Acquisition Regulation; Negotiation Procedures for Acquisition of Leasehold Interests in Real Property

Federal RegisterApr 16, 1998

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GENERAL SERVICES ADMINISTRATION

48 CFR Parts 503, 515, 552 and 570

[APD 2800.12A, CHGE 79]

RIN 3090-AG70

Acquisition Regulation; Negotiation Procedures for Acquisition of

Leasehold Interests in Real Property

AGENCY: Office of Acquisition Policy, GSA.

ACTION: Interim rule with request for comments.

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

SUMMARY: The General Services Administration Acquisition Regulation

(GSAR) is amended to update negotiation procedures for acquisitions of

leasehold interests in real property. The changes make GSAR Part 570

consistent, where applicable, with Federal Acquisition Regulation (FAR)

Part 15, as revised by Federal Acquisition Circular (FAC) 97-02. The

changes also update FAR provisions and clauses applicable to

acquisitions of leasehold interests in real property.

DATES: Effective date April 16, 1998. Comments should be submitted in

writing to the address shown below on or before June 15, 1998.

ADDRESSES: Mail comments to General Services Administration, Office of

Acquisition Policy, GSA Acquisition Policy Division (MVP), 1800 F

Street, NW, Room 4012, Washington, DC 20405.

FOR FURTHER INFORMATION CONTACT: Gloria Sochon, GSA Acquisition Policy

Division, (202) 208-6726.

SUPPLEMENTARY INFORMATION:

A. Background

GSA issues regulations for acquiring leasehold interests in real

property under the authority of 40 U.S.C. 486(c), including source

selection procedures. Many of the source selection procedures for

acquiring leasehold interests in real property are based on FAR Part

15. FAC 97-02 made significant revisions to FAR Part 15, infusing

innovative techniques into the source selection process, simplifying

the acquisition process, incorporating changes in pricing proposal

policy, and facilitating the acquisition of best value. In order to

take advantage of the innovations and simpler procedures incorporated

into FAR part 15 by FAC 97-02 and to minimize potential confusion, GSA

is updating 48 CFR part 570 to ensure consistency with FAR part 15

where applicable. The changes provide more flexibility in exchanges

with industry, change the standard for admission into the competitive

range (to all proposal most highly rated), simplify documentation

requirements, ensure that procedures for addressing adverse past

performance are consistent with FAR Part 15, and ensure that procedures

for obtaining and analyzing cost or pricing data or information other

than cost or pricing data remain consistent with FAR Part 15. The

changes also delete the requirement for a Certificate of Procurement

Integrity and a Contingent Fee Representation and Agreement, consistent

with earlier changes made to FAR Part 3.

B. Executive Order 12866

This regulatory action was not subject to Office of Management and

Budget review under Executive Order 12866, dated September 30, 1993,

and is not a major rule under 5 U.S.C. 804. The impact on small

businesses derives from the changes made to the FAR rule, and

[[Page 18844]]

the impacts were discussed in that rule's Final Regulatory Flexibility

Analysis.

C. Regulatory Flexibility Act

This interim rule will not have a significant economic impact on a

substantial number of small entities within the meaning of the

Regulatory Flexibility Act, 5 U.S.C. 601, et seq. The rule ensures that

procedures for acquiring leasehold interests in real property remain

consistent, where applicable, with the changes made to FAR Part 15.

Consistency will help minimize confusion that would result from

separate and different procedures. It also provides that the innovative

source selection techniques, simpler processes, and changes in pricing

policy introduced in FAR Part 15 will facilitate the acquisition of

best value leasehold interests in real property. Elimination of burdens

and creation of a simplified, efficient, and impartial acquisition

process benefits all participants in Government contracting, especially

small businesses.

D. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to

the GSAR do not impose recordkeeping or information collection

requirements, or otherwise collect information from offerors,

contractors, or members of the public that require approval of the

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

E. Determination to Issue an Interim Rule

Urgent and compelling reasons exist to promulgate this interim rule

without prior opportunity for public comment. The changes to FAR Part

15 have been in effect since January 1, 1998. The changes are

sufficiently important that GSA must update the GSAR immediately. GSA

believes this rule will provide significant benefits to both the

Federal Government and contractors. It will allow GSA and agencies

delegated leasing authority to reduce the resources necessary for

source selection and reduce time to contract award. It will ensure that

the Government receives the best value when acquiring leasehold

interests in real property while ensuring fair treatment of offerors.

The rule will also eliminate the potential for confusion by reducing

the difference in procedures for acquiring supplies and services and

procedures for acquiring leasehold interests in real property.

List of Subjects in 48 CFR Parts 503, 515, 552, and 570

Government procurement.

Accordingly, 48 CFR 570 is amended as follows:

1. The authority citation for 48 CFR Parts 503, 515, 552, and 570

continues to read as follows:

Authority: 40 U.S.C. 486(c).

PART 503--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF

INTEREST

2. Section 503.104-10 is revised to read as follows:

503.104-10 Solicitation provisions and contract clauses.

The contracting officer shall insert a clause substantially the

same as the clause at 552.203-73, Price Adjustments for Illegal or

Improper Activity, in solicitations and contracts for the acquisition

of leasehold interests in real property expected to exceed $100,000 and

all modifications to leases exceeding $100,000 which do not already

contain the clause.

3. Section 503.404 is amended by deleting paragraph (a) and

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

PART 515--CONTRACTING BY NEGOTIATION

4. Section 515.106-70 is amended by revising paragraph (a) to read

as follows:

515.106-70 Examination of records by GSA clause.

(a) The contracting officer shall insert the clause at 552.215-70,

Examination of Records by GSA, in solicitations and contracts (other

than multiple award schedule contracts), including acquisitions of

leasehold interests in real property that:

(1) Involve the use and disposition of Government-furnished

property,

(2) Provide for advance payments, progress payments based on cost,

or guaranteed loan,

(3) Contain a price warranty or price reduction clause,

(4) Involve income to the Government where income is based on

operations that are under the control of the contractor,

(5) Include an economic price adjustment clause,

(6) Are requirements, indefinite-quantity, or letter type contracts

as defined in FAR part 16,

(7) Are subject to adjustment based on a negotiated cost escalation

base, or

(8) Contain the provision at FAR 52,223-4, Recovered Material

Certification. The contracting officer may modify the clause to define

the specific area of audit (e.g., the use or disposition of Government-

furnished property, compliance with the price reduction clause).

Counsel and the Assistant Inspector General-Auditing or Regional

Inspector General-Auditing, as appropriate, must concur in any

modifications to the clause.

* * * * *

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

552.203-71 [Removed]

5. Section 552.203-71 is removed and reserved.

552.203-72 [Removed]

6. Section 552.203-72 is removed and reserved.

552.203-73 [Revised]

7. Section 552.203-73 is amended by revising the introductory text

to read as follows:

552.203-73 Price Adjustments for Illegal or Improper Activity.

As prescribed in 503.104-10, insert the following clause:

* * * * *

8. Section 552.270-1 is revised to read as follows:

552.270-1 Instructions to Offerors-- Acquisition of Leasehold

Interests in Real Property.

As prescribed in 570.702(a), insert the following provision:

Instructions to Offerors--Acquisition of Leasehold Interests in Real

Property (Mar 1998)

(a) Definitions. As used in this provision--

``Discussions'' are negotiations that occur after establishment

of the competitive range that may, at the Contracting Officer's

discretion, result in the offeror being allowed to revise its

proposal.

``In writing'' or ``written'' means any worded or numbered

expression which can be read, reproduced, and later communicated,

and includes electronically transmitted and stored information.

``Proposal modification'' is a change made to a proposal before

the solicitation's closing date and time, or made in response to an

amendment, or made to correct a mistake at any time before award.

``Proposal revision'' is a change to a proposal made after the

solicitation closing date, at the request of or as allowed by a

Contracting Officer as the result of negotiations.

``Time,'' if stated as a number of days, is calculated using

calendar days, unless otherwise specified, and will include

Saturdays, Sundays, and legal holidays. However, if the last day

falls on a Saturday, Sunday, or legal holiday, then the period shall

include the next working day.

(b) Amendments to solicitations. If this solicitation is

amended, all terms and conditions that are not amended remain

[[Page 18845]]

unchanged. Offerors shall acknowledge receipt of any amendment to

this solicitation by the date and time specified in the

amendment(s).

proposals.

(1) Unless other methods (e.g., electronic commerce or

facsimile) are permitted in the solicitation, proposals and

modifications to proposals shall be submitted in paper media in

sealed envelopes or packages. Offers must be:

(i) Submitted on the forms prescribed and furnished by the

Government as a part of this solicitation or on copies of those

forms, and

(ii) Signed. The person signing an offer must initial each

erasure or change appearing on any offer form. If the offeror is a

partnership, the names of the partners composing the firm must be

included with the offer.

(2) Late proposals and revisions.

(i) The Government will not consider any proposal received at

the office designated in the solicitation after the exact time

specified for receipt of offers unless it is received before the

Government makes award and it meets at least one of the following

conditions:

(A) It was sent by registered or certified mail not later than

the 5th calendar day before the date specified for receipt of offers

(e.g., an offer submitted in response to a solicitation requiring

receipt of offers by the 20th of the month must have been mailed by

the 15th).

(B) It was sent by mail (or telegram or facsimile, if

authorized) or hand-carried (including delivery by a commercial

carrier) if it is determined by the Government that the late receipt

was due primarily to Government mishandling after receipt at the

Government installation.

Service-Post Office to Addressee, not later than 5:00 p.m. at the

place of mailing two working days prior to the date specified for

receipt of proposals. The term ``working days'' excludes weekends

and U.S. Federal holidays.

(D) It was transmitted through an electronic commerce method

authorized by the solicitation and was received at the initial point

of entry to the Government infrastructure not later than 5:00 p.m.

one working day prior to the date specified for receipt of

proposals.

(E) There is acceptable evidence to establish that it was

received at the activity designated for receipt of offers and was

under the Government's control prior to the time set for receipt of

offers, and the Contracting Officer determines that accepting the

late offer would not unduly delay the procurement.

(F) It is the only proposal received.

(ii) Any modification or revision of a proposal or response to

request for information, including any final proposal revision, is

subject to the same conditions as in subparagraphs (c)(2)(i)(A)

through (c)(2)(i)(E) of this provision.

(iii) The only acceptable evidence to establish the date of

mailing of a late proposal or modification or revision sent either

by registered or certified mail is the U.S. or Canadian Postal

Service postmark both on the envelope or wrapper and on the original

receipt from the U.S. or Canadian Postal Service. Both postmarks

must show a legible date or the proposal, response to a request for

information, or modification or revision shall be processed as if

mailed late. ``Postmark'' means a printed, stamped, or otherwise

placed impression (exclusive of a postage meter machine impression)

that is readily identifiable without further action as having been

supplied and affixed by employees of the U.S. or Canadian Postal

Service on the date of mailing. Therefore, offerors or respondents

should request the postal clerk to place a legible hand cancellation

bull's eye postmark on both the receipt and the envelope or wrapper.

(iv) Acceptable evidence to establish the time of receipt at the

Government installation includes the time/date stamp of that

installation on the proposal wrapper, other documentary evidence of

receipt maintained by the installation, or oral testimony or

statements of Government personnel.

(v) The only acceptable evidence to establish the date of

mailing of a late offer, modification or revision, or withdrawal

sent by Express Mail Next Day Service-Post Office to Addressee is

the date entered by the post office receiving clerk on the ``Express

Mail Next Day Service-Post Office to Addressee'' label and the

postmark on both the envelope or wrapper and on the original receipt

from the U.S. Postal Service. ``Postmark'' has the same meaning as

defined in paragraph (c)(2)(iii) of this provision, excluding

postmarks of the Canadian Postal Service. Therefore, offerors or

respondents should request the postal clerk to place a legible hand

cancellation bull's eye postmark on both the receipt and the

envelope or wrapper.

(vi) Notwithstanding paragraph (c)(2)(i) of this provision, a

late modification or revision of an otherwise successful proposal

that makes its terms more favorable to the Government will be

considered at any time it is received and may be accepted.

(vii) An offeror may withdraw its proposal by written notice or

telegram (including mailgram) received at any time before award. If

the solicitation authorizes facsimile proposals, an offeror may

withdraw its proposal via facsimile received at any time before

award, subject to the conditions specified in the provision entitled

``Facsimile Proposals.'' Proposals may be withdrawn in person by an

offeror or an authorized representative, if the representative's

identity is made known and the representative signs a receipt for

the proposal before award.

(viii) If an emergency or unanticipated event interrupts normal

Government processes so that proposals cannot be received at the

office designated for receipt of proposals by the exact time

specified in the solicitation, and urgent Government requirements

preclude amendment of the solicitation or other notice of an

extension of the closing date, the time specified for receipt of

proposals will be deemed to be extended to the same time of day

specified in the solicitation on the first work day on which normal

Government processes resume. If no time is specified in the

solicitation, the time for receipt is 4:30 p.m., local time, for the

designated Government office.

(3) Any information given to a prospective offeror concerning

this solicitation will be furnished promptly to all other

prospective offerors, if that information is necessary in submitting

offers or if the lack of it would be prejudicial to any other

prospective offeror.

(4) Offerors may submit modifications to their proposals at any

time before the solicitation closing date and time, and may submit

modifications in response to an amendment, or to correct a mistake

at any time before award.

(5) Offerors may submit amended proposals only if requested or

allowed by the Contracting Officer.

(6) The Government will construe an offer to be in full and

complete compliance with this solicitation unless the offer

describes any deviation in the offer.

(7) Offerors may submit proposals that depart from stated

requirements. Such a proposal shall clearly identify why the

acceptance of the proposal would be advantageous to the Government.

The proposal must clearly identify and explicitly define any

deviations from the terms and conditions of the solicitation, as

well as the comparative advantage to the Government. The Government

reserves the right to amend the solicitation to allow all offerors

an opportunity to submit revised proposals based on the revised

requirements.

(d) Restriction on disclosure and use of data. An offeror that

includes in its proposal data that it does not want disclosed to the

public for any purpose, or used by the Government except for

evaluation purposes, must meet both of the following conditions:

(1) Mark the title page with the following legend:

This proposal includes data that shall not be disclosed outside

the Government and shall not be duplicated, used, or disclosed--in

whole or in part--for any purpose other than to evaluate this

proposal. If, however, a lease is awarded to this offeror as a

result of--or in connection with--the submission of this data, the

Government shall have the right to duplicate, use, or disclose the

data to the extent provided in the resulting contract. This

restriction does not limit the Government's right to use information

contained in this data if it is obtained from another source without

restriction. The data subject to this restriction are contained in

sheets [insert numbers or other identification of sheets].

(2) Mark each sheet of data it wishes to restrict with the

following legend:

Use or disclosure of data contained on this sheet is subject to

the restriction on the title page of this proposal.

(e) Lease award.

(1) The Government intends to award a lease resulting from this

solicitation to the responsible offeror whose proposal represents

the best value after evaluation in accordance with the factors and

subfactors in the solicitation.

(2) The Government may reject any or all proposals if such

action is in the Government's interest.

(3) The Government may waive informalities and minor

irregularities in proposals received.

(4) The Government intends to evaluate proposals and award a

lease after conducting

[[Page 18846]]

discussions with offerors whose proposals have been determined to be

within the competitive range. If the Contracting Officer determines

that the number of proposals that would otherwise be in the

competitive range exceeds the number at which an efficient

competition can be conducted, the Contracting Officer may limit the

number of proposals in the competitive range to the greatest number

that will permit an efficient competition among the most highly

rated proposals. Therefore, the offeror's initial proposal should

contain the offeror's best terms from a price and technical

standpoint.

(5) Exchanges with offerors after receipt of a proposal do not

constitute a rejection or counteroffer by the Government.

(6) The Government may determine that a proposal is unacceptable

if the prices proposed are materially unbalanced between line items

or subline items. Unbalanced pricing exists when, despite an

acceptable total evaluated price, the price of one or more contract

line items is significantly overstated or understated as indicated

by the application of cost or price analysis techniques. A proposal

may be rejected if the Contracting Officer determines that the lack

of balance poses an unacceptable risk to the Government.

(7) The unconditional written acceptance of an offer establishes

a valid contract.

(8) The Government may disclose the following information in

postaward debriefings to other offerors:

(i) The overall evaluated cost or price and technical rating of

the successful offeror;

(ii) The overall ranking of all offerors, when any ranking was

developed by the agency during source selection; and

(iii) A summary of the rationale for award.

(End of provision)

Alternate I (MAR 1998). As prescribed in 570.702(a)(1),

substitute the following paragraph for paragraph (c)(2)(i) of the

basic provision:

(i) Any offer received at the office designated in the

solicitation after the exact time specified for receipt of final

proposal revisions will not be considered unless it is received

before award is made and it meets one of the following conditions--

Alternate II (DATE). As prescribed in 570.702(a)(2), substitute

the following paragraph for paragraph (e)(4) of the basic provision:

(4) The Government intends to evaluate proposals and award a

lease without discussions with offerors (except clarifications as

described in FAR 15.306(a)). Therefore, the offeror's initial

proposal should contain the offeror's best terms from a cost or

price and technical standpoint. The Government reserves the right to

conduct discussions if the Contracting Officer later determines them

to be necessary. If the Contracting Officer determines that the

number of proposals that would otherwise be in the competitive range

exceeds the number at which an efficient competition can be

conducted, the Contracting Officer may limit the number of proposals

in the competitive range to the greatest number that will permit an

efficient competition among the most highly rated proposals.

9. Sections 552.270-2 and 552.270-3 are removed and reserved.

10. Section 552.270-4 is amended by revising the introductory text

to read as follows:

552.270-4 Historic Preference.

As prescribed in 570.702(b), insert the following provision:

* * * * *

552.270-5 [Removed]

11. Section 552.270-5 is removed and reserved.

12. Section 552.270-6 is amended by revising the introductory text

to read as follows:

552.270-6 Parties to Execute Lease.

As prescribed in 570.702(c), insert the following provision:

* * * * *

13. Section 552.270-20 is amended by revising the clause date and

paragraph (c) to read as follows:

552.270-20 Proposals for Adjustment.

* * * * *

PROPOSALS FOR ADJUSTMENT (APR 1998)

* * * * *

provisions also apply to all proposals exceeding $500,000--

(1) The Lessor shall provide cost or pricing data including

subcontractor cost or pricing data (48 CFR 15.403-4); and

(2) The Lessor's representative, all Contractors, and

subcontractors whose portion of the work exceeds $500,000 must sign

and return the ``Certificate of Current Cost or Pricing Data'' (48

CFR 15.406-2).

* * * * *

PART 570--ACQUISITION OF LEASEHOLD INTERESTS IN REAL PROPERTY

14. Section 570.107 is added as follows:

570.107 Oral presentations.

Oral presentations may be used for acquisitions of leasehold

interests in real property. Follow the procedures in FAR 15.102.

15. Section 570.204-4 is revised to read as follows:

570.204-4 Negotiation, evaluation, and award.

(a) Negotiations, if applicable, should be conducted in accordance

with 570.305.

(b) Offers must be evaluated in accordance with the solicitation.

The contracting officer shall evaluate the price and document the lease

file to demonstrate that the proposed contract prices represent fair

and reasonable prices. In cases where the total cost exceeds $500,000,

cost and pricing data must be obtained unless the requirement is waived

or one of the exceptions at FAR 15.403-1 applies. For purposes of FAR

15.403-1(c)(1)(iii), ``same or similar items'' means similar space

leased to the general public. A market survey and/or an appraisal

conducted in accordance with accepted real property appraisal

procedures may be used as evidence to establish the price

reasonableness.

provided if the total contract value of the lease will exceed $500,000,

unless the lease will be awarded to a small business concern.

(d) The contracting officer should review the List of Parties

Excluded from Federal Procurement and Nonprocurement Programs, to

ensure the proposed awardee is eligible to receive the award and is

otherwise responsible before awarding the lease.

(e) An award will be made to the responsible offeror whose proposal

represents the best value after evaluation considering price and other

factors included in the solicitation.

16. Section 570.303 is amended by revising paragraphs (a)(7)(i) and

(a)(8) as follows:

570.303 Solicitation for offers (SFO).

(a) * * *

(7) * * *

(i) Unless the design-build selection procedures are being used as

authorized by 570.106(c), the solicitation must comply with FAR 15.304

and either:

(A) FAR 15.101-1 if the Government will use the tradeoff process,

(B) FAR 15.101-2 if the Government will use the lowest price

technically acceptable source selection process.

* * * * *

(8) Include a statement outlining the information that may be

disclosed in preaward and postaward debriefings.

* * * * *

17. Section 570.305 is revised to read as follows:

570.305 Negotiations.

(a) Follow the procedures in FAR 15.306 and 15.307 for exchanges

(including clarifications, communications, negotiations, and

discussions) and revisions.

(b) Place a written record of all exchanges in the lease file.

competitive range or otherwise eliminated from the competition in

accordance with FAR 15.503(a)(1).

570.306 [Removed]

18. Section 570.306 is removed and reserved.

[[Page 18847]]

19. Section 570.307 is revised to read as follows:

570.307 Late offers, modifications of offers, and withdrawals of

offers.

Offers determined to be received late will be handled in accordance

with FAR 15.208.

570.308-1 [Amended]

20. Section 570.308-1 is amended by deleting paragraph (b) and

redesignating paragraph (c) as paragraph (b).

21. Section 570.308-2 is revised to read as follows:

570.308-2 Cost or pricing data.

(a) Cost or pricing data are required under the circumstances

described in FAR 15.403-4.

(b) The exceptions to and waivers of submission of cost or pricing

data outlined in FAR 15.403-1 apply to leasing actions. For purposes of

FAR 15.403-1(c)(1)(iii), ``same or similar items'' means similar space

leased to the general public. A market survey and/or an appraisal

conducted in accordance with accepted real property appraisal

procedures may be used as evidence to establish the price

reasonableness.

pricing data may be waived under FAR 15.403-1(c)(4).

(d) When cost or pricing data is required, the contracting officer

shall follow the procedural requirements in FAR 15.403-5.

22. Section 570.308-3 is revised to read as follows:

570.308-3 Proposal evaluation.

(a) Offers must be evaluated in accordance with the solicitation.

(b) The contracting officer shall evaluate the price and document

the lease file to demonstrate that the proposed contract prices

represent fair and reasonable prices.

accordance with FAR 15.305(a)(2).

(d) The lease file must document the evaluation of other award

factors listed in the solicitation. The file must include the basis for

evaluation, an analysis of each offer, and a summary of findings. An

abstract of final proposal revisions may be prepared to aid in the

analysis of offers received.

23. Section 570.309 is revised to read as follows:

570.309 Award.

(a) As used in this section, ``day'' has the meaning set forth at

FAR 33.101.

(b) The contracting officer is designated as the source selection

authority unless the Head of the Contracting Activity appoints another

individual for a particular leasing action or group of leasing actions.

represents the best value after evaluation in accordance with the

factors and subfactors in the solicitation.

(d) Award will be made in writing within the timeframe specified in

the SFO. If an award cannot be made within that time, the contracting

officer shall request in writing from each offeror an extension of the

acceptance period through a specific date.

(e) Unsuccessful offerors will be notified in writing or

electronically in accordance with FAR 15.503(b).

(f) The source selection authority may reject all proposals

received in response to an SFO, if doing so is in the best interest of

the Government.

24. Section 570.310 is revised to read as follows:

570.310 Debriefings.

The procedures in FAR 15.505 and 15.506 apply to leasing actions.

25. Section 570.401 is revised to read as follows:

570.401 Disclosure of mistakes after award.

When a mistake in a lessor's offer is not discovered until after

award, the mistake should be handled as provided in FAR 14.407-4 and

subpart 514.4.

26. Section 570.602-2 is amended by revising paragraphs (c)(3),

(d), (e)(3), and (f)(3) to read as follows:

570.602-2 Procedures.

* * * * *

(3) The requirements for the submission of cost or pricing data

outlined in FAR 15.403-4, 15.403-5, and 15.406-2 apply to alteration

projects over $500,000. The procedural requirements at FAR 15.403-5

must be followed when requesting cost and pricing data. Exceptions or

waivers to submission of cost or pricing data must be processed in

accordance with the requirements of FAR 15.403-1. If the lease does not

include the clauses at FAR 52.215-10 and 52.215-12 or the clauses at

FAR 52.215-11 and 52.215-13, the modification to the lease for the

alterations must add the clauses at FAR 52.215-11 and 52.215-13 if cost

and pricing data is submitted.

(d) Audits. Unless the cost or pricing data requirement is exempt

or waived in accordance with FAR 15.403-1, an audit must be requested

for negotiated alteration projects which are not competed as a part of

the lease and exceed $500,000.

(e) * * *

(3) Analyze profit in accordance with FAR 15.404-4 if the project

exceeds $100,000; and

* * * * *

(f) * * *

(3) Negotiations must be documented in accordance with FAR 15.406-

* * * * *

27. Section 570.701 is amended by revising paragraphs (c), (d),

(f), (g), (h), (j), and (k) to read as follows:

570. 701 FAR provisions and clauses.

* * * * *

include the following provisions/clauses:

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

FAR part 52 cite Title

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

52.219-1........................... Small Business Program

Representations.

52.222-36.......................... Affirmative Action for Handicapped

Workers.

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

(d) All solicitations and contracts which exceed $10,000 must

include the following provisions/clauses:

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

FAR part 52 cite Title

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

52.222-21.......................... Certification of Nonsegregated

Facilities.

52.222-22.......................... Previous Contracts and Compliance

Reports.

52.222-25.......................... Affirmative Action Compliance.

52.222-26.......................... Equal Opportunity.

52.222-35.......................... Affirmative Action for Disabled

Veterans and Veterans of the

Vietnam Era.

52.222-37.......................... Employment Reports on Disabled

Veterans and Veterans of the

Vietnam Era.

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

* * * * *

(f) All solicitations and contracts which exceed $100,000 must

include the following FAR provisions/clauses:

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

FAR part 52 cite Title

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

52.203-11.......................... Certificate and Disclosure

Regarding Payments to Influence

Certain Federal Transactions.

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

(g) All solicitations and contracts for actions which exceed the

simplified lease acquisition threshold must include the following FAR

provisions/clauses:

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

FAR part 52 cite Title

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

52.203-2........................... Certificate of Independent Price

Determination.

52.203-7........................... Anti-Kickback Procedures.

[[Page 18848]]

52.209-5........................... Certification Regarding Debarment,

Suspension, Proposed Debarment,

and Other Responsibility Matters.

52.215-2........................... Audits and Records--Negotiation.

52.219-8........................... Utilization of Small, Small

Disadvantaged, and Women-Owned

Small Business Concerns.

52.223-6........................... Drug-Free Workplace.

52.233-2........................... Service of Protest (Solicitations

only).

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

(h) All solicitations and contracts which exceed $500,000 must

include the FAR clauses at 52.219-9, Small, Small Disadvantaged, and

Women-Owned Small Business Subcontracting Plan, and 52.219-16,

Liquidated Damages--Subcontracting Plan.

* * * * *

(j) When cost or pricing data is required for work or service

exceeding $500,000 the FAR clauses at 52.215-10, Price Reduction for

Defective Cost or Pricing Data, and 52.215-12, Subcontractor Cost or

Pricing Data, must be included in solicitations and contracts.

(k) When the contracting officer determines that it is desirable to

authorize the submission of facsimile proposals, the solicitation must

include the FAR provision at 52.215-5, Facsimile Proposals.

28. Section 570.702 is revised to read as follows:

570.702 Solicitation provisions.

When a solicitation for offers is issued, the contracting officer

should include provisions substantially the same as the following

unless the contracting officer makes a determination that use of one or

more of the provisions is not appropriate:

(a) 552.270-1 Instructions to Offerors--Acquisition of Leasehold

Interests in Real Property.

(1) Use Alternate I if the contracting officer decides that it is

advantageous to the Government to allow offers to be submitted up to

the exact time specified for receipt of final proposal revisions.

(2) Use Alternate II if the Government intends to award without

discussions.

(b) 552.270-4 Historic Preference.

29. Section 570.703 is amended by deleting paragraph (a)(25) and

redesignating paragraph (a)(26) as (a)(25).

30. Section 570.704 is revised to read as follows:

570.704 Use of provisions and clauses.

The omission of any provision or clause when its prescription

requires its use constitutes a deviation which must be approved under

subpart 501.4. Approval may be granted to deviate from provisions or

clauses that are mandated by statute (e.g., GSAR 552.203-5, Covenant

Against Contingent Fees, FAR 52.215-2, Audit and Records--Negotiation,

etc.) in order to modify the language of the provision or clause, when

permitted by the statute. However, the statutory provisions and clauses

may not be omitted from the SFO unless the statute provides for waiving

the requirements of the provision or clause. Also, certain clauses

required by non-GSA regulations require approval of the issuing agency

before the contracting officer can delete or modify them (e.g., 52.222-

26, Equal Opportunity; 52.222-35, Affirmative Action for Disabled

Veterans and Veterans of the Vietnam Era; and 52.222-36 Affirmative

Action for Handicapped Workers, require the approval of the Department

of Labor's Office of Federal Contract Compliance Programs before they

can be deleted from or modified in the SFO or lease).

Ida M. Ustad,

Deputy Associate Administrator for Acquisition Policy.

[FR Doc. 98-9942 Filed 4-15-98; 8:45 am]

BILLING CODE 6820-61-P

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.