Federal Acquisition Regulation; Certification Requirements

Federal RegisterSep 12, 1996

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SUMMARY: The Administrator of the Office of Federal Procurement Policy

has requested that the Civilian Agency Acquisition Council and the

Defense Acquisition Regulations Council issue a proposal to amend the

Federal Acquisition Regulation (FAR) to remove particular certification

requirements for contractors and offerors. This regulatory action was

not subject to Office of Management and Budget review under Executive

Order 12866, dated September 30, 1993. This is not a major rule under 5

U.S.C. 804.

DATES: Comments should be submitted on or before November 12, 1996 to

be considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to:

General Services Administration, FAR Secretariat (MVRS), 18th and F

Streets, NW., Room 4037 Washington, DC 20405.

Please cite FAR case 96-312 in all correspondence related to this

case.

FOR FURTHER INFORMATION CONTACT: Mr. Jack O'Neill at (202) 501-3856 in

reference to this FAR case. For general information, contact the FAR

Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-

4755. Please cite FAR case 96-312.

SUPPLEMENTARY INFORMATION:

A. Background

The Administrator of the Office of Federal Procurement Policy has

reviewed the certifications in the FAR. The Federal Acquisition

Regulatory Council (FARC) has made recommendations as to the retention

of certain certifications and the Administrator has approved the

retention of certifications discussed herein. As a result, the

Administrator has issued a proposal which we are now publishing on

behalf of the Administrator of Federal Procurement Policy as a proposed

rule.

This proposed rule amends FAR Parts 1, 3, 4, 6, 8, 9, 12, 14, 16,

19, 22, 23, 25, 27, 29, 31, 32, 36, 37, 42, 45, 47, 49, 52 and 53 to

remove particular certification requirements for contractors and

offerors. The proposed rule implements Section 4301b of the National

Defense Authorization Act for Fiscal Year 1996 (Pub. L. 104-106).

Section 4301b requires the Administrator, Office of Federal Procurement

Policy, to issue for public comment a proposal to remove from the FAR

those certification requirements for contractors and offerors that are

not specifically imposed by statute. The Administrator may omit such a

certification only if (1) The FAR Council provides the Administrator

with a written justification for the requirement and a determination

that there is no less burdensome means for administering and enforcing

the particular regulation that contains the certification requirement;

and (2) the Administrator approves in writing the retention of the

certification requirement.

The proposed rule implements Section 4301b by removing

certification requirements for contractors and offerors not

specifically imposed by statute. A separate FAR case 96-013 has been

initiated to identify and delete any representations that place an

unnecessary burden on contractors and offerors.

Review of certifications imposed by the Small Business

Administration revealed that representations, not certifications, were

imposed by the Small Business Act (15 U.S.C. 645(d)). Therefore, in the

FAR text at 19.001, 19.301, 19.703 and the provisions at 52.219-1,

52.219-15, 52.219-18, 52-219-19, and 52-219-21, representations have

been substituted for certifications. These representations will be

reviewed under FAR case 96-013.

Review of certifications contained in the FAR, revealed that

several certifications are required by outside source documents. For

example, the following certifications are required by Department of

Labor regulations: FAR 52.222-8, Payrolls and Basic Records; FAR

52.222-15, Eligibility under the Davis Bacon Act; FAR 52.222-41 (n) and

(p), Service Contract Act; FAR 52.222-48 Exemption from the Service

Contract Act for ADP services; and FAR 52.222-21, Certification of

Nonsegregated Facilities. Also, the following certifications are

required by Executive order: FAR 22.1020, Seniority Lists; and FAR

52.223-13, Toxic Chemical Release Reporting. The following

certifications are required by regulations issued by the Cost

Accounting Standards Board: FAR Provision 52.230-1, Appendix B; FAR

30.201-3, 30.201-4, 30.202-6, and 30.602-1. The disposition of these

certifications will not be covered by this proposal, but in accordance

with section 4301(b)(1)(B) of the Federal Acquisition Reform Act, and

under the authority of the Department of Labor with regard to the labor

certifications; and by the Office of Management and Budget, with regard

to those required by Executive order and the Cost Accounting Standards

Board.

The FAR certifications for contractors and offerors proposed for

elimination are summarized below:

FAR Certification Requirements Recommended for Deletion

----------------------------------------------------------------------------------------------------------------

FAR cite Clause/provision No. Title Remarks

----------------------------------------------------------------------------------------------------------------

3.502-2(i)(1).................... ................................. Subcontractor Revise language to

kickbacks. delete

certification.

4.102(d)......................... ................................. Joint ventures...... Revise language to

delete

certification.

1.106............................ 52.208-1......................... Required Sources for Delete clause.

6.302-3(b)(1)(viii) Jewel Bearings and

Related Items.

8.002............................ 52.208-2......................... Jewel Bearing and Delete provision.

8.2 Related Items

12.504(a)(16) Certificate.

9.505-4(c)....................... 52.209-7......................... Organizational Revise language to

Conflicts of delete

Interest certification.

Certificate--Market

ing Consultants.

9.506(a)......................... ................................. Procedures Revise language to

(Organizational delete

Conflict of certification.

Interest).

[[Page 48355]]

9.506(d)(4)...................... ................................. Procedures Revise language to

(Organizational delete certificate.

Conflict of

Interest).

1.106............................ 52.209-7......................... Organizational Delete provision.

9.507-1 Conflict of

Interest--Marketing

Consultant.

1.106............................ 52.209-8......................... Organizational Delete provision.

9.507-1 Conflict of

Interest--Advisory/

Assistance Services.

9.507-1(d)....................... ................................. Organizational Delete language--

Conflict of Language refers to

Interest. FAR clauses 52.209-

7 and -8.

12.503........................... 52.212-3......................... Offeror Revised language to

Representations and reflect revisions

Certifications--Com in this proposal.

mercial Items Minor

informalities or

irregularities in

bids.

14.405(f)........................ ................................. .................... Revise language to

specify

representations in

lieu of

certifications. FAR

52.222-22 and

52.222-25 are

representations as

required by

statute, not

certifications.

16.306(d)(2)..................... ................................. Level of effort..... Revise language to

delete

certification

requirement.

19.001........................... 52.219-1......................... Small Business Revise language to

19.301 Program delete

Representation. certification

requirement and

substitute

representations as

required by law.

19.703........................... 52.219-18........................ Notification of

Competition Limited

to Eligible 8a

Concerns.

52.219-19........................ SB Concern

Representation for

SB Competitiveness

Demonstration

Program.

52.219-21........................ SB Size

Representation for

Targeted Industry

Categories Under

the SB

Competitiveness

Demonstration

Program.

19.303(c)(2)..................... ................................. Determining Product Revise language to

19.303(c)(3) or Service delete

Classifications. certification

requirement.

9.501(h)(1)...................... ................................. General (self- Revise language to

certification). delete

certification

requirement.

152.219-15 (b) & (c)............. Notice of Delete clause.

Participation by

Organizations for

the Handicapped.

23.105........................... 52.223-1......................... Clean Air and Water Revise language to

23.106 Certification. delete

certification

requirement.

23.302(d)(1)..................... ................................. Policy--Hazardous Revise language to

material. delete

certification

requirement.

52.223-3......................... Hazardous Material Revise language to

Identification and delete

Material Safety certification

Data. requirement.

23.601(c)........................ 52.223-7......................... Notice of Revise language to

Radioactive delete

Materials. certification if

prior conditions

are not changed.

25.109(a)........................ 52.225-1......................... Buy American Revise language to

Certificate. delete

certification

requirement.

25.305........................... 52.225-6......................... Balance of Payments Revise language to

Program Certificate. delete

certification

requirement.

52.225-7......................... Balance of Payment

Program.

25.408(a)(1)..................... 52.225-8......................... Buy American Act-- Revise language to

Trade Agreements-- delete

Balance of Payments certification

Program Certificate. requirement.

25.408(a)(2)..................... 52.225-9......................... Buy American Act-- Revise language to

Trade Agreements-- delete certificate

Balance of Payments requirement.

Program.

25.408(a)(4)..................... 52.225-21........................ Buy American Act-- Revise language to

North American Free delete

Trade Agreement certification

(NAFTA) requirement.

Implementation Act--

Balance of Payments

Program.

25.408(b)........................ ................................. Solicitation Revise language to

provisions and delete

contract clauses. certification

requirement.

27.303(e)........................ ................................. Patent Rights-- Revise language to

Retention by the delete

Contractor (Short certification

form). requirement.

27.406........................... 52.227-12........................ Patent Rights-- Revise language to

27.409(q) Retention by the require declaration

Contractor. in lieu of

certification, as

required by

statute.

52.227-13........................ Patent Rights--

Acquisition by the

Government.

52.227-21........................ Technical Data

Certification,

Revision, and

Withholding of

Payment--Major

Systems.

29.305(b)(3)..................... ................................. State and local tax Revise language to

exemptions. delete

certification

requirement.

31.110........................... 52.242-4......................... Certification of Revise language to

42.703-2 Indirect Costs. delete nonstatutory

certification.

[[Page 48356]]

31.205-22(d) and (e)............. ................................. Legislative Lobbying Revise language to

costs. delete

certification

requirement.

32.805........................... ................................. Procedures Revise language to

(Assignments). delete

certification

requirement.

36.205(b)(3)..................... ................................. Statutory cost Revise language to

limitations. delete

certification

requirement.

37.402........................... 52.237-7......................... Indemnification and Revise language to

Medical Liability require evidence in

Insurance. lieu of

certification.

45.606-1......................... ................................. Submission.......... Revise language to

delete

certification

requirement.

52.245-8......................... Liability for the Revise language to

Facilities. delete

certification

requirement.

47.303-17(d)(3)(ii).............. ................................. Contractor-prepaid Revise language to

commercial bills of delete

lading, small certification

package shipments. requirement.

47.305-11(b)..................... 52.247-54........................ Diversion of Delete clause.

Shipment under

F.o.b. Destination

Contracts.

47.403-3......................... ................................. Disallowance of Revise language to

expenditures. delete

certification

requirement.

52.247-2......................... Permits, Revise language to

Authorities, or delete

Franchises. certification

requirement.

47.404........................... 52.247-63........................ Preference for U.S.- Revise language to

Flag Air Carriers. delete

certification

requirement.

49 U.S.C. 40118

directs agencies to

ensure

transportation is

by U.S. carriers.

49.108-3(b)...................... ................................. Settlement Revise language to

procedures. delete

certification

requirement.

52.209-3......................... First Article Revise language to

Approval (Alt I). delete

certification

requirement.

52.209-4......................... First Article Revise language to

Approval (Alt I). delete

certification

requirement.

52.215-35........................ Annual Revise language to

Representations and require

Certifications--Neg acknowledgment in

otiation. lieu of

certification.

52.216-2......................... Economic Price Revise language to

Adjustment--Standar delete

d Supplies. certification

requirement.

52.216-3......................... Economic Price Revise language to

Adjustment--Semista delete

ndard--Supplies. certification

requirement.

52.216-4......................... Economic Price Revise language to

Adjustment--Labor/ delete

Material. certification

requirement.

52.228-5......................... Insurance--Work on a Revise language to

Government delete

Installation. certification

requirement.

52.228-8......................... Liability and Revise language to

Insurance--Leased delete

Motor Vehicles. certification

requirement.

52.228-9......................... Cargo Insurance..... Revise language to

delete

certification

requirement.

Part 53.......................... ................................. SF 129.............. Revise form to

delete

certification

requirement.

Part 22 Form--SF Revise form to

1445. delete

certification

requirement.

Part 29 Form--SF Revise forms to

1094, SF 1094A. delete

certification

requirement.

Part 45 Forms--SFs Revise forms to

1423, 1426, 1428, delete

1430, 1432, 1434. certification

requirement.

----------------------------------------------------------------------------------------------------------------

The FAR certifications specifically imposed by statute are

summarized below:

FAR Certification Requirements Required by Statute

----------------------------------------------------------------------------------------------------------------

FAR cite Clause/provision No. Title Remarks

----------------------------------------------------------------------------------------------------------------

3.802(b)......................... 52.203-11........................ Certification and Required by 31 USC

Disclosure 1352.

Regarding Payments

to Influence

Certain Federal

Transactions.

3.803............................ 52.212-3(e)

3.804

3.808

9.204(a)(2)...................... ................................. Certification for Required by 10 USC

testing and 2319(d)(2) and 41

evaluation costs. USC 253c(d)(2).

52.214-27........................ Price Reduction for Required by 10 USC

Defective Cost or 2306a(a)(2) and 41

Pricing Data-- USC 254b.

Modifications--Seal

ed Bidding.

[[Page 48357]]

52.214-28........................ Subcontractor Cost Required by 10 USC

or Pricing Data-- 2306a(a)(2) and 41

Modifications--Seal USC 254b.

ed Bidding.

15.804-4......................... 52.215-22, -23, -24, -25......... TINA................ Required by 10 USC

2306a and 41 USC

254b.

22.407........................... 52.222-8......................... Certified Payroll Required by 40 USC

and Basic Records .. 276.

23.404(b)(2)(iii)................ 52.223-8......................... Estimate of Required by 42 USC

Percentage of 6962(c)(3).

Recovered Material

for Designated

Items to be Used in

the Performance of

the Contract.

23.405(a)........................ 52.223-4......................... Recovered Material Required by 42 USC

Certification. 6962(c)(3)(A)(i).

23.404(b)(4)..................... 52.223-9......................... Certification of Required by 42 USC

23.405(c) Percentage of 6962(c)(3).

Recovered Material

Content for EPA

Designated Items

Used in Performance

of the Contract.

29.304(d)........................ 52.229-2......................... North Carolina State Required by North

and Local Sales and Carolina State Law.

Use Tax.

52.232-33........................ Mandatory Required by 31 USC

Information for 3332

Electronic Funds

Transfer.

52.232-34 (Optional)

33.201........................... 52.233-1......................... Disputes............ Required by 41 USC

33.202 605(c)(1).

33.207

33.208

33.211(c)(2)

33.211(e)

33.214(a)(5)

42.703-2......................... 52.242-4......................... Certificate of Required by 10 USC

Indirect costs. 2324(h) and 41 USC

256(h).

50.303-2......................... ................................. Contractor Required by 10 USC

certification. 2410 and 41 USC

605(c)(1).

----------------------------------------------------------------------------------------------------------------

The FAR certifications approved in writing for retention by the

Administrator for Federal Procurement Policy are summarized below:

FAR Certification Requirements Which OFPP Has Given Approval To Retain

----------------------------------------------------------------------------------------------------------------

FAR cite Clause/provision No. Title Remarks

----------------------------------------------------------------------------------------------------------------

3.103............................ 52.203-2......................... Certificate of See following

Independent Price justification.

Determination.

9.408............................ 52.209-5......................... Certification See following

9.409 Regarding justification.

Debarment,

Suspension,

Proposed Debarment,

and Other

Responsibility

Matters.

52.213-1......................... Fast Payment See following

Procedure. justification.

32.202-4(b)(3)................... ................................. Security for See following

Government justification.

financing.

32.304-8......................... ................................. Other borrowing..... See following

justification.

32.503-4......................... ................................. Approval of progress See following

payment requests. justification.

32.503-5......................... ................................. Administration of See Justification

progress payments. under 32.503-9.

32.503-9(a)(9)................... ................................. Liquidation rates- See following

alternate method. Justification.

32.503-14 (a) and (c)............ ................................. Protection of See following

Government title Justification.

(progress payment).

52.232-4......................... Payments under See following

Transportation Justification.

Contracts and

Transportation

Related Service

Contracts.

32.905(c)(1)..................... 52.232-5......................... Payments Under Fixed- See following

Price Construction Justification.

Contracts.

32.1009 (a) and (c) and 52.232.32........................ Performance-Based See following

32.1010(c). Payments. Justification.

52.232-12 (a), (o)............... Advance Payments.... See following

Justification.

52.232-16(g)..................... Progress Payments... See following

Justification.

42.1204.......................... ................................. Agreement to See following

recognize a Justification.

successor in

interest (novation

agreement).

42.1205.......................... ................................. Agreement to See following

recognize Justification.

contractor's change

of name.

46.315........................... 52.246-15........................ Certificate of See following

46.504 Conformance. Justification.

49.108-4(a)(1)(iii).............. ................................. Authorization for See following

49.602-1(a) subcontract Justification.

settlements without

approval or

ratification.

49.112-1(h)...................... ................................. Certification and See following

approval of partial Justification.

payments.

49.302........................... ................................. Discontinuance of See following

vouchers. Justification.

[[Page 48358]]

49.304-2......................... ................................. Submission of See following

settlement proposal Justification.

(fee only).

49.603-1......................... ................................. Fixed-price See following

contracts-complete Justification.

termination.

49.603-2......................... ................................. Fixed-price See following

contracts-partial Justification.

termination.

49.603-3......................... ................................. Cost-reimbursement See following

contracts-complete Justification.

termination, if

settlement includes

cost.

49.603-8......................... ................................. Fixed-price See following

contracts- Justification.

settlements with

subcontractors only.

52.249-2 (c), (d)................ Termination for See following

Convenience of the Justification.

Government (Fixed-

Price).

52.249-3 (c), (d)................ Termination for See following

Convenience of the Justification.

Government

(Dismantling,

Demolition, or

Removal of

Improvements).

52.249-5(c)...................... Termination for See following

Convenience of the Justification.

Government

(Educational and

Other Nonprofit

Institutions).

52.249-6 (d), (e)................ Termination (Cost- See following

Reimbursement). Justification.

52.249-11 (c), (d)............... Termination of Work See following

(Consolidated Justification.

Facilities or

Facilities

Acquisition).

Part 53, Forms................... ................................. Part 49 Forms-SFs See following

1435, 1436, 1437, Justification.

1438, 1439, and

1440.

----------------------------------------------------------------------------------------------------------------

FAR Provision 52.203-2 and the prescription at 3.103 require that

offerors certify that proposed prices were arrived at independently

without, for the purpose of restricting competition, consultation with

other competitors. This certification is required to continue to

maintain the integrity of the Government procurement process by

insuring fair access to all interested contractors. The requirement

that Certificates of Independent Price Determination (CIPDs) be

submitted by offerors for Government contracts is being retained.

First, CIPDs require the disclosure, by offerors, of with whom prices

were discussed or to whom prices were disclosed, so that contracting

officers can determine whether offers have been prepared according to

the bid requirements set out in Government Requests for Proposals.

Unlike private contracting situations, important public policy concerns

may dictate in some instances that only independently prepared bids are

acceptable, while in other circumstances teaming agreements may be

acceptable or even actively solicited. Second, certain types of pre-bid

conduct or communications among competitors, such as attempting to

induce another firm to submit, or not to submit, an offer or disclosing

price information, may adversely affect the competitiveness of their

offers and yet not constitute an unlawful ``agreement'' under Federal

antitrust laws. With taxpayer dollars at stake, the public deserves the

price and quality benefits of vigorous competition. CIPDs are necessary

to preclude conduct and communications that diminish the

competitiveness of the Federal contracting process. The Government must

be able to hold those who seek to obtain public monies to the highest

standards of conduct at all times, and public funds must be protected

from unlawful collusion in the bidding process. These policy

considerations justify retaining the requirement for the submission of

CIPDs. The Department of Justice has concluded that this certification

will not place a significant burden on most offerors. The continued

preparation of CIPDs will not place a significant burden on most

offerors. For many businesses, and particularly for small businesses,

very few officials are responsible for determining the prices being

offered on Government contracts. The Department relies on the

certificate in trials of bid rigging conspiracies because the

certificate demonstrates that the defendant was put on notice of

antitrust prohibitions against collusive bidding and, in turn,

responded fraudulently when asked to certify the independent and non-

collusive nature of its bid.

FAR Provision 52.209-5 and the prescriptions at 9.408 and 9.409

require certified information from offerors regarding debarment,

suspension, and other responsibility matters. This information is

crucial to contracting officers in evaluating the responsibility of

prospective contractors. Not all the information that an offeror

submits under the provision at 52.209-5 is available from the General

Services Administration's (GSA) List of Parties Excluded from Federal

Procurement and Nonprocurement Programs. While the list is updated by

GSA to reflect suspensions and reinstatements by other Federal

agencies, the list can not be precisely correct at all times.

Consequently, the certification required by this provision is necessary

to afford protections to both the Government and contractors by

providing contracting officers with accurate information at all times

on which to evaluate contractor responsibility. The alternative is

extensive preaward surveys.

FAR clause 52.213-1 provides for contractor payment prior to the

Government's receipt, inspection and acceptance of supplies. This

certification is being retained because it expedites payment to

contractors without formal acceptance thereby improving cash flow. The

alternative to the fast pay invoice certification would be to delay

contractor payment until the Government actually received the supplies

shipped.

FAR 32.202-4(b)(3) requires contractors to certify that, when the

Government's security for contract financing is in the form of a lien

on contractor assets, the assets subject to the lien are free from any

prior encumbrances. This certification is being retained because it

represents good business practice to ascertain that no other

encumbrances have been attached to assets pledged by contractors to

secure Government financing. The alternative to the use of a

certification would be to conduct an exhaustive search of contractor

records to ensure no other liens on pledged assets exist.

[[Page 48359]]

FAR 32.304-8 requires contractors to certify to the amount of their

unliquidated unguaranteed borrowings. This certification is being

retained because the Government must be aware of and have strong

confidence in the amount of outstanding unguaranteed borrowing before

it can prudently consent to contractor requests for additional

borrowing during the guaranteed loan period. The alternative would be

to obtain this financial information from the contractor's ledgers

which is more burdensome. The contractor would still be required to

submit status reports in writing regardless of the requirement for a

certification. Thus, the underlying burden would not be removed even if

the certificate were.

There are several certifications required when contractors are

requesting progress payments. These certifications and associated

documentation are required when the Government is providing payments

without receiving goods or services. FAR clauses 52.232-5, 52.232-12,

52.232-32 and the prescriptions at 32.503-4, 32.503-5, 32.503-9,

32.503-14, 32.905, 32.1009, and 32.1010 require contractor

certifications when submitting requests for progress payments. Progress

payments are a form of contract financing which benefit contractors.

For this benefit to accrue, the contracting officer relies on

information submitted with the certification to establish the amount to

be paid and to ensure that the contractor has met certain safeguards

necessary to protect taxpayer funds. Because progress payments can

involve large sums of money, requiring these certifications is a

prudent business practice. Even if a certification were not required,

the contractor must still submit written requests with appropriate

documentation for payment. Elimination of the certification will not

eliminate that underlying burden. The only alternative would be an

audit of the contractor's records.

FAR 42.1204 and 42.1205 require contractors to certify that a

novation or contractor change of name was authorized by the

corporation's governing body and was within the scope of its corporate

powers. These certifications are being retained because they are

necessary to enable contracting officers to maintain and enforce

contracts with entities that had their contractual interest transferred

or assigned. The alternative to the use of certified statements would

be to obtain this information by reviewing and analyzing the

contractor's legal documentation in support of the name change or

novation.

FAR clause 52.246-15 and the prescriptions at 46.315 and 46.504

require contractors to certify that supplies have met the requirements

of the contract in lieu of Government source inspection, thereby

allowing the Government to eliminate on-site inspections. This

certification is being retained because it reduces administrative

burden for both the Government and contractors. The alternative would

be increased source inspections.

FAR clauses 52.249-2, 52.249-3, 52.249-5, 52.249-6, 52.249-11 and

the prescriptions at 49.108-4, 49.112-1, 49.302, 49.304-2, 49.602-1,

49.603-1, 49.603-2, 49.603-3, and 49.603-8 contain procedures for

settling contracts terminated for the convenience of the Government.

Because these certifications apply to final settlement proposals, the

indirect costs must be certified in accordance with 10 U.S.C. 2324(h).

Strict application of only the statutorily mandated certification would

leave areas in the overall settlement proposal that would not be

certified. Requiring contractors to certify all claimed costs as a

condition to settle a termination claim against the Government is a

prudent safeguard of taxpayer funds and is less burdensome than

requiring one settlement form for indirect costs that must be certified

and one settlement form for all other costs.

B. Regulatory Flexibility Act

This proposed rule may have a significant economic impact on a

substantial number of small entities within the meaning of the

Regulatory Flexibility Act, 5 U.S.C. 602, et seq., because it reduces

the number of certifications that offerors and contractors must provide

to the Government. An Initial Regulatory Flexibility Analysis (IRFA)

has been prepared and is summarized as follows: This rule proposes to

amend the FAR to remove particular certification requirements for

contractors and offerors that are not specifically imposed by statute,

and which have not been approved for retention by the Administrator for

Federal Procurement Policy. The objective of the rule is to implement

the Federal Acquisition Reform Act of 1996 (Public Law 104-106).

Section 4301b requires that all certifications not specifically

required by statute be eliminated from the FAR unless otherwise

approved for retention by the Administrator for Federal Procurement

Policy. The rule will apply to all businesses, large and small, who are

interested in receiving Government contracts. The rule imposes no

reporting, recordkeeping, or other compliance requirements, but,

rather, deletes existing certification requirements that are not

required by statute and which have not been approved for retention by

the Administrator for Federal Procurement Policy. The rule does not

duplicate, overlap, or conflict with any other Federal rules. A copy of

the IRFA may be obtained from the FAR Secretariat. A copy of the IRFA

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

Business Administration. Comments are invited from small business and

other interested parties. Comments from small entities concerning the

affected FAR parts will be considered in accordance with Section 610 of

the Act. Such comments should be submitted separately and cite FAR case

96-312 in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act (Public Law 96-511) is deemed to apply

because the proposed rule eliminates certain information collection

requirements found at FAR 52.208-2, 52.209-7, 52.209-8, and 52.222-21.

Accordingly, a request for elimination of the information collection

requirement concerning Certification Requirements will be submitted to

the Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 1, 3, 4, 6, 8, 9, 12, 14, 16, 19, 22,

23, 25, 27, 29, 31, 32, 36, 37, 42, 45, 47, 49, 52 and 53

Government procurement.

Dated: September 5, 1996.

Edward C. Loeb,

Director, Office of Federal Acquisition Policy Division.

Therefore, it is proposed that 48 CFR Parts 1, 3, 4, 6, 8, 9, 12,

14, 16, 19, 22, 23, 25, 27, 29, 31, 32, 36, 37, 42, 45, 47, 49, 52 and

53 be amended as set forth below:

1. The authority citation for 48 CFR Parts 1, 3, 4, 6, 8, 9, 12,

14, 16, 19, 22, 23, 25, 27, 29, 31, 32, 36, 37, 42, 45, 47, 49, 52 and

53 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. 2301 to 2331; and 42

U.S.C. 2473(c).

PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM

1.106 [Amended]

2. Section 1.106 is amended in the table following the text by

removing the following entries along with their control numbers: 8.203-

2, 9.5, 52.208-1, and 52.222-21.

[[Page 48360]]

PART 3--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF

INTEREST

3. Section 3.502-2(i)(1) is revised to read as follows:

3.502-2 General.

* * * * *

(i) * * *

(1) Have in place and follow reasonable procedures designed to

prevent and detect violations of the Act in its own operations and

direct business relationships (e.g., company ethics rules prohibiting

kickbacks by employees, agents, or subcontractors; education programs

for new employees and subcontractors, explaining policies about

kickbacks, related company procedures and the consequences of

detection; procurement procedures to minimize the opportunity for

kickbacks; audit procedures designed to detect kickbacks; periodic

surveys of subcontractors to elicit information about kickbacks;

procedures to report kickbacks to law enforcement officials; annual

declarations by employees of gifts or gratuities received from

subcontractors; annual employee declarations that they have violated no

company ethics rules; personnel practices that document unethical or

illegal behavior and make such information available to prospective

employers); and

* * * * *

PART 4--ADMINISTRATIVE MATTERS

4. Section 4.102 is amended by revising the last sentence of

paragraph (d) to read as follows:

4.102 Contractor's signature.

* * * * *

(d) Joint ventures. * * * When a corporation is participating, the

contracting officer shall verify that the corporation is authorized to

participate in the joint venture.

* * * * *

PART 6--COMPETITION REQUIREMENTS

6.302-3 [Amended]

5. Section 6.302-3 is amended by removing paragraph (b)(1)(viii).

PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES

8.002 [Amended]

6. Section 8.002 is amended by removing paragraph (a), and

redesignating paragraphs (b) through (f) as (a) through (e).

Subpart 8.2--[Removed and reserved]

7. Subpart 8.2 is removed and reserved.

PART 9--CONTRACTOR QUALIFICATIONS

9.505-4 [Amended]

8. Section 9.505-4(c) is amended by removing the last sentence.

9. Section 9.506 is amended in paragraph (a) by revising the first

sentence; by adding ``and'' after the semicolon in (b)(1); by removing

(b)(2); by redesignating (b)(3) as (b)(2); and by revising (c)(1) and

(d). The revised text reads as follows:

9.506 Procedures.

(a) If information concerning prospective contractors is necessary

to identify and evaluate potential organizational conflicts of interest

or to develop recommended actions, contracting officers should first

seek the information from within the Government or from other readily

available sources. * * *

* * * * *

(1) Review the contracting officer's analysis and recommended

course of action, including any proposed clause.

* * * * *

(d) The contracting officer shall--

(1) Include any approved clause(s) in the solicitation or the

contract;

(2) Consider additional information provided by prospective

contractors in response to the solicitation or during negotiations;

(3) Before awarding the contract, resolve the conflict or the

potential conflict in a manner consistent with the approval or other

direction by the head of the contracting activity.

* * * * *

9.507-1 [Removed and reserved]

10. Section 9.507-1 is removed and reserved.

PART 12--ACQUISITION OF COMMERCIAL ITEMS

11. Section 12.503 is amended by revising paragraphs (b)(1) and

(b)(5) to read as follows:

12.503 Applicability of certain laws to Executive agency contracts for

the acquisition of commercial items.

* * * * *

(b) * * *

(1) 33 U.S.C. 1368, Requirement for a clause under the Federal

Water Pollution Control Act (see 23.105).

* * * * *

(5) 42 U.S.C. 7606, Requirements for a clause under the Clean Air

Act (see 23.105).

12.504 [Amended]

12. Section 12.504 is amended by removing paragraph (a)(16).

PART 14--SEALED BIDDING

14.405 [Amended]

13. Section 14.405(f) is amended by removing ``certifications'' and

inserting ``representations'' in its place.

PART 16--TYPES OF CONTRACTS

16.306 [Amended]

14. Section 16.306 is amended in paragraph (d)(2) by removing

``certification'' and inserting ``statement'' in its place.

PART 19--SMALL BUSINESS PROGRAMS

19.001 [Amended]

15. Section 19.001 is amended in the introductory text of paragraph

(b) of the definition ``Small disadvantaged business concern'' by

removing ``certify'' and inserting ``represent''.

16. Section 19.301 is amended by revising the first sentence of

paragraph (a) to read as follows:

19.301 Representation by the offeror.

(a) To be eligible for award as a small business, an offeror must

represent in good faith that it is a small business at the time of its

written representation. * * *

* * * * *

17. Section 19.303 is amended by revising the introductory text of

paragraph (c)(2); in paragraph (c)(2)(vi) by removing ``certifying''

and inserting ``acknowledging'' in its place; and by revising the

second sentence of paragraph (c)(3) to read as follows:

19.303 Determining product or service classifications.

* * * * *

(2) The appeal shall be in writing and shall be addressed to the

Office of Hearings and Appeals, Small Business Administration,

Washington, D.C. 20416. No particular form is prescribed for the

appeal. However, time limits and procedures set forth in SBA's

regulations at 13 CFR 121.11 are strictly enforced. The appellant shall

submit an original and one legible copy of the appeal. In the case of

telegraphic appeals, the telegraphic notice shall be confirmed by the

next day mailing of a written appeal, in duplicate. By signing the

submission, a party or its attorney

[[Page 48361]]

attests that the statements and allegations in the submission are true

to the best of its knowledge, and that the submission is not being

filed for the purpose of delay or harassment. The appeal shall

include--

* * * * *

(3) * * * The contracting officer's response, if any, to the appeal

must include appropriate argument and evidence, and must be filed with

the Office of Hearings and Appeals no later than 5 business days after

receipt of the appeal. * * *

19.501 [Amended]

18. Section 19.501 is amended by removing paragraph (h).

19.508 [Removed]

18a. Section 19.508 is removed.

19. Section 19.703 is amended in paragraph (a)(2) by revising the

second and fourth sentences to read as follows:

19.703 Eligibility requirements for participating in the program.

(a) * * *

(2) * * * Individuals who represent that they are members of named

groups (Black Americans, Hispanic Americans, Native Americans, Asian-

Pacific Americans, Subcontinent-Asian Americans) may also represent

themselves as socially and economically disadvantaged. * * * Concerns

who are tribally-owned entities or Native Hawaiian Organizations may

represent themselves as socially and economically disadvantaged if they

qualify under the requirements of 13 CFR 124.112 or 13 CFR 124.113,

respectively. * * *

* * * * *

PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

20. Section 22.810(a) is revised to read as follows:

22.810 Solicitation provisions and contract clauses.

(a) The contracting officer shall insert the provision at 52.222-

22, Previous Contracts and Compliance Reports, in solicitations when a

contract is contemplated that will include the clause at 52.222-26,

Equal Opportunity.

* * * * *

PART 23--ENVIRONMENT, CONSERVATION, OCCUPATIONAL SAFETY, AND DRUG-

FREE WORKPLACE

23.102 [Amended]

21. Section 23.102 is amended in paragraph (d) by removing the

reference ``40 CFR Part 15'' and inserting ``40 CFR Part 32'' in its

place.

22. Section 23.105 is amended by revising paragraph (a) to read as

follows:

23.105 Solicitation provision and contract clause.

(a) The contracting officer shall insert the solicitation provision

at 52.223-1, Notification of Clean Air Act and/or Clean Water Act

Convictions, in solicitations containing the clause at 52.223-2, Clean

Air and Water (see paragraph (b) of this section).

* * * * *

23. Section 23.106 is amended by revising paragraph (a) to read as

follows:

23.106 Delaying award.

(a) If an otherwise successful offeror informs the contracting

officer that EPA is considering listing a facility proposed for

contract performance (see the provision at 52.223-1, Notification of

Clean Air Act and/or Clean Water Act Convictions), the contracting

officer shall promptly notify the EPA Administrator or a designee, in

writing, that the offeror is being considered for award.

* * * * *

24. Section 23.302 is amended by revising paragraph (d)(1) to read

as follows:

23.302 Policy.

* * * * *

(d) * * *

(1) By the apparently successful offeror prior to contract award if

hazardous materials are expected to be used during contract

performance.

* * * * *

25. Section 23.601 is amended by revising paragraph (c) to read as

follows:

23.601 Requirements.

* * * * *

notification if the contractor states that the notification on prior

deliveries is still current. The contracting officer may waive the

notice only after consultation with cognizant technical

representatives.

* * * * *

PART 25--FOREIGN ACQUISITION

25.109, 25.305, and 25.408 [Amended]

26. Part 25 is amended in the following sections by removing

``Certificate'' and inserting ``Provision'' in its place: 25.109(a),

25.305(a); and 25.408(a)(1).

26b. In addition to the amendment set forth above, section 25.408

is further amended by revising paragraph (b) to read as follows:

25.408 Solicitation provision and contract clause.

* * * * *

(b) The contracting officer shall rely on the information submitted

by the offeror.

* * * * *

PART 27--PATENT, DATA, AND COPYRIGHTS

27. Section 27.303(e) is amended by revising the first sentence to

read as follows:

27.303 Contract clauses.

* * * * *

(e) For those agencies excepted under paragraph (a)(1)(i), only

small business firms or non-profit organizations qualify for the clause

at 52.227-11.

* * * * *

28. Section 27.406 is amended by revising paragraph (c); in

paragraph (d)(1) and (d)(2), and twice in (d)(3) by removing (C)

certification and inserting ``(D) declaration''; and in paragraph

(d)(2) by removing certify and inserting ``declare'' in its place. The

revised text reads as follows:

27.406 Acquisition of data.

* * * * *

acceptability of technical data delivered under a contract shall be in

accordance with the appropriate contract clause as required by Subpart

46.3, and the clause at 52.227-21, Technical Data Declaration,

Revision, and Withholding of Payment--Major Systems, when it is

included in the contract. (See paragraph (d) of this section.)

* * * * *

27.409 [Amended]

29. Section 27.409 is amended in paragraph (q) by removing

``Certification'' and inserting ``Declaration'' in its place.

PART 29--TAXES

30. Section 29.305 is amended by revising paragraph (b)(3) to read

as follows:

29.305 State and local tax exemptions.

* * * * *

(b) * * *

(3) Under a contract or purchase order that contains no tax

provision, if:

(i) Requested by the contractor and approved by the contracting

officer or at the discretion of the contracting officer; and

(ii) Either the contract price does not include the tax or, if the

transaction or property is tax exempt, the contractor

[[Page 48362]]

consents to a reduction in the contract price.

PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES

31. Section 31.110 is amended by revising the first sentence of

paragraph (a) to read as follows:

31.110 Indirect cost rate certification and penalties on unallowable

costs.

(a) Certain contracts require certification of the indirect cost

rates proposed for final payment purposes.

* * * * *

31.205-22 Legislative lobbying costs.

32. Section 31.205-22 is amended by revising the section heading as

set forth above; by removing paragraph (d) and redesignating paragraphs

(e) and (f) as (d) and (e), respectively; and in the newly designated

(d) by adding ``(See 42.703-2)'' after ``unallowable''.

PART 32--CONTRACT FINANCING

32.805 [Amended]

33. Section 32.805 is amended in paragraph (a)(1)(iii) by removing

``certified'' and inserting ``true''.

PART 36--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

34. Section 36.205 is amended by revising paragraph (b)(3) to read

as follows:

36.205 Statutory cost limitations.

* * * * *

(b)* * * (3) that the price on each schedule shall include an

approximate apportionment of all estimated direct costs, allocable

indirect costs, and profit.

* * * * *

PART 37--SERVICE CONTRACTING

35. Section 37.402 is revised to read as follows:

37.402 Contracting officer responsibilities.

Contracting officers shall obtain evidence of insurability

concerning medical liability insurance from the apparently successful

offeror prior to contract award and shall obtain evidence of insurance

demonstrating the required coverage prior to commencement of

performance.

PART 42--CONTRACT ADMINISTRATION

36. Section 42.703-2 is amended by revising paragraph (a); in

paragraph (c)(1) by removing ``billing rates or'' and inserting

``final'' in its place; and by revising paragraph (f) to read as

follows:

42.703-2 Certificate of indirect costs.

(a) General. In accordance with 10 U.S.C. 2324(h) and 41 U.S.C.

256(h), a proposal shall not be accepted and no agreement shall be made

to establish final indirect cost rates unless the costs have been

certified by the contractor.

* * * * *

(f) Contract clause. (1) Except as provided in paragraph (f)(2) of

this subsection, the clause at 52.242-4, Certification of Indirect

Costs, shall be incorporated into all solicitations and contracts which

provide for establishment of final indirect cost rates.

(2) The Department of Energy may provide an alternate clause in is

agency supplement for its management and operating contracts.

PART 45--GOVERNMENT PROPERTY

45.606-1 [Amended]

37. Section 45.606-1 is amended by removing the designation of

paragraph (a); and by removing paragraph (b).

PART 47--TRANSPORTATION

38. Section 47.303-17 is amended by revising paragraph (d)(3)(ii)

to read as follows:

47.303-17 Contractor-prepaid commercial bills of lading, small package

shipments.

* * * * *

(d) * * *

(3) * * *

(ii) The contractor agrees to furnish evidence of payment when

requested by the Government.

* * * * *

47.305-11 [Amended]

39. Section 47.305-11 is amended by removing the designation of

paragraph (a) and adding the text to the end of the undesignated

paragraph which precedes it; by removing paragraph (b); and

redesignating paragraphs (a)(1) through (3) as (a) through (c).

40. Section 47.403-3 is amended in paragraph (a) by removing

certificate or; and by revising paragraph (c) to read as follows:

47.403-3 Disallowance of expenditures.

* * * * *

use of a statement similar to one contained in the clause at 52.247-63,

Preference for U.S.-Flag Air Carriers. (See 47.405.)

41. Section 47.404 is amended by revising paragraph (b)(2) to read

as follows:

47.404 Air freight forwarders.

* * * * *

(b) * * * (2) justification for the use of foreign-flag air

carriers similar to the one shown in the clause at 52.247-63,

Preference for U.S.-Flag Air Carriers.

PART 49--TERMINATION OF CONTRACTS

42. Section 49.108-3 is amended by revising paragraph (b) to read

as follows:

49.108-3 Settlement procedure.

* * * * *

(b) Except as provided in 49.108-4, the TCO shall require that:

(1) All subcontractor termination inventory be disposed of and

accounted for in accordance with Part 45; and

(2) The prime contractor submit for approval or ratification, all

termination settlements with subcontractors.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

52.208-1 and 52.208-2 [Removed and reserved]

43. Sections 52.208-1 and 52.208-2 are removed and reserved.

44. Section 52.209-3 is amended in Alternate I by revising the date

and paragraph (i) to read as follows:

52.209-3 First Article Approval--Contractor Testing.

* * * * *

Alternate I (Date). * * *

(i) The Contractor shall produce both the first article and the

production quantity at the same facility.

* * * * *

45. Section 52.209-4 is amended by revising the date and paragraph

(j) of Alternate I to read as follows:

52.209-4 First Article Approval--Government Testing.

* * * * *

Alternate I (DATE). * * *

(j) The Contractor shall produce both the first article and the

production quantity at the same facility.

* * * * *

52.209-7 and 52.209-8 [Removed]

47. Sections 52.209-7 and 52.209-8 are removed.

46. Section 52.212-3 is amended--

a. By revising the provision date, paragraph (c)(2), the

introductory text of (c)(6), and the last sentence of the introductory

text of (c)(6)(ii);

c. By revising the introductory text of (d), and by removing (d)(1)

and the undesignated paragraph following it, and redesignating (d)(2)

and (d)(3) as (d)(1) and (d)(2), respectively; and

c. In the introductory text of (f) by removing ``Certificate'' and

inserting ``Provision'' in its place, and by revising (f)(1) and

(f)(3). The revised text reads as follows:

[[Page 48363]]

52.212-3 Offeror Representations and Certifications--Commercial Items.

* * * * *

OFFEROR REPRESENTATIONS AND CERTIFICATIONS--COMMERCIAL ITEMS (DATE)

* * * * *

(2) Small disadvantaged business concern. The offeror represents

that it {time} is, {time} is not a small disadvantaged business

concern.

* * * * *

(6) Small Business Size for the Small Business Competitiveness

Demonstration Program and for the Targeted Industry Categories under

the Small Business Competitiveness Demonstration Program. [Complete

only if the offeror has represented itself to be a small business

concern under the size standards for this solicitation.]

* * * * *

(ii) * * * Offeror represents as follows:

* * * * *

(d) Representations required to implement provisions of Executive

Order 11246--

* * * * *

(f) * * *

(1) Each end product being offered, except those listed in

paragraph (f)(2) of this provision, is a domestic end product (as

defined in the clause entitled ``Buy American Act--Trade Agreements--

Balance of Payments Program''). Components of unknown origin have been

considered to have been mined, produced, or manufactured outside the

United States, a designated country, a North American Free Trade

Agreement (NAFTA) country, or a Caribbean Basin country, as defined in

section 25.401 of the Federal Acquisition Regulation.

* * * * *

(3) Offers will be evaluated by giving certain preferences to

domestic end products, designated country end products, NAFTA country

end products, and Caribbean Basin country end products over other end

products. In order to obtain these preferences in the evaluation of

each excluded end product listed in paragraph (f)(2) of this provision,

offerors must identify and list below those excluded end products that

are designated country end products or NAFTA country end products, or

Caribbean Basin country end products. Products that are not identified

and listed below will not be deemed designated country end products,

NAFTA country end products, or Caribbean Basin country end products.

Offerors must insert the applicable line item numbers in the following:

(i) The following supplies qualify as ``designated country end

products'' or ``NAFTA country end products'' as those terms are defined

in the clause entitled ``Buy American Act--Trade Agreements--Balance of

Payments Program'':

----------------------------------------------------------------------

(Insert line item numbers)

(ii) The following supplies qualify as ``Caribbean Basin country

end products'' as that term is defined in the clause entitled ``Buy

American Act--Trade Agreements--Balance of Payments Program'':

----------------------------------------------------------------------

(Insert line item numbers)

* * * * *

48. Section 52.214-30 is revised to read as follows:

52.214-30 Annual Representations and Certifications--Sealed Bidding.

As prescribed in 14.201-6(u), insert the following provision:

ANNUAL REPRESENTATIONS AND CERTIFICATIONS--SEALED BIDDING (DATE)

The bidder has (check the appropriate block): {time} (a) Submitted

to the contracting office issuing this solicitation, annual

representations and certifications dated ______________ [Insert date of

signature of submission], which are incorporated herein by reference,

and are current, accurate, and complete as of the date of this bid,

except as follows [insert changes that affect only this solicitation;

if ``none,'' so state]: ____________

{time} (b) Enclosed its annual representations and certifications.

(End of provision)

49. Section 52.215-35 is revised to read as follows:

52.215-35 Annual Representations and Certifications--Negotiation.

As prescribed in 15.407(i), insert the following provision:

ANNUAL REPRESENTATIONS AND CERTIFICATIONS--NEGOTIATION (DATE)

The offeror has (check the appropriate block):

{time} (a) Submitted to the contracting office issuing this

solicitation, annual representations and certifications dated

____________________ [insert date of signature on submission] which are

incorporated herein by reference and are current, accurate, and

complete as of the date of this bid, except as follows [insert changes

that affect only this solicitation; if ``none,'' so state]:

____________

{time} (b) Enclosed its annual representations and certifications.

(End of provision)

52.216-2 [Amended]

50. Section 52.216-2 is amended by revising the clause date to read

``(DATE)''; and in paragraph (b) by removing the last sentence.

52.216-3 [Amended]

51. Section 52.216-3 is amended by revising the clause date to read

``(DATE)''; and in paragraph (b) by removing the last sentence.

52.216-4 [Amended]

52. Section 52.216-4 is amended by revising the clause date to read

``(DATE)''; and by removing paragraph (d) and redesignating paragraph

(e) as (d).

52.219-1 [Amended]

53. Section 52.219-1 is amended by revising the provision date to

read ``(DATE)''; and in paragraph (b)(1) by removing ``and certifies''.

52.219-15 [Removed and Reserved]

54. Section 52.219-15 is removed and reserved,

52.219-18 [Amended]

55. Section 52.219-18 is amended by revising the clause date to

read ``(DATE)''; and in paragraph (b) by removing ``certifies'' and

inserting ``represents''.

56. Section 52.219-19 is amended by revising the date and paragraph

(b) of the provision to read as follows:

52.219-19 Small Business Concern Representation for the Small Business

Competitiveness Demonstration Program.

* * * * *

SMALL BUSINESS CONCERN REPRESENTATION FOR THE SMALL BUSINESS

COMPETITIVENESS DEMONSTRATION PROGRAM (DATE)

* * * * *

(b) [Complete only if the Offeror has represented itself under the

provision at 52.219-1 as a small business concern under the size

standards of this solicitation.]

The offeror {time} is, {time} is not an emerging small business.

* * * * *

52.219-21 [Amended]

57. Section 52.219-21 is amended by revising the clause date to

read (XXX);

[[Page 48364]]

in the parenthetical following the provision heading by removing

``certified'' and inserting ``represented''; and in the first paragraph

of the provision by removing ``and certifies''.

52.222-21 [Reserved]

58. Section 52.222-21 is removed and reserved.

59. Section 52.223-1 is revised to read as follows:

52.223-1 Notification of Clean Air Act and/or Clean Water Act

Convictions.

As prescribed in 23.105(a), insert the following provision in

solicitations containing the clause at 52.223-2, Clean Air and Water:

NOTIFICATION OF CLEAN AIR ACT AND/OR CLEAN WATER ACT CONVICTIONS (DATE)

(a) If a facility owned or leased by the offeror is proposed to be

used in the performance of the contract, and the facility owner,

lessee, or supervisor was convicted of a violation at that facility of

Section 113 of the Clean Air Act (CAA), 42 U.S.C. 7413, or Section

309(c) of the Clean Water Act (CWA), 33 U.S.C. 1319(c), the offeror

shall notify the Contracting Officer whether such facility is presently

owned, leased or supervised by the convicted person. The notification

shall be submitted with the offer; if the conviction occurs on or after

the date the offer was submitted, the offeror shall promptly submit a

separate notification to the Contracting Officer.

(b) After receiving notification of a CAA or a CWA conviction, the

Contracting Officer may make award only if the Contracting Officer

obtains confirmation that the Environmental Protection Agency has

certified that the condition giving rise to the conviction has been

corrected, or that the agency head has excepted the contract or

subcontract from the CAA or CWA ineligibility.

(End of provision)

60. Section 52.223-3 is amended by revising the clause date and

paragraphs (c) and (e) to read as follows:

52.223-3 Hazardous Material Identification and Material Safety Data.

* * * * *

HAZARDOUS MATERIAL IDENTIFICATION AND MATERIAL SAFETY DATA (DATE)

* * * * *

whenever the Contractor determines that any other material to be

delivered under this contract is hazardous.

* * * * *

(e) If, after award, there is a change in the composition of the

item(s) or a revision to Federal Standard No. 313, which renders

incomplete or inaccurate the data submitted under paragraph (d) of this

clause, the Contractor shall promptly notify the Contracting Officer

and resubmit the data.

* * * * *

61. Section 52.223-7 is amended by revising the clause date and

paragraph (b)(2) to read as follows:

52.223-7 Notice of Radioactive Materials.

NOTICE OF RADIOACTIVE MATERIALS (DATE)

* * * * *

(b) * * *

(2) State that the quantity of activity, characteristics, and

composition of the radioactive material have not changed; and

* * * * *

62. Section 52.225-1 is amended by revising its heading; and by

revising the provision heading and the first paragraph to read as

follows:

52.225-1 Buy American Provision.

* * * * *

BUY AMERICAN PROVISION (DATE)

The offeror shall list below each end product that is not a

domestic end product (as defined in the clause entitled ``Buy American

Act-Supplies''). Components of unknown origin are considered to have

been mined, produced, or manufactured outside the United States.

------------------------------------------------------------------------

Excluded end products Country of origin

------------------------------------------------------------------------

* * * * *

(End of provision)

63. Section 52.225-6 is amended by revising the heading; and by

revising the heading and date and paragraph (a) of the provision to

read as follows:

52.225-6 Balance of Payments Program Provision.

BALANCE OF PAYMENTS PROGRAM PROVISION (DATE)

(a) The offeror shall list below each end product or service that

is not a domestic end product or service (as defined in the clause

entitled ``Balance of Payments Program''). Components of unknown origin

have been considered to have been mined, produced, or manufactured

outside the United States.

* * * * *

52.225-7 [Amended]

64. Section 52.225-7 is amended by revising the date of the

provision heading to read ``(DATE)''; and in paragraph (b) by removing

``Certificate'' and inserting ``Provision''.

65. 52.225-8 is amended by revising the section and provision

headings; and by revising paragraphs (a) and (c) of the provision to

read as follows:

52.225-8 Buy American Act--Trade Agreements--Balance of Payments

Program Provision.

* * * * *

BUY AMERICAN ACT--TRADE AGREEMENTS--BALANCE OF PAYMENTS PROGRAM

PROVISION (DATE)

(a) Each end product being offered, except those listed in

paragraph (b) of this provision, is a domestic end product (as defined

in the clause entitled ``Buy American Act--Trade Agreements--Balance of

Payments Program''). Components of unknown origin have been considered

to have been mined, produced, or manufactured outside the United

States, a designated country, a North American Free Trade Agreement

(NAFTA) country, or a Caribbean Basin country, as defined in section

25.401 of the Federal Acquisition Regulation.

* * * * *

domestic end products, designated country end products, NAFTA country

end products, and Caribbean Basin country end products over other end

products. In order to obtain these preferences in the evaluation of

each excluded end product listed in paragraph (b) of this provision,

offerors must identify and list below those excluded end products that

are designated country end products or NAFTA country end products, or

Caribbean Basin country end products. Products that are not identified

and listed below will not be deemed designated country end products,

NAFTA country end products, or Caribbean Basin country end products.

Offerors must insert the applicable line item numbers in the following:

(1) The following supplies qualify as ``designated country end

products or NAFTA country end products'' as those terms are defined in

the clause entitled ``Buy American Act--Trade Agreements--Balance of

Payments Program:''

----------------------------------------------------------------------

[Insert line item numbers]

(2) The following supplies qualify as ``Caribbean Basin country end

products'' as that term is defined in the

[[Page 48365]]

clause entitled ``Buy American Act--Trade Agreements--Balance of

Payments Program'':

----------------------------------------------------------------------

[Insert line item numbers]

* * * * *

66. Section 52.225-9 is amended by revising the clause date to read

``(DATE)''; and by revising the third and fourth sentences of paragraph

(b) to read as follows:

52.225-9 Buy American Act--Trade Agreements--Balance of Payments

Program.

* * * * *

BUY AMERICAN ACT--TRADE AGREEMENTS--BALANCE OF PAYMENTS PROGRAM (DATE)

* * * * *

(b) * * * The Contractor agrees to deliver under this contract only

domestic end products unless, in its offer, it specifies delivery of

foreign end products in the provision entitled ``Buy American Act--

Trade Agreements--Balance of Payments Program Provision''. An offer

stating that a designated, NAFTA, or Caribbean Basin country end

product will be supplied requires the Contractor to supply a

designated, NAFTA, or Caribbean Basin country end product or, at the

Contractor's option, a domestic end product. * * *

* * * * *

52.225-21 [Amended]

67. Section 52.225-21 is amended by revising the clause date to

read ``(XXX)''; in the third sentence of paragraph (c) by removing

``Certificate'' and inserting ``Provision'' in its place; in Alternate

I by revising the date to read ``(XXX)''; and in paragraph (c) by

removing ``Certificate'' and inserting ``Provision'' in its place.

52.227-12 [Amended]

68. Section 52.227-12 is amended by revising the clause date to

read ``(DATE)''; and in paragraph (f)(7)(ii) by removing ``certifying''

wherever it appears and inserting ``stating''.

52.227-13 [Amended]

69. Section 52.227-13 is amended by revising the clause date to

read ``(DATE)''; and in paragraph (e)(3)(ii) by removing ``certifying''

wherever it appears and inserting ``stating''.

70. Section 52.227-21 is amended by revising the section and clause

headings, the clause date, paragraph (b)(1), the first sentence of

(b)(2), and (d)(1)(ii) to read as follows:

52.227-21 Technical Data Declaration, Revision, and Withholding of

Payment--Major Systems.

* * * * *

TECHNICAL DATA DECLARATION, REVISION, AND WITHHOLDING OF PAYMENT--MAJOR

SYSTEMS (DATE)

* * * * *

(b) Technical data declaration. (1) All technical data that are

subject to this clause shall be accompanied by the following

declaration upon delivery:

TECHNICAL DATA DECLARATION (DATE)

The Contractor, ________________, hereby declares that, to the best

of its knowledge and belief, the technical data delivered herewith

under Government contract No. ________________ (and subcontract

________________, if appropriate) are complete, accurate, and comply

with the requirements of the contract concerning such technical data.

(End of declaration)

(2) The Government shall rely on the declarations set out in

paragraph (b)(1) of this clause in accepting delivery of the technical

data, and in consideration thereof may, at any time during the period

covered by this clause, request correction of any deficiencies which

are not in compliance with contract requirements. * * *

* * * * *

(d) * * *

(1) * * *

(ii) Provide the declaration required by paragraph (b)(1) of this

clause;

* * * * *

(End of clause)

71. Section 52.228-5 is amended by revising the clause date and the

first sentence of paragraph (b) to read as follows:

52.228-5 Insurance--Work on a Government Installation.

* * * * *

INSURANCE--WORK ON A GOVERNMENT INSTALLATION (DATE)

* * * * *

(b) Before commencing work under this contract, the Contractor

shall notify the Contracting Officer in writing that the required

insurance has been obtained. * * *

* * * * *

72. Section 52.228-8 is amended by revising the clause date and the

first sentence of paragraph (d) to read as follows:

52.228-8 Liability and Insurance--Leased Motor Vehicles.

* * * * *

LIABILITY AND INSURANCE--LEASED MOTOR VEHICLES (DATE)

* * * * *

(d) Before commencing work under this contract, the Contractor

shall notify the Contracting Officer in writing that the required

insurance has been obtained.

* * * * *

73. Section 52.228-9 is amended by revising the clause date, the

second sentence of paragraph (b), and paragraph (c)(2) to read as

follows:

52.228-9 Cargo Insurance.

* * * * *

CARGO INSURANCE (DATE)

(a) * * *

(b) * * * As evidence of insurance maintained, an authenticated

copy of the cargo liability insurance policy or policies shall be

furnished to ____________________ [insert name of contracting agency].

* * *

(2) An authenticated copy of any renewal policy to

____________________ [insert name of contracting agency] not less than

15 days prior to the expiration of any current policy on file with

____________________ [insert name of contracting agency].

(End of clause)

74. Section 52.237-7 is amended by revising the clause date and the

first sentence of paragraph (d) to read as follows:

52.237-7 Indemnification and Medical Liability Insurance.

* * * * *

INDEMNIFICATION AND MEDICAL LIABILITY INSURANCE (DATE)

* * * * *

(d) Evidence of insurance documenting the required coverage for

each health care provider who will perform under this contract shall be

provided to the Contracting Officer prior to the commencement of

services under this contract. * * *

* * * * *

75. Section 52.242-4 is amended by revising the clause date and

paragraph (a)(1); and in paragraph 2 of the Certificate following

paragraph (c) by removing ``billing or''. The revised text reads as

follows:

52.242-4 Certification of Indirect Costs.

* * * * *

CERTIFICATION OF INDIRECT COSTS (DATE)

(a) * * *

[[Page 48366]]

(1) Certify any proposal to establish final indirect cost rates;

* * * * *

52.245-8 [Amended]

76. Section 52.245-8 is amended by revising the clause date to read

``(DATE)''; and in paragraph (f) by removing ``a certificate'' and

inserting ``documentation'' both times it appears; the first instance

should be capitalized.

77. Section 52.247-2 is amended by revising the introductory

paragraph, the clause date and paragraph (a) to read as follows:

52.247-2 Permits, Authorities, or Franchises.

As prescribed in 47.207-1(a), insert the following clause:

PERMITS, AUTHORITIES, OR FRANCHISES (DATE)

(a) The offeror does {time} , does not {time} , hold authorization

from the Federal Highway Administration (FHWA) or other cognizant

regulatory body. If authorization is held, it is as follows:

----------------------------------------------------------------------

(Name of regulatory body)

----------------------------------------------------------------------

(Authorization No.)

* * * * *

[End of clause]

52.247-54 [Removed and Reserved]

78. Section 52.247-54 is removed and reserved.

79. Section 52.247-63 is amended by revising the clause date and

the definition ``U.S.-flag air carrier''; in paragraph (b) by removing

``49 U.S.C. 1517'' and inserting ``49 U.S.C. 40118''; and by revising

paragraph (d) to read as follows:

52.247-63 Preference for U.S.-Flag Air Carriers.

* * * * *

PREFERENCE FOR U.S.-FLAG AIR CARRIERS (DATE)

* * * * *

(a) * * *

U.S.-flag air carrier, as used in this clause, means an air carrier

holding a certificate under Chapter 411 of Title 49 of U.S.C.

* * * * *

(d) In the event that the Contractor selects a carrier other than a

U.S.-flag air carrier for international air transportation, the

Contractor shall include a statement on vouchers involving such

transportation essentially as follows:

STATEMENT OF UNAVAILABILITY OF U.S.-FLAG AIR CARRIERS

International air transportation of persons (and their personal

effects) or property by U.S.-flag air carrier was not available or it

was necessary to use foreign-flag air carrier service for the following

reasons (see section 47.403 of the Federal Acquisition Regulation):

[State reasons]:

----------------------------------------------------------------------

(End of statement)

* * * * *

PART 53--FORMS

80. Section 53.214(e) is amended by revising the paragraph heading

to read as follows:

53.214 Sealed bidding.

* * * * *

(e) SF 129 (REV. XX/XX), Solicitation Mailing List Application. * *

* * * * *

81. Section 53.215-1(f) is amended by revising the paragraph

heading to read as follows:

53.215-1 Solicitation and receipt of proposals and quotations.

* * * * *

(f) SF 129, Solicitation Mailing List Application. * * *

* * * * *

82. Section 53.222(g) is amended by revising the paragraph heading

to read as follows:

53.222 Application of labor laws to Government acquisitions (SF's 99,

308, 1093, 1413, 1444, 1445, 1446, WH-347).

* * * * *

(g) SF 1445 (REV. XX/XX), Labor Standards Interview. * * *

* * * * *

83. Section 53.229 is amended by revising the paragraph heading to

read as follows:

53.229 Taxes (SF's 1094, 1094-A).

SF 1094 (REV. XX/XX, U.S. Tax Exemption Certificate, and SF 1094-A

(REV XX/XX), Tax Exemption Certificates Accountability Record. * * *

84. Section 53.245 is amended in paragraphs (c), (f), (g), (h),

(i), and (j) by revising the paragraph headings to read as follows:

53.245 Government property.

* * * * *

(f) SF 1426 (REV. XX/XX), Inventory Schedule A (Metals in Mill

Product Form), and SF 1427 (REV. 7/89), Inventory Schedule A-

Continuation Sheet (Metals in Mill Product Form. * * *

(g) SF 1428 (REV. XX/XX), Inventory Schedule B, and SF 1429 (REV.

7/89), Inventory Schedule B-Continuation Sheet. * * *

(h) SF 1430 (REV. XX/XX), Inventory Schedule C (Work-in-Process)

and SF 1431 (REV. 7/89), Inventory Schedule C-Continuation Sheet (Work-

in-Process). * * *

(i) SF 1432 (REV. XX/XX), Inventory Schedule D (Special Tooling and

Special Test Equipment), and SF 1433 (REV. 7/89), Inventory Schedule D-

Continuation Sheet (Special Tooling and Special Test Equipment).* * *

(j) SF 1434 (REV. XX/XX), Termination Inventory Schedule E (Short

Form for Use with SF 38 Only). * * *

BILLING CODE 6820-EP-P

[[Page 48367]]

85. Section 53.301-129 is revised to read as follows:

53.301-129 Standard Form 129, Solicitation Mailing List Application.

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[[Page 48368]]

[GRAPHIC] [TIFF OMITTED] TP12SE96.051

[[Page 48369]]

85. Section 53.301-1094 is revised to read as follows:

53.301-1094 Standards Form 1094, U.S. Tax Exemption Certificates.

[GRAPHIC] [TIFF OMITTED] TP12SE96.052

[[Page 48370]]

[GRAPHIC] [TIFF OMITTED] TP12SE96.053

[[Page 48371]]

86. Section 53.301-1094 is revised to read as follows:

53.301-1094A Standard Form 1094A, Tax Exemption Certificates

Accountability Record.

[GRAPHIC] [TIFF OMITTED] TP12SE96.054

[[Page 48372]]

[GRAPHIC] [TIFF OMITTED] TP12SE96.055

[[Page 48373]]

87. Section 53.301-1423 is revised to read as follows:

53.301-1423 Standard Form 1423, Inventory Verification Survey.

[GRAPHIC] [TIFF OMITTED] TP12SE96.056

[[Page 48374]]

88. Section 53.301-1426 is revised to read as follows:

53.301-1426 SF 1426, Inventory Schedule A (Metals in Mill Product

Form).

[GRAPHIC] [TIFF OMITTED] TP12SE96.057

[[Page 48375]]

89. Section 53.301-1428 is revised to read as follows:

53.301-1428 SF 1428, Inventory Schedule B.

[GRAPHIC] [TIFF OMITTED] TP12SE96.058

[[Page 48376]]

90. Section 53.301-1430 is revised to read as follows:

53.301-1430 SF 1430, Inventory Schedule C (Work-in-Process).

[GRAPHIC] [TIFF OMITTED] TP12SE96.059

[[Page 48377]]

91. Section 53.301-1434 is revised to read as follows:

53.301-1432 SF 1432, Inventory Schedule D (Special Tooling and Special

Test Equipment).

[GRAPHIC] [TIFF OMITTED] TP12SE96.060

[[Page 48378]]

92. Section 53.301-1434 is revised to read as follows:

53.301-1434 SF 1434 Termination Inventory Schedule E (Short Form For

Use With SF 1438 Only).

[GRAPHIC] [TIFF OMITTED] TP12SE96.061

[[Page 48379]]

93. Section 53.301-1445 is revised to read as follows:

53.301-1445 SF 1445, Labor Standards Interview.

[GRAPHIC] [TIFF OMITTED] TP12SE96.062

[FR Doc. 96-23169 Filed 9-11-96; 8:45 am]

BILLING CODE 6820-EP-C

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.