Defense Federal Acquisition Regulation Supplement; Miscellaneous Amendments

Federal RegisterNov 30, 1995

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SUMMARY: Defense Acquisition Circular (DAC) 91-9 amends the Defense

Federal Acquisition Regulation Supplement (DFARS) to revise, finalize,

or add language on ethics, personal services contracts, contract award,

class justifications and approvals, integrated materiel management,

preaward surveys, qualification requirements, audit, field pricing

reports, subcontracting plans, environmentally sound products,

hazardous materials, foreign source restrictions, supercomputers,

Indian incentives, preference for local residents, allowable individual

compensation, cost principles, manufacturing science and technology

program, research and development, firefighting and security-guard

services, automatic data processing equipment leasing reviews, cost

monitoring, contract quality requirements, contract data reporting,

master agreements, and acquisition of commercial items.

DATES: Effective date: November 30, 1995.

Comment date: Comments on the interim rule (Item XXXV: Sections

203.170-1; 203.170-4; 203.570-5; 207.105; 209.103-70; Parts 210, 211,

and 212, Sections 215.971-4; 217.7302; 219.704; 223.570-4; 225.7002-2;

225.7019-2; 225.7103; 225.7201; 227.7101; 227.7102-3; 227.7103-15;

227.7202-2; 234.001; 242.7206; 246.204; 246.704; 246.770-1; 247.572-1;

247.572-2; 252.203-7000; 252.203-7001; 252.209-7000; 252.210-7000

through 252.210-7004; 252.211-7000 through 252.211-7021; 252.212-7000;

252.212-7001; 251.217-7026; 252.219-7003; 252.219-7005; 252.225-7012;

252.225-7014; 252.225-7016; 252.225-7026; 252.227-7103; 252.227-7015;

252.227-7037; 252.247-7023; and 252.247-7024) should be submitted in

writing to the address shown below on or before January 29, 1996, to be

considered in the formulation of the final rule.

ADDRESSES: Interested parties should submit written comments on the

interim rule (Item XXXV) to: Defense Acquisition Regulations Council,

PDUSD(A&T)DP(DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC

20301-3062. Telefax number (703) 602-0350. Please cite DFARS Case 95-

D712 in all correspondence related to this rule.

FOR FURTHER INFORMATION CONTACT: Item XXXV--Mr. Louis Gaudio, (703)

695-1097.

All other items--Ms. Lucile Martin, (703) 602-0131.

SUPPLEMENTARY INFORMATION:

A. Background

This Defense Acquisition Circular (DAC) 91-9 includes 35 rules and

miscellaneous editorial amendments. Five of the rules in the DAC (Items

II, IX, XII, XIV, and XXIII) were published previously in the Federal

These five rules are being published in the DAC to revise the looseleaf

edition of DFARS to conform to the previously published revisions. Item

XXXV, Acquisition of Commercial Items, was subject to Office of

Management and Budget Review under Executive Order 12866, dated

September 30, 1993.

B. Determination to Issue an Interim Rule (Item XXXV)

A determination has been made under the authority of the Secretary

of Defense that urgent and compelling reasons exist to publish an

interim rule prior to affording the public an opportunity to comment.

Federal Acquisition Circular 90-32 (60 FR 48206, September 18, 1995)

revised the Federal Acquisition Regulation (FAR) to implement Title

VIII of the Federal Acquisition Streamlining Act of 1994 (Pub. L. 103-

355). Title VIII of Pub. L. 103-355 contained requirements for the

acquisition of commercial items and required publication of

implementing FAR revisions by October 1, 1995. The FAR rule became

available for use on October 1, 1995, and is mandatory for use by all

Federal agencies in commercial item solicitations issued after December

1, 1995. This DFARS rule implements DoD-unique requirements of Pub. L

103-355 pertaining to the acquisition of commercial items. DoD

contracting activities cannot effectively use the FAR commercial item

procedures without this supplemental DFARS guidance. Immediate DFARS

coverage is needed to permit DoD contracting activities to comply with

Pub. L. 103-355 and the implementing FAR requirements pertaining to the

acquisition of commercial items.

C. Regulatory Flexibility Act

DAC 91-9, Items I, VI, VII, VIII, X, XV, XVIII, XXI, XXV, XXVIII, XXIX,

XXX, XXXI, XXXIII, XXXIV

The Regulatory Flexibility Act does not apply because these rules

are not significant revisions within the meaning of the Regulatory

Flexibility Act, 5 U.S.C. 601 et seq. However, comments from small

entities will be considered in accordance with Section 610 of the Act.

Such comments must be submitted separately. Please cite the applicable

DFARS case number in correspondence.

DAC 91-9, Items IV, V, XI, XIII, XVI, XVII, XX, XXII, XXVI

DoD certifies that these rules will not have a significant economic

impact on a substantial number of small entities within the meaning of

the Regulatory Flexibility Act because:

Item IV--The rule only pertains to (1) purchases made outside the

United States for use by armed forces outside the United States; (2)

internal Government considerations regarding leasing; (3) production

contracts where special tooling/special test equipment costs exceed

$1,000,000; and (4) certain notification requirements under the

Certificate of Competency Program which were repealed by Section

7101(b) of the Federal Acquisition Streamlining Act of 1994.

Item V--The use of class justifications and approvals is already

permitted by the Federal Acquisition Regulation (FAR). This rule merely

expands Defense FAR Supplement (DFARS) guidance to address the use of

class justifications and approvals for multiple contracts extending

across more than one program phase.

Item XI--The rule primarily relates to the application of

Government resources for conducting field pricing reviews.

Item XIII--The rule merely reflects the extension of statutory

authority for contractors to claim credit toward their small business

subcontracting goals when awarding subcontracts to qualified nonprofit

agencies for the blind or severely disabled.

Item XVI--The rule only applies in exceptional situations when non-

DoD-owned toxic or hazardous materials are stored or disposed of on a

military installation.

Item XVII--The DFARS already permits DoD to grant public interest

exceptions to the Buy American Act, where the purposes of the Buy

American Act are not served. This rule

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merely amends the DFARS guidance to reflect a recent statutory change

to the criteria that must be considered when granting a public interest

exception, and to streamline internal DoD approval requirements.

Item XX--The rule places restrictions on the acquisition of foreign

products.

Item XXII--The rule only applies to contracts that are awarded in

support of the closure or realignment of a military installation.

Item XXVI--The rule only applies to contracts that are awarded

under the Manufacturing Science and Technology Program.

DAC 91-9, Items III, XIX, XXIV, XXVII, XXXII

The Regulatory Flexibility Act applies. A final regulatory analysis

has been performed and is available by writing the Defense Acquisition

Regulations Council, PDUSD(A&T)DP(DAR), 3062 Defense Pentagon,

Washington, DC 20301-3062.

DAC 91-9, Item XXXV

This interim rule is expected to have a positive economic impact on

a substantial number of small entities within the meaning of the

Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the rule

simplifies procedures for DoD acquisition of commercial items. An

Initial Regulatory Flexibility Analysis (IRFA) has been prepared and

may be obtained from the address stated herein. A copy of the IRFA has

been submitted to the Chief Counsel for Advocacy of the Small Business

Administration. Comments from small entities concerning the affected

DFARS subparts will be considered in accordance with Section 610 of the

Act. Such comments must be submitted separately and cite DFARS Case 95-

D712 in correspondence.

D. Paperwork Reduction Act

DAC 91-9, Items I, III, IV, V, VI, VII, VIII, X, XI, XV, XVI, XVII,

XVIII, XIX, XX, XXI, XXII, XXIV, XXV, XXVI, XXVII, XXVIII, XXIX, XXX,

XXXI, XXXII, XXXIII, XXXIV, XXXV

The Paperwork Reduction Act does not apply because the revisions in

this rulemaking notice do not contain and/or affect information

collection requirements which require the approval of OMB under 44

U.S.C. 3501 et seq.

DAC 91-9, Item XIII

The Paperwork Reduction Act applies. OMB has approved the

information collection requirement under OMB Control Number 9000-0007.

Michele P. Peterson,

Executive Editor, Defense Acquisition Regulations Council.

Defense Acquisition Circular (DAC) 91-9 amends the Defense Federal

Acquisition Regulation Supplement (DFARS) 1991 edition. The amendments

are summarized as follows:

Item I--Ethics (DFARS Case 95-D707)

This final rule deletes DFARS Subpart 203.71, Contractor Employee

Communications with Government Officials, and the corresponding

contract clause at 252.203-7003, Prohibition Against Retaliatory

Personnel Actions. DFARS Subpart 203.71 and the clause at 252.203-7003

implemented 10 U.S.C. 2409a, which was repealed by Section 6005 of the

Federal Acquisition Streamlining Act of 1994 (Pub. L. 103-355).

Guidance on whistleblower protections for contractor employees has been

added to the FAR at Subpart 3.9, by Federal Acquisition Circular 90-30,

dated July 21, 1995.

Item II--Sequence of Progress Payments and Contract Modifications

(DFARS Case 93-D016/95-D012)

This final rule was issued by Departmental Letter 95-012, effective

July 3, 1995. The rule amends DFARS Subparts 204.71, 215.4, 217.74, and

243.1 to provide additional guidance regarding identification of

funding under DoD contracts. Contracting officers shall ensure that

contracts clearly identify the accounting classification reference

numbers which apply to each line and subline item. When a line item

contains multiple accounting classification citations, the contract

shall include instructions which provide for payment in a manner that

reflects the performance of work on the contract. Contracts that

contain both fixed-price and cost-reimbursement line or subline items

shall identify the contract type for each line or subline item. In

addition, contract modifications which obligate or deobligate funds

shall identify the accounting changes for each line and subline item to

facilitate appropriate payment.

Item III--Personal Services Contracts (DFARS Case 94-D302)

The interim rule published as Item XXX of DAC 91-7 is revised and

finalized. The rule establishes procedures for entering into personal

services contracts under 10 U.S.C. 1091 to carry out health care

responsibilities in medical treatment facilities. The final rule

differs from the interim rule in that it adds language at DFARS

206.001, deletes 206.102, and amends 237.104(b)(ii), to recognize that

personal services contracts authorized by 10 U.S.C. 1091 are exempt

from FAR Part 6 competition requirements.

Item IV--Contract Award (DFARS Case 95-D701)

The interim rule issued by Departmental Letter 95-016 on August 7,

1995, is converted to a final rule without change. The rule (1) revises

DFARS 206.302-5(b)(i) to exclude soft drinks, that are manufactured in

the United States, from the limitations which apply to noncompetitive

acquisition of items from military exchange stores outside the United

States; (2) adds a new section at DFARS 207.470 to place restrictions

on the lease of vessels, aircraft, or vehicles for a term of 18 months

or more; (3) deletes the language at DFARS 215.871 concerning

production special tooling and production special test equipment; and

(4) deletes DFARS 219.602-1(a), 219.602-70, and 252.219-7009 to

eliminate certain notification requirements pertaining to the

Certificate of Competency Program. These DFARS revisions implement

Sections 1506, 3065, 3066, and 7101(b) of the Federal Acquisition

Streamlining Act of 1994 (Pub. L. 103-355).

Item V--Class Justifications and Approvals (DFARS Case 95-D009)

This final rule adds language at DFARS 206.303-1(c) and 207.102 to

state that: (1) When conditions warrant, a class justification for

other than full and open competition may provide for award of multiple

contracts extending across more than one program phase; and (2) when a

class justification for other than full and open competition has been

approved, planning for competition shall be consistent with the terms

of that approval.

Item VI--Integrated Materiel Management (DFARS Case 95-D005)

This final rule amends DFARS 208.7003 to permit greater flexibility

for local purchase of items assigned for integrated materiel management

(IMM), when such action is in the best interest of the Government. The

dollar threshold at which file documentation is required to justify

local purchase of an IMM item is increased from $100 per line item to

the micro-purchase threshold. The dollar threshold at which a waiver is

required, before local purchase of an IMM item, is increased from

$5,000 per line item to the simplified acquisition threshold.

Additionally, the list of points of contact for waiver requests is

revised.

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Item VII--Preaward Survey (DFARS Case 95-D016)

This final rule revises DFARS 209.106-1 to delete the requirement

for the contracting officer to contact the cognizant contract

administration activity when the contracting officer is unable to make

a determination of responsibility for a low-dollar value acquisition.

Guidance regarding sources of information to support determinations of

responsibility can be found at FAR 9.105-1(c).

Item VIII--Qualification Requirements (DFARS Case 95-D011)

This final rule revises DFARS 209.202 to delegate authority for

approval of qualification requirements, except those pertaining to

Qualified Products Lists (QPLs) or Qualified Manufacturers Lists

(QMLs), to the chief of the contracting office. QPLs and QMLs are

managed in accordance with DoD Manual 4120.3-M, Defense Standardization

Program Policies and Procedures.

Item IX--Institutions of Higher Education (DFARS Case 94-D310)

This interim rule was issued by Departmental Letter 95-007,

effective March 6, 1995. The rule adds a new section and contract

clause at DFARS 209.470 and 252.209-7005 to implement Section 558 of

the Fiscal Year 1995 Defense Authorization Act (Pub. L. 103-337).

Section 558 provides that no funds available to DoD may be provided by

grant or contract to any institution of higher education that has a

policy of denying, or which effectively prevents the Secretary of

Defense from obtaining for military recruiting purposes, entry to

campuses, access to students on campuses, or access to directory

information pertaining to students.

Item X--Audit (DFARS Case 95-D705)

This final rule amends DFARS 215.804-8, 235.015-71, 237.7204,

252.239-7010, and C-204.3, and deletes the clause at 252.215-7001, to

reflect revisions to the FAR published as Item I of Federal Acquisition

Circular (FAC) 90-31 on August 16, 1995. Item I of FAC 90-31 (1)

revised the policy pertaining to contractor records retention at FAR

4.703; (2) deleted the clause at FAR 52.215-1, Examination of Records

by Comptroller General; and (3) revised the clauses at FAR 52.214-26,

Audit and Records--Sealed Bidding, and 52.215-2, Audit and Records--

Negotiation, to provide for examination of records by the Comptroller

General.

Item XI--Field Pricing Report (DFARS Case 95-D010)

This final rule amends DFARS 215.805-5 to increase, from $1 million

to $10 million, the dollar threshold for requesting field pricing

reports for cost-type proposals from offerors without significant

estimating system deficiencies.

Item XII--Comprehensive Small Business Subcontracting Plans (DFARS

Case 95-D002)

This final rule was issued by Departmental Letter 95-015, effective

July 10, 1995. The rule amends DFARS 219.702 and the clause at 252.219-

7004 to implement Section 7103 of the Federal Acquisition Streamlining

Act of 1994 (Pub. L. 103-355). Section 7103 extends, through September

30, 1998, the test program for contractor use of comprehensive small

business subcontracting plans.

Item XIII--Subcontracting Plans for Nonprofit Agencies for the Blind or

Severely Disabled (DFARS Case 94-D312)

The interim rule issued by Departmental Letter 95-004, on February

27, 1995, is converted to a final rule without change. The rule amends

DFARS 219.703 to implement Section 804 of the Fiscal Year 1995 Defense

Authorization Act (Pub. L. 103-337). Section 804 extends, through

September 30, 1997, the authority for contractors to claim credit

toward their small business subcontracting goals for subcontracts with

qualified nonprofit agencies for the blind or severely disabled.

Item XIV--Evaluation Preference for Small Disadvantaged Business

Concerns (DFARS Case 95-D008)

This final rule was issued by Departmental Letter 95-017, effective

August 22, 1995. The rule amends DFARS 219.7001 to state that the

evaluation preference for small disadvantaged business concerns shall

not be used in acquisitions for long distance telecommunications

services.

Item XV--Environmentally Sound Products (DFARS Case 95-D303)

This final rule adds a new section at DFARS 223.404 to (1)

designate the approving official for acquisition of EPA designated

items which do not meet EPA or agency minimum recovered material

standards; and (2) require agency collection and consolidation of

annual contractor certifications pertaining to the use of recovered

materials.

Item XVI--Hazardous Materials (DFARS Case 94-D309)

The interim rule issued by Departmental Letter 95-006, on March 6,

1995, is revised and finalized. The rule amends DFARS Subpart 223.71

and the clause at 252.223-7006 to implement Section 325 of the Fiscal

Year 1995 Defense Authorization Act (Pub. L. 103-337). Section 325

provides an additional exception to the statutory prohibition on

storage and disposal of non-DoD-owned toxic and hazardous materials on

military installations. The final rule differs from the interim rule in

that it revises alternate paragraph (d) of the clause at 252.223-7006

to clarify requirements for flowdown of the clause to subcontractors.

Item XVII--Determinations Under the Buy American Act (DFARS Case

94-D313)

The interim rule issued by Departmental Letter 95-011, dated July

3, 1995, is converted to a final rule without change. The rule amends

DFARS 225.102 to implement Section 812 of the Fiscal Year 1995 Defense

Authorization Act (Pub. L. 103-337). Section 812 adds several factors

to the series of factors at 10 U.S.C. 2533 that must be considered when

deciding whether to grant a public interest exception to the Buy

American Act. In addition, the rule changes the approval levels for

granting such exceptions.

Item XVIII--Australian Memorandum of Agreement (DFARS Case 95-D013)

This final rule amends DFARS 225.872-1 to add Australia to the list

of countries whose defense products are not subject to the restrictions

of the Buy American Act/Balance of Payments Program. The rule

implements a Memorandum of Agreement Concerning Reciprocal Defense

Procurement, dated April 19, 1995, between the United States and

Australia, and a determination made by the Deputy Secretary of Defense,

on April 29, 1995, that it is inconsistent with the public interest to

apply the restrictions of the Buy American Act to the acquisition of

defense equipment produced or manufactured in Australia.

Item XIX--Restriction on Procurement of Goods (DFARS Case 94-D314)

The interim rule published as Item XIV of DAC 91-7 is revised and

finalized. The rule implements the foreign source restrictions of 10

U.S.C. 2534. The interim rule differs from the final rule in that it

revises DFARS 225.7007-4, 225.7010-3, and 225.7016-3 to refer to,

rather than repeat, the waiver criteria at 225.7004-4.

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Item XX--Supercomputers (DFARS Case 95-D301)

The interim rule issued by Departmental Letter 95-013 on July 3,

1995, is revised and finalized. The rule adds a section at DFARS

225.7023 and a contract clause at 252.225-7011 to implement Section

8023 of the Fiscal Year 1995 Defense Appropriations Act (Pub. L. 103-

335). Section 8023 and comparable sections in prior Defense

Appropriations Acts require that any supercomputers acquired with

defense funds appropriated in Fiscal Years 1988 through 1995 must be

manufactured in the United States, unless the Secretary of Defense

certifies to the Congress that the supercomputers are for national

security purposes and are not available from United States

manufacturers. The final rule differs from the interim rule in that it

corrects the statutory citation at 225.7023-1.

Item XXI--Indian Incentives (DFARS Case 95-D027)

This final rule adds a new section at DFARS 226.103 to provide

procedures for obtaining contract funding for an approved Indian

incentive payment request.

Item XXII--Preference for Local Residents (DFARS Case 94-D315)

The interim rule published as Item XX of DAC 91-7 is revised and

finalized. The rule implements Section 817 of the Fiscal Year 1995

Defense Authorization Act (Pub. L. 103-337). Section 817 authorizes the

Secretary of Defense to give preference to entities that plan to hire

local residents, when entering into contracts for services to be

performed at a military installation that is affected by closure or

realignment under a base closure law. The final rule differs from the

interim rule in that it adds language at DFARS 226.7104 to clarify that

the guidance in this section applies to contracts related to base

closure activities.

Item XXIII--Payment Protections in Construction Contracts Between

$25,000 and $100,000 (DFARS Case 95-D305)

This interim rule was issued by Departmental Letter 95-018,

effective August 31, 1995. The rule adds a new section and contract

clause at DFARS 228.171 and 252.228-7007. The rule provides alternative

payment protections for construction contracts between $25,000 and

$100,000, pending implementation of Section 4104(b)(2) of the Federal

Acquisition Streamlining Act of 1994 (Pub. L. 103-355) in the FAR.

Section 4104(b)(2) requires FAR revisions to provide alternatives to

payment bonds as payment protections for suppliers of labor and

material under construction contracts between $25,000 and $100,000.

Federal Acquisition Circular 90-29 revised FAR Part 13 to exclude

construction contracts and subcontracts at or below the simplified

acquisition threshold from Miller Act bond requirements, in accordance

with Section 4104(b)(1) of Pub. L. 103-355.

Item XXIV--Limitation on Allowable Individual Compensation (DFARS

Case 94-D318)

The interim rule published as Item XXII of DAC 91-7 is converted to

a final rule without change. The interim rule amended DFARS 231.205,

231.303, 231.603, and 231.703 to implement Section 8117 of the Fiscal

Year 1995 Defense Appropriations Act (Pub. L. 103-335). Section 8117

limits allowable costs for individual compensation to $250,000 per

year. This limitation applies to contracts that are awarded after April

15, 1995, and that are funded with Fiscal Year 1995 appropriations.

Item XXV--Cost Principles (DFARS Case 95-D704)

This final rule amends the DFARS to delete language that was

incorporated into the FAR by Federal Acquisition Circular 90-31, dated

August 15, 1995. Accordingly, the following DFARS sections are deleted:

231.205-6(g)(2)(i); 231.603(1); 231.703(1); 231.70; 237.171; 242.705-

1(b) (3) and (4); 242.770; 252.231-7001; 252.237-7020; 252.237-7021;

and 252.242-7001.

Item XXVI--Manufacturing Science and Technology Program (DFARS Case

94-D307)

The interim rule published as Item XXVI of DAC 91-7 is converted to

a final rule without change. The interim rule added language at DFARS

235.006 (a) and (b)(iv) to implement Section 256 of the Fiscal Year

1995 Defense Authorization Act (Pub. L. 103-337). Section 256 requires

use of competitive procedures in awarding contracts under the

Manufacturing Science and Technology Program, and use of a cost-sharing

arrangement for these contracts unless an alternative arrangement is

approved by the Secretary of Defense.

Item XXVII--Federally Funded Research and Development Centers

(FFRDCs) (DFARS Case 94-D306)

The interim rule published as Item XXVIII of DAC 91-7 is revised

and finalized. The rule allows DoD-sponsored FFRDCs that function

primarily as research laboratories to respond to solicitations and

announcements for programs which promote research, development,

demonstration, or transfer of technology. The final rule differs from

the interim rule in that it adds, at DFARS 235.017-1, the names of DoD-

sponsored FFRDCs that function primarily as research laboratories.

Item XXVIII--Research and Development Streamlined Contracting

Procedures--Test (DFARS Case 92-D034)

This final rule amends DFARS 235.7002 to add the Army Soldier

Systems Command and the Naval Command, Control and Ocean Surveillance

Center to the list of contracting offices authorized to participate in

the streamlined research and development contracting test program. In

addition, editorial corrections are made at 235.7003(b)(1) and in

paragraph H.5 of the exhibit at 235.7006(d).

Item XXIX--Firefighting and Security-Guard Services (DFARS Case 95-

D035)

This final rule adds a new section at DFARS 237.102-70 to reflect

the requirements of 10 U.S.C. 2465, which prohibits the award of DoD

contracts for firefighting or security-guard functions except under

certain conditions.

Item XXX--Annual Automatic Data Processing Equipment (ADPE) Leasing

Review (DFARS Case 95-D017)

This final rule amends DFARS 239.7303 to eliminate the requirement

for annual review of ADPE leasing costs and, instead, require review of

ADPE leasing costs as warranted.

Item XXXI--Cost Monitoring (DFARS Case 95-D08)

This final rule deletes the language of DFARS 242.7003-1(b),

regarding requirements for in-depth functional reviews of certain

contractor activities, to provide contract administration offices

greater flexibility in planning and executing cost monitoring programs.

Item XXXII--Contract Quality Requirements (DFARS Case 95-D007)

The interim rule issued by Departmental Letter 95-010, on June 13,

1995, is converted to a final rule without change. The rule amends

DFARS Part 246 to encourage increased use of commercial quality

standards by removing existing requirements to use military quality

standards. The rule revises the definition of ``quality program,''

replaces direct references to MIL-I-45208 and MIL-Q-9858 with

references to higher-level contract quality requirements, and deletes

Table

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46-1, Contract Quality Requirements Guide.

Item XXXIII--Contract Data Reporting (DFARS Case 95-D711/95-D713)

This final rule contains the guidance issued by Departmental Letter

95-014, on July 6, 1995, and additional guidance pertaining to DD Form

350 and DD Form 1057 reporting requirements. The rule revises DFARS

204.6, 253.204-70 and 253.204-71 to comply with reporting requirements

of the Federal Acquisition Streamlining Act of 1994 (Pub. L. 103-355).

Except for contracting actions pertaining to contingencies as described

at FAR 13.101, contracting officers will continue to use DD Form 350 to

report all contracting actions exceeding $25,000. Contracting actions

pertaining to contingencies will continue to be reported on DD Form

1057. Until the forms are revised, the term ``small purchase

procedures'' used on DD Forms 350 and 1057 shall be interpreted to mean

``simplified acquisition procedures.''

Item XXXIV--Master Agreements (DFARS Case 95-D038)

This final rule deletes DFARS 237.270, Master Agreements. The

authority to award master agreements for advisory and assistance

services under 10 U.S.C. 2304 expired on September 30, 1994.

Item XXXV--Acquisition of Commercial Items (DFARS Case 95-D712)

This interim rule amends the DFARS to conform to the FAR changes

pertaining to the acquisition of commercial items, published as Item

III of FAC 90-32 on September 18, 1995. The rule also implements DoD-

unique requirements of the Federal Acquisition Streamlining Act of 1994

(Pub. L. 103-355) regarding the acquisition of commercial items.

Following is a summary of the DFARS amendments contained in this rule:

--Part 203 is amended to reflect that the statutory prohibitions of 10

U.S.C. 2397b do not apply to contractors that supply only commercial

items to DoD.

--Part 207 is amended to reflect the preference for commercial items

and the requirement for market research contained in FAR Parts 10 and

11.

--Parts 210, 211, and 212 are revised to reflect the restructuring of

FAR Parts 10, 11, and 12. Part 210 is retitled ``Market Research'' and

contains no DFARS text; Part 211 is retitled ``Describing Agency

Needs'' and revised to include guidance that was previously included in

Part 210; and Part 212 is retitled ``Acquisition of Commercial Items''

and revised to include two new subparts. Subpart 212.3 prescribes

solicitation provisions and contract clauses for use in DoD

acquisitions of commercial items, to include a new solicitation

provision at 252.212-7000, Offeror Representations and Certifications--

Commercial Items, and a new contract clause at 252.212-7001, Contract

Terms and Conditions Required to Implement Statutes Applicable to

Defense Acquisition of Commercial Items. Subpart 212.5 contains lists

of statutes that do not apply, or have limited application to,

contracts or subcontracts for the acquisition of commercial items.

--Part 217 is amended to state that the requirement for contractor

identification of sources of supply does not apply to commercial items.

--Part 225 is amended to state that certain foreign source restrictions

do not apply to commercial items or components purchased by contractors

from subcontractors/suppliers.

--Part 227 is amended to delete definitions which appear in FAR Part 2

and to clarify that clauses prescribed by 227.7102-3 and 227.7103-15 do

not flow down to subcontractors providing commercial items or

components.

--Part 234 is amended to include the definitions of ``systems'' and

``systems acquisition'' which were deleted from 210.001.

--Part 246 is amended to conform to the policy in FAR 12.208 on

contract quality assurance.

--Amendments are made to conform terminology to the definition of

``commercial items'' in FAR Part 2 and to delete obsolete references.

Item XXXVI--Editorial Revisions

Note: The asterisked items are revisions being made only in the

looseleaf edition of the DFARS.

(a) DFARS is amended by revising ``Under Secretary of Defense for

Acquisition (USD(A))'' to read ``Under Secretary of Defense for

Acquisition & Technology (USD(A&T))'' each place it appears.

*(b) Section 202.101 is amended by revising in the definition

``Contracting activity'' under the heading ``NAVY'' the entry ``Space

nd Naval Warfare Systems Command'' to read ``Space and Naval Warfare

Systems Command.''

agency identification characters used in procurement instrument

identification numbers.

(d) Section 209.403 is amended to update the Air Force entry to

read ``Air Force--Deputy General Counsel (Contractor Responsibility).''

(e) Section 209.405-1 is amended to redesignate paragraphs (a) and

(b) as paragraphs (b) and (c), respectively.

(f) Section 214.406-3(e)(i) is amended to revise ``DARPA'' to read

``ARPA.''

(g) Section 225.302. is amended by revising in paragraph (b)(i)

under the heading ``DEFENSE LOGISTICS AGENCY'' the entry ``Executive

Director, Contracting'' to read ``Executive Director, Procurement'';

and to add a new heading and entry between the headings ``DEFENSE

MAPPING AGENCY'' and ``ON-SITE INSPECTION AGENCY'' to read ``

DEPARTMENT OF DEFENSE OFFICE OF DEPENDENT SCHOOLS, Director.''

(h) Section 225.770-1 is amended by revising between the word

``that'' and the word ``does'' the word ``is'' to read ``it.''

(i) Section 227.7103-6 is amended in paragraph (a) to revise the

word ``Innovative'' to read ``Innovation.''

(j) Section 227.7104 is amended in the title by revising the word

``Innovative'' to read ``Innovation'' and by revising in paragraph (a)

the word ``Innovative'' to read ``Innovation.''

*(k) Section 232.704-70(c) is amended to revise the word ``funs''

to read ``funds.''

(l) Section 242.705-2 is amended to redesignate paragraphs

(b)(2)(iii) and (b)(2)(v) as paragraphs (b)(2)(ii) and (b)(2)(iv),

respectively.

(m) Section 249.7002(b) is amended in the introductory text to

revise the phrase ``Office of Economic Adjustment (OEA), Assistant

Secretary of Defense (Force Management and Personnel)'' to read

``Assistant Secretary of Defense (Economic Security), Office of

Economic Adjustment (OEA).''

(n) Section 249.7002(b)(2) is amended to revise the Telefax number

to read ``(703) 604-5843.''

*(o) Section 252.223-7004(a)(1) is amended to revise ``employe'' to

read ``employee.''

(p) Section 252.225-7040 is amended to revise in the introductory

text the reference ``225.7004-5(c)'' to read ``225.7004-6(c).''

(q) Section 252.227-7018 is amended in the section title to revise

the word ``Innovative'' to read ``Innovation'' and in the clause title

to revise the word ``INNOVATIVE'' to read ``INNOVATION.''

(r) Appendix F, F-401, Table 2, is amended to update the Army

address for Foreign Military Sales.

(s) Appendix G is revised to update activity addresses.

[[Page 61591]]

Interim Rules Adopted as Final Without Changes

PARTS 206, 207, 215, 219, AND 252--[AMENDED]

The interim rule that was published at 60 FR 40106 on August 7,

1995, is adopted as final without change.

PART 225--[AMENDED]

The interim rule that was published at 60 FR 34470 on July 3, 1995,

is adopted as final without change.

PART 231--[AMENDED]

The interim that was published at 60 FR 2330 on January 9, 1995, is

adopted as final without change.

PART 235--[AMENDED]

The interim rule that was published at 60 FR 4569 on January 24,

1995, is adopted as final without change.

Interim Rules Adopted as Final With Changes

PARTS 206 AND 237--[AMENDED]

The interim rule that was published at 60 FR 2888 on January 12,

1995, is adopted as final with amendments at section 237.104, addition

of section 206.001, and removal of Subpart 206.1.

PART 219--[AMENDED]

The interim rule that was published at 60 FR 13074 on March 10,

1995, is adopted as final with amendments at section 219.703.

PARTS 223 AND 252--[AMENDED]

The interim rule published at 60 FR 13075 on March 10, is adopted

as final with amendments at sections 223.7101, 223.7102, and 252.223-

7006.

PARTS 225 AND 252--[AMENDED]

The interim rule published at 60 FR 19531 on April 19, 1995, is

adopted as final with amendments at sections 225.7004-4, 225.7007-4,

225.7010-3, and 225.7016-3.

PARTS 225 AND 252--[AMENDED]

The interim rule published at 60 FR 34471 on July 3, 1995, is

adopted as final with amendments at sections 225.7023-1, 225.7023-3,

and 252.225-7011.

PART 226--[AMENDED]

The interim rule published at 60 FR 5870 on January 31, 1995, is

adopted as final with a revision at section 226.7104.

PART 235--[AMENDED]

The interim rule published at 60 FR 13076 on March 10, 1995, is

adopted as final with a revision at section 235.017-1.

PART 246--[AMENDED]

The interim rule published at 60 FR 33144 on June 27, 1995, is

adopted as final with amendments at section 246.202-3.

List of Subjects in 48 CFR Parts 201, 202, 203, 204, 206, 207, 208,

209, 210, 211, 212, 214, 215, 217, 219, 223, 225, 226, 227, 228,

231, 232, 234, 235, 237, 239, 242, 246, 247, 249, 250, 252, 253,

and Appendices C, F, and G to Chapter 2

Government procurement.

Amendments to 48 CFR Chapter 2 (Defense Federal Acquisition

Regulation Supplement)

48 CFR Chapter 2 (the Defense Federal Acquisition Regulation

Supplement) is amended as set forth below.

1. The authority for 48 CFR parts 201, 202, 203, 204, 206, 207,

208, 209, 210, 211, 212, 214, 215, 217, 219, 223, 225, 226, 227, 228,

231, 232, 234, 235, 237, 239, 242, 246, 247, 249, 250, 252, 253, and

Appendices C, F, and G to Chapter 2 continues to read as follows:

Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 201--FEDERAL ACQUISITION REGULATIONS SYSTEM

201.201-1 [Amended]

2. Section 201.201-1 is amended by revising in paragraph (d)(i)

introductory text the phrase ``OUSD(A)'' to read ``OUSD(A&T);'' and by

revising in paragraph (d)(i)V. the phrase ``USD(A)DP'' to read

``USD(A&T)DP.''

201.301 [Amended]

3. Section 201.301(b) is amended by revising the phrase ``USD(A)''

to read ``USD(A&T).''

201.304 [Amended]

4. Section 201.304 is amended by revising in paragraph (1) the

phrase the ``USD(A)'' to read ``USD(A&T);'' by revising in paragraph

(2) the phrase ``USD(A)'' to read ``USD(A&T);'' and by revising in

paragraph (2) the phrase ``USD(A)DP'' to read ``USD(A&T)DP;'' by

revising in paragraph (3) the phrase ``USD(A)DP'' to read

``USD(A&T)DP;'' by revising in paragraph (4) the phrase ``USD(A)DP'' to

read ``USD(A&T)DP;'' by revising in paragraph (5) the phrase ``USD(A)''

to read ``USD(A&T);'' and by revising in paragraph (5) the phrase

``USD(A)DP'' to read ``USD(A&T)DP.''

201.402 [Amended]

5. Section 201.402 is amended by revising in paragraph (1) the

phase ``Office of the Under Secretary of Defense for Acquisition,

USD(A)DP'' to read ``Office of the Under Secretary of Defense

(Acquisition & Technology), USD(A&T)DP;'' and by revising in paragraph

(3) the phrase ``USD(A)DP'' to read ``USD(A&T)DP''.

PART 202--DEFINITIONS OF WORDS AND TERMS

6. Section 202.101 is amended by revising the definition of

``Senior procurement executive'' to read:

202.101 Definitions.

* * * * *

Senior procurement executive, means for DoD--

Department of Defense (including the defense agencies)--Under

Secretary of Defense (Acquisition & Technology);

Department of the Army--Assistant Secretary of the Army (Research,

Development and Acquisition);

Department of the Navy--Assistant Secretary of the Navy (Research,

Development and Acquisition);

Department of the Air Force--Assistant Secretary of the Air Force

(Acquisition).

The directors of the defense agencies have been delegated authority

to act as senior procurement executive for their respective agencies,

except for such actions that by terms of statute, or any delegation,

must be exercised by the Under Secretary of Defense (Acquisition &

Technology).

PART 203--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF

INTEREST

7. Section 203.170-1 is amended in paragraph (a) by adding a last

sentence to read as follows:

203.170-1 Policy.

(a) * * * The prohibitions in 10 U.S.C. 2397b do not apply to

contractors that supply only commercial items to DoD.

* * * * *

8. Section 203.170-4 is revised to read as follows:

203.170-4 Contract clause.

Use the clause at 252.203-7000, Statutory Prohibitions on

Compensation to Former Department of Defense Employees, in all

solicitations and contracts expected to exceed $100,000, except

solicitations and contracts for commercial items.

[[Page 61592]]

9. Section 203.570-5 is revised to read as follows:

203.570-5 Contract clause.

Use the clause at 252.203-7001, Special Prohibition on Employment,

in all solicitations and contracts exceeding the simplified acquisition

threshold in FAR part 13, except solicitations and contracts for

commercial items.

203.703 [Amended]

10. Section 203.703 is amended by revising ``Under Secretary of

Defense for Acquisition'' to read ``Under Secretary of Defense

(Acquisition & Technology).''

203.71 [Removed]

11. Subpart 203.71 is removed.

PART 204--ADMINISTRATIVE MATTERS

12. Section 204.602-70 is added to read as follows:

204.602-70 Solicitation provision.

When the Commercial and Government Entity codes for the prospective

offerors are not available to the contracting office, use the provision

at 252.204-7001, Commercial and Government Entity (CAGE) Code

Reporting.

204.603 [Removed]

13. Section 204.603 is removed.

204.603-70 [Removed]

14. Section 204.603-70 is removed.

204.670-I [Amended]

15. Section 204.670-1 is amended by revising in paragraph (c)(3)

the acronym ``SAF/AQCP'' to read ``SAF/AQCI.''

16. Section 204.670-2 is amended by revising paragraph (c) and

paragraph (d) to read as follows:

204.670-2 Reportable contracting actions.

* * * * *

213.101. Summarize these actions on a DD Form 1057 in accordance with

the instructions in 253.204-71(a)(3).

(d) The following contracting actions are not subject to reporting

on either the DD Form 350 or DD Form 1057:

(1) Micro-purchases obtained through use of the purchase card;

(2) Transactions that cite only nonappropriated funds (Funds held

in trust accounts for foreign governments shall be treated as

appropriated funds.);

(3) Transactions for purchase of land, or rental or lease of real

property, when the General Services Administration (GSA) executes the

contracting action;

(4) Orders from GSA stock and the GSA Consolidated Purchase

Program;

(5) Transactions that involve Government bills of lading or

transportation requests, except orders placed under Regional Storage

Management Office's (RSMO) BOAs;

(6) Requisitions transferring supplies within or among the

departments or agencies; and

(7) Pursuant to 204.670-6(b), orders placed by other contracting

activities against indefinite delivery contracts awarded by the--

(i) Military Sealift Command;

(ii) Defense Fuel Supply Center for petroleum and petroleum

products; or

(iii) Defense General Supply Center for petroleum products.

17. Section 204.670-6 is amended by revising paragraph (b) to read

as follows:

204.670-6 Types of DD Form 350 report.

* * * * *

(b) A consolidated report is one DD Form 350 report which combines

several contracting actions.

(1) Prepare consolidated reports for--

(i) Air Mobility Command awards for international airlift services.

The Command reports these at the end of each operating month with one

DD Form 350 for each airlift contract.

(ii) Military Sealift Command awards of indefinite delivery

contracts for ocean transportation. The Command reports at the

beginning of each fiscal year the estimated value of the orders for

that fiscal year on one DD Form 350.

(iii) Defense Fuel Supply Center or Defense General Supply Center

indefinite delivery contracts for petroleum or petroleum supplies. The

Centers, at the time of award, report the estimated value of the orders

to be placed against the contract on one DD Form 350.

(iv) Orders placed by the Defense Commissary Agency (DeCA) for

resale items in excess of $25,000. DeCA consolidates the orders monthly

and reports the cumulative dollar amounts and actions on one DD Form

350 in accordance with departmental regulations. Defense Logistics

Agency activities submit single rather than consolidated reports.

(v) Vouchers processed by the U.S. Army Contracting Command, Europe

(USACCE), for the purchase of utilities from municipalities (e.g., gas,

electricity, water, sewage, steam, snow removal, and garbage

collection). USACCE consolidates these transactions monthly and reports

the cumulative dollar amount on one DD Form 350 in accordance with

departmental regulations.

(2) Consolidated reports may be prepared in accordance with

departmental instructions for orders under communications service

agreements for local dial tone services.

* * * * *

18. Section 204.7003 is amended by revising paragraph (a)(1)(i) to

read as follows:

204.7003 Basic PII number.

(a) * * *

(1) * * *

(i) Department/agency identification:

(A) Department of the Army................. DA

(B) Department of the Navy (except Marine N

Corps).

(D) Defense Information Systems Agency..... DCA

(E) Defense Logistics Agency............... S

(F) Defense Nuclear Agency................. DNA

(G) Defense Mapping Agency................. DMA

(H) Miscellaneous Defense Activities....... MDA

(I) Marine Corps........................... M

(J) Ballistic Missile Defense Organization. HQ0006

(K) On Site Inspection Agency.............. OSIA

(L) Defense Commissary Agency.............. DECA

(M) United States Special Operations USZA

Command.

* * * * *

PART 206--COMPETITION REQUIREMENTS

19. A new section 206.001 is added to read as follows:

206.001 Applicability.

(b) Contracts awarded using the procedures in 237.104(b)(ii) are

expressly authorized by 10 U.S.C. 1091.

206.1 [Removed]

20. Subpart 206.1 is removed.

21. Section 206.303-1 is amended by adding a new paragraph (c) to

read as follows:

206.303-1 Requirements.

* * * * *

award of multiple contracts extending across more than one program

phase.

PART 207--ACQUISITION PLANNING

22. Section 207.102 is added to read as follows:

207.102 Policy.

When a class justification for other than full and open competition

has been approved, planning for competition shall be accomplished

consistent with the terms of that approval.

23. Section 207.105 is amended by revising paragraph (b)(6);

paragraph (b)(5); and paragraph (b)(17)(A)(8) to read as follows:

[[Page 61593]]

207.105 Contents of written acquisition plans.

(a) * * *

(b) * * *

(6) Product descriptions

For development acquisitions, describe the market research

undertaken to identify commercial items, commercial items with

modifications, or nondevelopmental items (see FAR part 10) that could

satisfy the acquisition objectives.

* * * * *

(15) Environmental considerations.

Discuss actions taken to ensure either elimination of or

authorization to use class I ozone-depleting chemicals and substances

(see 211.271).

(17) * * *

(A) * * *

(8) Expanded use of commercial items, commercial items with

modifications, or to the extent commercial items are not available,

nondevelopmental items (see FAR part 10).

* * * * *

PART 208--REQUIRED SOURCES OF SUPPLIES AND SERVICES

24. Section 208.7003-1 is revised to read as follows:

208.7003-1 Assignments under integrated material management (IMM).

(a) All items assigned for IMM must be acquired from the IMM

manager except--

(1) Items purchased under circumstances of unusual and compelling

urgency as defined in FAR 6.302-2. After such a purchase is made, the

requiring activity must send one copy of the contract and a statement

of the emergency to the IMM manager;

(2) Items for which the IMM manager assigns a supply system code

for local purchase or otherwise grants authority to purchase locally;

(3) When purchase by the requiring activity is in the best interest

of the Government in terms of the combination of quality, timeliness,

and cost that best meets the requirement. This exception does not apply

to items--

(i) Critical to the safe operation of a weapon system;

(ii) With special security characteristics; or

(iii) Which are dangerous (e.g., explosives, munitions).

(b) When an item assigned for IMM is to be acquired by the

requiring activity under paragraph (a)(3) of this subsection, the

contracting officer must--

(1) Document the contract file with a statement of the specific

advantage of local purchase for an acquisition exceeding the micro-

purchase threshold in FAR part 13; and

(2) Ensure that a waiver is obtained from the IMM manager before

initiating an acquisition exceeding the simplified acquisition

threshold in FAR part 13, if the IMM assignment is to the General

Services Administration (GSA), the Defense Logistics Agency (DLA), or

the Army Materiel Command (AMC). Submit requests for waiver to--

(i) For GSA:

Commissioner (F), Federal Supply Service, Washington, DC 20406

(ii) For DLA:

Defense Construction Supply Center, ATTN: DCSC-BDA, P.O. Box 3990,

Columbus, OH 43216-5000

Defense Electronics Supply Center, ATTN: DESC-ERM, 1507 Wilmington

Pike, Dayton, OH 45444-5000

Defense Fuel Supply Center, ATTN: DFSC-OI, Cameron Station, VA

22304-6160

Defense General Supply Center, ATTN: DGSC-X, Richmond, VA 23297-

5000

Defense Industrial Supply Center, ATTN: DISC-OPD, 700 Robbins

Avenue, Philadelphia, PA 19111-5096

Defense Personnel Support Center, ATTN: DPSC-CSH, 2800 South 20th

Street, P.O. Box 8419, Philadelphia, PA 19101-8419

(iii) For AMC:

Commander, U.S. Army Materiel Command, ATTN: AMCLG-S, 5001

Eisenhower Avenue, Alexandria, VA 22333-0001

25. Section 208.7003-2 is amended by revising paragraph (c) to read

as follows:

208.7003-2 Assignments under coordinated acquisition.

* * * * *

threshold in FAR part 13, when contracting by the requiring department

is in the best interest of the Government;

* * * * *

PART 209--CONTRACTOR QUALIFICATIONS

26. Section 209.103-70 is revised to read as follows:

209.103-70 Contract clause.

Use the clause at 252.209-7000, Acquisition from Subcontractors

Subject to On-Site Inspection Under the Intermediate-Range Nuclear

Forces (INF) Treaty, in all solicitations and contracts exceeding the

simplified acquisition threshold in FAR part 13, except solicitations

and contracts for commercial items.

27. Section 209.106-1 is revised to read as follows:

209.106-1 Conditions for preaward surveys.

(a) If a preaward survey is requested, include the rationale in

block 23 of the SF 1403, Preaward Survey of Prospective Contractor

(General).

28. Section 209.202 is revised to read as follows:

209.202 Policy.

(a)(1) The inclusion of qualification requirements in

specifications for products which are to be included on a Qualified

Products List, or manufactured by business firms included on a

Qualified Manufacturers List, requires approval by the departmental

standardization office in accordance with DoD Manual 4120.3-M, Defense

Standardization Program Policies and Procedures. The inclusion of other

qualification requirements in an acquisition or group of acquisitions

requires approval by the chief of the contracting office.

209.403 [Amended]

29. Section 209.403 is amended under the definition ``Debarring

official'' to revise the ``Air Force'' entry to read ``Air Force--

Deputy General Counsel (Contractor Responsibility).''

209.405-1 [Amended]

30. Section 209.405-1 is amended by redesignating paragraphs (a)

and (b) as paragraphs (b) and (c).

209.470-1 [Amended]

31. Section 209.470-1 is amended by removing in paragraph (a)

introductory text the comma after the parenthetical phrase ``(Pub. L.

103-337)''; and by revising in paragraph (b) the last sentence ``(See

FAR 9.404).'' to read ``(See FAR 9.404.)''

209.470-3 [Amended]

32. Section 209.470-3 is amended to revise ``252.209-7007'' to read

``252.209-7005.''

PART 210--SPECIFICATIONS, STANDARDS, AND OTHER PURCHASE

DESCRIPTIONS

Part 210--[Removed]

33. Part 210 is removed.

34. Part 211 is revised to read as follows:

[[Page 61594]]

PART 211--DESCRIBING AGENCY NEEDS

Sec.

211.002 Policy.

211.002-70 Contract clause.

Subpart 211.2--Using and Maintaining Requirements Documents

211.201 Identification and availability of specifications.

211.204 Solicitation provisions and contract clauses.

211.270 Brand name or equal purchase descriptions.

211.270-1 Policy.

211.270-2 Solicitation provision.

211.271 Elimination of use of class I ozone-depleting substances.

211.272 Alternate preservation, packaging, and packing.

Subpart 211.5--Liquidated Damages

211.504 Contract clauses.

Subpart 211.6--Priorities and Allocations

211.602 General.

211.002 Policy

All systems acquisition programs in the DoD are subject to the

acquisition streamlining policies and procedures in DoDI 5000.2,

Defense Acquisition Management Policies and Procedures.

211.002-70 Contract clause.

Use the clause at 252.211-7000, Acquisition Streamlining, in all

solicitations and contracts for systems acquisition programs.

Subpart 211.2--Using and Maintaining Requirements Documents

211.201 Identification and availability of specifications.

(a) The DoD index of data item descriptions is DoD 5010.12-L,

Acquisition Management Systems and Data Requirements Control List

(AMSDL).

(b) Also, furnish data item descriptions which are not listed in

the AMSDL, except when it is not feasible, e.g., documents are bulky or

only a limited number of copies are available at the contracting

activity.

(d) The AMSDL, all unclassified specifications and standards listed

in the DODISS, and data item descriptions listed in the AMSDL may also

be purchased from the Standardization Documents Desk, Building 4D, 700

Robbins Avenue, Philadelphia, PA 19111-5094. Include with the letter or

DD Form 1425--

(i) The requester's customer number; and

(ii) Complete return mailing address, including any ``mark for''

instructions.

211.204 Solicitation provisions and contract clauses.

standards which are not listed in the DODISS and data item descriptions

which are not listed in the AMSDL, use provisions, as appropriate,

substantially the same as those at 252.211-7001, Availability of

Specifications and Standards Not Listed in DODISS, Data Item

Descriptions Not Listed in DoD 5010.12-L, and Plans, Drawings, and

Other Pertinent Documents, and 252.211-7002, Availability for

Examination of Specifications, Standards, Plans, Drawings, Data Item

Descriptions, and Other Pertinent Documents.

211.270 Brand name or equal purchase descriptions.

211.270-1 Policy.

When a ``brand name or equal'' purchase description is used--

(a) The purchase description--

(1) Should include a complete common generic identification of the

item.

(2) Should reference all known acceptable brand name products, to

include--

(i) Name of manufacturer, producer, or distributor of each brand

name product referenced (and address if not well known); and

(ii) Model, make, or catalog number for each, and identity of the

commercial catalog in which it appears.

(3) May, if necessary to adequately describe an item, use a

commercial catalog description or an extract from the catalog. Ensure

that a copy of each catalog referenced (except parts catalogs) is

available at the contracting office for review by offerors.

(4) Should give prospective offerors the opportunity to offer

products other than those specifically referenced by brand name, as

long as they meet the needs of the Government in essentially the same

manner as the brand name product.

(5) Must identify those salient physical, functional, or other

characteristics which are essential to the needs of the Government.

(b) The solicitation--

(1) Shall be at or below the simplified acquisition threshold in

FAR part 13.

(2) May require bid samples for ``or equal'' offers, but not for

``brand name'' offers.

(3) Must provide for full consideration and evaluation of ``or

equal'' offers against the salient characteristic specified in the

purchase description. Do not reject offers for minor differences in

design, construction, or features which do not affect the suitability

of the product for its intended use.

(4) Must include the following immediately after the item

description--Offering:

Manufacturer's Name______ Brand______ Model or Part No.______

(1) Not exceed the simplified acquisition threshold in FAR part 13.

(2) Identify, or incorporate by reference an identification of the

specific products the contractor is to furnish. Include any brand name,

make or model number, descriptive material, and any modifications of

brand name products specified in the offer.

211.270-2 Solicitation provision.

(a) When a brand name or equal purchase description is included in

a solicitation at or below the simplified acquisition threshold in FAR

part 13, use the provision at 252.211-7003, Brand Name or Equal.

(b) When component parts of an end item are described by brand name

or equal purchase descriptions and application of the provision at

252.211-7003 to some or all of the components is impracticable, either

do not use the provision or limit its application to specified

components.

211.271 Elimination of use of class I ozone-depleting substances.

(a) Contracts. No DoD contract may include a specification or

standard that requires the use of a class I ozone-depleting substance

or that can be met only through the use of such a substance unless the

inclusion of the specification or standard is specifically authorized

at a level no lower than a general or flag officer or member of the

Senior Executive Service of the requiring activity in accordance with

Section 326, Public Law 102-484 (10 U.S.C. 2301 (repealed) note).

(b) Modifications. (1) Contracts awarded before June 1, 1993, with

a value in excess of $10 million, that are modified or extended

(including option exercise) and, as a result of the modification or

extension will expire more than one year after the effective date of

the modification or extension, must be evaluated in accordance with

agency procedures for the elimination of ozone-depleting substances.

(i) The evaluation must be carried out within 60 days after the

first modification or extension.

(ii) No further modification or extension may be made to the

contract until the evaluation is complete.

(2) If, as a result of this evaluation, it is determined that an

economically

[[Page 61595]]

feasible substitute substance or alternative technology is available,

the contracting officer shall modify the contract to require the use of

the substitute substance or alternative technology.

(3) If a substitute substance or alternative technology is not

available, a written determination shall be made to that effect at a

level no lower than a general or flag officer or member of the Senior

Executive Service of the requiring activity.

211.272 Alternate preservation, packaging, and packing.

Use the provision at 252.211-7004, Alternate Preservation,

Packaging, and Packing, in solicitations which include military

preservation, packaging, or packing specifications when it is feasible

to evaluate and award using commercial or industrial preservation,

packaging, or packing.

Subpart 211.5--Liquidated Damages.

211.504 Contract clauses.

(b) Use the clause at FAR 52.211-12, Liquidated Damages--

Construction, in all construction contracts exceeding $500,000, except

cost-plus-fixed-fee contracts or contracts where the contractor cannot

control the pace of the work. Use of the clause in contracts of

$500,000 or less is optional.

Subpart 211.6--Priorities and Allocations.

211.602 General.

DoD implementation of the Defense Priorities and Allocations System

is in DoDI 4400.1, Priorities and Allocations--Delegation of DO and DX

Priorities and Allocations Authorities, Rescheduling of Deliveries and

Continuance of Related Manuals.

35. Part 212 is revised to read as follows:

PART 212--ACQUISITION OF COMMERCIAL ITEMS--GENERAL

Sec.

Subpart 212.2--Special Requirements for the Acquisition of Commercial

Items

212.211 Technical data.

Subpart 212.3--Solicitation Provisions and Contract Clauses for the

Acquisition of Commercial Items

212.301 Solicitation provisions and contract clauses for the

acquisition of commercial items.

212.302 Tailoring of provisions and clauses for the acquisition of

commercial items.

Subpart 212.5--Applicability of Certain Laws to the Acquisition of

Commercial Items

212.503 Applicability of certain laws to Executive Agency contracts

for the acquisition of commercial items.

212.504 Applicability of certain laws to subcontracts for the

acquisition of commercial items.

Subpart 212.2--Special Requirements for the Acquisition of

Commercial Items

212.211 Technical data.

The DoD policy for acquiring technical data for commercial items is

at 227.7102.

Subpart 212.3--Solicitation Provisions and Contract Clauses for the

Acquisition of Commercial Items

212.301 Solicitation provisions and contract clauses for the

acquisition of commercial items.

(f)(i) Use the provision at 252.225-7013, Domestic Wool Preference,

as prescribed in 225.7002-4(b).

(ii) Use one of the following provisions as prescribed in part 225:

(A) 252.225-7000, Buy American Act--Balance of Payments Program

Certificate.

(B) 252.225-7006, Buy American Act--Trade Agreements--Balance of

Payments Program Certificate.

Agreement Implementation Act--Balance of Payments Program Certificate.

(iii) Use the provision at 252.212-7000, Offeror Representations

and Certifications--Commercial Items, in all solicitations for

commercial items exceeding the simplified acquisition threshold in FAR

part 13. If an exception to 10 U.S.C. 2410i applies to a solicitation

exceeding the simplified acquisition threshold (see 225.770-3),

indicate on an addendum that ``The certification in paragraph (b) of

the provision at 252.225-7000 does not apply to this solicitation.''

(iv) Use the clause at 252.212-7001, Contract Terms and Conditions

Required to Implement Statutes Applicable to Defense Acquisitions of

Commercial Items, in all solicitations and contracts for commercial

items, completing paragraph (b), as appropriate.

212.302 Tailoring of provisions and clauses for the acquisition of

commercial items.

The head of the contracting activity is the approval authority

within the DoD for waivers under FAR 12.302(c).

Subpart 212.5--Applicability of Certain Laws to the Acquisition of

Commercial Items

212.503 Applicability of certain laws to Executive Agency contracts

for the acquisition of commercial items.

(a) The following laws are not applicable to contracts for the

acquisition of commercial items:

(i) Section 806, Public Law 102-190 (10 U.S.C. 2301 (repealed)

note), Payment Protections for Subcontractors and Suppliers.

(ii) 10 U.S.C. 2306(b), Prohibition on Contingent Fees.

(iii) 10 U.S.C. 2324, Allowable Costs Under Defense Contracts.

(iv) 10 U.S.C. 2384(b), Requirement to Identify Suppliers.

(v) 10 U.S.C. 2397(a)(1), Reports by Employees or Former Employees

of Defense Contractors.

(vi) 10 U.S.C. 2397b(f), Limits on Employment for Former DoD

Officials.

(vii) 10 U.S.C. 2397c, Defense Contractor Requirements Concerning

Former DoD Officials.

(viii) 10 U.S.C. 2408(a), Prohibition on Persons Convicted of

Defense Related Felonies.

(ix) 10 U.S.C. 2410b, Contractor Inventory Accounting System

Standards (see 252.242-7004).

(x) 107 Stat 1720 (Section 843(a), Public Law 103-160), Reporting

Requirement Regarding Dealings with Terrorist Countries.

(xi) Domestic Content Restrictions in the National Defense

Appropriations Acts for Fiscal Years 1996 and Subsequent Years.

regard to contracts for the acquisition of commercial items:

(i) 10 U.S.C. 2402, Prohibition on Limiting Subcontractor Direct

Sales to the United States (see FAR 3.503 and 52.203-6).

(ii) 10 U.S.C. 2306a, Truth in Negotiations Act (see FAR 15.804).

212.504 Applicability of certain laws to subcontracts for the

acquisition of commercial items.

(a) The following laws are not applicable to subcontracts at any

tier for the acquisition of commercial items or commercial components:

(i) 10 U.S.C. 2241 note, Limitations on Procurement of Food,

Clothing, and Specialty Metals Not Produced in the United States.

(ii) Section 806, Public Law 102-190 (10 U.S.C. 2301 (repealed)

note), Payment Protections for Subcontractors and Suppliers.

(iii) 10 U.S.C. 2306(b) Prohibition on Contingent Fees.

[[Page 61596]]

(iv) 10 U.S.C. 2313(c), Examination of Records of a Contractor.

(v) 10 U.S.C. 2320, Rights in Technical Data.

(vi) 10 U.S.C. 2321, Validation of Proprietary Data Restrictions.

(vii) 10 U.S.C. 2324, Allowable Costs Under Defense Contracts.

(viii) 10 U.S.C. 2327, Reporting Requirement Regarding Dealings

with Terrorist Countries.

(ix) 10 U.S.C. 2384(b), Requirement to Identify Suppliers.

(x) 10 U.S.C. 2391 note, Notification of Substantial Impact on

Employment.

(xi) 10 U.S.C. 2393, Prohibition Against Doing Business with

Certain Offerors or Contractors.

(xii) 10 U.S.C. 2397(a)(1), Reports by Employees or Former

Employees of Defense Contractors.

(xiii) 10 U.S.C. 2397b(f), Limits on Employment for Former DoD

Officials.

(xiv) 10 U.S.C. 2397c, Defense Contractor Requirements Concerning

Former DoD Officials.

(xv) 10 U.S.C. 2408(a) Prohibition on Persons Convicted of Defense

Related Felonies.

(xvi) 10 U.S.C. 2410b, Contractor Inventory Accounting System

Standards.

(xvii) 10 U.S.C. 2501 note, Notification of Proposed Program

Termination.

(xviii) 10 U.S.C. 2534, Miscellaneous Limitations on the

Procurement of Goods Other Than United States Goods.

(xix) 10 U.S.C. 2534(c), Preference for United States and Canadian

Valves and Machine Tools.

(xx) 10 U.S.C. 2534(d), Restriction on Acquisition of Carbonyl Iron

Powder.

(xxi) 10 U.S.C. 2534(e), Restriction on Acquisition of Air Circuit

Breakers.

(xxii) Effective May 1, 1996: 10 U.S.C. 2631, Transportation of

Supplies by Sea.

(xxiii) 19 U.S.C. 2512, Trade Agreements Act.

(xxiv) 41 U.S.C. 10, Buy American Act.

(xxv) 10 U.S.C. 2327 (Section 843(a), Public Law 103-160),

Reporting Requirement Regarding Dealings with Terrorist Countries.

(xxvi) Domestic Content Restrictions in the National Defense

Appropriations Acts for Fiscal Years 1996 and Subsequent Years.

(b) Certain requirements of the following laws have been eliminated

for subcontracts at any tier for the acquisition of commercial items or

commercial components:

(i) 10 U.S.C. 2393(d), Subcontractor Reports Under Prohibition

Against Doing Business with Certain Offerors (see FAR 52.209-6).

(ii) 10 U.S.C. 2402, Prohibition on Limiting Subcontractor Direct

Sales to the United States (see FAR 3.503 and 52.203-6).

PART 214--SEALED BIDDING

214.406--3 [Amended]

36. Section 214.406-3 is amended by revising in paragraph (e)(i)

the phrase ``DARPA'' to read ``ARPA.''

PART 215--CONTRACTING BY NEGOTIATION

37. Section 215.804-8 is revised to read as follows:

215.804-8 Contract clauses.

If the solicitation or contract includes one of the clauses at FAR

52.215-23, FAR 52.215-24, or FAR 52.215-25, also use the clause at

252.215-7000, Pricing Adjustments.

215.805-5 [Amended]

38. Section 215.805-5 is amended by revising in paragraph

(a)(1)(A)(3) the amount ``$1 million'' to read ``$10 million.''

215.971-4 [Amended]

39. Section 215.971-4(d)(3)(A) is amended by revising the word

``product'' to read ``item.''

PART 217--SPECIAL CONTRACTING METHODS

217.103-1 [Amended]

40. Section 217.103-1 is amended by revising in paragraph (b)(v)

the phrase ``(Acquisition)'' to read ``(Acquisition & Technology)'' and

the phrase ``(USD(A)DP)'' to read ``(USD(A&T)DP);'' by revising in

paragraph (b)(v) the phrase ``Deputy Assistant'' to read ``Under'' and

by revising the phrase ``(OASD(C)(P/B))'' to read ``(USD(C)P/B))''; by

revising in paragraph (b)(vi)(A)(2) the phrase ``(Acquisition)'' to

read ``(Acquisition & Technology);'' and by revising in paragraph

(b)(viii)(C) the phrase ``(Acquisition)'' to read ``(Acquisition &

Technology).''

41. Section 217.7302 is amended by revising paragraph (b) to read

as follows:

217.7302 Procedures.

* * * * *

(b) The requirement in paragraph (a) of this section does not apply

to commercial items.

217.7406 [Amended]

42. Section 217.7406 is amended by revising ``252.217.7027'' to

``252.217-7027.''

PART 219--SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS

219.703 [Amended]

43. Section 219.703(a) is amended by revising the reference ``Pub.

L. 103-277'' to read Public Law 103-337.''

44. Section 219.704 is revised to read as follows:

219.704 Subcontracting plan requirements.

(a)(1) The goal for use of small disadvantaged business concerns

shall include subcontracts with historically black colleges and

universities and minority institutions (see subpart 226.70), in

addition to subcontracts with small disadvantaged business concerns.

Subcontracts with historically black colleges and universities and

minority institutions do not have to be included in the small

disadvantaged business goal in commercial items subcontracting plans.

219.1006 [Amended]

45. Section 219.1006(b)(2) is amended by revising the phrase

``(Acquisition)'' to read ``(Acquisition & Technology).''

PART 223--ENVIRONMENT, CONSERVATION, OCCUPATIONAL SAFETY, AND DRUG-

FREE WORKPLACE

46. Section 223.104 is revised to read as follows:

223.104 Exemptions.

limited to a level no lower than an official who is appointed by and

with the advice of the Senate. For the defense agencies, this is the

Under Secretary of Defense (Acquisition and Technology).

47. A new subpart 223.4 is added to read as follows:

Subpart 223.4--Use of Recovered Materials

223.404 Procedures.

(b)(3) A contract for an EPA designated item which does not meet

the EPA or agency minimum recovered material standards shall not be

awarded before approval of the written determination required by FAR

23.404(b)(3). The approving official shall be--

(A) A general or flag officer, or a member of the Senior Executive

Service, of the requiring activity; or

(B) For requiring activities without a general or flag officer or

member of the Senior Executive Service, the commander of the activity.

[[Page 61597]]

(4) Annual contractor certifications shall be submitted for

consolidation and reporting in accordance with department/agency

procedures.

48. Section 223.570-4 is amended by revising paragraph (b)(1) to

read as follows:

223.570-4 Contract clause.

* * * * *

(b) Do not use the clause in solicitations and contracts for--

(1) Commercial items; or

* * * * *

49. Section 223.7101 is revised to read as follows:

223.7101 Procedures.

(a) If the contracting officer is uncertain as to whether

particular activities are prohibited or fall under one of the

exceptions in 223.7102, the contracting officer should seek advice from

the cognizant office of counsel.

(b) When storage, treatment, or disposal of non-DoD-owned toxic or

hazardous materials is authorized in accordance with this subpart, the

contract or authorization should specify the types, conditions, and

quantities of toxic or hazardous materials that may be temporarily

stored, treated, or disposed of in connection with the contract or as a

result of the authorized commercial use of a DoD industrial-type

facility.

223.7102 [Amended]

50. Section 223.7102 is amended by removing at the end of paragraph

(a)(7) the word ``or''; by removing at the end of paragraph (a)(8) the

period and adding a semicolon and the word ``or''; and by adding

paragraph (a)(9)(ii) the word ``into'' after the word ``Enters.''

PART 225--FOREIGN ACQUISITION

225.302 [Amended]

51. Section 225.302 is amended by revising in paragraph (b)(i)

under the heading ``DEFENSE LOGISTICS AGENCY'' the entry ``Executive

Director, Contracting'' to read ``Executive Director, Procurement'';

and to add a new heading and entry between the headings ``DEFENSE

MAPPING AGENCY'' and ``ON-SITE INSPECTION AGENCY'' to read ``DEPARTMENT

OF DEFENSE OFFICE OF DEPENDENTS SCHOOLS, Director.''

225.403 [Amended]

52. Section 225.403 is amended by revising in paragraph (d)(1)A)

the phrase ``(USD(A)DP)'' to read (USD(A&T)DP):'' by revising in

paragraph (d)(1) (B) introductory text the phrase ``USDA(A)DP'' to read

``USD(A&T)DP;'' by revising in paragraph (d)(1)B)(2) the phrase

``USD(A)DP'' to read ``USD(A&T)DP.''

225.770-4 [Amended]

53-54. Section 225.770-4 is amended by revising the phrase

``OUSD(A)DP'' to read ``OUSD(A&T)DP.''

225.871-7 [Amended]

55. Section 225.871-7 is amended in paragraph (a)(1) revising the

phrase ``(ASD(P&L)'' to read ``USD(A&T)DP.''

225.872-1 [Amended]

56. Section 225.872.1 is amended in paragraph (a) by adding to the

listing in alphabetical order the country ``Australia''; and is amended

in paragraph (b) by removing from the listing the country

``Australia.''

225.872-2 [Amended]

57. Section 225.872-2 is amended by revising in paragraph

(a)(2)(ii) the phrase ``OASD(P&L), Office of Industrial Base

Assessment'' to read ``the Deputy Assistant Secretary of Defense

(Industrial Affairs).''

225.872-3 [Amended]

58. Section 225.872-3 is amended by revising in paragraph (f)(4)

the phrase ``(Acquisition)'' to read ``(Acquisition & Technology).''

59. Section 225.7002-2 is amended by adding a new paragraph (j) to

read as follows:

225.7002-2 Exceptions.

* * * * *

(j) Commercial items or components purchased by contractors from

subcontractors/suppliers.

60. Section 225.7004-4 is amended by revising paragraph (b) to read

as follows:

225.7004-4 Waiver.

* * * * *

(b) The restriction is waived when it would cause unreasonable

costs. The cost of the item of U.S. or Canadian origin is unreasonable

if it exceeds 150 percent of the offered price, inclusive of duty, of

items which are not of U.S. or Canadian origin.

61. Section 225.7007-4 is revised to read as follows:

225.7007-4 Waiver.

The waiver criteria at 225.7004-4 also apply to this restriction.

62. Section 225.7010-3 is revised to read as follows:

225.7010-3 Waiver.

The waiver criteria at 225.7004-4 also apply to this restriction.

63. Section 225.7016-3 is revised to read as follows:

225.7016-3 Waiver.

The waiver criteria at 225.7004-4 also apply to this restriction.

225.7018-2 [Amended]

64. Section 225.7018-2 is amended by revising the phrase

``(Acquisition)'' to read ``(Acquisition & Technology).''

225.7019-2 [Amended]

65. Section 225.7019-2 is amended by revising in paragraph (b) the

word ``products'' to read ``items.''

225.7023-1 [Amended]

66. Section 225.7023-1 is amended by revising the phase ``Section

8101'' to read ``Section 8112.''

225.7023-3 [Amended]

67. Section 225.7023-3 is amended by revising the word

``Restrictions'' to read ``Restriction.''

225.7103 [Amended]

68. Section 225.7103 is amended by revising in paragraph (a) the

phrase ``small purchase'' to read ``simplified acquisition''; and by

revising in paragraph (c) introductory text the word ``products'' to

read ``items''.

69. Section 225.7201 is revised to read as follows:

225.7201 Exception.

This subpart does not apply to contracts for commercial items,

construction, ores, natural gas, utilities, petroleum products and

crudes, timber (logs), or subsistence.

225.7307-1 [Amended]

70. Section 225.7307-1(f) is amended to revise the phrase

``OUSD(A)DP(FC)'' to read ``OUSD(A&T)DP(FC).''

225.7307-2 [Amended]

71. Section 225.7307-2 is amended in paragraph (b) by revising the

phrase ``OASD(P&L)'' to read ``USD(A&T)DP.''

PART 226--OTHER SOCIOECONOMIC PROGRAMS

72. A new subpart 226.1 is added to read as follows:

Subpart 226.1--Indian Incentive Program.

226.103 Procedures.

Contracting officers shall contact the Office of Small and

Disadvantaged Business Utilization, Office of the Under Secretary of

Defense for Acquisition and Technology, OUSD(A&T) SADBU, Room 2A340,

The Pentagon, Washington, DC 20301-3061, (703) 697-1688, to obtain

funding for an approved Indian incentive payment request. Upon receipt

of funding from OUSD(A&T)

[[Page 61598]]

SADBU, the contracting officer shall issue a unilateral contract

modification to add the incentive payment.

73. Section 226.7104 is revised to read as follows:

226.7104 Other considerations.

When planning for contracts for services related to base closure

activities at a military installation affected by a closure or

realignment under a base closure law, contracting officers shall

consider including, as a factor in source selection, the extent to

which offerors specifically identify and commit, in their proposals, to

a plan to hire residents of the vicinity of the military installation

that is being closed or realigned.

PART 227--PATENTS, DATA, AND COPYRIGHTS

227.7101 [Amended]

74. Section 227.7101 is amended by removing paragraph (b) and

redesignating paragraph (c) as paragraph (b).

75. Section 227.7102-3 is amended by adding a last sentence to

paragraph (a); by adding a last sentence to paragraph (b); and by

adding a last sentence to paragraph (c) to read as follows:

227.7102-3 Contract clause.

(a) * * * Do not require the contractor to include this clause in

its subcontracts.

(b) * * * Do not require the contractor to include this clause in

its subcontracts for commercial items or commercial components.

227.7103-6 [Amended]

76. Section 227.7103-6 is amended in paragraph (a), second

sentence, by revising the word ``Innovative'' to read `` Innovation.''

77. Section 227.7103-15 is amended by revising paragraph (c)

introductory text to read as follows:

227.7103-15 Subcontractor rights in technical data.

* * * * *

clauses to include those clauses, without modification except for

appropriate identification of the parties, in contracts with

subcontractors or suppliers, at all tiers, who will be furnishing

technical data for non-commercial items in response to a Government

requirement:

* * * * *

227.7104 [Amended]

78. Section 227.7104 is amended in the title by revising the word

``Innovatiive'' to read ``Innovation''; and by revising in paragraph

(a) the word ``Innovative'' to read ``Innovation.''

227.7202-2 [Removed and Reserved]

79. Section 227.7202-2 is removed and reserved.

PART 228--BONDS AND INSURANCE

228.171-1 [Amended]

80. Section 228.171-1(e) is amended by revising ``28.204'' to read

``FAR 28.204.''

PART 231--CONTRACT COST PRINCIPLES AND PROCEDURES

231.205-6 [Amended]

81. Section 231.205-6 is amended by removing paragraph (g)(2)(i).

82. Section 231.603 is revised to read as follows:

231.603 Requirements.

The limitation on allowable individual compensation at 231.205-

6(a)(2) also applies to this subpart.

83. Section 231.703 is revised to read as follows:

231.703 Requirements.

The limitation on allowable individual compensation at 231.205-

6(a)(2) also applies to this subpart.

Subpart 231.70--[Removed]

84. Subpart 231.70 is removed.

PART 232--CONTRACT FINANCING

232.170 [Amended]

85. Section 232.170 is amended by revising in paragraph (a) the

phrase ``Office of the Under Secretary of Defense (Acquisition),

USD(A)DP'' to read ``Office of the Under Secretary of Defense

(Acquisition & Technology), USD(A&T)DP''; and by revising in paragraph

(b) the phrase ``USD(A)DP'' to read ``USD(A&T)DP.''

232.171 [Amended]

86. Section 232.171 is amended by revising in paragraphs (a)(1),

(b)(1), and (b)(3) the phrase ``USD(A)DP'' to read ``USD(A&T)DP.''

232.173-1 [Amended]

87. Section 232.173-1(b) is amended by revising the phrase

``(Acquisition)'' to read ``(Acquisition & Technology).''

232.173-5 [Amended]

88. Section 232.173-5 is amended by revising in the introductory

text the phrase ``(Acquisition)'' to read ``(Acquisition &

Technology).''

232.501-2 [Amended]

89. Section 232.501-2(a) is amended to revise the two occurrences

of ``USD(A)DP'' to read ``USD(A&T)DP.''

232.617 [Amended]

90. Section 232.617 is amended by revising the phrase ``USD(A)DP''

to read ``USD(A&T)DP.''

PART 234--MAJOR SYSTEM ACQUISITION

91. Section 234.001 is added to read as follows:

234.001 Definitions.

Systems means a combination of elements that will function together

to produce the capabilities required to fulfill a mission need.

Systems acquisition means the design, development, and production

of new systems. It also includes modifications to existing systems that

involve redesign of the systems or subsystems.

PART 235--RESEARCH AND DEVELOPMENT CONTRACTING

235.015-71 [Amended]

92. Section 235.015-71 is amended by removing in paragraph (i)(2)

the entry ``FAR 52.215-1 Examination of Records by Comptroller

General'' and by revising in paragraph (i)(2) the title of the entry

``FAR 52.215-2'' to read ``Audit and Records--Negotiation.''

93. Section 235.017-1 is revised to read as follows:

235.017-1 Sponsoring agreements.

(c)(4) DoD-sponsoring FFRDCs that function primarily as research

laboratories (C3I Laboratory operated by the Institute for Defense

Analysis, Lincoln Laboratory operated by Massachusetts Institute of

Technology, and Software Engineering Institute) may respond to

solicitations and announcements for programs which promote research,

development, demonstration, or transfer of technology (Section 217,

Public Law 103-337).

235.7002 [Amended]

94. Section 235.7002 is amended by removing at the end of paragraph

(a)(1) the period and adding a semicolon and the words ``Army Soldier

Systems Command contracting office.''; and by removing at the end of

paragraph (a)(2) the period and adding a semicolon and the words

``Naval Command, Control and Ocean Surveillance Center contracting

office.''

95. Section 235.7003 is amended by revising paragraph (b)(1) to

read as follows:

[[Page 61599]]

235.7003 Reporting requirements.

* * * * *

(b) * * *

(1) Army:

Mr. Chuck Boylan, Army Research Laboratory, Fort Monmouth, Phone:

(908) 427-3471; DSN 987-3471; FAX: (908) 532-5188; DSN 992-5188

* * * * *

235.7006 [Amended]

96. Section 235.7006, Exhibit--Research and Development Streamlined

Contracting Format, Part I-The Schedule, Section H, Special Contract

Requirements is amended by revising paragraph designation (H.8) to read

(H.5).

PART 237--SERVICE CONTRACTING

97. Section 237.102-70 is added to read as follows:

237.102-70 Prohibition on contracting for firefighting or security-

guard functions.

(a) Under 10 U.S.C. 2465, the DoD is prohibited for entering into

contracts for the performance of firefighting or security-guard

functions at any military installation or facility unless--

(1) The contract is to be carried out at a location outside the

United States (to include any U.S. commonwealth, territory, or

possession) at which members of the armed forces would have to be used

for the performance of firefighting or security-guard functions at the

expense of unit readiness;

(2) The contract will be carried out on a Government-owned but

privately operated installation; or

(3) The contract (or renewal of a contract) is for the performance

of a function under contract on September 24, 1983.

(b) Under Section 2907 of Public Law 103-160, this prohibition does

not apply to services at installations being closed (see subpart

237.74).

237.104 [Amended]

98. Section 237.104 is amended by revising in paragraph (b)(ii)

introductory text the word ``service'' to read ``services;'' by

revising in paragraph (b)(ii)(B) the word ``service'' to read

``services;'' and by revising the last sentence in paragraph (b)(ii)(B)

to read ``Selections made using the procedures in this section are

exempt by statute from FAR part 6 competition requirements (see

206.001(b)).''

99. Section 237.109 is added to read as follows:

237.109 Services of quasi-military armed forces.

See 237.102-70b for prohibition on contracting for firefighting or

security-guard functions.

237.171, 237.171-1, and 237.171-2 [Removed]

100. Sections 237.171, 237.171-1, and 237.171-2 are removed.

237.270, 237.270-1, 237.270-2, 237.270-3 and 237.270-4 [Removed]

101. Sections 237.270, 237.270-1, 237.270-2, 237.270-3 and 237.270-

4 are removed.

237.7204 [Amended]

102. Section 237.7204 is amended by revising under the heading

``GENERAL PROVISIONS'' entry No. 6 to read ``FAR 52.215-2, Audit and

Records--Negotiation'' in lieu of ``FAR 52.215-1, Examination of

Records by Comptroller General.''

PART 239--ACQUISITION OF INFORMATION RESOURCES

103. Section 239.7303 is amended by revising paragraph (b) to read

as follows:

239.7303 Review and approval of leasing costs.

* * * * *

(b) The contracting officer shall conduct reviews of leasing costs

as warranted, meeting the criteria of FAR 31.205-2(d), to determine the

continued need for leasing. In performing the review, the contracting

officer shall request the contractor to update its supporting

documentation.

* * * * *

PART 242--CONTRACT ADMINISTRATION

242.705-1 [Amended]

104. Section 242.705-1 is amended by removing paragraphs (b)(3) and

(b)(4).

242.705-2 [Amended]

Section 242.705-2 is amended by revising paragraph designations

``(b)(2)(iii)'' and ``(b)(2)(v)'' to read ``(b)(2)(ii)'' and

``(b)(2)(iv)'' respectively.

242.770 [Removed and Reserved]

105. Section 242.770 is removed and reserved.

242.770-1, 242.770-2, 242.770-3, 242.770-4, 242.770-5, and 242.770-

6 [Removed]

106. Sections 242.770-1, 242.770-2, 242.770-3, 242.770-4, 242.770-

5, and 242.770-6 are removed.

242.771-3 [Amended]

107. Section 242.771-3 is amended by revising in paragraph (b)(2)

the phrase ``(OUSD(A))'' to read ``(OUSD(A&T))''; and by revising in

paragraph (c) the phrase ``(OUSD(A)DDR&E)'' to read

``(OUSD(A&T)DDR&E).''

108. Section 242.7003-1 is revised to read as follows:

242.7003-1 Description.

The annual cost monitoring plan is a schedule for reviewing

contractor activities that have the greatest potential for generating

erroneous charges to the Government.

109. Section 242.7206 is amended by revising the introductory text

to read as follows:

242.7206 Contract clause.

Use the clause at 252.242-7004, Material Management and Accounting

System, in all solicitations and contracts exceeding the simplified

acquisition threshold in FAR part 13 that are not for the acquisition

of commercial items and--

* * * * *

PART 246--QUALITY ASSURANCE

246.202-3 [Amended]

110. Section 246.202-3 is redesignated as 246.202-4; and paragraphs

(i) and (ii) of newly designated 246.202-4 are redesignated as

paragraphs (1) and (2) respectively.

246.204 [Removed]

111. Section 246.204 is removed.

246.704 [Amended]

112. Section 246.704 is amended by removing in paragraph (2) the

words ``supplies or services'' and inserting the word ``items''; and by

revising in paragraph (4) the parenthetical phrase ``(see 246.202-3)''

to read ``(see 246.202-4).''

113. Section 246.770-1 is amended by revising paragraph (f)(2)(i)

to read as follows:

246.770-1 Definitions.

* * * * *

(f) * * *

(2) * * *

(i) Commercial items;

* * * * *

PART 247--TRANSPORTATION

114. Section 247.572-1 is amended by revising paragraph (a) to read

as follows:

247.572-1 Ocean transportation incidental to a contract for supplies,

services, or construction.

(a) This subsection applies when ocean transportation is not the

purpose of the contract. However, effective May 1, 1996, this

subsection does not apply to subcontracts for the acquisition of

[[Page 61600]]

commercial items or commercial components (see 212.504(a)(xxii)).

* * * * *

247.572-2 [Amended]

115. Section 247.572-2 is amended by removing at the end of

paragraph (a)(4) the word ``and''; by removing the period at the end of

paragraph (a)(5) and inserting a semicolon and the word ``and'' in its

place; and by adding a new paragraph (a)(6) to read as follows:

247.572-2 Direct purchase of ocean transportation services.

(a) * * *

(6) Subcontracts under Government contracts or agreements for ocean

transportation services.

* * * * *

PART 249--TERMINATION OF CONTRACTS

249.7002 [Amended]

116. Section 249.7002 is amended in paragraph (b) introductory text

by revising the phrase ``Office of Economic Adjustment (OEA), Assistant

Secretary of Defense (Force Management and Personnel)'' to read

``Assistant Secretary of Defense (Economic Security), Office of

Economic Adjustment (OEA''; and in paragraph (b)(2) by revising the

Telefax number to read ``(703) 604-5843.''

PART 250--EXTRAORDINARY CONTRACTUAL ACTIONS

117. Section 250.201-70 is amended by revising in paragraph (b)(1)

the phrase ``Under Secretary of Defense (Acquisition) (USD(A))'' to

read ``Under Secretary of Defense (Acquisition & Technology)

(USDA&T))''; and by revising in paragraph (b)(2) the phrase ``USD(A)''

to read ``USD(A&T).''

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

118. Section 252.203-7000 is amended by revising the clause date to

read ``(NOV 1995)'' and by revising paragraph (a)(3) to read as

follows:

252.203-7000 Statutory prohibitions on compensation to former

Department of Defense employees.

* * * * * * *

(a) * * *

(3) Defense contractor means an entity (including affiliates and

subsidiaries which clearly engage in the performance of Department

of Defense (DoD) contracts) that contracts directly with the DoD to

supply goods or services. ``Defense contractor'' does not include a

State or local government or any person who contracts to supply the

Department of Defense only commercial items.

* * * * *

119. Section 252.203-7001 is amended by revising the clause date to

read ``(NOV 1995)'' and by revising paragraph (g) to read as follows:

252.203-7001 Special prohibition on employment.

* * * * *

(g) The Contractor agrees to include the substance of this

clause, appropriately modified to reflect the identity and

relationship of the parties, in all first-tier subcontracts

exceeding the simplified acquisition threshold in part 13 of the

Federal Acquisition Regulation, except those for commercial items or

components.

* * * * *

252.203-7003 [Removed]

120. Section 252.203-7003 is removed.

252.204-7001 [Amended]

121. Section 252.204-7001 is amended by revising in the

introductory text the reference ``204.603-70'' to read ``204.602-70.''

122. Section 252.209-7000 is amended by revising the clause date to

read ``(NOV 1995)'' and by revising paragraph (b) to read as follows:

252.209-7000 Acquisition from subcontractors subject to on-site

inspection under the Intermediate-Range Nuclear Forces (INF) Treaty.

* * * * *

(b) The Contractor shall incorporate this clause, including this

paragraph (b), in all solicitations and contracts exceeding the

simplified acquisition threshold in part 13 of the Federal

Acquisition Regulation, except those for commercial items.

252.209-7007 [Amended]

123. Section 252.209-7007 is redesignated as 252.209-7005; the

clause date is revised to read ``(NOV 1995)''; the title of paragraph

(a) is revised to read ``Definition''; and paragraph (b) is revised to

read as follows:

252.209-7005 Military recruiting on campus.

* * * * *

(b) General.

An institution of higher education that has been determined,

using procedures established by the Secretary of Defense to

implement section 558 of Pub. L. 103-337, (1) to have a policy of

denying, or (2) to prevent effectively the Secretary of Defense from

obtaining for military recruiting purposes, entry to their campuses,

access to students on campuses, or access to directory information

pertaining to students, is ineligible for contract award and

payments under existing contracts. In addition, the Government shall

terminate this contract for the Contractor's material failure to

comply with the terms and conditions of award.

* * * * *

252.210-7000 [Amended]

124. Sections 252.211-7000 through 252.211-7021 are removed and

Section 252.210-7000 is redesignated as 252.211-7003 and the

introductory text is revised to read ``As prescribed in 211.270-2, use

the following provision:''.

252.210-7001 [Amended]

125. Section 252.210-7001 is redesignated as 252.211-7001 and the

introductory text is revised to read ``As prescribed in 211.204(c), use

the following provision:''.

252.210-7002 [Amended]

126. Section 252.210-7002 is redesignated as 252.211-7002 and the

introductory text is revised to read ``As prescribed in 211.204(c), use

the following provision:''.

252.210-7003 [Amended]

127. Section 252.210-7003 is redesignated as 252.211-7000 and the

introductory text is revised to read ``As prescribed in 211.002-70, use

the following clause:''.

252.210-7004 [Amended]

128. Section 252.210-7004 is redesignated as 252.211-7004 and the

introductory text is revised to read ``As prescribed in 211.272, use

the following provision:''.

129-130. Sections 252.212-7000 and 252.212-7001 are added to read

as follows:

252.212-7000 Offeror representations and certifications--Commercial

items.

As prescribed in 212.301(f)(iii), use the following provision:

OFFEROR REPRESENTATIONS AND CERTIFICATIONS--COMMERCIAL ITEMS

(NOV 1995)

(a) Definitions.

As used in this clause--

(1) Foreign person means any person other than a United States

person as defined in Section 16(2) of the Export Administration Act

of 1979 (50 U.S.C. App. Sec. 2415).

(2) United States person is defined in Section 16(2) of the

Export Administration Act of 1979 and means any United States

resident or national (other than an individual resident outside the

United States and employed by other than a United States person),

any domestic concern (including any permanent domestic establishment

of any foreign concern), and any foreign subsidiary or affiliate

(including any permanent foreign establishment) of any domestic

concern which is controlled in fact by such domestic concern, as

determined under regulations of the President.

[[Page 61601]]

(b) Certification.

By submitting this offer, the Offeror, if a foreign person,

company or entity, certifies that it--

(1) Does not comply with the Secondary Arab Boycott of Israel;

and

(2) Is not taking or knowingly agreeing to take any action, with

respect to the Secondary Boycott of Israel by Arab countries, which

50 U.S.C. App. Sec. 2407(a) prohibits a United States person from

taking.

representation does not apply to solicitations for the direct

purchase of ocean transportation services).

(1) The Offeror shall indicate by checking the appropriate blank

in paragraph (c)(2) of this provision whether transportation of

supplies by sea is anticipated under the resultant contract. The

term ``supplies'' is defined in the Transportation of Supplies by

Sea clause of this solicitation.

(2) Representation.

The Offeror represents that it--

______Does anticipate that supplies will be transported by sea

in the performance of any contract or subcontract resulting from

this solicitation.

______ Does not anticipate that supplies will be transported by

sea in the performance of any contract or subcontract resulting from

this solicitation.

(3) Any contract resulting from this solicitation will include

the Transportation of Supplies by Sea clause. If the Offeror

represents that it will not use ocean transportation, the resulting

contract will also include the Defense Federal Acquisition

Regulation Supplement clause at 252.247-7024, Notification of

Transportation of Supplies by Sea.

(End of provision)

252.212-7001 Contract terms and conditions required to implement

statutes or Executive Orders applicable to Defense acquisitions of

commercial items.

As prescribed in 212.301(f)(iv), use the following clause:

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR

EXECUTIVE ORDERS APPLICABLE TO DEFENSE ACQUISITIONS OF COMMERCIAL ITEMS

(NOV 1995)

(a) The Contractor agrees to comply with the Defense Federal

Acquisition Regulation Supplement (DFARS) clause 252.247-7023,

Transportation of Supplies by Sea, which is included in this

contract by reference to implement 10 U.S.C. 2631.

(b) The Contractor agrees to comply with any clause that is

checked on the following list of DFARS clauses which, if checked, is

included in this contract by reference to implement provisions of

law or Executive Orders applicable to acquisitions of commercial

items or components.

______ 252.205-7000 Provision of Information to Cooperative

Agreement Holders (10 U.S.C. 2416).

______ 252.206-7000 Domestic Source Restriction (10 U.S.C. 2304).

______ 252.219-7001 Notice of Partial Small Business Set-Aside with

Preferential Consideration for Small Disadvantaged Business Concerns

(____ Alternate I) (Section 9004, Pub. L. 101-165 (10 U.S.C. 2301

(repealed) note)).

______ 252.219-7002 Notice of Small Disadvantaged Business Set-

Aside (____ Alternate I) (15 U.S.C. 644).

______ 252.219-7003 Small Business and Small Disadvantaged Business

Subcontracting Plan (DoD Contracts) (15 U.S.C. 637).

______ 252.219-7005 Incentive for Subcontracting with Small

Businesses, Small Disadvantaged Businesses, Historically Black

Colleges and Universities and Minority Institutions (____ Alternate

I) (Section 9004, Pub. L. 101-165 (10 U.S.C. 2301 (repealed) note)).

______ 252.219-7006 Noice of Evaluation Preference for Small

Disadvantaged Business Concerns (____ Alternate I) (15 U.S.C. 644).

______ 252.225-7001 Buy American Act and Balance of Payment Program

(41 U.S.C. 10, E.O. 10582).

______ 252.225-7007 Trade Agreements (10 U.S.C. 2501-2582).

______ 252.225-7012 Preference for Certain Domestic Commodities.

______ 252.225-7014 Preference for Domestic Speciality Metals (10

U.S.C. 2241 note).

______ 252.225-7015 Preference for Domestic Hand or Measuring Tools

(10 U.S.C. 2241 note).

______ 252.225-7017 Preference for United States and Canadian

Valves and Machine Tools (10 U.S.C. 2534(c)(2)).

______ 252.225-7027 Limitation on Sales Commissions and Fees (12

U.S.C. 2779).

______ 252.225-7028 Exclusionary Policies and Practices of Foreign

Governments (22 U.S.C. 2755).

______ 252.225-7029 Restriction on Acquisition of Air Circuit

Breakers (10 U.S.C. 2534(a)(3)).

______ 252.225-7036 North American Free Trade Agreement

Implementation Act.

______ 252.227-7015 Technical Data--Commercial Items (10 U.S.C.

2320).

______ 252.227-7037 Validation of Restrictive Markings on Technical

Data (10 U.S.C. 2321).

______ 252.233-7000 Certification of Claims and Requests for

Adjustment or Relief (10 U.S.C. 2410).

______ 252.242-7002 Submission of Commercial Freight Bills for

Audit (31 U.S.C. 3726).

______ 252.247-7024 Notification of Transportation of Supplies by

Sea (10 U.S.C. 2631).

______ 252.249-7001 Notification of Substantial Impact on

Employment (10 U.S.C. 2501 note).

(End of clause)

252.215-7001 [Removed and Reserved]

131. Section 252.215-7001 is removed and reserved.

132. Section 252.217-7026 is amended by revising the clause date to

read ``(NOV 1995)'' and revising paragraph (3) of the table to read as

follows:

252.217-7026 Identification of sources of supply.

* * * * *

(b) * * *

(3) Use ``Y'' if the item is a commercial item; otherwise use

``N.'' If ``Y'' is listed, the Offeror need not complete the

remaining columns in the table.

* * * * *

133. Section 252.219-7003 is amended by revising the title; by

revising the clause date to read ``(NOV 1995)''; by revising the

introductory text of the clause and by revising in paragraph (b) the

word ``products'' to read ``items'' as follows:

252.219-7003 Small, small disadvantaged and women-owned small business

subcontracting plan (DoD contracts).

* * * * *

This clause supplements the Federal Acquisition Regulation

52.219-9, Small, Small Disadvantaged and Women-Owned Small Business

Subcontracting Plan, clause of this contract.

* * * * *

252.219-7005 [Amended]

134. Section 252.219-7005 is amended by revising the clause date to

read ``(NOV 1995)'' and by revising in paragraph (d) the word

``products'' to read ``items.''

135. Section 252.223-7006, ALTERNATE I, is amended by revising the

date to read ``(NOV 1995)''; by revising in paragraph (c) the word

``material'' to read ``materials''; and by revising paragraph (d) to

read as follows:

252.223-7006 Prohibition on storage and disposal of toxic and

hazardous materials.

* * * * *

ALTERNATE I (NOV 1995)

* * * * *

(d) The Contractor shall include this clause, including this

paragraph (d), in each subcontract which requires, may require, or

permits a subcontractor to treat or dispose of non-DoD-owned toxic

or hazardous materials as defined in this clause.

136-137. Section 252.225-7012 is amended by revising the clause

date to read ``(NOV 1995)''; by removing the word ``or'' at the end of

paragraph (b)(2); by removing the period at the end of paragraph (b)(3)

and adding a semicolon and the word ``or'' in its place; and by adding

a new paragraph (b)(4) to read as follows:

[[Page 61602]]

252.225-7012 Preference for certain domestic commodities.

* * * * *

(b) * * *

(4) To commercial items or components purchased from

subcontractors or suppliers.

138. Section 252.225-7014 is amended by revising the clause date to

read ``(NOV 1995)''; by revising in paragraph (c)(2) the acronym

``FAR'' to read ``Federal Acquisition Regulation''; by removing the

word ``or'' at the end of paragraph (c)(2); by removing the period at

the end of paragraph (c)(3) and adding a semicolon and the word ``or''

in its place; and by adding a new paragraph (c)(4) to read as follows:

252.225-7014 Preference for domestic specialty metals.

* * * * *

(4) The specialty metal is contained in a commercial item or

component purchased from subcontractors or suppliers.

* * * * *

139. Section 252.225-7016 is amended by revising the clause date to

read ``(NOV 1995)'' and by revising paragraph (b) to read as follows:

252.225-7016 Restriction on acquisition of antifriction bearings.

* * * * *

(b) The restriction in paragraph (a) does not apply to the

extent that the end items or components containing antifriction

bearings are commercial items. The commercial item exception does

not include items designed or developed under a Government contract

or contracts where the end item is bearings and bearing components.

* * * * *

140. Section 252.225-7026 is amended by revising the clause date to

read ``(NOV 1995)'' and by revising paragraph (c)(1) to read as

follows:

252.225-7026 Reporting of contract performance outside the United

States.

* * * * *

(1) The Contractor shall include a clause substantially the same

as this one in all first-tier subcontracts exceeding $100,000,

except subcontracts for commercial items, construction, ores,

natural gases, utilities, petroleum products and crudes, timber

(logs), or subsistence.

* * * * *

252.225-7040 [Amended]

141. Section 252.225-7040 is amended by revising in the

introductory text the reference ``225.7004-5(c)'' to read ``225.7004-

6(c).''

142. Section 252.227-7013 is amended by revising the clause date to

read ``(NOV 1995)'' and by revising paragraph (k)(2) to read as

follows:

252.227-7013 Rights in technical data--Noncommercial items.

* * * * *

(k) * * *

(1) * * *

(2) Whenever any technical data for noncommercial items is to be

obtained from a subcontractor or supplier for delivery to the

Government under this contract, the Contractor shall use this same

clause in the subcontract or other contractual instrument, and

require its subcontractors or suppliers to do so, without

alteration, except to identify the parties. No other clause shall be

used to enlarge or diminish the Government's, the Contractor's, or a

higher-tier subcontractor's or supplier's rights in a

subcontractor's or supplier's technical data.

* * * * *

143. Section 252.227-7015 is amended by revising the clause date to

read ``(NOV 1995)'' and by revising paragraph (a) to read as follows:

252.227-7015 Technical data--Commercial items.

* * * * *

(a) Definitions.

As used in this clause:

(1) Commercial item does not include commercial computer

software.

(2) Form, fit, and function data means technical data that

describes the required overall physical, functional, and performance

characteristics (along with the qualification requirements, if

applicable) of an item, component, or process to the extent

necessary to permit identification of physically and functionally

interchangeable items.

(3) The term item includes components or processes.

(4) Technical data means recorded information, regardless of the

form or method of recording, of a scientific or technical nature

(including computer software documentation). The term does not

include computer software or data incidental to contract

administration, such as financial and/or management information.

* * * * *

252.227-7018 [Amended]

144. Section 252.227-7018 is amended in the title by revising the

word ``Innovative'' to read ``Innovation''; and by revising in the

clause title the word ``Innovative'' to read ``Innovation.''

145. Section 252.227-7037 is amended by revising the clause date to

read ``(NOV 1995)'' and by revising paragraph (l) to read as follows:

252.227-7037 Validation of restrictive markings on technical data.

* * * * *

(l) Flowdown.

The Contractor or subcontractor agrees to insert this clause in

contractual instruments with its subcontractors or suppliers at any

tier requiring the delivery of technical data, except contractual

instruments for commercial items or commercial components.

252.231-7001 [Removed]

146. Section 252.231-7001 is removed.

252.237-7020 [Removed and Reserved]

147. Section 252.237-7020 is removed and reserved.

252.237-7021 [Removed and Reserved]

148. Section 252.237-7021 is removed and reserved.

149. Section 252.239-7010 is amended by revising the clause date to

read ``(NOV 1995)''; by revising paragraph (a) introductory text; and

by revising paragraph (b) to read as follows:

252.239-7010 Audit and records--Common carriers.

* * * * *

(a) For the purpose of verifying the accuracy of the cost or

pricing data submitted under the Submission of Cost or Pricing

Data--Common Carriers clause of this agreement/contract, the

Contracting Officer or authorized representative shall have the

right to examine the Contractor's records, the computations and

projections used, and other supporting data, as defined in 4.703(a)

of the Federal Acquisition Regulation, which will permit adequate

evaluation of the cost or pricing data. This right applies to cost

and pricing data which were available to the Contractor as of the

date of the certification and shall last--

* * * * *

(b) The Contractor shall maintain records and other evidence,

and accounting procedures and practices, sufficient to show the

direct and indirect costs which were the basis for pricing the

communication service authorization.

* * * * *

252.242-7001 [Removed and Reserved]

150. Section 252.242-7001 is removed and reserved.

151. Section 252.247-7023 is amended by revising the clause date to

read ``(NOV 1995)'' by revising paragraph (a)(5); and by revising

paragraph (g) to read as follows:

252.247-7023 Transportation of supplies by sea.

* * * * *

(a) * * *

(5) Subcontractor means a supplier, materialman, distributor, or

vendor at any level below the prime contractor whose contractual

obligation to perform results from, or is conditioned upon, award of

the prime contract and who is performing any part of the work or

other requirement of the prime contract. However, effective May 1,

1996, the term does not include a supplier, materialman,

distributor, or vendor of commercial items or commercial components.

* * * * *

[[Page 61603]]

(g) The Contractor shall include this clause, including this

paragraph (g) in all subcontracts under this contract, which exceed

the simplified acquisition threshold in Part 13 of the Federal

Acquisition Regulation.

152. Section 252.247-7024 is amended by revising the clause date to

read ``(NOV 1995)'' and by revising paragraph (b) to read as follows:

252.247-7024 Notification of transportation of supplies by sea.

* * * * *

(b) The Contractor shall include this clause, including this

paragraph (b), revised as necessary to reflect the relationship of

the contracting parties, in all subcontracts hereunder, except

(effective May 1, 1996) subcontracts for the acquisition of

commercial items or components.

PART 253--FORMS

153. Section 253.204-70 is revised to read as follows:

253.204-70 DD Form 350, Individual Contracting Action Report.

Policy on use of a DD Form 350 is in 204.670-2. This subsection

253.204-70 contains instructions for completion of Parts A through F of

the DD Form 350. Paragraph (g) of this subsection contains special

instructions for completing a DD Form 350 for an action of $25,000 or

less under the Small Business Competitiveness Demonstration Program.

(a) Part A of the DD Form 350.

Part A identifies the report and the reporting activity. Complete

all four blocks.

(1) BLOCK A1, TYPE OF REPORT.

Enter one of three codes.

(i) Code 0-Original.

Enter code 0 unless 1 or code 2 applies.

(ii) Code 1-Cancelling.

A cancelling action cancels an existing DD Form 350 in accordance

with departmental data collection point instructions.

(iii) Code 2-Correcting.

A correcting action corrects an existing DD Form 350 action in

accordance with departmental data collection point instructions.

(2) BLOCK A2, REPORT NO.

Enter the four digit local control number (see 204.670-3(a)(4)). If

Block A1 is coded 1 or 2, use the prior report number rather than a new

one.

(3) BLOCK A3, CONTRACTING OFFICE CODE.

Enter the code assigned the contracting office by the departmental

data collection point in 204.670-1(c).

(4) BLOCK A4, NAME OF CONTRACTING OFFICE.

Enter sufficient detail to establish the identity of the

contracting office.

(b) Part B of the DD Form 350.

Part B identifies the transaction.

(1) BLOCK B1, CONTRACT NUMBER.

(i) Enter--

(A) The DoD contract number; or

(B) For orders under contracts awarded by other Federal agencies,

the contract number of that Federal agency as it appears in the

contractual instrument.

(ii) Do not leave spaces between characters, and do not enter

dashes, slants, or any other punctuation marks.

(iii) The DoD contract number is the basic (13 alphanumeric

character) procurement instrument identification number (PIIN) that was

assigned in accordance with 204.7001 or constructed under an exception

permitted by 204.7000. Do not enter any supplementary procurement

instrument numbers as part of the contract number (these go in Block

B2).

(2) BLOCK B2, MOD. ORDER OR OTHER ID NUMBER.

Enter the supplemental procurement identification number (if there

is one) that was assigned in accordance with 204.7004 or as permitted

by 204.7000. It can be up to 19 characters. Usually calls and orders

have a four-position number (see 204.7004-4) and modifications

(including modifications of calls or orders) have a six-position

modification number (see 704.7003 or 204.7004(b)).

(3) BLOCK B3, ACTION DATE.

(i) Enter the year, month, and day of the effective date for fiscal

obligation purposes. When contract actions are awarded contingent on

the availability of funds, enter the date funds are obligated.

(ii) Enter each segment as a two digit number. Use 01 through 12

for January through December. For example, enter January 2, 1999 as

990102.

(4) BLOCK B4, COMPLETION DATE.

(i) Enter the year, month, and day of the last contract delivery

date or the end of the performance period.

(ii) Enter each segment as a two digit number. Use 01 through 12

for January through December. For example, enter January 2, 1999 as

990102.

(5) BLOCK B5, CONTRACTOR IDENTIFICATION INFORMATION.

(i) Use data that relates to the contractor whose name and address

appears in the contract document (Block 7 of the SF 26, Award/Contract;

Block 8 of the SF 30, Amendment of Solicitation/Modification of

Contract; Block 15A of the SF 33, Solicitation, Offer and Award; or

Block 9 of the DD Form 1155, Order for Supplies or Services), except--

(A) For contracts placed with the Small Business Administration

under Section 8(a) of the Small Business Act, use data that relates to

the company that will be performing the work.

(B) For orders placed against a contract awarded by another agency,

also use data that relates to the company that will be performing the

work.

the contractor whose name appears on the schedule (not the data for the

agent to whom orders may be sent).

(D) For contracts with the Canadian Commercial Corporation (CCC),

use data for the appropriate CCC office, except as noted in Block B5B.

(ii) Block B5 has seven parts. Some of the parts may not apply to

the action being reported.

(A) BLOCK B5A, ESTABLISHMENT CODE.

Enter the contractor's 9-position contractor establishment code

(CEC). If CEC is not available within the contracting activity, use the

procedures at 204.7202-2 to obtain one.

(B) BLOCK B5B, CAGE CODE.

Enter the 5-position commercial and Government entity (CAGE) code

that identifies the contractor plant or establishment. If the CAGE code

is not already available in the contracting office and the apparent

awardee does not respond to the provision at 252.204-7001, Commercial

and Government Entity (CAGE) Code Reporting, use the procedures as

204.7202-1 to obtain one.

Enter the contractor's name. Include its division name.

(D) BLOCK B5D, CONTRACTOR ADDRESS.

Enter the contractor's address. Include street address (and/or P.O.

Box), city/town, state/country, and ZIP code, if applicable. Do not

enter foreign postal codes.

(E) BLOCK B5E, TIN.

Enter the contractor's taxpayer identification number (see FAR

Subpart 4.9).

Leave Block B5E blank if the contractor is--

(1) A nonresident alien, foreign corporation, or foreign

partnership that does not have income effectively connected with the

trade or business in the United States; and does not have an office or

place of business or a fiscal paying agent in the United States;

(2) An agency or instrumentality of a foreign government; or

(3) An agency or instrumentality of a Federal, State, or local

government.

(F) BLOCK B5F, PARENT TIN.

Enter the contractor's parent company (common parent) TIN (see FAR

4.9 and 52.204-3). If the contractor does not have a parent company or

the parent

[[Page 61604]]

company meets the exemption for Block B5E, leave Block B5F blank.

(G) BLOCK B5G, PARENT NAME.

If a parent TIN is entered in Block B5F, enter in Block B5G the

name of the parent company (common parent). Leave Block B5G blank if

there is no parent company or the parent company is exempted from the

requirement to have a TIN.

(6) BLOCK B6, PRINCIPAL PLACE OF PERFORMANCE.

(i) The place, or places, where the contract will be performed may

be specified by the Government or listed by the contractor in response

to the solicitation provision at FAR 52.214-14, Place of Performance--

Sealed Bidding, or FAR 52.215-20, Place of Performance. Use data for

the contractor's principal place of performance, which is generally

the--

(A) Final assembly point for supply contracts with manufacturers.

(B) Dealer's location for supply contracts with regular dealers

(FAR 22.601) where shipment is made from stock.

dealers (FAR 22.601) where shipment is made from a subcontractor's

plant.

(D) Actual construction site for construction contracts.

(E) Planned construction site for architect-engineer contracts.

(F) Place of mining for mined supplies.

(G) Place (including military installations) where a service is

performed for service contracts.

(ii) When there is more than one location for any of paragraphs

(i)(A) through (G) (e.g., more than one construction site), use the

location involving the largest dollar amount of the acquisition. Do not

show more than one location in Block B6.

(iii) If places of performance are too varied or not known, or if

commercial procedures were used, enter the contractor's home office

location.

(iv) Follow the instructions for each part of Block 6 which applies

to the action being reported.

(A) BLOCK B6A, CITY OR PLACE CODE.

(1) For places in the United States and outlying areas, enter the

numeric place code, which can be found in the Federal Information

Processing Standards (FIPS) Publication (PUB) 55-2, (``Guideline: Codes

for named Populated Places, Primary Country Divisions, and Other

Locational Entities of the United States and Outlying Areas''). Leave

Block B6A blank for places outside the United States and outlying

areas.

(2) If the city or locality is not listed, look in FIPS PUB 55-2

for the county code of the principal place of performance. Enter that

in Block B6A. Use 50000 for Washington, DC, with a State code of 11.

(3) Paragraph 5.2, Entry Selection With the Aid of the Class Code,

of FIPS PUB 55-2 will help in selecting the correct code. Sometimes, a

class code should be used in addition to a place code to accurately

identify the place of performance. Do not use place codes where the

first position of the class code is X or Z.

(B) BLOCK B6B, STATE OR COUNTRY CODE.

(1) For places in the United States and outlying areas, enter the

numeric State code, which can be found in FIPS PUB 55-2 or FIPS PUB 5-

2, Codes for the Identification of the States, the District of Columbia

and the Outlying Areas of the United States and Associated Areas.

(2) For places outside the United States and outlying areas, enter

the alpha country code from FIPS PUB 10-3, Countries, Dependencies,

Areas of Special Sovereignty, and Their Principal Administrative

Divisions.

Enter the name of the principal place of performance. Do not leave

Block B6C blank.

(7) BLOCK B7, TYPE OBLIGATION.

Enter one of two codes.

(i) Code 1--Obligation. Enter code 1 if the contracting action

obligates funds.

(ii) Code 2--Deobligation. Enter code 2 if the contracting action

deobligates funds.

(8) BLOCK B8, TOTAL DOLLARS.

Enter the net amount of funds (whole dollars only) obligated or

deobligated by the contracting action. Do not leave Block B8 blank.

(9) BLOCK B9, FOREIGN MILITARY SALE.

Enter one of the two codes. If only part of the contracting action

is foreign military sale, separately report the parts (see 204.670-

6(c)).

(i) Code Y--Yes. Enter code Y when the contracting action is under

a foreign military sales arrangement, or under any other arrangement

where a foreign country or international organization is bearing the

cost of the acquisition.

(ii) Code N--No. Enter code N when code Y does not apply.

(10) BLOCK B10, MULTIYEAR CONTRACT.

Enter one of the two codes.

(i) Code Y--Yes. Enter code Y when the contracting action is a

multiyear contract under FAR Subpart 17.1.

(ii) Code N--No. Enter code N when code Y does not apply.

(11) BLOCK B11, TOTAL MULTIYEAR VALUE.

(i) Complete Block B11 if the contracting action is--

(A) A multiyear contract (B10 is coded Y); and

(B) Either a new letter contract or a new definitive contract

(Block B13 is coded 1 or 3). Otherwise, leave Block B11 blank.

(ii) Enter the estimated multiyear contract value (whole dollars

only).

(12) BLOCK B12, PRINCIPAL PRODUCT OR SERVICE.

B12 contains five parts. Do not leave any blocks blank.

(i) BLOCK B12A, FSC or SVC CODE.

Enter the 4-character federal stock class or service code that

describes the contract effort. To find the code, look in Section 1 of

the Department of Defense (DoD) Procurement Coding Manual (MN02). There

are three categories of codes to choose from. In some cases, use a 4-

character code from a list of 4-character codes; in other cases,

construct a code using the instructions in the Manual. If more than one

category or code applies to the contract action, enter the one that

best identifies the product or service representing the largest dollar

value.

(A) Supplies. If the contracting action is for the purchase (not

lease or rental) of supplies, enter a federal supply classification

(FSC) code in Block B12A. FSC codes are all numeric. Look in Section 1,

Part C, of the DoD Procurement Coding Manual (MN02). The Department of

Defense Federal Supply Classification Cataloging Handbooks H2-1, H2-2,

and H2-3 may also help with the correct 4-character code.

(B) Services. If the contracting action is for services (except

research, development, test, and evaluation), construction, or lease or

rental of equipment or facilities, enter a service code in Block B12A.

contracting action is for RDT&E (as defined in FAR 35.001 and 235.001),

enter an RDT&E code in Block B12A. Look in Section 1, Part A of the DoD

Procurement Coding Manual (MN02). All RDT&E codes should begin with the

letter ``A''. Do not use an RDT&E code for--

(1) Purchase, lease, or rental of equipment, supplies, or services

separately purchased in support of RDT&E work, even if RDT&E funds are

cited. Instead, use an FSC or Service code under the instructions in

paragraphs (i)(A) or (B).

(2) Orders under Federal supply schedule contracts. Instead use an

FSC or Service code under the instructions in paragraphs (i)(A) or (B).

[[Page 61605]]

(ii) BLOCK B12B, DOD CLAIMANT PROGRAM CODE.

Enter a code that identifies the commodity described in Block B12E.

These codes are in Section III of the DoD Procurement Coding Manual

(MN02). If more than one code applies to the contracting action, enter

the one that best identifies the product or service representing the

largest dollar value. If the description in Block B12E is for--

(A) Research and development (R&D), enter the code that best

represents the objective of the R&D. For example, if the objective of

the research and development is a guided missile, enter code A20. If

the R&D cannot be identified to any particular objective, enter code

S10.

(B) Ship repair, inspect and repair as necessary (IRAN),

modification of aircraft, overhaul of engines, or similar maintenance,

repair or modification services, enter the code that best identifies

the program.

equipment), enter code S10.

(D) Utility services, enter code S10.

(E) Services that cannot be identified to any listed program, enter

code S10.

(F) Supplies or equipment that cannot be identified to any listed

program, enter code C9E.

(iii) BLOCK B12C, PROGRAM, SYSTEM, OR EQUIPMENT CODE.

(A) Enter a code that describes the program, weapons system, or

equipment. These codes are in Section II of the DoD Procurement Coding

Manual (MN02). If there is no code that applies to the contracting

action, enter three zeros. If more than one code applies to the action,

enter the one that best identifies the product or service representing

the largest dollar value.

(B) If the contracting action is funded by the Ballistic Missile

Defense Organization, enter code CAA.

programs, enter one of the codes listed in Section II of the DoD

Procurement Coding Manual (MN02) under the heading ``Description and

Use of Program Codes--Environmental Cleanup Programs.''

(D) Defense Logistics Agency activities must use the code assigned

by the sponsoring Service.

(iv) BLOCK B12D, SIC CODE.

Enter the standard industrial classification (SIC) code for the

acquisition (as opposed to the SIC of the manufacturer or dealer). Use

the SIC code in effect at the time of award. These codes are in the OMB

Standard Industrial Classification Manual. If more than one code

applies to the contracting action, enter the one that best identifies

the product or service representing the largest dollar value.

(v) BLOCK B12E, NAME DESCRIPTION.

Enter the name or brief description of the commodity or service. If

the description is classified, enter only the word ``Classified.'' Do

not, however, use ``Classified'' when a code name (e.g., Minuteman,

Polaris, Trident, Pershing, etc.) or an identifying program number

(e.g., WS-107A) can be used.

(13) BLOCK B13, KIND OF CONTRACTING ACTION.

Enter one of the 16 codes.

(i) Code 1--Initial Letter Contract. Enter code 1 when the

contracting action is a new letter contract. Do not use code 1 for a

letter modification to an existing contract--use code A instead.

(ii) Code 2--Definitive Contract Superseding Letter Contract. Enter

code 2 when the contracting action is the definitization of a letter

contract. Do not use code 2 for an action which is a definitization of

a letter modification--use code A instead.

(iii) Code 3--Definitive Contract. Enter code 3 when the

contracting action is the first binding document containing all the

terms and conditions. Code 3 also includes--

(A) Definitive contract awards under the Small Business

Administration 8(a) program;

(B) Orders from the Procurement List with qualified nonprofit

agencies employing people who are blind or severely disabled;

(D) Funding actions which are initial obligations (but see Code C--

Funding Action); and

(E) Lease or loan agreements.

(iv) Code 4--Order Under a BOA. Enter code 4 when the contracting

action is an order or definitization of an order (not a modification of

an order). Examples include orders under a basic ordering agreement,

priced exhibit, or production list entered into by a DoD component (see

code 3 for actions which are not orders or modifications of orders).

Enter code 9 if the action is an order under a blanket purchase

agreement.

(v) Code 5--Order Under DoD Contract. Enter code 5 when the

contracting action is--

(A) An order (not a modification or definitization of an order)

against an indefinite delivery type contract;

(B) A job order, task order, or the like where firm obligations are

created by issuance of the order against a contract awarded by a DoD

component (not a modification or definitization of an order); or

contracts with the Small Business Administration under the 8(a)

program.

(vi) Code 6--Order/Modification Under Federal Schedule. Do not use

for GSA area contracts for utility services, use code 7 instead. Enter

code 6 if the contracting action is an order, or a modification of an

order, under--

(A) Federal supply schedule, e.g., GSA, VA, or OPM, contract (FAR

8.401); or

(B) GSA ADP schedule contract.

(vii) Code 7--Order Under Another Agency's Contract. Enter code 7

if the contracting action is an order, or a modification of an order

other than those in code 6, under a contract awarded by another Federal

agency or Government corporation. Include GSA area contracts for

utility services (FAR 8.301). Do not use code 7 if the Federal agency

or Government corporation is the contractor (i.e., is doing the work)--

use code 8 instead.

(viii) Code 8--Action With Another Federal Agency. Enter code 8 if

the contracting action is an action, or a modification of an action,

placed directly with another Federal agency or Government corporation

(e.g., Government Printing Office, Federal Printing Office, Federal

Prison Industries (UNICOR), Tennessee Valley Authority, or the

Department of Treasury, Agriculture or Energy) where the Federal agency

or Government corporation is acting as the contractor (i.e., doing the

work).

(ix) Code 9--Purchase/Modification Using Simplified Acquisition

Procedures. Enter code 9 if the contracting action, including actions

in a designated industry group under the Small Business Competitiveness

Demonstration Program (FAR subpart 19.10), is an award or a

modification of an award pursuant to FAR part 13.

(x) Code A--Additional Work (new agreement). Enter code A when the

contracting action is a bilateral supplemental agreement which--

(A) Adds work to an existing contract (including a letter

contract); and

(B) Requires a justification and approval (J&A), except see FAR

6.302-4(c) and 6.302-5(c)(2)(ii).

(xi) Code B--Additional Work (other). Enter code B when the

contracting action is a modification of an existing contract (including

a letter contract) which is not covered by code A or by codes C through

F. Code B includes actions which--

(A) Exercise an option;

(B) Initiate an incremental yearly buy under a multiyear contract;

and

[[Page 61606]]

require a J&A.

(xii) Code C--Funding Action. Enter code C when the contracting

action is a modification (to a letter or other contract) for the sole

purpose of obligating or deobligating funds.

(A) This includes--

(1) Incremental funding (other than incremental yearly buys under

multiyear contracts which are code B);

(2) Increases to the estimated cost on cost-reimbursement

contracts;

(3) Repricing actions covering incentive price revisions; and

(4) Economic price adjustments.

(B) This does not include modifications that have the initial

citation and obligation of funds for a contract or modification awarded

in one fiscal year but not effective until a subsequent fiscal year.

Code these--

(1) 3--definitive contract, if they are the initial obligation for

the acquisition, or

(2) A or B--additional work, if they are the initial obligation for

the modification.

(xiii) Code D--Change Order. Enter code D when the contracting

action is a change order issued under the ``Changes,'' ``Differing Site

Conditions,'' or other similar clauses in existing contracts.

(xiv) Code E--Termination for Default. Enter code E if the

contracting action is a modification which terminates all or part of

the contract for default.

(xv) Code F--Termination for Convenience. Enter code F if the

contracting action is a modification which terminates all or part of

the contract for convenience.

(xvi) Code G--Cancellation. Enter code G if the contracting action

is a modification which cancels the contract. Do not use code G to

cancel a prior DD Form 350--see Block A1.

(1) Part C gathers data concerning contracting procedures, use of

competition, financing, and statutory requirements other than

socieconomic (which are in Part D).

(2) Do not complete Part C if the contracting action is--

(i) A foreign military sale, i.e., Block B9 (Foreign Military Sale)

is coded Y (Yes); or

(ii) An action with another Federal agency, i.e., Block B13 (Kind

of Contracting Action) is coded 8 (Action With Another Federal Agency).

(3) In completing Part C, the codes to be used describe either the

contracting action being reported or the original contract, depending

on the codes reported for ``Kind of Contracting Action'' in Block B13.

The following chart provides overall instructions. There are some

exceptions for various Part C blocks. These are listed at the beginning

of the instructions for the block.

------------------------------------------------------------------------

If block B13 is Then code the blocks

------------------------------------------------- in part C with

Code Title reference to

------------------------------------------------------------------------

1....................... Initial Letter Action being reported.

Contract.

2....................... Definitive Contract Action being reported.

Superseding Letter

Contract.

3....................... Definitive Contract... Action being reported.

4....................... Order Under DoD Action being reported.

Agreement.

5....................... Order Under DoD Original contract.1

Contract.

6....................... Order/Modification Action being reported

Under Federal Supply (but see Blocks C3,

Schedule. C6, C7, C11, and

C13).

7....................... Order Under Another Original contract

Agency's Contract. (information provided

by other agency) (but

see Blocks C4, C6,

C11, C12, and C13).

8....................... Action With Another Leave all of Part C

Federal Agency. blank.

9....................... Purchase/Modification Action being reported.

Using Simplified

Acquisition

Procedures.

A....................... Additional Work (new Action being reported.

agreement).

B....................... Additional Work Original contract (but

(other). see Blocks C6 and

C7).1

C....................... Funding Action........ Original contract (but

see Blocks C6 and

C7).1

D....................... Change Order.......... Original contract (but

see Blocks C6 and

C7).1

E....................... Termination for Original contract (but

Default. see Blocks C6 and

C7).1

F....................... Termination for Original contract (but

Convenience. see Blocks C6 and

C7).1

G....................... Cancellation.......... Original contract (but

see Blocks C6 and

C7).1

------------------------------------------------------------------------

1 If there are no codes for the original contract because a DD Form 350

was not required at the time, the original action is no longer

available, the definition of the original code has changed, or a data

element has been added to the system after the original contract

report, then use codes that best describe the original contracting

action.

(4) Complete Part C blocks as follows--

(i) BLOCK C1, SYNOPSIS.

Enter one of the two codes.

(A) Code Y--Yes. Enter code Y if a synopsis of the proposed action

was prepared and transmitted to the Commerce Business Daily in

accordance with FAR Subpart 5.2.

(B) Code N--No. Enter code N if a synopsis was not prepared.

(ii) BLOCK C2, REASON NOT SYNOPSIZED.

Enter one of the two codes if Block C1 is ``N.'' Otherwise, leave

Block C2 blank.

(A) Code A--Urgency. Enter code A if the action was not synopsized

due to urgency (see FAR 6.302-2).

(B) Code B--Other than Urgency. Enter code B if the action was not

synopsized due to some other reason.

(iii) BLOCK C3, EXTENT COMPETED.

Enter one of the four codes. As an exception to the chart in

paragraph (c)(3) of this subsection, when Block B13 is coded 6, enter

code A in Block C3.

(A) Code A--Competed Action. Enter code A when--

(1) The contracting action is an action under a Federal supply

schedule contract (Block B13 is coded 6).

(2) Competitive procedures were used to fulfill the requirement for

full and open competition (FAR subpart 6.1).

(3) Full and open competition procedures after exclusion of sources

were used in order to establish/maintain alternative sources, to set

aside an acquisition for small business, or to compete Section 8(a)

awards (FAR subpart 6.2).

(4) Statutory authorities for other than full and open competition

were used

[[Page 61607]]

(FAR subpart 6.3) and more than one offer was received (if only one

offer was received, use code D).

(5) Contracting action resulted from a contract awarded prior to

the Competition in Contracting Act that used two-step sealed bidding or

other sealed bidding, or that was negotiated competitively.

(6) Simplified acquisition procedures were used and competition was

obtained.

(B) Code B--Not Available for Competition. Enter code B for--

(1) Awards for utilities or utility systems, excluding long

distance telecommunications services, when only one supplier can

furnish the service (FAR 6.302-1(b)(3)).

(2) Brand name commercial products for authorized resale.

(3) Acquisitions authorized or required by statute to be awarded to

a specific source pursuant to FAR 6.302-5(b) (2) or (4), e.g.,

qualified nonprofit agencies employing people who are blind or severely

disabled (FAR subpart 8.7) or 8(a) program (FAR subpart 19.8).

(4) International agreements.

(5) Other contract actions where the Director of Defense

Procurement has determined that there is no opportunity for

competition.

(Note: Even though Part C is not completed for foreign military

sales or actions with another Federal agency, the database will

automatically include these actions in the category of not available

for competition.)

action pertains to an acquisition placed with a particular contractor

to continue or augment a specific competed program where such placement

was necessitated by prior acquisition decisions.

(D) Code D--Not Competed. Enter code D when codes A, B, or C do not

apply.

(iv) BLOCK C4, SEA TRANSPORTATION.

Enter one of the three codes. As an exception to the chart in

paragraph (c)(3) of this subsection, when Block B13 is coded 7, leave

Block C4 blank.

(A) Code Y--Yes--Positive Response to 252.247-7022. Enter code Y

when the contractor's response to the provision at 252.247-7022,

Representation of Extent of Transportation by Sea, or 252.212-

7000(c)(2), Offeror Representations and Certifications--Commercial

Items, indicates the contractor anticipates that some of the supplies

being provided may be transported by sea.

(B) Code N--No--Negative Response to 252.247-7022 or 252.212-

7000(c)(2). Enter code N when the contractor's response to the

provision at 252.247-7022 or 252.212-7000(c)(2) indicates that the

contractor anticipates that none of the supplies being provided will be

transported by sea.

Solicitation. Enter code U when the contractor did not complete the

representation at 252.247-7022 or 252.212-7000(c)(2) or the

solicitation did not include it.

(v) BLOCK C5, TYPE OF CONTRACT.

(A) If the action is a letter contract, including modifications and

amendments to letter contracts, enter the code that describes the

anticipated type of contract the letter contract will become when it is

definitized.

(B) If there is more than one type of contract involved in the

contracting action, enter the code that matches the type with the most

dollars. If the type with the least dollars exceeds $500,000, fill out

separate DD Forms 350 (with different report numbers) for each type.

(1) Code A--Fixed Price Redetermination.

(2) Code J--Firm Fixed Price.

(3) Code K--Fixed Price Economic Price Adjustment.

(4) Code L--Fixed Price Incentive.

(5) Code R--Cost Plus Award Fee.

(6) Code S--Cost Contract.

(7) Code T--Cost Sharing.

(8) Code U--Cost Plus Fixed Fee.

(9) Code V--Cost Plus Incentive Fee.

(10) Code Y--Time and Materials.

(11) Code Z--Labor Hour.

(vi) BLOCK C6, NUMBER OF OFFERORS SOLICITED.

Leave Block C6 blank if the original contract resulted from a

solicitation issued before April 1, 1985 (i.e., before the effective

date of the Competition in Contracting Act). As an exception to the

chart in paragraph (c)(3) of this subsection--

------------------------------------------------------------------------

If block B13 is coded Then

------------------------------------------------------------------------

6......................................... Enter code 2 in Block C6.

7......................................... Leave Block C6 blank.

------------------------------------------------------------------------

If not an exception, enter,

(A) Code 1--One. Enter code 1 if only one offeror was solicited.

(B) Code 2--More than one. Enter code 2 if more than one offeror

was solicited.

(vii) BLOCK C7, NUMBER OF OFFERS RECEIVED.

Leave Block C7 blank if the original contract resulted from a

solicitation issued before April 1, 1985 (i.e., before the effective

date of the Competition in Contracting Act). As an exception to the

chart in paragraph (c)(3) of this subsection--

------------------------------------------------------------------------

If block B13 is coded Then

------------------------------------------------------------------------

6......................................... Enter code 2 in Block C7.

------------------------------------------------------------------------

If not an exception, enter--

(A) Code 1--One. Enter code 1 if only one offer was received.

(B) Code 2--More than one. Enter code 2 if more than one offer was

received. If code 2 is entered, complete Block E4.

(viii) BLOCK C8, SOLICITATION PROCEDURES.

(A) Leave Block C8 blank if--

(1) The original contract resulted from a solicitation issued

before April 1, 1985 (i.e., before the effective date of the

Competition in Contracting Act); or

(2) The action is pursuant to simplified acquisition procedures

(Block B13 is coded 9).

(B) If the action is an order/modification under a Federal Supply

Schedule (Block B13 is coded 6), use code B for single award schedules

and code F for multiple award schedules.

(1) Code A--Full and Open Competition--Sealed Bid. Enter code A if

the action resulted from an award pursuant to FAR 6.102(a).

(2) Code B--Full and Open Competition--Competitive Proposal. Enter

code B if the action resulted from an award pursuant to FAR 6.102(b).

(3) Code C--Full and Open Competition--Combination. Enter code C if

the action resulted from an award using a combination of competitive

procedures (e.g., two-step sealed bidding) pursuant to FAR 6.102(c).

(4) Code D--Architect-Engineer. Enter code D if the action resulted

from selection of sources for architect-engineer contracts pursuant to

FAR 6.102(d)(1).

(5) Code E--Basic Research. Enter code E if the action resulted

from competitive selection of basic research proposals pursuant to FAR

6.102(d)(2).

(6) Code F--Multiple Award Schedule. Enter code F if the action is

an award of a multiple award schedule pursuant to FAR 6.102(d)(3) or an

order against such a schedule.

(7) Code G--Alternative Sources. Enter code G if the action

resulted from use of competitive procedures but excluded a particular

source pursuant to FAR 6.202(a).

(8) Code K--Set Aside. Enter code K if the action resulted from

any--

(i) Set-aside for small business concerns (see FAR 6.203) including

[[Page 61608]]

small business innovation research (SBIR) actions and awards to

qualified nonprofit agencies employing people who are blind or severely

disabled which were participating in a set-aside for small business

concerns (see FAR 19.501(h)).

(ii) Set-aside for small disadvantaged business concerns (see

206.203).

(iii) Total or partial set-asides (including portions of broad

agency announcements (BAAs)) for historically black colleges and

universities or minority institutions (see 206.203 and 235.016).

(iv) Competition among section 8(a) firms under FAR 19.805 (report

noncompetitive 8(a) awards as code N).

(9) Code M--Otherwise Authorized by Statute. Enter code M if using

contracting procedures that are expressly authorized by statute and not

addressed in FAR 6.302-5 (see FAR 6.001(b)). Do not use code M for

statutes addressed in FAR 6.302-5; instead use code N and enter code 5A

in Block C9.

(10) Code N--Other Than Full and Open Competition. Enter code N if

the action resulted from use of other than full and open competition

pursuant to FAR subpart 6.3. This includes awards to qualified

nonprofit agencies employing people who are blind or severely disabled

(see FAR subpart 8.7) or noncompetitive awards to the Small Business

Administration under Section 8(a) of the Small Business Act (see FAR

6.302-5(b)).

(ix) BLOCK C9, AUTHORITY FOR OTHER THAN FULL AND OPEN COMPETITION.

(A) Leave Block C9 blank if the original contract resulted from a

solicitation issued before April 1, 1985 (i.e., before the effective

date of the Competition in Contracting Act).

(B) Enter one of the following codes if Block C8 is coded ``N.''

Otherwise, leave Block C9 blank.

(1) Code 1A--Unique Source. Enter code 1A if the action was

justified pursuant to FAR 6.302-1(b)(1).

(2) Code 1B--Follow-on Contract. Enter code 1B if the action was

justified pursuant to FAR 6.302-1(a)(2) (ii) or (iii).

(3) Code 1C--Unsolicited Research Prop. Enter code 1C if the action

was justified pursuant to FAR 6.302-1(a)(2)(i).

(4) Code 1D--Patent/Data Rights. Enter code 1D if action was

justified pursuant to FAR 6.302-1(b)(2).

(5) Code 1E--Utilities. Enter code 1E if action was justified

pursuant to FAR 6.302-1(b)(3).

(6) Code 1F--Standardization. Enter code 1F if action was justified

pursuant to FAR 6.302-1(b)(4).

(7) Code 1G--Only One Source--Other. Enter code 1G if the action

was justified pursuant to FAR 6.302-1 in a situation other than the

examples cited in code 1A through 1F.

(8) Code 2A--Urgency. Enter code 2A if action was justified

pursuant to FAR 6.302-2.

(9) Code 3A--Particular Sources. Enter code 3A if action was

justified pursuant to FAR 6.302-3(a)(2)(i).

(10) Code 4A--International Agreement. Enter code 4A if action was

justified pursuant to FAR 6.302-4.

(11) Code 5A--Authorized by Statute. Enter code 5A if action was

justified pursuant to FAR 6.302-5(a)(2)(i).

(12) Code 5B--Authorized Resale. Enter code 5B if action was

justified pursuant to FAR 6.302-5(a)(2)(ii).

(13) Code 6A--National Security. Enter code 6A if action was

justified pursuant to FAR 6.302-6.

(14) Code 7A--Public Interest. Enter code 7A if action was taken

pursuant to FAR 6.302-7.

(x) BLOCK C10, SUBJECT TO LABOR STANDARDS STATUTES.

Enter one of the following codes. As an exception to the chart in

paragraph (c)(3) of this subsection, when Block B13 is coded 6, leave

Block C10 blank.

(A) Code A--Walsh-Healey Act. Enter code A when the contracting

action is subject to the provisions of FAR subpart 22.6.

(B) Code C--Service Contract Act. Enter code C when the contracting

action is subject to the provisions of the Service Contract Act (see

FAR part 37).

action is subject to the Davis-Bacon Act (see FAR 22.403-1).

(D) Code Z--Not Subject to Above. Enter code Z when the contracting

action is not subject to any of the statutory requirements in

paragraphs (A) through (C).

(xi) BLOCK C11, CERTIFIED COST OF PRICING DATA.

Enter one of the three codes. As an exception to the chart in

paragraph (c)(3) of this subsection, when Block B13 is coded 6 or 7,

leave Block C11 blank.

(A) Code Y--Yes--Obtained. Enter code Y when certified cost or

pricing data were obtained for the contracting action (see FAR 15.804-

2).

(B) Code N--No--Not Obtained. Enter code N when certified cost or

pricing data were not obtained because data were not required (see FAR

15.804-2) or an exemption was granted (see FAR 15.804-3(a)-(g)).

or pricing data were not obtained because the requirement was waived

(See FAR 15.804-3(i) and DFARS 215.804-3(i)).

(xii) BLOCK C12, CONTRACT FINANCING.

Enter one of the five codes identifying whether or not progress

payments (PP) or advance payments (AP) were used. As an exception to

the chart in paragraph (c)(3) of this subsection, when Block B13 is

coded 7, enter the code for the action being reported.

(A) Code A--FAR Clause 52.232-16. Enter code A if the contracting

action contains the clause at FAR 52.232-16, Progress Payments.

(B) Code B-DFARS Clause 252.232-7003. Enter code B if the

contracting action contains the clause at 252.232-7003, Flexible

Progress Payments.

contracting action provides for progress payments based on percentage

or stage of completion, which is only permitted on contracts for

construction, for shipbuilding, or for ship conversion, alteration, or

repair (see 232.102(e)(2)).

(D) Code D--Unusual PP or AP. Enter code D if the action provides

unusual progress payments or advance payments (see FAR Subpart 32.4 and

32.501-2).

(E) Code Z--None of the Above. Enter code Z if codes A through D do

not apply.

(xiii) BLOCK C13, FOREIGN TRADE DATA.

(A) The term ``United States'' (U.S.), as used in Block C13

excludes the Trust Territory of Palau (see 204.670-1 for definition of

United States and outlying areas).

(B) As an exception to the chart in paragraph (c)(3) of this

subsection

------------------------------------------------------------------------

If block B13 is coded Then

------------------------------------------------------------------------

6......................................... Enter the code for the

action being reported but

leave Block C13C blank

7......................................... Enter the code for the

original contract, but

leave Block C13C blank.

------------------------------------------------------------------------

Enter the number of offers of foreign end products as defined in

FAR Part 25 or services performed by foreign concerns. If zero, enter

0; if 9 or greater than 9, enter 9.

(D) BLOCK C13B, BUY AMERICAN ACT PERCENT DIFFERENCE.

(1) If the contracting action is with a firm offering a domestic

end product, and award to the firm resulted from use of the evaluation

factor under the Buy American Act (225.105-70), enter the percent

difference between the award

[[Page 61609]]

price and the lowest price for a foreign end product. Compute the

percent as follows:

The award price (AP) minus the lowest price for a foreign end

product (LPFEP) divided by the lowest price for a foreign end

product (LPFEP) times 100 equals the Buy American Act percent

difference (BAAPD); or expressed mathematically:

[GRAPHIC][TIFF OMITTED]TR30NO95.000

(2) Enter the percentage as a two position whole number (e.g., for

5%, enter 05; for 11%, enter 11).

(3) Enter two zeroes (00) if the evaluation factor was not used.

(E) BLOCK C13C, PLACE OF MANUFACTURE.

Complete Block C13C only if the contracting action is for a foreign

end product or a service provided by a foreign concern. Otherwise,

leave Block C13C blank.

(1) Code A--U.S. Enter code A if the contracting action is for--

(i) A foreign end product that is manufactured in the United States

but still determined to be foreign because 50 percent or more of the

cost of its components is not mined, produced, or manufactured inside

the United States or inside qualifying countries; or

(ii) Services performed in the United States by a foreign concern.

(2) Code B--Foreign. Enter code B if the contracting action is

for--

(i) Any other foreign end product; or

(ii) Services performed outside the United States by a foreign

concern.

(F) BLOCK C13D, COUNTRY OF ORIGIN CODE.

(1) Complete Block C13D only if Block C13C is coded A or B.

Otherwise, leave Block C13D blank.

(2) Enter the code for FIPS PUB 10-3 (Countries, Dependencies,

Areas of Special Sovereignty, and Their Principal Administrative

Divisions) that identifies the country where the foreign product is

coming from or the foreign company providing the services is located.

If more than one foreign country is involved, enter the code of the

foreign country with the largest dollar value.

(d) Part D of the DD Form 350.

(1) Part D gathers data on the various socioeconomic programs that

apply to defense acquisitions.

(2) Do NOT complete Part D if the contracting action is a:

(i) Foreign military sale, i.e., Block B9 (Foreign Military Sale)

is coded Y (Yes);

(ii) Order/modification under a Federal supply schedule, i.e., Item

B13 (Kind of Contracting Action) is coded 6 (Order/Modification Under

Federal Supply Schedule); or

(iii) Action with another Federal agency, i.e., Item B13 (Kind of

Contracting Action) is coded 8 (Action With Another Federal Agency).

(3) Determine the status of the concern (e.g., size and ownership),

by referring to FAR part 19/DFARS part 219.

(4) In completing Part D, the codes to be used describe either the

contracting action being reported or the original contract depending on

the codes reported in B13 (Kind of Contracting Action). The following

chart provides overall instructions. There are some exceptions for

various Part D Blocks. The exceptions are listed at the beginning of

the instructions for the individual blocks.

------------------------------------------------------------------------

If block B13 is

------------------------------------------------- Then use the block D

Code Title for the

------------------------------------------------------------------------

1....................... Initial Letter Action being reported.

Contract.

2....................... Definitive Contract Action being reported.

Superseding Letter

Contract.

3....................... Definitive Contract... Action being reported.

4....................... Order Under DoD Action being reported.

Agreement.

5....................... Order Under DoD Original contract.\1\

Contract.

6....................... Order/Modification Leave all of Part D

Under Federal Supply blank.

Schedule.

7....................... Order Under Another Original contract

Agency's Contract. (obtain from other

agency, but see

Blocks D2, D3, D4,

D7, and D9).\1\

8....................... Action With Another Leave all of Part D

Federal Agency. blank.

9....................... Purchase/Modification Action being reported.

Using Simplified

Acquisition

Procedures.

A....................... Additional Work (new Action being reported.

agreement).

B....................... Additional Work Original contract (but

(other). see Block D9).\1\

C....................... Funding Action........ Original contract (but

see Block D).\1\

D....................... Change Order.......... Original contract (but

see Block D9).\1\

E....................... Termination for Original contract (but

Default. see Block D9).\1\

F....................... Termination for Original contract (but

Convenience. see Block D9).\1\

G....................... Cancellation.......... Original contract (but

see Block D9).\1\

------------------------------------------------------------------------

\1\ If there are no codes for the original contract because a DD Form

350 was not required at the time, the original action is no longer

available, the definition of the original code has changed, or a data

element has been added to the system after the original contract

report, then use codes that best describe the original contracting

action.

(5) Complete Part D blocks as follows--

(i) BLOCK D1, TYPE OF BUSINESS.

Enter one of the ten codes.

(A) Code A--Small Disadvantaged Business Performing in U.S. Enter

code A if the contractor is an SDB concern as defined in 219.001 and

the place of performance is within the United States and outlying

areas.

(B) Code B--Other Small Business Performing in U.S. Enter code B if

the contractor is a small business concern as defined in FAR 19.001,

other than a small disadvantaged business concern, and the place of

performance is within the United States and outlying areas.

contractor is a domestic large business concern, and the place of

performance is within the United States and outlying areas.

(D) Code D--Nonprofit Agency Employing People Who Are Blind or

Severely Disabled. Enter code D if the contractor is a qualified

nonprofit agency employing people who are blind or severely disabled

(FAR 8.701), and the place of performance is within the United States

and outlying areas.

(E) Code F--Hospital. Enter code F if the contractor is a hospital,

and the place of performance is within the United States and outlying

areas.

(F) Code L--Foreign Concern/Entity. Enter code L if the contractor

is a foreign concern, the Canadian Commercial Corporation, or a non-

U.S. chartered nonprofit institution.

(G) Code M--Domestic Firm Performing Outside U.S. Enter code M if

the contractor is a domestic concern or

[[Page 61610]]

a domestic nonprofit institution and the place of performance is

outside the United States and outlying areas.

(H) Code N--Historically Black Colleges and Universities or

Minority Institutions (HBCU/MI). Enter code N if the contractor is an

HBCU/MI as defined at 252.226-7000 and the place of performance is

within the United States and outlying areas.

(I) Code P--Other Educ

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