher.

provided, that such contractors are paid through the Department's

payroll system and they are subject to the standard payroll deductions

of Federal Withholding Tax and FICA. It also does not apply to

contracts awarded by the Office of Language Services (A/OPR/LS).

SUBCHAPTER H--CLAUSES AND FORMS

PART 652--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

652.202-70 [Removed]

127. Section 652.202-70 is removed.

128. Section 652.203-70 is added to read as follows:

652.203-70 Prohibition Against the Use of Federal Employees.

As prescribed in 603.670, insert the following clause:

Prohibition Against the Use of Federal Employees (Dec 1994)

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)

129. Section 652.203-71 is added to read as follows:

652.203-71 Certification Regarding Federal Employment.

As prescribed in 603.670, insert the following provision:

Certification Regarding Federal Employment (Dec 1994)

By submitting an offer, the offeror hereby certifies that it is

not owned or substantially owned or controlled by one or more

Federal employees.

(End of provision)

130. Section 652.206-70 is added to read as follows:

652.206-70 Competition Advocacy/Ombudsman.

As prescribed in 606.570, insert the following provision:

Competition Advocacy/Ombudsman (Dec 1994)

The Department of State's Competition Advocate is responsible

for assisting industry in removing restrictive requirements from

Department of State solicitations and removing barriers to full and

open competition. If such a solicitation is considered competitively

restrictive or does not appear properly conducive to competition and

contracting practices, potential offerors are encouraged to first

contact the contracting office for the respective solicitation

identified elsewhere in this solicitation. If concerns are not

adequately addressed, contact the Department of State Competition

Advocate on (703) 516-1680, or write to: U.S. Department of State,

Competition Advocate, Office of the Procurement Executive, A/OPE/CA,

Suite 603, SA-6, Washington, DC 20522-0602.

(End of provision)

614.214-70 [Removed]

652.214-71 [Redesignated as 652.214-70]

131. Section 652.214-70 is removed; section 652.214-71 is

redesignated as 652.214-70, and the date for the clause at redesignated

652.214-70 is revised from ``(JUL 1988)'' to ``(DEC 1994)''.

652.214-72 [Redesignated as 652.214-71]

132. Section 652.214-72 is redesignated as 652.214-71; the date for

the provision at redesignated 652.214-71 is revised from ``(JUL 1988)''

to ``(DEC 1994)''; the prescription is revised to read as follows; and,

the parenthetical ``(End of clause)'' is revised to read ``(End of

provision)'':

652.214-71 Authorization to Perform

As prescribed in 614.201-7-70(c), insert the following

provisions:

* * * * *

133. Section 652.216-70 is amended by revising the clause to read

as follows:

652.216-70 Ordering--Indefinite-Delivery Contracts.

* * * * *

Ordering--Indefinite-Delivery Contracts (Dec 1994)

The Government shall use one of the following forms to issue

orders under this contract:

(a) The Optional Form 347, Order for Supplies or Services, and

Optional Form 348, Order for Supplies or Services Schedule--

Continuation; or,

(b) The Optional Form 206, Purchase Order, Receiving Report and

Voucher, and Optional Form 206A, Continuation Sheet.

(End of clause)

134. Section 652.216-71 is added to read as follows:

652.216-71 Price Adjustment.

As prescribed in 616.203-4, insert a clause substantially the same

as follows:

Price Adjustment (Dec 1994)

(a) The contract cost may be adjusted based on increases or

decreases in actual costs of direct service labor which result

directly from laws enacted and effective during the term of this

contract by the [insert name of country] Government.

(b) For the contracting officer to consider any request for

adjustment, the contractor shall demonstrate in writing:

(1) That the change in the law occurred subsequent to the award

date of the contract; and,

(2) That the change in the law could not have been reasonably

anticipated prior to contract award; and,

(3) How the change in the law directly affects the direct cost

of direct service labor under the contract.

supports any request for adjustment, including the calculation of

the amount of adjustment requested. This documentation must identify

and provide the appropriate portions of the text of the particular

law from which the request is derived.

(d) Any request for adjustment shall be certified by signature

by an officer or general partner of the contractor having overall

responsibility for the conduct of the contractor's affairs.

(e) No adjustment shall be made to the contract price that

relates to any overhead, fixed costs, profit or fee for the

contractor. Only the amount charged to direct service labor cost

shall be considered by the Government as basis for contract price

adjustments.

(f) No request by the contractor for an adjustment under this

clause shall be allowed if asserted after final payment under this

contract has been made.

(g) This clause shall only apply to laws enacted by the [insert

name of country] Government meeting the criteria set forth above in

paragraph (a). No adjustments shall be made due to currency

devaluations fluctuations in exchange rates.

(End of clause)

135. Section 652.219-70 is added to read as follows:

652.219-70 Department of State Subcontracting Goals.

As prescribed in 619.708-70, insert a provision substantially the

same as follows:

Department of State Subcontracting Goals (Dec 1994)

(a) The offeror shall provide a Small, Small Disadvantaged and

Woman-Owned Enterprise Subcontracting Plan that details its approach

to selecting and using Small, Small Disadvantaged, and Woman-Owned

Business Enterprises as requested by the contracting officer.

(b) For the fiscal year [insert appropriate fiscal year], the

Department's subcontracting goals are as follows:

(1) Goal for subcontracting to SB: ________________

(2) Goal for subcontracting to SDB: ________________

(3) Goal for subcontracting to SWB: ________________

(4) Omnibus goals (if applicable):

(i) 10% to minority business

(ii) 10% to small business

(End of provision)

136. Section 652.223-70 is added to read as follows:

652.223-70 Estimates of the Total Percentage of Recovered Materials to

be Utilized in the Performance of the Contract.

As prescribed in 623.480(a), insert the following provision:

Estimates of the Total Percentage of Recovered Materials to be Utilized

in the Performance of the Contract (Dec 1994)

(a) As required under Section 6002 of the Resource Conservation

and Recovery Act, an officer or employee of the offeror shall

estimate the total percentage of recovered material to be utilized

in the performance of the contract.

(b) I, (insert name of certifier) am an officer employee

responsible for the preparation of this offer and hereby estimate

the total percentage of recovered material to be utilized in the

performance of the contract as follows:

------------------------------------------------------------------------

Estimate of total percent of

Product recovered material to be utilized

------------------------------------------------------------------------

(End of provision)

137. Section 652.223-71 is added to read as follows:

652.223-71 Certification of Minimum Content Actually Utilized in the

Performance of the Contract.

As prescribed in 623.480(b), insert the following clause:

Certification of Minimum Content Actually Utilized in the Performance

of the Contract (Dec 1994)

(a) As required under Section 6002 of the Resource Conservation

and Recovery Act, an officer or employee of the contractor shall

execute the following certification:

I, (insert name of certifier) am an officer or employee

responsible for the performance of this contract and hereby certify

the following minimum recovered material content was actually

utilized in the performance of this contract:

------------------------------------------------------------------------

Percent of minimum recovered

Product material actually utilized

------------------------------------------------------------------------

(b) The contractor shall submit this certification by January 31

in each year during the period of performance of this contract. The

period of the certification shall cover the preceding calendar year.

----------------------------------------------------------------------

Signature of the officer or employee

----------------------------------------------------------------------

Typed name of officer or employee

----------------------------------------------------------------------

Title

----------------------------------------------------------------------

Name of company, firm, or organization

----------------------------------------------------------------------

Date

(End of clause)

138. Section 652.223-72 is added to read as follows:

652.223-72 Use of Double-Sided Copying in the Submissions of Bids or

Proposals.

As prescribed in 623.480(c), insert the following provision:

Use of Double-Sided Copying in the Submissions of Bids or Proposals

(Dec 1994)

(a) For the purposes of this provision, ``double-sided copying''

means copying two one-sided originals on to the front and back side

of one sheet of paper.

(b) Unless otherwise stated in the solicitation, offerors shall

use double-sided copying to reproduce all bids or proposals in

response to this solicitation.

(End of provision)

139. Section 652.223-73 is added to read as follows:

652.223-73 Use of Double-Sided Copying in the Submission of Reports.

As prescribed in 623.480(d), insert the following clause:

Use of Double-Sided Copying in the Submission of Reports (Dec 1994)

(a) For the purposes of this clause, ``double-sided copying''

means copying two one-sided originals on to the front and back side

of one sheet of paper.

(b) Unless otherwise stated in this contract or otherwise

directed by the contracting officer, the contractor shall use

double-sided copying to reproduce any progress report, draft report,

of final report produced under this contract.

(End of clause)

140. Section 652.223-74 is added to read as follows:

652.223-74 Use of Fly Ash as a Partial Replacement for Cement and

Concrete.

As prescribed in 623.480(e), insert the following clause:

Use of Fly Ash as a Partial Replacement for Cement and Concrete (Dec

1994)

The Architect/Engineer shall specify the performance

requirements of the cement and concrete products required under the

contract using standard specifications when available. Consistent

with such performance specifications, the Architect/Engineer shall

specify the use of fly ash, a finely divided residue resulting from

the combustion of coal, as a partial replacement for cement and

concrete to the maximum extent practicable in accordance with ANSI/

ASTM Standards and all applicable codes.

(End of clause)

141. Section 652.223-75 is added to read as follows:

652.223-75 Use of Recovered Materials in Building Insulation Products.

As prescribed in 623.480(f), insert the following clause:

Use of Recovered Materials in Building Insulation Products (Dec 1994)

(a) This clause applies to building insulation products used in

the construction of ceilings, floors, foundations, and walls, and

includes blanket, board, spray-in place and loose-fill insulations.

(b) The Department's minimum content standard for recovered

material in building insulation products is set forth below.

------------------------------------------------------------------------

Material type Percent by weight

------------------------------------------------------------------------

Cellulose loose-fill and spray on..... 75% post-consumer recovered

material.

Perlite composition board............. 23% post-consumer recovered

paper.

Plastic Rigid Foams--polyisocyanurate/

polyurethane:

Rigid foam........................ 9% recovered material.

Foam-in-place..................... 5% recovered material.

Glass fiber reinforced............ 6% recovered material.

Phenolic rigid foam................... 5% recovered material.

Rock Wool............................. 75% recovered material.

------------------------------------------------------------------------

Note: The minimum content standards are based on the weight of

the material (not volume) in the insulating core only.

consideration the Department's preference for the use of building

insulation produced with recovered materials. The Architect/Engineer

shall specify the type of building insulation products to be

supplied, and shall justify in writing the basis of the selected

product type if it is listed above, or if any product listed above

has a higher minimum content standard than the selected product.

(End of clause)

142. Section 652.223-76 is added to read as follows:

652.223-76 Use of Lubricating Oils Containing Re-Refined Oils.

As prescribed in 623.480(g), insert the following clause:

Use of Lubricating Oils Containing Re-Refined Oils (Dec 1994)

(a) If the contractor is required to supply lubricating oils,

hydraulic fluids, or gear oils under this contract, the contractor

shall supply products conforming to the listed military

specifications as set forth below unless the contracting officer

determines that the listed products will not satisfy the

Department's needs.

EPA Lubricating Oils Containing Re-Refined Oil

(1) Engine Lubricating Oils

(i) MIL-L-46152 (or current version)--Lubricating Oil Internal

Combustion Engine, Administrative Service

(ii) API Engine Service Category SF-1980 Gasoline Engine

Warranty Maintenance Service

(iii) API Engine Service Category CC-Diesel Engine Service

(iv) MIL-L-2104D (or current version)--Lubricating Oil Internal

Combustion Engine, Tactical Service

(v) API Engine Service Category CD-Diesel Engine Service

(vi) MIL-L-21260D (or current version)--Lubricating Oil Internal

Combustion Engine, Preservative and Break-In

(vii) MIL-L-4617 (or current version)--Lubricating Oil, Internal

Combustion Engine, Arctic

(2) Hydraulic Fluids

(i) MIL-H-5606 (or current version)--Hydraulic Fluid, Petroleum

Base: Aircraft, Missile, and Ordnance

(ii) MIL-H-6083 (or current version)--Hydraulic Fluid, Petroleum

Base: Preservation and Operation

(3) Gear Oils

(i) MIL-L-2105d (or current version)--Lubricating Oil, Gear,

Multipurpose

(b) Copies of the above specifications may be obtained from:

Standardization Document Order Desk, Building 4, Section D, 700

Robbins Avenue, Philadelphia, PA 19111-5094.

delivered under this contract that conform to the above listed

military specifications shall contain a minimum of 25% re-refined

oils.

(End of clause)

143. Section 653.223-77 is added to read as follows:

652.223-77 Use of Retread Tires.

As prescribed in 623.480(h), insert the following clause:

Use of Retread Tires (Dec 1994)

(a) If the contractor is required to maintain or replace

Government tires under this contract, the contractor shall to the

maximum extent practicable obtain retreading services for existing

tires, if the carcass is retreadable, from firms identified in the

U.S. General Services Administration's Federal Supply Schedule 26

II, Pneumatic Tires.

(b) If such retreading services are not practicable, replacement

retread tires shall be procured in accordance with GSA specification

ZZ-T-381 for replacement tires.

(End of clause)

144. Section 652.223-78 is added to read as follows:

652.223-78 Use of Recovered Materials in Paper and Paper Products.

As prescribed in 623.480(i), insert the following clause:

Use of Recovered Materials in Paper and Paper Products (Dec 1994)

(a) If the contractor is required under this contract to deliver

any of the paper and paper products listed below, all such items

delivered shall meet the minimum content standards for recovered

materials, postconsumer recovered materials, or waste paper set

forth in paragraph (b).

(1) Recovered materials are defined as waste material and by-

products that have been recovered or diverted from solid waste, not

including those materials and by-products generated from, and

commonly reused within, an original manufacturing process.

(2) Postconsumer recovered materials are defined as waste

materials recovered from retail stores, office buildings, homes and

so forth after they passed through their end usage as a consumer

item.

(3) Waste paper is defined as all items from the first two

categories above in addition to forest residues, and manufacturing

and other wastes.

(b) Unless otherwise stated in this contract or otherwise

directed by the contracting officer, the contractor shall use ``High

Grade Bleached Printing and Writing Papers'' as defined in this

clause to produce all progress reports, final reports, and any other

products required to be delivered to the Government under this

contract.

Minimum Content Standards for Selected Paper and Paper Products

Newsprint

40% minimum postconsumer recovered materials

High Grade Bleached Printing and Writing Papers

Offset printing--50% minimum waste paper

Mimeo and duplicator paper--50% minimum waste paper

Writing (stationery)--50% minimum waste paper

Office paper (e.g., note pads)--50% minimum waste paper

Paper for high speed copiers--50% minimum waste paper

Envelopes--50% minimum waste paper

Form bond including computer paper and carbonless--50% minimum waste

paper

Book papers--50% minimum waste paper

Bond papers--50% minimum waste paper

Ledger--50% minimum waste paper

Cover stock--50% minimum waste paper

Cotton fiber papers--25% minimum recovered materials and 50% minimum

waste paper

Tissue Products

Toilet tissue--20% minimum postconsumer recovered materials

Paper towels--40% minimum postconsumer recovered materials

Paper napkins--30% minimum postconsumer recovered materials

Facial tissue--5% minimum postconsumer recovered materials

Doilies--40% minimum postconsumer recovered materials

Industrial wipes--0% minimum postconsumer recovered materials

Unbleached Packaging

Corrugated boxes--35% minimum postconsumer recovered materials

Fiber boxes--35% minimum postconsumer recovered materials

Brown papers (e.g., bags)--5% minimum postconsumer recovered

materials

Recycled Paperboard

Reclycled paperboard products--80% minimum postconsumer recovered

materials

Pad backing--90% minimum postconsumer recovered materials

(End of clause)

145. Section 652.228-71 is added to read as follows:

652.228-71 Worker's Compensation Insurance (Defense Base Act)--

Services.

As prescribed in 628.305(b)(1), insert the following clause:

Worker's Compensation Insurance (Defense Base Act)--Services (Dec 1994)

(a) This clause supplements FAR 52.228-3.

(b) The contractor agrees to procure Defense Base Act (DBA)

insurance pursuant to the terms of the contract between the

Department of State and the Department's DBA insurance carrier

unless the contractor has a DBA self-insurance program approved by

the Department of Labor. The contractor shall submit a copy of the

Department of Labor's approval to the contracting officer upon

contract award.

coverage for contractor's employees who are not citizens of,

residents of, or hired in the United States, the contractor agrees

to provide such employees with worker's compensation benefits as

required by the laws of the country in which the employees are

working, or by the laws of the employee's native country, whichever

offers greater benefits.

(d) The contractor agrees to insert a clause substantially the

same as this one in all subcontracts to which the DBA is applicable.

Subcontractors shall be required to insert a similar clause in any

of their subcontracts subject to the DBA.

(e) The cost of DBA insurance is paid on an annual basis. If the

period of performance of this contract extends beyond one year, the

Department shall reimburse the contractor for any additional

insurance cost on a reimbursable basis through a contract

modification.

(f) Should the rates for DBA insurance coverage increase during

the performance of this contract, the Department shall reimburse the

contractor for the increased cost through a contract modification.

In the event the DBA insurance rates decrease during contract

performance, the contractor shall reduce the reimbursable cost

proportionately.

(End of clause)

146. Section 652.228-72 is added to read as follows:

652.228-72 Worker's Compensation Insurance (Defense Base Act)--

Construction

As prescribed in 628.305(b)(2), insert the following clause:

Worker's Compensation Insurance (Defense Base Act)--Construction (Dec.

1994)

(a) This clause supplements FAR 52.228-4.

(b) The contractor agrees to procure Defense Base Act (DBA)

insurance pursuant to the terms of the contract between the

Department of State and the Department's DBA insurance carrier

unless the contractor has a DBA self-insurance program approved by

the Department of Labor. The contractor shall submit a copy of the

Department of Labor's approval to the contracting officer upon

contract award. The current rate under the Department of State

contract is [contracting officer insert current rate] of

compensation for construction.

coverage for contractor's employees who are not citizens of,

residents of, or hired in the United States, the contractor agrees

to provide such employees with worker's compensation benefits as

required by the laws of the country in which the employees are

working, or by the laws of the employee's native country, whichever

offers greater benefits.

(d) The contractor agrees to insert a clause substantially the

same as this one in all subcontracts to which the DBA is applicable.

Subcontractors shall be required to insert a similar clause in any

of their subcontracts subject to the DBA.

(e) Should the rates for DBA insurance coverage increase or

decrease during the performance of this contract, the Department

shall modify this contract accordingly.

(f) The contractor shall demonstrate to the satisfaction of the

contracting officer that the equitable adjustment as a result of the

insurance increase or decrease does not include any reserve for such

insurance. Adjustment shall not include any overhead, profit,

general and administrative expense, etc.

(End of clause)

147. Section 652.228-73 is added to read as follows:

652.228-73 Waiver of the Defense Base Act.

As prescribed in 628.305(b)(3), insert the following clause:

Waiver of the Defense Base Act (Dec 1994)

(a) Upon recommendation of the Secretary of State, the Secretary

of Labor may waive the applicability of the Defense Base Act with

respect to any contract, subcontract, or subordinate contract; work

location; or classification of employees.

(b) Either the contractor or the Department of State may request

a waiver from coverage. Such a waiver may apply to any employees who

are not U.S. citizens, not residents of, or are not hired in the

United States. Waivers requested by the contractor shall be

submitted to the contracting officer for approval and further

submission to the contracting officer for approval and further

submission to the Department of Labor. Application for a waiver

shall be submitted on Department of Labor Form BEC-565. Where such

waivers are granted from coverage under the DBA, the waiver is

conditioned on providing other worker's compensation coverage to

employees to which the waiver applies. Usually this takes the form

of securing worker's compensation coverage of the country where work

will be performed or of the employee's native country, whichever

offers greater benefits. Information as to whether a DBA waiver has

been obtained by the Department for a particular country may be

obtained from the contracting officer.

(End of clause)

148. Section 652.228-74 is added to read as follows:

652.228-74 Defense Base Act Insurance Rates--Limitation--Services.

As prescribed in 628.306(a)(1), insert the following provision:

Defense Base Act Insurance Rates--Limitation--Services (Dec 1994)

(a) The Department of State has entered into a contract with an

insurance carrier to provide DBA insurance to Department of State

contractors at a contracted rate. The rates for this insurance are

as follows:

Services @ [contracting officer insert current rate] of

compensation.

(b) Bidders/Offerors should compute the total compensation

(direct salary plus differential, but excluding per diem, housing

allowance and other miscellaneous post allowances) to be paid to

employees who will be covered by DBA insurance and the cost of DBA

insurance in their bid/proposal using the foregoing rate, and insert

the totals in the spaces provided. The DBA insurance cost shall be

included in the total fixed price. The DBA insurance costs shall be

reimbursed directly to the contractor.

(1) Compensation of Covered Employees: ________________

(2) Defense Base Act Insurance Costs: ________________

(3) Total Cost: ________________

not local nationals or third country nationals will be employed on

the resultant contract.

(End of provision)

149. Section 652.228-75 is added to read as follows:

652.228-75 Defense Base Act Insurance Rates--Limitation--Construction.

As prescribed in 628.306(a)(2), insert the following provision:

Defense Base Act Insurance Rates--Limitation--Construction (Dec 1994)

(a) The Department of State has entered into a contract with an

insurance carrier to provide DBA insurance to Department of State

contractors at a contracted rate. The rates for this insurance are

as follows:

Construction @ [contracting officer insert current rate] of

compensation.

(b) Bidders/Offerors should compute the total compensation

(direct salary plus differential, but excluding per diem, housing

allowance and other miscellaneous post allowances) to be paid to

employees who will be covered by DBA insurance and the cost of DBA

insurance in their bid/proposal using the foregoing rate, and insert

the totals in the spaces provided for the base year and each year

thereafter, if applicable The DBA insurance cost shall be included

in the total fixed price. The DBA insurance costs shall be

reimbursed directly to the contractor.

(1) Compensation of Covered Employees: ________________

(2) Defense Base Act Insurance Costs: ________________

(3) Total Cost: ________________

(End of provision)

150. Section 652.228-76 is added to read as follows:

652.228-76 Defense Base Act Insurance Rates--Limitation--Cost-

Reimbursement.

As prescribed in 628.307, insert the following provision:

Defense Base Act Insurance Rates--Limitation--Cost-Reimbursement (Dec

1994)

(a) The Department of State has entered into a contract with an

insurance carrier for Defense Base Act (DBA) insurance which applies

to all contracts entered into by the Department which requires DBA

insurance coverage. In preparing the cost proposal, the offeror

shall use the following rates in computing the cost for such

insurance:

Services--[contracting officer insert current rate] of

compensation (direct salary plus differential but excluding per

diem, housing allowance, education allowance, and miscellaneous

allowances); and

(2) Construction--[contracting officer insert current rate] of

compensation.

(b) These rates apply to all job classifications in those

particular categories. The successful offeror shall be advised of

the name and address of the insurance broker who will process the

DBA insurance coverage.

rates, the rates shall be disallowed.

(d) Offerors shall include in their proposals a statement as to

whether or not local nationals or third country nationals are

proposed on this contract.

(End of provision)

151. Section 652.228-77 is added to read as follows:

652.228-77 Defense Base Act Insurance Rates--Limitation--Labor-Hour

and Time-and-Materials.

As prescribed in 628.307-70, insert the following provision:

Defense Base Act Insurance Rates--Limitation--Labor-Hour and Time-and-

Materials (Dec 1994)

(a) The Department of State has entered into a contract with an

insurance carrier for Defense Base Act (DBA) insurance which applies

to all contracts entered into by the Department which requires DBA

insurance coverage. In preparing the cost proposal, the offeror

shall use the following rates in computing the cost for such

insurance:

(1) Services--[contracting officer insert current rate] of

compensation (direct salary plus differential but excluding per

diem, housing allowance, education allowance, and miscellaneous

allowances); and

(2) Construction--[contracting officer insert current rate] of

compensation.

(b) These rates apply to all job classifications in those

particular categories. The successful offeror shall be advised of

the name and address of the insurance broker who will process the

DBA insurance coverage.

whether or not local nationals or third country nationals are

proposed on this contract.

(End of provision)

152. Section 652.232-70 is revised to read as follows:

652.232-70 Payment Schedule and Invoice Submission (Fixed-Price).

As prescribed in 632.908(a), the contracting officer may insert a

clause substantially the same as follows:

Payment Schedule and Invoice Submission (Fixed-Price) (Dec 1994)

(a) General. The Government shall pay the contractor as full

compensation for all work required, performed and accepted under

this contract, inclusive of all costs and expenses, the firm fixed-

price stated in Section B of this contract.

[Use paragraph (b) only if partial payments apply. Otherwise,

paragraph (a) above assumes the contractor will be paid in full

amount upon completion of all contractural requirements].

(b) Payment Schedule. Payments will be made in accordance with

the following partial payment schedule:

------------------------------------------------------------------------

Specific Delivery Payment

Partial payment No. deliverable date amount

------------------------------------------------------------------------

1 ............ ............ ............

2 ............ ............ ............

3 ............ ............ ............

------------------------------------------------------------------------

[Continue as necessary]

original and [contracting officer insert appropriate number of

copies] copies to the Office identified in Block 5 of the SF-26 or

Block 7 of the SF-33. To constitute a proper invoice, the invoice

must include all items per FAR 52.232-25, ``Prompt Payment''.

(d) Contractor Remittance Address. Payment shall be made to the

contractor's address as specified on the cover page of this

contract, unless a separate remittance address is specified below:

----------------------------------------------------------------------

(End of clause)

153. Section 652.232-71 is revised to read as follows:

652.232-71 Voucher Submission (Cost-Reimbursement).

As prescribed in 632.908(b), the contracting officer may insert a

clause substantially the same as follows:

Voucher Submission (Cost-Reimbursement) (Dec 1994)

(a) General. The contractor shall submit, on a monthly basis

[contracting officer may substitute a different time frame, if

appropriate], an original and [contracting officer insert

appropriate number] copies of each voucher. In addition to the items

necessary per FAR 52.232-25, ``Prompt Payment'', the voucher shall

show the elements of cost for the billing period and the cumulative

costs to date. All vouchers shall be submitted to the office

identified in Block 5 of the SF-26 or Block 7 of the SF-33.

(b) Contractor Remittance Address. Payment shall be made to the

contractor's address as specified on the cover page of this

contract, unless a separate remittance address is specified below:

----------------------------------------------------------------------

(End of clause)

154. Section 652.237-70 is revised to read as follows:

652.237-70 Compensatory time off.

As prescribed in 637.110(a), insert the following clause:

Compensatory Time Off (Dec 1994)

(a) Compensatory time off means time from work during the

personal service contract employee's basic work week in exchange for

performing an equal amount of irregular of occasional overtime work

which is officially ordered or approved.

(b) At the discretion of the Contracting Officer's

Representative (COR), the contractor may earn compensatory time off

in accordance with 3 FAM Section 232.6--Compensatory Time Off.

Compensation time off remaining to the credit of a personal services

contract employee at the end of a 16-week period and/or at the end

of the contract period shall be forfeited.

(End of clause)

155. Section 652.237-71 is added to read as follows:

652.237-71 Identification/Building Pass.

As prescribed in 637.110(b), insert the following clause.

Identification/Building Pass (Dec 1994)

(a) The contractor shall obtain a Department of State building

pass for all employees performing under this contract who require

frequent and continuing access to Department of State facilities.

Passes shall be issued only to contractor employees who are United

States citizens. Passes will be issued by the Bureau of Diplomatic

Security, Office of Procedural Security, Domestic Facilities

Division. They shall be used for the purpose of contractor

performance only, and shall not be used for any other purpose.

(b) The contractor shall submit an application in the form

prescribed by the COR. The contractor shall also provide a letter on

company letterhead to accompany the application containing the

following information:

(1) The purpose for which the pass is being requested;

(2) The type of access the applicant requires;

(3) Whether or not the applicant has a valid security clearance;

and,

(4) The contract number and period of performance of the

contract.

memorandum, shall be delivered to the Building Pass Application

Unit, Room 309, State Annex Number 1, Columbia Plaza, 2401 E Street,

NW., Washington, DC; or, the post security officer, if the contract

is performed at a U.S. owned or leased building overseas. The

employee(s) for whom the pass(es) is/are being requested may be

required to personally submit the application and to provide

evidence of identity and United States citizenship.

(d) All contractor employees shall wear the passes in plain

sight at all times while in Department of State buildings. All

contractor employees shall show their passes when entering these

buildings and upon request.

(e) All passes shall be returned to the COR upon separation of

the employee, or expiration or termination of the contract. Final

payment under this contract shall not be made until all passes are

returned to the COR.

(End of clause)

156. Section 652.237-72 is added to read as follows:

652.237-72 Observance of Legal Holidays and Administrative Leave.

As prescribed in 637.110(c), insert the following clause:

Observance of Legal Holidays and Administrative Leave (Dec 1994)

(a) The Department of State observes the following days as

holidays:

New Year's Day

Martin Luther King's Birthday

Presidents' Day

Memorial Day

Independence Day

Labor Day

Columbus Day

Veterans Day

Thanksgiving Day

Christmas Day

Any other day designated by Federal law, Executive Order, or

Presidential Proclamation.

(b) When any such day falls on a Saturday, the preceding Friday

is observed; when any such day falls on a Sunday, the following

Monday is observed. Observance of such days by Government personnel

shall not be cause for additional period of performance or

entitlement to compensation except as set forth in the contract. If

the contractor's personnel work on a holiday, no form of holiday or

other premium compensation will be reimbursed either as a direct or

indirect cost, unless authorized pursuant to an overtime clause

elsewhere in this contract.

its Government employees, assigned contractor personnel in

Government facilities shall also be dismissed. However, the

contractor agrees to continue to provide sufficient personnel to

perform round-the-clock requirements of critical tasks already in

operation or scheduled, and shall be guided by the instructions

issued by the contracting officer or his/her duly authorized

representative.

(d) For fixed-price contracts, if services are not required or

provided because the building is closed due to inclement weather,

unanticipated holidays declared by the President, failure of

Congress to appropriate funds, or similar reasons, deductions will

be computed as follows:

(1) The deduction rate in dollars per day will be equal to the

per month contract price divided by 21 days per month.

(2) The deduction rate in dollars per day will be multiplied by

the number of days services are not required or provided. If

services are provided for portions of days, appropriate adjustment

will be made by the contracting officer to ensure that the

contractor is compensated for services provided.

(e) If administrative leave is granted to contractor personnel

as a result of conditions stipulated in any ``Excusable Delays''

clause of this contract, it will be without loss to the contractor.

The cost of salaries and wages to the contractor for the period of

any such excused absence shall be a reimbursable item of direct cost

hereunder for employees whose regular time is normally charged, and

a reimbursable item of indirect cost for employees whose time is

normally charged indirectly in accordance with the contractor's

accounting policy.

(End of clause)

157. Section 652.242-70 is amended by revising the introductory

text; by revising the date from ``(JUL 1988)'' to ``(DEC 1994)''; by

designating the existing clause text as paragraph (a); and, by adding a

new paragraph (b) to read as follows:

652.242-70 Contracting Officer's Representative (COR).

As prescribed in 642.271, insert a clause substantially the same as

follows:

Contracting Officer's Representative (COR) (Dec 1994)

(a) * * *

(b) the COR is [insert name of COR].

(End of clause)

158. Section 652.242-72 is amended by revising the clause date from

``(JUL 1988)'' to ``(DEC 1994)''; by revising the chart in paragraph

(a) to read as set forth below; by removing the designation ``\3/4\''''

and inserting ``19.05mm'' in its place in paragraph (b); by removing

the words ``1000 pounds'' and inserting the words ``453.5kg'' in their

place in the first sentence of paragraph (c); by removing the words

``2 x 6-inch'', ``2 x 4-inch'', and ``10-inch'' and inserting the words

``50.8 x 152.4mm'', ``50.8 x 101.6mm'', and ``254mm'' in their

place, respectively, in the second sentence in paragraph (c); by

removing the words ``pounds and'' in the third sentence of paragraph

(c); by removing the words ``pounds and'' from the second sentence in

paragraph (d); and, by removing the parenthetical ``(One kilogram

equals 2.2046 pounds avoirdupois.)'' from paragraph (d);

652.242-72 Shipping Instructions.

* * * * *

Shipping Instructions (Dec 1994)

(a) * * *

-----------------------------

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