contracting for leasehold in- terests in real property · tracts for leasehold interests in real...

489

General Services Administration 570.802

(23) 552.270–38 Integrated Agree-ment.

(24) 552.270–39 Mutuality of Obliga-tion

(25) 552.270–40 Asbestos and Hazard-ous Waste Management.

(26) 552.270–41 Acceptance of Space.(b) The contracting officer shall in-

sert the clause at 552.270–22, LiquidatedDamages, in solicitations and con-tracts for leasehold interests in realproperty when there is a critical re-quirement that the delivery date bemet and an actual cost cannot be es-tablished for the loss to the Govern-ment resulting from late delivery.

570.704 Use of provisions and clauses.

The omission of any provision orclause when its prescription requiresits use constitutes a deviation whichmust be approved under subpart 501.4.Approval may be granted to deviatefrom provisions or clauses that aremandated by statute (e.g., (GSAR) 48CFR 552.203–5, Covenant Against Con-tingent Fees, FAR 52.215–1, Examina-tion of Records by the ComptrollerGeneral, etc.) in order to modify thelanguage of the provision or clause,when permitted by the statute. How-ever, the statutory provisions andclauses may not be omitted from theSFO unless the statute provides forwaiving the requirements of the provi-sion or clause.

Subpart 570.8—Forms Used forContracting for Leasehold In-terests in Real Property

570.801 Standard forms.Standard Form 2, U.S. Government

Lease for Real Property, should be usedto award leases unless GSA Form 3626is used. When the Standard Form 2 isused, reference to the Standard Form2–A in paragraph 7 must be deleted.

[60 FR 42801, Aug. 17, 1995]

570.802 GSA forms.(a) The GSA Form 3626, U.S. Govern-

ment Lease for Real Property (ShortForm), may be used to award leaseswhen the simplified leasing proceduresin 570.2 are used or when the Contract-ing Officer finds its use to be advan-tageous.

(b) GSA Form 276, SupplementalLease Agreement, should be used toamend existing leases that involve theacquisition of additional space or par-tial release of space, revisions in theterms of a lease, restoration settle-ments, and alterations.

(c) GSA Form 1364, Proposal ToLease Space to the United States ofAmerica, may be used to obtain offersfrom prospective offerors.

[60 FR 42801, Aug. 17, 1995]

APPENDIX A TO CHAPTER 5—CONTRACTING OFFICE ASSIGNMENTCODES

NOTE: Appendix A is illustrated in andmade a part of the GSAR loose-leaf edition.Appendix A is not illustrated in this volumeof the FEDERAL REGISTER or Title 48, Chapter5 of the Code of Federal Regulations.

VerDate 27<MAR>98 14:06 Mar 27, 1998 Jkt 000000 PO 00000 Frm 00485 Fmt 8010 Sfmt 8010 Y:\SGML\174187.TXT APPS27

491

CHAPTER 6—DEPARTMENT OF STATE(Parts 600 to 699)

SUBCHAPTER A—GENERAL

Part Page601 Department of State acquisition regulations sys-

tem ....................................................................... 493602 Definitions of words and terms ............................... 499603 Improper business practices and personal conflicts

of interest ............................................................. 500604 Administrative matters .......................................... 502

SUBCHAPTER B—COMPETITION AND ACQUISITION PLANNING

605 Publicizing contract actions ................................... 505606 Competition requirements ...................................... 506607 Acquisition planning ............................................... 509608 Required sources of supplies and services ............... 509609 Contractor qualifications ........................................ 509610 Specifications, standards, and other purchase de-

scriptions ............................................................. 512

SUBCHAPTER C—CONTRACTING METHODS AND CONTRACT TYPES

613 Simplified acquisition procedures ........................... 515614 Sealed bidding ......................................................... 516615 Contracting by negotiation ..................................... 517616 Types of contracts ................................................... 519617 Special contracting methods ................................... 520

SUBCHAPTER D—SOCIOECONOMIC PROGRAMS

619 Small business and small disadvantaged businessconcerns ............................................................... 523

622 Application of labor laws to government acquisi-tions ..................................................................... 526

623 Environment, conservation, occupational safety,and drug-free workplace ....................................... 528

624 Protection of privacy and freedom of information 532


492

48 CFR Ch. 6 (10–1–97 Edition)

Part625 Foreign acquisition ................................................. 533

SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS

627 Patents, data, and copyrights ................................. 535628 Bonds and insurance ................................................ 535629 Taxes ....................................................................... 537630 Cost accounting standards ...................................... 538631 Contract cost principles and procedures ................. 538632 Contract financing .................................................. 538633 Protests, disputes, and appeals ............................... 539

SUBCHAPTER F—SPECIAL CATEGORIES OF CONTRACTING

634 Major system acquisition ........................................ 545636 Construction and architect-engineer contracts ...... 546637 Service contracting ................................................. 546639 Acquisition of information resources ...................... 547

SUBCHAPTER G—CONTRACT MANAGEMENT

642 Contract administration ......................................... 548643 Contract modifications ........................................... 548645 Government property .............................................. 549646 Quality assurance .................................................... 549647 Transportation ........................................................ 549648 Value engineering ................................................... 549649 Termination of contracts ........................................ 550651 Use of government sources by contractors .............. 550

SUBCHAPTER H—CLAUSES AND FORMS

652 Solicitation provisions and contract clauses .......... 551653 Forms ...................................................................... 563


493

SUBCHAPTER A—GENERAL

PART 601—DEPARTMENT OF STATEACQUISITION REGULATIONS SYS-TEM

Sec.601.000 Scope of part.

Subpart 601.1—Purpose, Authority,Issuance

601.101 Purpose.601.105 OMB approval under the Paperwork

Reduction Act.

Subpart 601.2—Administration

601.201 Maintenance of the FAR.601.201–1 The two councils.

Subpart 601.3—Agency AcquisitionRegulations

601.301 Policy.601.302 Limitations.601.303 Publication and codification.

Subpart 601.4—Deviations from the FAR

601.403 Individual deviations.601.404 Class deviations.601.405 Deviations pertaining to treaties

and executive agreements.601.470 Deviations from the DOSAR.601.471 Procedures.

Subpart 601.5—Agency and PublicParticipation

601.570 Rulemaking.

Subpart 601.6—Career Management,Contracting Authority, and Responsibilities

601.601 General.601.602 Contracting officers.601.602–1 Authority.601.602–3 Ratification of unauthorized com-

mitments.601.602–3–70 Procedures.601.603 Selection, appointment, and termi-

nation of appointment.601.603–3 Appointment.601.603–70 Delegations of authority.601.670 Procurement Career Management

Program.

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

SOURCE: 53 FR 26159, July 11, 1988, unlessotherwise noted.

601.000 Scope of part.

This part describes the Departmentof State Acquisition Regulation(DOSAR) in terms of establishment, re-lationship to the Federal AcquisitionRegulation (FAR), arrangement, appli-cability, and deviation procedures.

[53 FR 26159, July 11, 1988, as amended at 59FR 66750, Dec. 28, 1994]

Subpart 601.1—Purpose, Authority,Issuance

601.101 Purpose.The DOSAR is issued to provide De-

partment guidance in accordance withthe policy cited in FAR 1.301(a)(2). Theportions of this regulation that affectsthe relationship between a Departmentof State organization and a contractoror potential contractor are publishedin this chapter 6 of title 48 of the Codeof Federal Regulations, in accordancewith FAR 1.301(b).

[59 FR 66750, Dec. 28, 1994]

601.105 OMB approval under the Pa-perwork Reduction Act.

The Paperwork Reduction Act of 1980(44 U.S.C. 3501–3520) requires that Fed-eral agencies obtain approval from theOffice of Management and Budget(OMB) before collecting informationfrom ten (10) or more members of thepublic. The information and record-keeping requirements contained in thisregulation have been approved by OMBunder OMB Control Number 1405–0050.

[59 FR 66750, Dec. 28, 1994]

Subpart 601.2—Administration

601.201 Maintenance of the FAR.

601.201–1 The two councils.The Office of the Procurement Exec-

utive (A/OPE) represents the Depart-ment of State (DOS) on the CivilianAgency Acquisition Council. The Pro-curement Executive shall appoint arepresentative for this purpose. A/OPEis responsible for coordinating with allinterested DOS elements proposed FAR


494

48 CFR Ch. 6 (10–1–97 Edition)601.301

revisions and for advocating FAR revi-sions sought by the Department.


Subpart 601.3—AgencyAcquisition Regulations

601.301 Policy.(a)(1) The Assistant Secretary of

State for Administration is the agencyhead for the purposes of FAR 1.301 (seeDelegation of Authority No. 120 (34 FR18095, October 30, 1969), as amended byDelegation of Authority No. 120–4 (59FR 38022, July 26, 1994)). Under Delega-tion of Authority No. 120–5 (59 FR 62771,December 6, 1994), the Assistant Sec-retary of State for Administration re-delegated to the Procurement Execu-tive the authority to prescribe, pro-mulgate, and amend DOS acquisitionpolicies, rules, and regulations.

(2) The Department’s procurement di-rectives system consists of the follow-ing components:

(i) The DOSAR;(ii) Procurement Policy Directives

(PPDs), which provide basic policy orprocedural guidance and direction.PPDs are issued on an interim basis,and are subsequently incorporated intothe next revision of the DOSAR; and

(iii) Procurement Information Bul-letins, which provide general informa-tion on topics of interest to contract-ing personnel.

(b) The Department of State Acquisi-tion Regulation (DOSAR) is prescribedunder the authority of 22 U.S.C. 2658and 40 U.S.C. 486(c).

(c) The DOSAR implements and sup-plements the FAR.

[59 FR 66751, Dec. 28, 1994]

601.302 Limitations.(a) The FAR and the DOSAR apply to

all DOS acquisitions of personal prop-erty and services, including construc-tion and leases of real and personalproperty, both within and outside theUnited States, unless expressly ex-cluded by this subpart, or exempt fromthe Federal Property and Administra-tive Services Act of 1949, as amended(40 U.S.C. 474(7)), or undertaken pursu-ant to section 208 of the State Depart-ment Basic Authorities Act of 1956, as

amended (22 U.S.C. 4308), or the For-eign Service Buildings Act of 1926, asamended (22 U.S.C. 292 et seq.).

(b) At posts where Joint Administra-tive Offices have been formed, the FARand the DOSAR apply to all Agency forInternational Development (AID) ad-ministrative and technical support ac-quisitions, except in those areas whichhave been exempted by the cognizantadministrative office.


601.303 Publication and codification.

(a) The DOSAR is issued as Chapter 6of Title 48, Code of Federal Regula-tions. The DOSAR is established asChapter 6 of the Federal AcquisitionRegulations System. The DOSAR is di-vided into the same parts, subparts,sections, subsections, and paragraphsas is the FAR. However, when the FARcoverage is adequate by itself therewill be no corresponding DOSAR cov-erage. Where the DOSAR implements aspecific part, subpart, section, or sub-section of the FAR, the DOSAR cov-erage is numbered and titled to cor-respond to the appropriate FAR num-ber and title, except that the DOSARnumber will include a 6 or 60 such thatthere will always be three numbers tothe left of the decimal. For example,the DOSAR implementation of FAR14.1 is shown as 614.1 and the DOSARimplementation of FAR 1.301 is shownas 601.301. Materials that supplementthe FAR are assigned the numbers 70and up. For example, DOSAR requiresadditional definitions than those usedin FAR; this supplementary material isprovided in 602.101–70.

(b) The DOSAR and its revisions arepublished in the FEDERAL REGISTER

and in the Code of Federal Regulations,both of which may be purchased fromthe Superintendent of Documents, Gov-ernment Printing Office, Washington,DC 20402.

(c) The DOSAR shall be referenced inthe same manner as described at FAR1.104–2(c).



495

Department of State 601.602–1

Subpart 601.4—Deviations fromthe FAR

601.403 Individual deviations.

The Procurement Executive is theagency head’s designee for the purposesof FAR 1.403.


601.404 Class deviations.

The Procurement Executive is theagency head’s designee for the purposesof FAR 1.404(a).


601.405 Deviations pertaining to trea-ties and executive agreements.

The Procurement Executive shall de-termine whether a deviation pertainingto treaties and executive agreements isauthorized under FAR 1.405 or that arequest for deviation is required underFAR 1.405(e).


601.470 Deviations from the DOSAR

The authority to approve any devi-ations from the DOSAR is reserved tothe Procurement Executive.


601.471 Procedures.

(a) The head of the contracting activ-ity shall submit to the ProcurementExecutive a written request for eachdeviation from the FAR or the DOSAR,whether for individual cases, classes ofcases, or deviations pertaining to trea-ties and executive agreements. Eachrequest for a deviation shall state—

(1) The nature of the deviation re-quested, including whether it is an in-dividual or class deviation;

(2) The FAR or DOSAR regulationfrom which the deviation is requested;

(3) The circumstances under whichthe deviation would be used;

(4) The effect intended by the devi-ation; and

(5) The expiration date recommendedfor the deviation.

(b) The head of the contracting activ-ity shall also submit all pertinent doc-umentation supporting the request.

(c) The contracting officer shall in-clude in the contract file a copy of eachauthorized deviation that pertains tothe acquisition.


Subpart 601.5—Agency andPublic Participation

601.570 Rulemaking.(a) The DOSAR is promulgated and

may be revised, as necessary, in ac-cordance with FAR part 1.

(b) The Procurement Executive shallissue all DOS acquisition regulations.

[59 FR 66751, Dec. 28, 1994]

Subpart 601.6—Career Manage-ment, Contracting Authority,and Responsibilities

601.601 General.The Procurement Executive is the

agency head for the purposes of FAR1.601.

601.602 Contracting officers.

601.602–1 Authority.(a) DOS contracts are awarded pursu-

ant to the foreign affairs managementresponsibilities conferred on the Sec-retary of State (22 U.S.C. 2656), and thevarious laws, regulations, and Execu-tive Orders relating thereto.

(b) Except as otherwise provided bylaw, DOS regulations, and this DOSAR,the Procurement Executive has the au-thority to execute, award, and admin-ister contracts, purchase orders, othercontractual arrangements, and otheragreements, including FAR-coveredinteragency acquisition agreements,for the expenditure of funds involved inthe acquisition of real and personalproperty, services, and for the sale ofpersonal property. The ProcurementExecutive may further delegate thisauthority to those DOS employees ap-pointed or designated to the contract-ing activities enumerated in 601.603–70.

(c) The contracting officer shall notaward, modify, or terminate a contract


496

48 CFR Ch. 6 (10–1–97 Edition)601.602–3

unless all reviews, clearances, and ap-provals prescribed in the FAR or theDOSAR have been obtained, and all ap-plicable requirements of law, the FAR,the DOSAR, and other regulations havebeen met.

[53 FR 26159, July 11, 1988, as amended at 55FR 5774, Feb. 16, 1990; 59 FR 66751, Dec. 28,1994]

601.602–3 Ratification of unauthorizedcommitments.

(b) Policy. (1) The Government gen-erally is not bound by unauthorizedcommitments. Unauthorized commit-ments violate the Federal Property andAdministrative Services Act, otherFederal laws, the FAR, the DOSAR,and proper acquisition practice. There-fore, such unauthorized commitmentsare serious violations that usually ne-cessitate disciplinary action agaisntthe transgressor, e.g., withdrawal of acontracting officer’s warrant or a Con-tracting Officer’s Representative dele-gation or collection action.

(2) The head of the contracting activ-ity is delegated the authority to serveas the ratifying official for unauthor-ized contractual commitments not ex-ceeding $1,000. The head of the con-tracting activity may refer such ac-tions to the Procurement Executive forratification if he/she so chooses. All un-authorized commitments in excess of$1,000 shall be ratified by the Procure-ment Executive.

(3) Unauthorized contractual com-mitments that would involve claimssubject to resolution under the Con-tracts Dispute Act of 1978 shall be proc-essed in accordance with FAR Subpart33.2 and Subpart 633.2.

(c) Limitations. The contracting offi-cer is not required to obtain concur-rence of legal counsel when rec-ommending payment of an unauthor-ized commitment. However, the con-tracting officer is encouraged to obtainlegal concurrence if there is a questionof proprietary or a legal issue.


601.602–3–70 Procedures.(a)(1) The person who made the unau-

thorized commitment shall submit allrecords and documents concerning theunauthorized commitment to the con-

tracting officer assigned the ratifica-tion action. That person shall provide acomplete written, signed statement ofthe facts, including why normal acqui-sition procedures were not followed,why and how the vendor was selected, alist of other sources considered, a de-scription of work or products, a state-ment regarding the status of perform-ance, an estimated or agreed price, cer-tified funding citations, and a state-ment as to why he/she should not bepersonally liable for the cost, e.g., apublic purpose was served and no per-sonal benefit was received.

(2) When the person who made theunauthorized commitment is no longeravailable to attest to the cir-cumstances of the unauthorized com-mitment, an officer from the respon-sible office shall accomplish the re-quirements of this paragraph; thestatement shall identify the individualresponsible for the unauthorized com-mitment.

(3) In addition, a cognizant manage-ment official from the office which em-ployed the individual who made the un-authorized commitment at the timethe unauthorized commitment wasmade shall provide a statement detail-ing actions that he/she will take to en-sure that such commitments will notoccur again under the same or similarcircumstances.

(b) The contracting officer assignedthe ratification action shall prepareand execute a recommendation to theratifying official. The contracting offi-cer shall either recommend that theratifying official approve and ratifythe unauthorized commitment; or, dis-approve the ratification of the unau-thorized commitment.

(1) The recommendation shall includethe facts and circumstances of the un-authorized commitment; the informa-tion prescribed in FAR 1.602–3(c)(1) and(c)(3) through (c)(6); and a rec-ommendation to the ratifying officialas to whether the unauthorized com-mitment should be ratified.

(2) Following the signature of thecontracting officer, the recommenda-tion shall include a statement that theratifying official could have grantedauthority to enter into a contractualcommitment at the time it was madeand still has the authority to do so;


497


that the ratifying official hereby rati-fies (or disapproves) the unauthorizedcommitment in the amount specified;and a date and signature block for theratifying official.

(c) The information required in para-graph (b)(1) of this section shall be sup-ported by factual findings included orreferenced in the recommendation.

(d) The contracting officer shall sub-mit the complete file to the ratifyingofficial. For actions exceeding $1,000,the file shall be submitted through thehead of the contracting activity to theProcurement Executive.

(e) Upon receipt and review of thecomplete file, if the ratifying officialratifies the unauthorized commitment,the file shall be returned, through thehead of the contracting activity if theaction exceeds $1,000, to the contract-ing officer for issuance of the appro-priate contractual document(s). If therequest for ratification is not justified,the ratifying official shall return therequest to the head of the contractingactivity (if over $1,000) or to the con-tracting officer if under $1,000) with awritten explanation for the decisionand a recommendation for dispositionof the action.

(f)(1) When a ratification is approved,the ratifying official shall prepare aletter to the contractor involved in theratification. The letter shall state thereason(s) why the ratification was ap-proved and provide cautionary lan-guage to the contractor regarding fu-ture instances of ratification actions.

(2) When a ratification is not ap-proved, the head of the contracting ac-tivity shall prepare a letter to the con-tractor advising that the ratificationwas not approved. The letter shall citethe reasons for the disapproval.

[59 FR 66751, Dec. 28, 1994]

601.603 Selection, appointment, andtermination of appointment.

601.603–3 Appointment.(a) There is no contracting officer au-

thority conferred upon any DOS em-ployee by virtue of position. The Pro-curement Executive appoints all DOScontracting officers, in conformancewith FAR 1.603–3. The contracting offi-cer shall retain the original copy of theStandard Form 1402, Certificate of Ap-

pointment, signed by the ProcurementExecutive. Only qualified employeesshall be appointed as contracting offi-cers. A/OPE is responsible for providingguidance and oversight in managingsuch appointments.

(b) Contracting officers shall be ap-pointed in accordance with the Pro-curement Career Management Guide-book, available from A/OPE.

(c) Non-Federal employees. OnlyUnited States Government direct-hireemployees who are U.S. citizens shallbe appointed as contracting officers.Personal services contractors, ForeignService Nationals, and Third CountryNationals are not eligible for appoint-ment as DOS contracting officers.

[59 FR 66752, Dec. 28, 1994]

601.603–70 Delegations of authority.(a) Delegations. As stated in 601.603–

3(a), there is no contracting officer au-thority conferred by virtue of position.Pursuant to 601.602–1(b), the Procure-ment Executive has designated the fol-lowing as contracting activities as de-fined in FAR 2.101. These authoritiesare not redelegable. In addition, spe-cific individuals are designated asheads of contracting activities (HCAs)(see FAR 2.101):

(1) Overseas posts. Each overseas postshall be regarded as a contracting ac-tivity to enter into and administercontracts for the expenditure of fundsinvolved in the acquisition of supplies,equipment, publications, and services;to sell personal property; and to leasereal property. The Principal Officer,the Administrative Officer, or the Su-pervisory General Services Officer aredesignated as HCAs; provided, that he/she has a contracting officer’s warrantissued by the Procurement Executive.The Procurement Executive (or author-ized A/OPE staff) may delegate to acontracting officer, on a case-by-casebasis, the authority to award a con-tract or modification which exceedsthe contracting officer’s warrant level.

(i) No authority is delegated to enterinto cost-reimbursement, fixed-priceincentive, or fixed-price redetermina-ble contracts.

(ii) When expressly authorized by aU.S. Government agency which doesnot have a contracting officer at thepost, the officers named in paragraph


498

48 CFR Ch. 6 (10–1–97 Edition)601.603–70

(a)(1) introductory text of this sectionmay enter into contracts for that agen-cy. Use of this authority is subject tothe statutory authority of that agencyand any special contract terms orother requirements necessary for com-pliance with any conditions or limita-tions applicable to the funds of thatagency. The agency’s authorizationshall cite the statute(s) and state anyspecial contract terms or other re-quirements with which the acquisitionso authorized must comply. In view ofthe contracting officer’s responsibilityfor the legal, technical, and adminis-trative sufficiency of contracts, ques-tions regarding the propriety of con-tracting actions that the post is re-quired to take pursuant to this author-ity may be referred to the Departmentfor resolution with the headquarters ofthe agency concerned.

(2) Office of Foreign Buildings. The au-thority to enter into and administercontracts pursuant to the ForeignService Buildings Act of 1926, asamended (22 U.S.C. 292 et seq.), is dele-gated to the Deputy Assistant Sec-retary of State for Foreign Buildingsand to the Director for Acquisitions asthe HCA.

(3) Office of Acquisition. The authorityto enter into and administer contractsfor the expenditure of funds involved inthe acquisition of supplies and nonper-sonal services is delegated to the Di-rector and Deputy Director as theHCA.

(4) Foreign Service Institute. The au-thority to enter into and administercontracts pursuant to Chapter 7, TitleI, of the Foreign Service Act of 1980, asamended (22 U.S.C. 4021 et seq.), is dele-gated to the Director of the ForeignService Institute, the Executive Direc-tor, the Deputy Executive Director,and the Supervisory Contracting Offi-cer as the HCA.

(5) Office of Foreign Missions. The au-thority to enter into and administercontracts pursuant to Title II of theState Department Basic AuthoritiesAct of 1956, as amended (22 U.S.C. 4301et seq.), is delegated to the Director, Of-fice of Foreign Missions, and the Ad-ministrative Officer as the HCA.

(6) U.S. Mission to the United Nations.The authority to enter into and admin-ister contracts pursuant to the United

Nations Participation Act of 1945, asamended (22 U.S.C. 287), is delegated tothe Counselor for Administration asthe HCA.

(7) Moscow Embassy Building ControlOffice. The authority to enter into andadminister contracts for the planning,design, and construction of the em-bassy office building in Moscow is dele-gated to the Director, Moscow Em-bassy Building Control Office as theHCA.

(8) Diplomatic Telecommunication Serv-ice—Program Office. The authority toenter into and administer contracts forthe leasing or purchase of tele-communications services, circuits, sub-systems, and associated professionalservices is delegated to the Chief, Ac-quisition Branch as the HCA.

(9) Regional Procurement Support Of-fices. (i) The authority to enter intoand administer contracts for the ex-penditure of funds involved in the ac-quisition of supplies, equipment, publi-cations, services, execute leases forreal property, and to sell personalproperty on behalf of overseas posts isdelegated to each Director, RegionalProcurement Support Office (RPSO) asthe HCA at the following locations:

(A) RPSO Bonn in conjunction withEmbassy Bonn;

(B) RPSO Tokyo in conjunction withEmbassy Tokyo;

(C) RPSO Singapore in conjunctionwith Embassy Singapore; and,

(D) RPSO Miami in conjunction withthe Miami Regional Center.

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

(b) Other delegations. Several DOS of-fices have been delegated limited pro-curement authority, although theyhave not been designated as HCAs.Matters requiring HCA resolution arereferred to the Office of Acquisition.These delegations are provided only towarranted contracting officers in therespective offices. They are as follows:

(1) Office of Language Services. Theauthority to enter into and administersimplified acquisition transactionsunder FAR Part 13 and orders againstschedule contracts for interpreting,translating, conference reporting, andrelated language support and escortservices.


499


(2) Office of Overseas Schools. The au-thority to enter into and administersimplified acquisition transactionsunder FAR Part 13 and orders againstschedule contracts pursuant to section29 of the State Department Basic Au-thorities Act of 1956, as amended.

(3) Library. The authority to enterinto and administer simplified acquisi-tion transactions under FAR Part 13and orders against schedule contractspursuant to the provisions of the Pub-lic Printing and Documents Act of 1968,as amended, and for the acquisition ofnewspapers, books, maps, and periodi-cals.

(4) Office of International Conferences.The authority to enter into and admin-ister simplified acquisition trans-actions under FAR Part 13 and ordersagainst schedule contracts pursuant tosection 5, Title I, of the Department ofState Basic Authorities Act of 1956, asamended.

(5) Bureau of Population, Refugees, andMigration. The authority to enter intoand administer simplified acquisitiontransactions under FAR Part 13 and or-ders against schedule contracts pursu-ant to the Migration and Refugee As-sistance Act of 1962, as amended, andExecutive Order 11077, dated January22, 1963.

(6) Bureau of International Narcoticsand Law Enforcement Affairs. The au-thority to enter into and administersimplified acquisition transactionsunder FAR Part 13, orders againstschedule contracts and personal serv-ices contracts pursuant to the ForeignAssistance Act of 1961, as amended;and, 48 CFR Chapter 7, Agency forInternational Development AcquisitionRegulation, including any amendmentsthereto.

[59 FR 66752, Dec. 28, 1994, as amended at 60FR 39662, Aug. 3, 1995]

601.670 Procurement Career Manage-ment Program.

(a) Policy. The Department’s Procure-ment Career Management Program isdesigned to improve the quality of con-tracting in the Department throughthe development and maintenance ofprofessional contracting skills in ac-cordance with the Federal AcquisitionInstitute’s Contract Specialist Work-book and related guidance.

(b) Procedures. Details of the Depart-ment’s Procurement Career Manage-ment Program are described in the De-partment of State Procurement CareerManagement Guidebook. A/OPE shallprovide guidance and oversight.

[59 FR 66753, Dec. 28, 1994]

PART 602—DEFINITIONS OF WORDSAND TERMS

Subpart 602.1—Definitions

Sec.602.101 Definitions.602.101–70 DOSAR definitions.



Subpart 602.1—Definitions

602.101 Definitions.

602.101–70 DOSAR definitions.For the purposes of the DOSAR, un-

less otherwise indicated, the followingterms have the meanings set forth inthis subpart.

Consolidated Receiving Point or CRP;means the contractor under contractto a Despatch Agency to receive andprepare items for shipment to a post.The CRP receives, records, consoli-dates, and packs items for shipmentoverseas under the direction of theDespatch Agency.

Department or DOS means the Depart-ment of State, including all of its ac-tivities wherever located.

Despatch Agency means the office re-sponsible for the transportation ofgoods between the U.S. and posts with-in its specific geographic area as as-signed by the Transportation Division,Office of Supply and Transportation.There are four Despatch Agencies, oneeach in New York City; Baltimore,Maryland; Miami, Florida; and, Se-attle, Washington.

Government means the Government ofthe United States of America unlessspecifically stated otherwise.

Local procurement means acquisitionby a post in the country in which thepost is located.

Overseas post means a ‘‘post’’ locatedoutside the United States of America.


500

48 CFR Ch. 6 (10–1–97 Edition)Pt. 603

Post means a diplomatic or consularmission of the United States of Amer-ica, administered or managed by theDOS.

[53 FR 26163, July 11, 1988, as amended at 59FR 66753, Dec. 28, 1994; 60 FR 39662, Aug. 3,1995]

PART 603—IMPROPER BUSINESSPRACTICES AND PERSONALCONFLICTS OF INTEREST

Subpart 603.1—Safeguards

Sec.603.104 Procurement integrity.603.104–5 Disclosure, protection, and mark-

ing of proprietary and source selectioninformation.

603.104–9 –70 Certification requirements.603.104–11 Processing violations or possible

violations.

Subpart 603.2—Contractor Gratuities toGovernment Personnel

603.203 Reporting suspected violations ofthe Gratuities clause.

603.204 Treatment of violations.

Subpart 603.3—Reports of SuspectedAntitrust Violations

603.303 Reporting suspected antitrust viola-tions.

Subpart 603.4—Contingent Fees

603.408 Evaluation of the SF 119.603.408–1 Responsibilities.

Subpart 603.6—Contracts with GovernmentEmployees or Organizations Owned orControlled by Them

603.601 Policy.603.602 Exceptions.603.670 Solicitation provision and contract

clause.

Subpart 603.7—Voiding and RescindingContracts

603.704 Policy.603.705 Procedures.



Subpart 603.1—Safeguards

SOURCE: 59 FR 66753, Dec. 28, 1994, unlessotherwise noted.

603.104 Procurement integrity.

603.104–5 Disclosure, protection, andmarking of proprietary and sourceselection information.

(d)(1) The head of the contracting ac-tivity is the agency head’s designee forthe purposes of FAR 3.104–5(d)(1).

(2) The following classes of personsmay be authorized access to propri-etary or source selection informationby the contracting officer or head ofthe contracting activity when such ac-cess is necessary to the conduct of aprocurement:

(i) Clerical personnel directly in-volved in the procurement;

(ii) Supervisors in the contracting of-ficer’s chain of command;

(iii) Contracting personnel involvedin reviewing or approving the solicita-tion, contract, or contract modifica-tion; and

(iv) Personnel in the following of-fices: Office of Small and Disadvan-taged Business Utilization (A/SDBU),Office of the Legal Adviser (L/BA), Of-fice of Legislative Affairs, Office of theInspector General, the Small BusinessAdministration, and the Office of Fed-eral Contract Compliance Programs(Department of Labor).

603.104–9–70 Certification require-ments.

(b) Competing contractors are re-quired to complete the ‘‘Certificate ofProcurement Integrity’’ and submit itwith their bids under IFBs. For RFPs,the apparent successful offeror onlyneed submit the certification. ForRFPs, the contracting officer shallcontact the apparent successful offerorbefore award and request that the cer-tificate be submitted within five (5)working days if the certificate was notsubmitted with the initial proposal. Abid submitted under an IFB that lacksa signed certificate is nonresponsive,and an apparent successful offerorunder an RFP who does not submit therequired certificate is ineligible foraward.

603.104–11 Processing violations orpossible violations.

(a) The contract specialist shall re-port any violation or possible violation


501


of the procurement integrity require-ments immediately to the contractingofficer and the Office of the InspectorGeneral. The contracting officer shallfollow the procedures in FAR 3.104–11regarding such violations.

Subpart 603.2—Contractor Gratu-ities to Government Personnel

603.203 Reporting suspected violationsof the Gratuities clause.

DOS personnel shall report imme-diately and in writing any apparent orsuspected violation of the clause atFAR 52.203–3, Gratuities, in connectionwith any DOS operation. The reportshall be made to the contracting offi-cer and the Assistant Inspector Gen-eral for Investigations. The reportshall identify the individuals involved,outline the events, acts, or conditionswhich indicate the apparent violationoccurred, and include all pertinent doc-uments. The Assistant Inspector Gen-eral for Investigations shall review thereport for completeness and accuracyand shall make a preliminary decisionwhether to proceed with a full inves-tigation. The Assistant Inspector Gen-eral for Investigations shall providethe written decision to the individualwho made the report and the contract-ing officer. If the decision is to proceedwith an investigation, copies of the de-cision shall also be provided to thehead of the contracting activity, theProcurement Executive, and the Officeof the Legal Adviser.


603.204 Treatment of violations.(a) The Procurement Executive is the

agency head’s designee for the purposesof FAR 3.204.

(b) Procedures. Upon a decision toproceed with an investigation of an al-leged violation of the Gratuitiesclause, the Assistant Inspector Generalfor Investigations shall provide to thecontractor a written notice by certifiedmail, return receipt requested. The no-tice shall present the findings of thedecision and shall establish a schedule,including location, for an investigativehearing for the purposes prescribed inFAR 3.204(b). As determined necessary

by the Assistant Inspector General forInvestigations, follow-up hearings maybe scheduled. Upon completion of theinvestigation, the Assistant InspectorGeneral for Investigations shall pro-vide to the Procurement Executive areport and recommendation, togetherwith all pertinent documentation.

(c) In addition to the requirements ofFAR 3.204(c), when the ProcurementExecutive determines that a violationhas occurred, the Procurement Execu-tive shall so notify the Assistant In-spector General for Investigations. TheAssistant Inspector General for Inves-tigations shall then notify the individ-ual who made the report, the Office ofthe Legal Adviser, and, if appropriate,the Department of Justice.

Subpart 603.3—Reports ofSuspected Antitrust Violations

603.303 Reporting suspected antitrustviolations.

(a) DOS employees are obligated toreport immediately and in writing anyapparent or suspected antitrust viola-tion, as described in FAR 3.303.

(b) The report shall outline theevents, acts, or conditions which indi-cate the apparent violation and shallinclude all pertinent documents.

(c) The report shall be made to or bythe contracting officer, who shall re-view it for completeness and accuracyand forward it through the head of thecontracting activity, to the Office ofthe Legal Adviser, with a copy to theProcurement Executive. The Office ofthe Legal Adviser shall provide to theU.S. Attorney General a report on eachsuspected violation, with singles copiesto the head of the contracting activityand the Procurement Executive.


Subpart 603.4—Contingent Fees

603.408 Evaluation of the SF 119.

603.408–1 Responsibilities.

In carrying out responsibilities pre-scribed in FAR 3.408–1, the contracting


502

48 CFR Ch. 6 (10–1–97 Edition)603.601

officer shall obtain advice from the Of-fice of the Legal Adviser as to the le-gality and general propriety of the re-lationship disclosed thereon. Also, thecontracting officer may request the Of-fice of the Inspector General to developfurther information if the facts avail-able are deemed insufficient for a prop-er decision. After reviewing and evalu-ating all the information obtained, thecontracting officer shall render a writ-ten decision that shall be included inthe contract file, and shall provide acopy of the decision to the Procure-ment Executive.

Subpart 603.6—Contracts withGovernment Employees orOrganizations Owned or Con-trolled by Them

603.601 Policy.

(a) It is Department policy not toaward contracts to Federal employees,or businesses substantially owned orcontrolled by Federal employees.

[59 FR 66754, Dec. 28, 1994]

603.602 Exceptions.


603.670 Solicitation provision and con-tract clause.

The contracting officer shall insertthe clause at 652.203–70, ProhibitionAgainst the Use of Federal Employees,in all solicitations and contracts, andthe provision at 652.203–71, Certifi-cation Regarding Federal Employment,in all solicitations.

[59 FR 66754, Dec. 28, 1994]

Subpart 603.7—Voiding andRescinding Contracts

603.704 Policy.


[59 FR 66754, Dec. 28, 1994]

603.705 Procedures.


[59 FR 66754, Dec. 28, 1994]

PART 604—ADMINISTRATIVEMATTERS

Subpart 604.2—Contract Distribution

Sec.604.202 Agency distribution requirements.

Subpart 604.4—Safeguarding ClassifiedInformation Within Industry

604.404 Contract clause.604.404–70 DOSAR contract clauses.

Subpart 604.70—Contract Review

604.7001 Policy.604.7002 Procedures.



Subpart 604.2—ContractDistribution

604.202 Agency distribution require-ments.

As necessary, the contracting officershall distribute reproduced copies ofthe signed contract or modification tothose officers/offices involved in con-tract administrative support functions,e.g., the Contracting Officer’s Rep-resentative; the requirements office;the Despatch Agent or other receivingactivity, particularly if it is the initialpoint of contact for receipt of goods orservices; and each post or office wherethe contract will be performed. Whererequired by the laws of a foreign coun-try, the original copy of the contractor modification shall be retained at theoverseas post. Copies of contracts andmodifications awarded as small busi-ness or 8(a) set-asides shall be sent toA/SDBU.



503

Department of State 604.7002

Subpart 604.4—SafeguardingClassified Information WithinIndustry

604.404 Contract clause.

604.404–70 DOSAR contract clauses.(a) The contracting officer shall in-

sert the clause at 652.204–70, SecurityRequirements, in solicitations and con-tracts performed outside the UnitedStates to the extent the contract in-volves access to classified information(‘‘Confidential,’’ ‘‘Secret,’’ or ‘‘Top Se-cret’’) or access to administrativelycontrolled information (‘‘Limited Offi-cial Use’’). Contractors or contract em-ployees that are not U.S. citizens shallnot have access to classified or admin-istratively controlled information.

(b) The contracting officer shall in-sert the clause at 652.204–71, SecurityRequirements—Personnel, in solicita-tions and contracts performed outsidethe United States.

Subpart 604.70—Contract Review604.7001 Policy.

The contracting officer shall revieweach proposed contractual documentand its supporting file for completenessand accuracy. Each contract file shallcontain all pertinent information ap-plicable to the proposed action. Eachcontract file should be in sufficient de-tail to permit reconstruction of all sig-nificant events by any subsequent re-viewer without referral to the individ-ual responsible for the contractual ac-tion.

[53 FR 26163, July 11, 1988; 53 FR 36461, Sept.20, 1988]

604.7002 Procedures.(a) Prior to issuance of a solicitation

or a solicitation amendment whichconstitutes a substantive change,award of a contract, or execution of acontract modification, any of which isestimated to exceed the thresholds in-dicated below, the contracting officershall forward the proposed contractualaction to A/OPE for review. For con-tract modifications, the contracting of-ficer shall submit such actions in ac-cordance with 643.102–70(b). Modifica-tions exercising contract options,

where the options were part of theoriginal solicitation/contract whichwas reviewed and approved by A/OPE,are exempt from this review require-ment:

(1) For domestic contracting activi-ties, all actions over $5,000,000. There isno review threshold when the contract-ing activity’s quality assurance planhas been approved by A/OPE;

(2) For overseas posts with contract-ing officers who have been issuedstandard name warrants, all actionsover $250,000, with the exception ofthose actions for local guard services,which require review at $100,000 andabove; and

(3) For overseas posts with contract-ing officers who have been issued provi-sional name warrants, all actions over$100,000.

(4) When calculating the thresholdfor application of paragraphs (a)(1)through (3) of this section, include thevalue of the base year plus all optionyears.

(b) A/OPE shall document the scopeand extent of the review and shall sub-mit written recommendations to thecontracting officer on each proposedcontract action reviewed. In the eventthe contracting officer and the re-viewer cannot reach agreement on therecommendation(s), the contracting of-ficer shall prepare an appeal file to betransmitted to the Procurement Exec-utive. The appeal shall be approved byan individual one management levelabove the contracting officer prior toits transmission to the ProcurementExecutive. A resolution shall beworked out between the contractingactivity and the Procurement Execu-tive. For purposes of this section, theofficer who may transmit the appealfile to the Procurement Executiveshall not be the same individual whowill sign the contractual document.For overseas posts, where the contract-ing officer is the head of the contract-ing activity, the approval authorityshall be the Principal Officer.

(c) For postaward reviews, A/OPEshall document the scope and extent ofthe review and shall submit the resultsof its findings to the contracting offi-cer for appropriate action.


504

48 CFR Ch. 6 (10–1–97 Edition)604.7002

(d) The Procurement Executive maydelegate or waive the review require-ments. In such instances, the Procure-ment Executive shall provide to each

head of the contracting activity, as ap-propriate, a written delegation or waiv-er of these requirements.



505

SUBCHAPTER B—COMPETITION AND ACQUISITIONPLANNING

PART 605—PUBLICIZINGCONTRACT ACTIONS

Subpart 605.2—Synopsis of ProposedContract Actions

Sec.605.202 Exceptions.605.202–70 Foreign acquisitions.605.207 Preparation and transmittal of syn-

opses.605.207–70 Acquisitions available from only

one responsible source.

Subpart 605.3—Synopses of ContractAwards

605.303 Announcement of contract awards.

Subpart 605.4—Release of Information

605.403 Requests from members of Congress.605.404 Release of long-range acquisition es-

timates.605.404–1 Release procedures.

Subpart 605.5—Paid Advertisements

605.502 Authority.



Subpart 605.2—Synopsis ofProposed Contract Actions

605.202 Exceptions.

605.202–70 Foreign acquisitions.(a) Policy. In accordance with a De-

termination and Findings issued by theAssistant Secretary of State for Ad-ministration, the requirement for ad-vance CBD notices for the Depart-ment’s foreign acquisitions awarded byoverseas contracting activities iswaived. CBD notices may be publishedfor any acquisition where the contract-ing officer decides that publicationwould be in the Department’s best in-terests. This waiver shall remain in ef-fect until June 15, 1998.

(b) Procedures. Contracting officers atoverseas contracting activities are notrequired to prepare an individual deter-mination and findings to document

their decision to waive the CBD noticerequirements.

(c) Competition requirements. Nothingin this section waives the requirementto obtain competition as required byFAR part 6 and DOSAR (48 CFR) part606. Competition, including the use ofwritten solicitation, shall be obtainedin all cases to the extent feasible. Ifthere are known U.S. firms or firmswith U.S. affiliations in local residencecapable of supplying the required sup-plies or services, the contracting activ-ity shall ensure that those firms are in-cluded in the source list for the acqui-sition.

(d) Policy exclusion. CBD waiver au-thority does not apply to local guardservice contracts that exceed $250,000.Local guard service contracts that ex-ceed $250,000 shall be synopsized in theCBD. Option year prices shall be in-cluded when computing the applicabil-ity of this threshold.

[60 FR 39662, Aug. 3, 1995]

605.207 Preparation and transmittal ofsynopses.

(a)(1) Contracting officers at overseasposts shall submit synopses of proposedcontract actions to A/OPE for elec-tronic transmittal to the CBD.

[59 FR 66755, Dec. 28, 1994]

605.207–70 Acquisitions available fromonly one responsible source.

In addition to the information re-quired at FAR 5.207, each synopsis of aproposed acquisition from only one re-sponsible source shall include descrip-tions of the specific qualifications orcapabilities required to perform thework and the information a potentialsource must submit.

Subpart 605.3—Synopses ofContract Awards

605.303 Announcement of contractawards.

(a) Contracting officers shall makeinformation available on awards over$10 million to the Office of Legislative


506

48 CFR Ch. 6 (10–1–97 Edition)605.403

Affairs in sufficient time for an an-nouncement by 5:00 p.m. Washington,DC time on the day of the award. Thisrequirement applies only to awardsmade by domestic contracting activi-ties where performance will take placewithin the United States or its posses-sions.

[59 FR 66755, Dec. 28, 1994]

Subpart 605.4—Release ofInformation

605.403 Requests from members ofCongress.

(a) The Procurement Executive is theagency head for the purposes of FAR5.403(a).

[59 FR 66755, Dec. 28, 1994]

605.404 Release of long-range acquisi-tion estimates.

605.404–1 Release procedures.The Procurement Executive is the

agency head’s designee for the purposesof FAR 5.404–1(a) and the agency headfor the purposes of FAR 5.404–1(b).

[55 FR 5774, Feb. 16, 1990]

Subpart 605.5—PaidAdvertisements

605.502 Authority.(a) For paid advertisements in news-

papers within the United States, thehead of the contracting activity is theagency head’s designee for the purposesof FAR 5.502(a). For acquisitions byoverseas posts necessitating paid ad-vertisements in newspapers outside theUnited States, the head of the con-tracting activity is the agency’s head’sdesignee for the purposes of FAR5.502(a). When the head of the contract-ing activity is the contracting officerfor the acquisition, no further approv-als are necessary.

[59 FR 66755, Dec. 28, 1994]

PART 606—COMPETITIONREQUIREMENTS

Subpart 606.1—Full and Open Competition

Sec.606.101 Policy.

606.101–70 Foreign acquisitions not synop-sized.

Subpart 606.2—Full and Open CompetitionAfter Exclusion of Sources

606.202 Establishing or maintaining alter-nate sources.

Subpart 606.3—Other Than Full and OpenCompetition

606.302 Circumstances permitting otherthan full and open competition.

606.302–1 Only one responsible source and noother supplies or services will satisfyagency requirements.

606.302–4 International agreement.606.302–6 National security.606.302–7 Public interest.606.303–1 Requirements.606.304 Approval of the Justification.606.304–70 Acquisitions by overseas posts.606.370 Department of State standardization

program.

Subpart 606.5—Competition Advocates

606.501 Requirement.606.501–70 Overseas posts.606.570 Solicitation provisions.



Subpart 606.1—Full and OpenCompetition

606.101 Policy.

606.101–70 Foreign acquisitions notsynopsized.

As provided in 605.202–70, overseasposts may exempt certain acquisitionsfrom the requirement to synopsize inthe Commerce Business Daily. A Com-merce Business Daily synopsis is notrequired for domestic leases, pursuantto 48 CFR 505.202 and 570.202(a).

[53 FR 26165, July 11, 1988; 53 FR 36461, Sept.20, 1988, as amended at 59 FR 66755, Dec. 28,1994]

Subpart 606.2—Full and OpenCompetition After Exclusion ofSources

606.202 Establishing or maintainingalternate sources.

The Procurement Executive is theagency head for the purposes of FAR6.202.


507


Subpart 606.3—Other Than Fulland Open Competition

606.302 Circumstances permittingother than full and open competi-tion.

606.302–1 Only one responsible sourceand no other supplies or serviceswill satisfy agency requirements.

(b)(4) The Procurement Executive isthe agency head for the purposes ofFAR 6.302–1(b)(4).

[59 FR 66755, Dec. 28, 1994]

606.302–4 International agreement.

(b)(2) In accordance with FAR 6.302–4,guard services shall be acquired fromthe host government only when it isthe sole available source.

[59 FR 66755, Dec. 28, 1994]

606.302–6 National security.

(b) This subsection applies to all ac-quisitions involving national securityinformation, regardless of dollaramount. In no case shall informationbe classified in order to restrict com-petition. Information may be classifiedonly when its authorized disclosurecould be expected to cause damage tonational security.

(c) (1) The Chief, Controls Division,Office of Intelligence Liaison, Direc-torate for Coordination, Bureau of In-telligence and Research, is responsiblefor reviewing and certifying on anyproposed acquisitions derived from orfunded or administered by intelligencecommunity agencies that involve sen-sitive compartmented information andensuring that the provisions of E.O.12356 and FAR 6.302–6 have been met.The Chief, Information Security Pro-grams Division, Office of InformationSecurity Technology, Bureau of Diplo-matic Security, is responsible for re-viewing and certifying on all other pro-posed acquisitions funded by the De-partment of State that involve na-tional security information and ensur-ing that the provisions of E.O. 12356and FAR 6.302–6 have been met. Whendisclosure of the Department’s needsthrough full and open competitionwould compromise national security,the Justification for Other than Full

and Open Competition shall include thefollowing specific information:

(i) How national security would becompromised if the Department ofState’s (or other agencies’) needs weredisclosed in the Commerce BusinessDaily;

(ii) Why the CBD synopsis cannot beworded in such a manner that nationalsecurity would not be compromised;

(iii) Necessity for access to classifiedinformation to prepare technical and/orcost proposal and level of securityclearance required;

(iv) Necessity for access to classifiedinformation to perform the proposedcontract and level of security clear-ance required;

(v) Number and value of contractsthat the justification covers; and

(vi) A statement as follows: ‘‘I herebycertify that the national security con-cerns of the referenced acquisition(s)meet the criteria set forth in ExecutiveOrder 12356 and FAR 6.302–6’’.

(2) Any acquisition involving na-tional security information shall bepublicized in the Commerce BusinessDaily unless disclosure of the agency’sneeds would compromise national secu-rity.

(3) The contracting officer is respon-sible for soliciting offers from as manypotential sources as is practicableunder the circumstances. However,given the sensitivity required for ac-quisitions involving national securityinformation, it is expected that re-quirements offices will work closelywith the contracting officer in maxi-mizing competition.

[59 FR 66755, Dec. 28, 1994]

606.302–7 Public interest.

The authority to approve the deter-mination prescribed in FAR 6.302–7(c)is reserved to the Secretary of State.

606.303–1 Requirements.

Justifications for contract actionsprescribed in FAR 6.303–1(d) shall beforwarded by the contracting officer toA/OPE for transmittal to the Office ofthe United States Trade Representa-tive.



508

48 CFR Ch. 6 (10–1–97 Edition)606.304

606.304 Approval of the justification.(a) (2) The approval authority for a

proposed contract over $100,000 but notexceeding $1,000,000 for domestic con-tracting activities that do not have acompetition advocate is the Depart-ment Competition Advocate.

(d) The estimated dollar value of alloptions shall be included in determin-ing the approval level of a justifica-tion.

[59 FR 66755, Dec. 28, 1994]

606.304–70 Acquisitions by overseasposts.

The Departmental Competition Ad-vocate is the approval authority forthe purposes of FAR 6.304(a)(3). Thisauthority is not redelegable. Any suchjustification must be transmittedthrough the Principal Officer at theoverseas post.

[59 FR 66756, Dec. 28, 1994]

606.370 Department of State standard-ization program.

(a) It is the Department’s policy topromote full and open competition inall procurement actions. The authorityat 41 U.S.C. 253(c)(1) shall be used withrespect to standardization when onlyspecified makes and models of equip-ment will satisfy the Department’sneeds and only one source is available.This policy applies to all acquisitionsinvolving standardization, regardless ofdollar amount.

(b) Contracts awarded under the au-thority at 41 U.S.C. 253(c)(1) shall besupported by the written justificationdescribed in FAR 6.303. The contractingofficer, requirements office, procuringactivity competition advocate, and theProcurement Executive shall approveall Justifications for Other than Fulland Open Competition that cite stand-ardization of technical equipment asjustification to restrict competition.The Administrative Officer at eachpost is the procuring activity competi-tion advocate for that post and the re-quirements office at post is the em-bassy functional office responsible foridentifying the need to contract.

(c) Procurement of specified makesand models of technical equipment andsystems, for which there is only onesource of supply, is considered other

than full and open competition. Suchprocurements shall be supported by anapproved Justification for Other thanFull and Open Competition. The jus-tification shall include the content re-quirements of FAR 6.303–2. The jus-tification shall also address potentialcost savings in areas such as inventory,operations, training, maintenance, re-pairs, and administrative and manage-ment support. Areas of considerationfor potential cost savings shall be sup-ported by detailed estimates as attach-ments to the justification. Justifica-tions shall specify an effective period,which shall bear a reasonable relation-ship to the life of the technical equip-ment. The effective period shall not ex-ceed six years with a review at the endof the first three years. Periodic re-views shall be made during the stand-ardization period to determine whetherthe standardization should be contin-ued, revised or canceled.

[59 FR 66756, Dec. 28, 1994]

Subpart 606.5—CompetitionAdvocates

606.501 Requirement.

(a) The Procurement Executive is thehead of the agency for the purposes ofFAR 6.501 and designates the Depart-ment Competition Advocate.

(b) Contracting activity competitionadvocates have been designated for A/FBO and A/OPR/ACQ. The DepartmentCompetition Advocate is the activitycompetition advocate for all other do-mestic contracting activities.

[59 FR 66756, Dec. 28, 1994]

606.501–70 Overseas posts.

The Administrative Officer at eachoverseas post is the competition advo-cate for that post.

606.570 Solicitation provisions.

The contracting officer shall insertthe provision at 652.206–70, CompetitionAdvocacy/Ombudsman, in all solicita-tions over the threshold for using sim-plified acquisition procedures.

[60 FR 39662, Aug. 3, 1995]


509


PART 607—ACQUISITIONPLANNING

AUTHORITY: 22 U.S.C. 2658; 40 U.S.C. 486(c);48 CFR subpart 1.3.

Subpart 607.1—Acquisition Plans

607.103 Agency-head responsibilities.


[55 FR 5774, Feb. 16, 1990]

PART 608—REQUIRED SOURCES OFSUPPLIES AND SERVICES



Subpart 608.3—Acquisition ofUtility Services

608.302 Applicability.

The Procurement Executive is theagency head for the purposes of FAR8.302(d)(2)(i).

[55 FR 5774, Feb. 16, 1990]

PART 609—CONTRACTORQUALIFICATIONS

Subpart 609.2—QualificationsRequirements

Sec.609.202 Policy.

Subpart 609.4—Debarment, Suspension,and Ineligibility

609.403 Definitions.609.403–70 DOSAR definitions.609.404 Parties excluded from procurement

programs.609.405 Effect of listing.609.405–1 Continuation of current contracts.609.405–2 Restrictions on subcontracting.609.405–70 Termination action decision.609.406 Debarment.609.406–1 General.609.406–3 Procedures.609.407 Suspension.609.407–1 General.609.407–3 Procedures.

Subpart 609.5—Organizational Conflicts ofInterest

609.503 Waiver.



Subpart 609.2—QualificationsRequirements

609.202 Policy.The authority prescribed in FAR

9.202(a)(1) is delegated, without powerof redelegation, to the head of the con-tracting activity.


Subpart 609.4—Debarment,Suspension, and Ineligibility

609.403 Definitions.Debarring official means the Procure-

ment Executive.Suspending official means the Pro-

curement Executive.

609.403–70 DOSAR definitions.Fact-finding official means the chair-

person of a three member fact-findingpanel. The panel comprises one rep-resentative each from the Office of theLegal Adviser, the contracting activ-ity, and the requirements office. Therepresentative from the Office of theLegal Adviser is the panel chairperson.

Notice means a written communica-tion sent by certified mail (return re-ceipt requested) to the last known ad-dress of the party, its identified coun-sel, or its agent. In the case of a busi-ness, such notice may be sent to anypartner, principal officer, director,owner or co-owner, or joint venturer. Ifno return receipt is received within 10calendar days of mailing, receipt shallthen be presumed. This definition ap-plies to the notice requirements inFAR 9.406–3 and FAR 9.407–3.

609.404 Parties excluded from pro-curement programs.

A/OPE shall accomplish the agencyresponsibilities prescribed in FAR9.404(c)(1) through (c)(3). The authorityto establish procedures prescribed inFAR 9.404(c)(5) is delegated, without


510

48 CFR Ch. 6 (10–1–97 Edition)609.405

power of redelegation, to the head ofthe contracting activity.

[53 FR 26165, July 11, 1988; 53 FR 36461, Sept.20, 1988, as amended at 55 FR 5774, Feb. 16,1990; 59 FR 66756, Dec. 28, 1994]

609.405 Effect of listing.

(a) The Procurement Executive is theagency head’s designee for the purposesof FAR 9.405(a).

(d) In accordance with a FAR classdeviation granted by the ProcurementExecutive, the following actions applyto actions awarded by DOS contractingactivities:

(1) (i) Contracting officers at over-seas contracting activities may rely onthe debarment certification submittedby bidders/offerors (FAR 52.209–5) asproof of eligibility for award when ac-cess to the current ‘‘Lists of PartiesExcluded from Procurement Pro-grams’’ is not reasonably available.For contracts which require A/OPE re-view and approval, the contracting offi-cer should request that A/OPE performthe required review if the list is notavailable.

(4) (i) For procurement actions (bothdomestic and overseas) that do not ex-ceed the threshold for using simplifiedacquisition procedures, contracting of-ficers need not consult the ‘‘List ofParties Excluded from ProcurementPrograms’’ prior to award. The listshould be consulted whenever the con-tracting officer has reason to believethat a proposed contractor may appearon the list.

(ii) Contracting officers at domesticcontracting activities shall review the‘‘List of Parties Excluded from Pro-curement Programs’’, either in hardcopy or electronic form, prior to award.


609.405–1 Continuation of current con-tracts.

The Procurement Executive is theagency head’s designee for the purposesof FAR 9.405–1. The decision whether toterminate a current contract shall bemade in consideration of the cir-cumstances listed in 609.405–70.

609.405–2 Restrictions on subcontract-ing.

The Procurement Executive is theagency head’s designee for the purposesof FAR 9.405–2.

609.405–70 Termination action deci-sion.

(a) Prior to making a decision to ter-minate, based on the considerationlisted below, the contracting officershall have the proposed action re-viewed and approved by:

(1) The Office of the Legal Adviser;(2) An individual one level above the

contracting officer; and(3) For overseas posts, A/OPE.(b) Termination for default. Termi-

nation for default under a contract’sdefault clause is appropriate when thecircumstances giving rise to the debar-ment or suspension also constitute adefault in the contractor’s performanceof that contract. Debarment or suspen-sion of the contractor for reasons unre-lated to the performance of that con-tract may not support a terminationfor default.

(c) Termination for convenience or can-cellation. Termination for convenienceor cancellation under appropriate con-tract clauses should be consideredwhen the contractor presents a signifi-cant risk to the Government in com-pleting a current contract and whensuch termination for convenience orcancellation is determined to be in theGovernment’s best interests. In mak-ing this determination, the contractingofficer should consider such factors asthe—

(1) Seriousness of the cause for debar-ment or suspension;

(2) Extent of contract performance;(3) Potential costs to the Govern-

ment;(4) Urgency of the requirement and

the impact of the delay; and/or(5) Availability of other safeguards to

protect the Government’s interests.


609.406 Debarment.

609.406–1 General.The Procurement Executive is the

agency head’s designee for the purposesof FAR 9.406–1(c).


511


609.406–3 Procedures.(a) Investigation and referral. (1) DOS

employees aware of any cause thatmay serve as the basis for debarmentshall immediately refer those casesthrough the contracting officer to thedebarring official. The debarring offi-cial shall immediately refer to the Of-fice of the Inspector General all re-ported cases that involve possiblecriminal or fraudulent activities for in-vestigation by that office.

(2) Referrals for consideration of de-barment shall include—

(i) The cause for debarment (see FAR9.406–2);

(ii) A statement of facts;(iii) Copies of supporting documen-

tary evidence and a list of all necessaryor probable witnesses, including ad-dresses and telephone numbers, to-gether with a statement concerningtheir availability to appear at a fact-finding proceeding and the subjectmatter of their testimony;

(iv) A list of all contractors involved,either as principals or as affiliates, in-cluding current or last known homeand business addresses and ZIP codes;

(v) A statement of the acquisitionhistory with such contractors;

(vi) A statement concerning anyknown pertinent active or potentialcriminal investigation, criminal orcivil court proceedings, or administra-tive claim before Boards of ContractAppeals; and

(vii) A statement from each DOS or-ganizational element affected by thedebarment action as to the impact of adebarment on DOS programs.

(b) Decisionmaking process. (1) If thecontractor does not respond to a debar-ment notice within 30 calendar daysafter receipt of the notice, the debar-ring official may put the debarmentinto effect.

(2) In response to the debarment no-tice, if the contractor or its representa-tive notifies the debarring officialwithin 30 days after receipt of the no-tice that it wants to present informa-tion and arguments in person to the de-barring official, that official shallchair such a meeting within 20 cal-endar days of receipt of the request,unless the contractor requests a longerperiod of time. The oral presentationshall be conducted informally and a

transcript need not be made. However,the contractor may supplement its oralpresentation with written informationand arguments for inclusion in the ad-ministrative record.

(3) Pursuant to FAR 9.406–3(b)(2), thecontractor may request and shall beentitled to a hearing before the fact-finding panel. The fact-finding panelshall conduct the hearing within 20 cal-endar days of receipt of the request,unless the contractor requests a longerperiod of time.

(4) The debarring official shall con-vene the fact-finding panel for this pur-pose and shall provide the panel with acopy of all documentary evidence onthe matter. Upon receipt of such mate-rial, the fact-finding official shall no-tify the contractor and schedule ahearing date.

(5) In addition to the purposes pro-vided in FAR 9.406–3(b)(2), the hearingis intended to provide the debarring of-ficial with findings of fact based on apreponderance of evidence submittedto the fact-finding panel and to providethe debarring official with a deter-mination as to whether a cause for de-barment exists, based on the facts asfound.

(6) The fact-finding panel shall con-duct its hearing in accordance withrules promulgated by the fact-findingofficial. The rules shall be as informalas is practicable, consistent with FAR9.406–3(b) The fact-finding official is re-sponsible for making the transcribedrecord of the hearing, unless the con-tractor and the fact-finding panel agreeto waive the requirement for a tran-script.

(7) The fact-finding official shall de-liver written findings and the tran-scribed record, if made, to the debar-ring official within 10 calendar daysafter the hearing. The findings shall re-solve any facts in dispute based on apreponderance of the evidence pre-sented and recommend whether a causefor debarment exists.

(c) Notice of proposal to debar. (1) Uponreceipt of a complete referral and afterconsulting with the Office of the LegalAdviser, the debarring official shall de-cide whether to initiate debarment ac-tion.

(2) When a determination is made toinitiate action, the debarring official


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48 CFR Ch. 6 (10–1–97 Edition)609.407

shall provide to the contractor and anyspecifically named affiliates writtennotice in accordance with FAR 9.406–3(c). A copy of the notice shall be pro-vided to the DOS officer who made thereferral and to each DOS organiza-tional elements affected by the deter-mination.

(3) When a determination is made notto initiate action, the debarring offi-cial shall so advise the DOS officer whomade the referral.

(d) Debarring official’s decision. In ad-dition to complying with FAR 9.406–3(d) and FAR 9.406–3(e), the debarringofficial shall provide single copies ofthe decision to each DOS organiza-tional element affected by the decisionand to the General Services Adminis-tration in accordance with 609.404.

[53 FR 26165, July 11, 1988; 53 FR 36461, Sept.20, 1988]

609.407 Suspension.

609.407–1 General.

The Procurement Executive is theagency head’s designee for the purposesof FAR 9.407–1(d).

609.407–3 Procedures.

(a) Investigation and referral. Inves-tigation and referral shall be accom-plished as provided in 609.406–3(a), ex-cept that referrals made to the sus-pending official shall cite causes perti-nent to a suspension action (see FAR9.407–2).

(b) Decisionmaking process. (1) If thecontractor does not respond to a noticeof suspension within 30 calendar daysafter receipt of the notice, the suspend-ing official may proceed with comple-tion of investigation.

(2) The DOS decisionmaking processfor a suspension action pursuant toFAR 9.407–3(b) follow those establishedfor a debarment action (see 609.406(b)),except that the contractor may requestand shall be entitled to a hearing be-fore the fact-finding panel only if per-mitted under FAR 9.407–3(b)(2).

(c) Notice of suspension. Notice of sus-pension shall be accomplished as pro-vided in 609.406–3(a), except that thesuspending official shall process thenotice in accordance with FAR 9.407–3(c).

(d) Suspending official’s decision. Inaddition to complying with FAR 9.407–3(d), the suspending official shall pro-vide single copies of the decision toeach DOS organizational element af-fected by the decision and to the Gen-eral Services Administration in accord-ance with 609.404.

Subpart 609.5—OrganizationalConflicts of Interest

609.503 Waiver.The Procurement Executive is the


PART 610—SPECIFICATIONS,STANDARDS, AND OTHER PUR-CHASE DESCRIPTIONS


610.002 Policy.

610.002–70 Metric system implementa-tion.

(a) Policy. The Omnibus Trade andCompetitiveness Act of 1988 (Pub. L.100–418) requires Federal agencies to es-tablish implementing guidelines pursu-ant to metric policy established underSec. 5164 of the Act to adopt the metricsystem as the preferred system ofweights and measurements for UnitedStates trade and commerce. This sub-section establishes the Department ofState metric conversion guidelines fortransition from the traditional systemto the metric system of weights andmeasurements.

(b) Applicability. This subsection ap-plies to all DOS procurements, exceptto the extent that such use is imprac-tical or is likely to cause significantinefficiencies or loss of markets toUnited States firms.

(c) Definitions.Dual systems means the use of both

traditional and metric systems. For ex-ample, an item is designated, producedand described in inch-pound valueswith soft metric values also shown forinformation or comparison.

Hard metric means the use of onlystandard metric (SI) measurements inspecifications, standards, supplies andservices.


513


Hybrid systems means the use of bothtraditional and hard metric values inspecifications, standards, supplies andservices. For example, an engine withinternal parts in metric dimensionsand external fittings or attachments ininch-pound dimensions.

Measurement sensitive means any itemwhose application or meaning dependssubstantially on some measured quan-tity. For example, measurement sen-sitive items include product or per-formance criteria and standards bind-ing on others, such as emission levels,size and weight limitations on items incommerce.

Metrication means any act that in-creases metric system use, includingmetric training and initiation or con-version of measurement-sensitive proc-esses and systems to the metric sys-tem.

Metric system means the InternationalSystem of Units (Le System Inter-national d’Unites (SI)) of the Inter-national Bureau of Weights and Meas-ures. The units are listed in FederalStandard 376A, Preferred Metric Unitsfor General Use by the Federal Govern-ment.

Soft metric means the result of mathe-matical conversion of inch-poundmeasurements to metric equivalents inspecifications, standards, supplies andservices. The physical dimensions,however, are not changed.

Traditional system of weights and meas-urements means the predominantweight and measurement system cur-rently used in the United States, alsoreferred to as the ‘‘inch-pound sys-tem’’. The traditional system includessuch commonly used units as inch,foot, yard, mile, pint, quart, gallon,bushel, ounce (fluid and avoirdupois),pound, degree Fahrenheit, ampere, can-dela, and second.

(d) Procedures. (1) DOS contractingactivities shall implement the metricsystem in a manner consistent withPub. L. 100–418.

(2) All DOS contracting activitiesshall use the metric system in procure-ment consistent with security, oper-ations, economic, technical, logistical,training and safety requirements.

(3) The Department shall encourageindustry to adopt the metric system,by acquiring commercially available

metric products and services that meetthe Department’s needs whenever prac-tical. Toward this end, solicitations forDOS acquisitions shall:

(i) State all measurement sensitiverequirements in metric terms wheneverpossible. Alternatives to hard metricare soft, dual and hybrid metric terms.The Metric Handbook for Federal Offi-cials regarding the selection of propermetric units and symbols is availablefor the National Technical InformationService (# PB89–226922); and

(ii) Contracting officers shall returnall statements of work/specificationsthat are not expressed in some form ofmetric terms to the requirements of-fice that prepared the documents, ifthe contract is expected to exceed$500,000, unless the requirements officehas forwarded to the contracting activ-ity for approval, in a waiver formatprescribed by the head of the contract-ing activity, a justification for the useof non-metric specifications/state-ments of work. Option year prices shallbe considered when computing the$500,000 threshold.

(4) Waivers are not required when or-dering from Federal Supply Schedules,or if the contract is not expected to ex-ceed $500,000.

(5) Valid justifications for non-metricspecifications/word statements include,but are not limited to:

(i) Existing specifications and stand-ards in inch-pound units, unless con-versions is necessary or advantageousto the Government. Unnecessary retro-fit of existing systems with new metriccomponents shall be avoided if thetotal cost of the retrofit, including re-design costs, exceeds $50,000;

(ii) When metric is not the acceptedindustry system with respect to a busi-ness-related activity, soft metric, hy-brid or dual system may be used duringtransition to hard metric; and

(iii) When the use of metric is im-practical or is likely to cause signifi-cant inefficiencies or loss of marketsto United States firms.

(6) The contracting officer shall re-view and, if acceptable, approve thewaiver prepared by the requirementsoffice prior to the release of a solicita-tion that incorporates a specificationthat is not written in some form of


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48 CFR Ch. 6 (10–1–97 Edition)610.002–70

metric, if the resultant contract is ex-pected to exceed $500,000. The waivershall be placed in the contract file. Ifthe waiver is not approved, the con-tracting officer shall return it to therequirements office with an expla-nation.

(7) The Department’s direct in-houseoperating metric conversion costs shallbe handled as normal operating ex-penses rather than as special one timecosts or included as a budget line item.However, these costs are to be identi-fied. Identification includes, but is notlimited to, the cost of metric aids,tools, equipment, training and in-creased cost to develop metric speci-

fications. All contracting activitiesand requirements offices shall main-tain a record of any costs and/or sav-ings brought about by metric conver-sion.

(8) Bulk (loose, unpacked) materialsshall be specified and purchased inmetric or dual units.

(9) Measuring devices, shop and lab-oratory equipment shall be purchasedin metric or dual units.

(10) Shipping allowances, bills of lad-ing and other shipping documents shallbe expressed in metric or dual units.



515

SUBCHAPTER C—CONTRACTING METHODS AND CONTRACTTYPES

PART 613—SIMPLIFIEDACQUISITION PROCEDURES

Subpart 613.1—General

Sec.613.103 Policy.613.103–70 Acquisition by overseas posts.

Subpart 613.4—Imprest Fund

613.403 Conditions for use.

Subpart 613.5—Purchase Orders

613.501 General.613.505 Purchase order and related forms.613.505–1 Optional Form (OF) 347, Order for

Supplies or Services, and Optional Form348, Order for Supplies or Services Sched-ule—Continuation.

613.505–70 File folders for simplified acquisi-tions, delivery orders, and blanket pur-chase agreements.

613.507 Provisions and clauses.613.507–70 DOSAR clauses.

Subpart 613.6–70—GovernmentwideCommercial Purchase Card Program

613.601–70 Policy.




613.103 Policy.

613.103–70 Acquisition by overseasposts.

Overseas posts shall ensure that theterms and conditions prescribed inFAR Part 13 are added or incorporatedby reference on the documents used forpurchase orders from U.S. vendors.


Subpart 613.4—Imprest Fund613.403 Conditions for use.


[53 FR 26167, July 11, 1988. Redesignated andamended at 60 FR 39662, Aug. 3, 1995]

Subpart 613.5—Purchase Orders613.501 General.

The contracting officer shall distrib-ute copies of each purchase order inconformance with Subpart 604.2.

613.505 Purchase order and relatedforms.

613.505–1 Optional Form (OF) 347,Order for Supplies or Services, andOptional Form 348, Order for Sup-plies or Services Schedule—Con-tinuation.

(a) The OF–347 and OF–348 shall bemandatory for use by domestic con-tracting activities for issuing purchaseorders and delivery orders, unless or-dering against another Federal agencycontract which stipulates a differentform (e.g., DD–1155, Order for Suppliesor Services); or, unless the Procure-ment Executive has approved anotherform. The OF–347 may also be used as avoucher.

(b) In lieu of the OF–347 and OF–348,DOS overseas contracting activitiesmay use the Optional Form (OF) 206,Purchase Order, Receiving Report andVoucher, and Optional Form 206A, Con-tinuation Sheet (illustrated at 653.303–206 and 653.303–206A, respectively).When using the OF–206, contracting ac-tivities may use Optional Form (OF)127, Receiving and Inspection Report(illustrated at 653.303–127), for that pur-pose.

[60 FR 39662, Aug. 3, 1995]

613.505–70 File folders for simplifiedacquisitions, delivery orders, andblanket purchase agreements.

Contracting officers shall use FormsDST–1918, Purchase Order File; DST–


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48 CFR Ch. 6 (10–1–97 Edition)613.507

1919, Delivery Order File; and, DST–1920, Blanket Purchase Agreement(BPA) File, to record relevant data anddocument those purchases, respec-tively.

[59 FR 66758, Dec. 28, 1994]

613.507 Provisions and clauses.

613.507–70 DOSAR clauses.

In addition to the FAR provisionsand clauses required for or applicableto the particular acquisition, each DOSpurchase order shall incorporate allDOSAR clauses required for or applica-ble to the acquisition. All such clausesshall be listed on a separate documentand attached to each copy of the pur-chase order. The document shall beidentified by the purchase order num-ber and the name and address of thecontracting activity. The DOSARclauses may be incorporated withoutsetting out full text.

[60 FR 39663, Aug. 3, 1995]

Subpart 613.6–70—Government-wide Commercial PurchaseCard Program

613.601–70 Policy.

(a) Scope. This subsection sets forthpolicy for use of the Government pur-chase card when making small pur-chases.

(b) Policy. It is the Department’s pol-icy that:

(1) The purchase card shall be used inpreference to other methods of procure-ment (particularly BPAs) for individ-ual purchases up to $2,500;

(2) The purchase card shall be issuedprimarily to personnel outside of theprocurement office to purchase prod-ucts and services up to $2,500 quicklywith a minimum of paperwork andwithout having to send an individualrequisition to a procurement office;and,

(3) The purchase card may be used inprocurement offices for purchases up to$25,000.

(c) Procedures. Specific procedures forimplementation shall be developed byeach contracting activity that wishesto participate in the program. These

procedures shall be approved by A/OPEprior to implementation.


PART 614—SEALED BIDDING

Subpart 614.2—Solicitation of Bids

Sec.614.201 Preparation of Invitation for Bids

(IFB).614.201–7 Contract clauses.614.201–7 –70 DOSAR contract clauses.

Subpart 614.4—Opening of Bids andAward of Contract

614.402 Opening of Bids.614.402–1 Unclassified bids.614.402–70 Waiver of public opening of bids.614.404 Rejection of bids.614.404–1 Cancellation of invitations after

opening.614.406 Mistakes in bids.614.406–3 Other mistakes disclosed before

award.614.406–4 Mistakes after award.



Subpart 614.2—Solicitation of Bids614.201 Preparation of Invitation for

Bids (IFB).

614.201–7 Contract clauses.

614.201–7–70 DOSAR contract clauses.(a) Use of English language solicita-

tions and contracts is mandatory un-less a deviation has been approved bythe Procurement Executive in accord-ance with 601.470. If any part of a con-tract is not written in the English lan-guage, the contracting officer shall at-tach an accurate English languagetranslation of such part to the originaland each copy of the contract, unlessthe contracting officer determines suchaction is infeasible.

(b) When contracting by sealed bid-ding, the contracting officer shall in-sert the clause at 652.214–70, Notices, inall solicitations and contracts awardedor performed overseas.

(c) When contracting by sealed bid-ding, the contracting officer shall in-sert the provision at 652.214–71, Author-ization to Perform, in all solicitations


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Department of State Pt. 615

for contracts to be awarded or per-formed overseas.


Subpart 614.4—Opening of Bidsand Award of Contract

614.402 Opening of bids.

614.402–1 Unclassified bids.After the unclassified bids have been

opened pursuant to FAR 14.402–1, thebid opening officer shall announce thatthe opening of bids has been completedand that all bidders will be notified assoon as possible regarding the award.

614.402–70 Waiver of public opening ofbids.

Overseas posts may request waiver ofthe public opening of bids if that activ-ity is inconsistent with local law orlegal practice, or with post security.For that purpose, the Procurement Ex-ecutive must approve a deviation in ac-cordance with 601.470.

614.404 Rejection of bids.

614.404–1 Cancellation of invitationsafter opening.

The authority to make the deter-mination prescribed in FAR 14.404–1(c)is delegated, without power of redele-gation, to the head of the contractingactivity. The head of the contractingactivity shall obtain the concurrenceof the Office of the Legal Adviser be-fore making a determination pursuantto this subsection.


614.406 Mistakes in bids.

614.406–3 Other mistakes disclosed be-fore award.

The authority to make the deter-minations prescribed in FAR 14.406 isdelegated, without power of redelega-tion, to the head of the contracting ac-tivity. In conformance with FAR14.406–3(f), the head of the contractingactivity shall obtain the concurrenceof the Office of the Legal Adviser be-fore making any determinations pursu-ant to this subsection.

614.406–4 Mistakes after award.

The authority to make all deter-minations prescribed in FAR 14.406–4 isdelegated, without power of redelega-tion, to the head of the contracting ac-tivity. In conformance with FAR14.406–4(d), the head of the contractingactivity shall consult with the Office ofthe Legal Adviser before making anydeterminations pursuant to this sub-section.

PART 615—CONTRACTING BYNEGOTIATION

Subpart 615.1—General Requirements forNegotiations

Sec.615.106 Contract clauses.615.106–1 Examination of Records clause.615.106–70 DOSAR contract clauses.

Subpart 615.4—Solicitation and Receipt ofProposals and Quotations

615.403 Solicitation mailing lists.615.404 Presolicitation notices and con-

ferences.615.406 Preparing requests for proposals

(RFP’s) and requests for quotations(RFQ’s).

615.406–1 Uniform contract format.615.413 Disclosure and use of information

before award.615.413–2 Alternate II.

Subpart 615.5—Unsolicited Proposals

615.504 Advance guidance.615.506 Agency procedures.

Subpart 615.6—Source Selection

615.604 Responsibilities.615.607 Disclosure of mistakes before award.615.608 Proposal evaluation.615.612 Formal source selection.

Subpart 615.8—Price Negotiation

615.804 Cost or pricing data.615.804–3 Exemptions from or waiver of sub-

mission of certified cost or pricing data.




518

48 CFR Ch. 6 (10–1–97 Edition)615.106

Subpart 615.1—GeneralRequirements for Negotiation

615.106 Contract clauses.

615.106–1 Examination of Recordsclause.

See Subpart 625.9 for conditions foromission of the Examination ofRecords clause.

615.106–70 DOSAR contract clauses.When contracting by negotiation, the

contracting officer shall insert theclauses at 652.214–70, Notices, and652.214–71, Authorization to Perform, inall solicitations and contracts, underthe same conditions prescribed in614.201–7–70.


Subpart 615.4—Solicitation andReceipt of Proposals andQuotations


615.403 Solicitation mailing lists.Contracting officers shall release

copies of solicitation mailing lists inaccordance with FAR 14.205–5(a). How-ever, the list of those firms which actu-ally submitted proposals is not releas-able. Requests for information otherthan solicitation mailing lists shall behandled by the Department’s Office ofFreedom of Information.

615.404 Presolicitation notices andconferences.

(c)(1) The Procurement Executive hasapproved a class deviation from the re-quirements of FAR 15.404(c)(1). Ap-proval for presolicitation conferencesat one level above the contracting offi-cer is not required.

615.406 Preparing requests for propos-als (RFP’s) and requests forquotations (RFQ’s).

615.406–1 Uniform contract format.(a) The uniform contract format

shall be mandatory for all acquisitionsoutside the United States, its posses-sions, its territories, and Puerto Rico,

with the exception of those contractslisted in FAR 15.406–1(a) (1) through (8),unless a waiver is granted by the Pro-curement Executive. The ProcurementExecutive is the agency head’s designeefor the purposes of FAR 15.406–1(a)(7).

615.413 Disclosure and use of informa-tion before award.

615.413–2 Alternate II.

Contracting officers may determineto use the alternate procedures listedin FAR 15.413–2 in cases deemed appro-priate. These procedures must be usedwhen releasing proposals outside theGovernment for evaluation purposes.

(e) Contracting officers shall placethe notice specified in FAR 15.413–2(e)on all proposals when using these alter-nate procedures.

(f) Release of proposals outside theGovernment is authorized.

(1) The Procurement Executive is theagency head’s designee for the purposesof FAR 15.413–2(f)(1).

Subpart 615.5—UnsolicitedProposals

615.504 Advance guidance.

(a) The contact points for unsolicitedproposals are the heads of the contract-ing activities.

[59 FR 66758, Dec. 28, 1994]

615.506 Agency procedures.

(a) The contact points shall ensurethat unsolicited proposals are con-trolled, evaluated, safeguarded, anddisposed of in accordance with FARSubpart 15.5.

[59 FR 66758, Dec. 28, 1994]

Subpart 615.6—Source Selection

615.604 Responsibilities.

(a) The head of the contracting activ-ity is the agency head’s designee forthe purposes of FAR 15.604(a).

[59 FR 66759, Dec. 28, 1994]

615.607 Disclosure of mistakes beforeaward.

The authority to make the deter-mination prescribed in FAR 15.607(c)(3)


519


is delegated, without power of redele-gation, to the head of the contractingactivity. In conformance with FAR15.607(c)(3)(ii), the head of the contract-ing activity shall obtain the concur-rence of the Office of the Legal Adviserbefore making a determination pursu-ant to this subsection.


615.608 Proposal evaluation.

The authority to make the deter-mination prescribed in FAR 15.608(b) isdelegated, without power of redelega-tion, to the head of the contracting ac-tivity. The head of the contracting ac-tivity shall obtain the concurrence ofthe Office of the Legal Adviser beforemaking a determination pursuant tothis section.


615.612 Formal source selection.

The authority prescribed in FAR15.612(b), including the authority todesignate a source selection authority,is delegated, without power of redele-gation, to the head of the contractingactivity.

Subpart 615.8—Price Negotiation

615.804 Cost or pricing data.

615.804–3 Exemptions from or waiverof submission of certified cost orpricing data.

The waiver authority prescribed inFAR 15.804–3(i) is delegated, withoutpower of redelegation, to the head ofthe contracting activity.

PART 616—TYPES OF CONTRACTS


Subpart 616.1—Selecting Contract Types

616.102 Policies.616.102–70 Overseas posts.

Subpart 616.2—Fixed-Price Contracts

616.203 Fixed-price contracts with economicprice adjustment.

616.203–4 Contract clauses.616.207 Firm-fixed-price, level-of-effort term

contracts.616.207–3 Limitations.

Subpart 616.3—Cost-ReimbursementContracts

616.301–3 Limitations.616.306 Cost-plus-fixed-fee contracts.

Subpart 616.5—Indefinite-DeliveryContracts

616.505 Contract clauses.616.505–70 DOSAR contract clause.

Subpart 616.6—Time-and-Materials, Labor-Hour, and Letter Contracts

616.603 Letter contracts.616.603–2 Application.




The contracting officer may use anyof the contract types described in FARpart 16 for acquisitions made undersimplified acquisition procedures. Thecontracting officer shall document his/her decision to use a contract type inaccordance with the requirements ofFAR part 16.

[60 FR 39963, Aug. 3, 1995]

Subpart 616.1—Selecting ContractTypes

616.102 Policies.

616.102–70 Overseas posts.

Pursuant to 601.603–70(a)(1)(i), no au-thority is delegated to overseas poststo enter into cost-reimbursement,fixed-price incentive, or fixed-price re-determinable contracts, unless the Pro-curement Executive’s approval is ob-tained. Such requests shall be submit-ted by the head of the contracting ac-tivity on a case-by-case basis.

[59 FR 66759, Dec. 28, 1994]


520

48 CFR Ch. 6 (10–1–97 Edition)616.203

Subpart 616.2—Fixed-PriceContracts

616.203 Fixed-Price contracts witheconomic price adjustment.

616.203–4 Contract clauses.

Contracting officers at domestic con-tracting activities may use an eco-nomic price adjustment clause basedon cost indexes of labor or material inaccordance with the circumstanceslisted in FAR 16.203–4(d) and after ob-taining the approval of the head of thecontracting activity. Overseas postsmay use the clause at 652.216–71, PriceAdjustment, when procuring continu-ing services (e.g., guard, janitorial,building maintenance, and gardening).Posts shall obtain A/OPE approval forany price adjustment clause that dif-fers from the clause at 652.216–71.


616.207 Firm-fixed-price, level-of-effortterm contracts.

616.207–3 Limitations.

The head of the contracting activityis the chief of the contracting office forthe purposes of FAR 16.207–3.

Subpart 616.3—Cost-Reimbursement Contracts

616.301–3 Limitations.

The determination and findings pre-scribed in FAR 16.301–3(c) shall be exe-cuted by the contracting officer.


616.306 Cost-plus-fixed-fee contracts.

The authority to make the deter-mination prescribed in FAR 16.306(c)(2)is delegated to the head of the con-tracting activity. This authority maybe redelegated.


Subpart 616.5—Indefinite-DeliveryContracts


616.505–70 DOSAR contract clause.

The contracting officer shall insertthe clause at 652.216–70, Ordering—In-definite-Delivery Contract, wheneverthe clause at FAR 52.216–20, DefiniteQuantity, or the clause at FAR 52.216–21, Requirements, or the clause at FAR52.216–22, Indefinite Quantity, is used.

Subpart 616.6—Time-and-Mate-rials, Labor-Hour, and LetterContracts

616.603 Letter contracts.

616.603–2 Application.

The contracting officer, after obtain-ing approval of the head of the con-tracting activity, is authorized to ex-tend the period to definitize a lettercontract in accordance with FAR16.603–2(c) and when such action is inthe best interest of the Government.For this purpose, the contracting offi-cer shall execute a written determina-tion and findings, and submit it to thehead of the contracting activity for ap-proval. For cases where the contract-ing officer is also the head of the con-tracting activity, the Procurement Ex-ecutive shall approve the determina-tion and findings.


PART 617—SPECIAL CONTRACTINGMETHODS

Subpart 617.1—Multiyear Contracting

Sec.617.102 Policy.617.102–2 General.617.102–3 Objectives.

Subpart 617.2—Options

617.201 Definitions.617.201–70 DOSAR Definitions.617.204 Contracts.


521


Subpart 617.5—Interagency AcquisitionsUnder the Economy Act

617.502 General.617.504–70 Ordering procedures.

Subpart 617.6—Management andOperating Contracts

617.602 Policy.



Subpart 617.1—MultiyearContracting

617.102 Policy.

617.102–2 General.(a) Pursuant to section 14 of the

State Department Basic AuthoritiesAct of 1956, as amended (22 U.S.C.2679a), any DOS acquisition for prop-erty or services, or both, by any con-tract funded on the basis of annual ap-propriations may nevertheless be madefor periods not in excess of 5 yearswhen—

(1) Appropriations are available andadequate for payment for the first fis-cal year and for all potential cancella-tion costs; and

(2) The Procurement Executive deter-mines that—

(i) The need of the Government forthe property or services being acquiredover the period of the contract is rea-sonably firm and continuing;

(ii) Such a contract will serve thebest interests of the Government byencouraging effective competition orpromoting economies in performanceand operation; and

(iii) Such a method of contractingwill not inhibit small business partici-pation.

(b) For overseas posts, the Procure-ment Executive may delegate to thePrincipal Officer, on an individual con-tract or class of contracts basis, theauthority to make the determinationrequired by paragraph (a)(2) above. ThePrincipal Officer may not redelegatethis authority.

(c) In the event that funds for thecontinuation of such a contract are notmade available into a subsequent fiscalyear, the contract shall be canceled.Any cancellation costs incurred shall

be paid from appropriations originallyavailable for the performance of thecontract, appropriations currentlyavailable for the acquisition of similarproperty or services and not otherwiseobligated, or appropriations made forsuch cancellation payments.

(d) Any multiyear contract awardedpursuant to this subsection shall notexceed 5 years, including options, in ac-cordance with FAR Subpart 17.2, unlessapproved by the Procurement Execu-tive in accordance with DOSAR617.204(e).


617.102–3 Objectives.(d)(3) The head of the contracting ac-

tivity is the agency head’s designee forthe purposes of FAR 17.102–3(d)(3). Forthose cases where the contracting offi-cer is also the head of the contractingactivity, the Procurement Executiveshall be the agency head’s designee.

[59 FR 66759, Dec. 28, 1994]

Subpart 617.2—Options617.201 Definitions.

617.201–70 DOSAR Definitions.Evaluated option means an option

that is evaluated for award purposes byadding the total price for the option(s)to the total price for the basic require-ment.

Price option means an option wherethe amount for the option is specifiedin or is reasonably determinable fromthe terms of the basic contract, as de-scribed in FAR 17.207(f) (1) through (5).

Unevaluated option means an optionthat is not included in the evaluationfor award purposes.

Unpriced option means an optionwhere the prices for the option quan-tities or performance periods are notspecified in the contract at the time ofaward and the option prices are nego-tiated at the time the option is exer-cised.


617.204 Contracts.(e) The Procurement Executive shall

approve any solicitations or contracts


522

48 CFR Ch. 6 (10–1–97 Edition)617.502

which exceed the five (5) year maxi-mum length for supplies or services.

[59 FR 66759, Dec. 28, 1994]

Subpart 617.5—Interagency Ac-quisitions Under the EconomyAct

617.502 General.

The authority to make the deter-mination prescribed in FAR 17.502 isdelegated to the head of the contract-ing activity.


617.504–70 Ordering procedures.

(a) Department deputy assistant sec-retaries are authorized to executeEconomy Act IAAs. Department con-tracting officers also are authorized to

execute Economy Act IAAs, as pre-scribed in FAR 17.504(a).

(b) Department of State form DS–1921, Award/Modification of Inter-agency Acquisition Agreement (illus-trated in part 653), shall be used for allEconomy Act IAAs where the Depart-ment is the requesting agency. It shallalso be used for Economy Act IAAswhere the Department is the servicingagency if the requesting agency doesnot have a similar form that providesthe same information.

[59 FR 66759, Dec. 28, 1994]

Subpart 617.6—Management andOperating Contracts

617.602 Policy.The Assistant Secretary for Adminis-

tration is the agency head for the pur-poses of FAR 17.602.


523

SUBCHAPTER D—SOCIOECONOMIC PROGRAMS

PART 619—SMALL BUSINESS ANDSMALL DISADVANTAGED BUSI-NESS CONCERNS

Subpart 619.2—Policies

Sec.619.201 General policy.

Subpart 619.4—Cooperation with the SmallBusiness Administration

619.402 Small Business Administration pro-curement center representatives.

619.402–70 DOS designee.

Subpart 619.5—Set-Asides for SmallBusiness

619.501 General.619.505 Rejecting set-aside recommenda-

tions.619.506 Withdrawing or modifying set

asides.

Subpart 619.6—Certificates of Com-petency and Determinations of Eligi-bility

619.602 Procedures.619.602–1 Referral.

Subpart 619.7—Subcontracting with SmallBusiness and Small DisadvantagedBusiness Concerns

619.705 Responsibilities of the contractingofficer under the subcontracting assist-ance program.

619.705–1 General support of the program.619.705–3 Preparing the solicitation.619.705–4 Reviewing the subcontracting

plan.619.705–6 Postaward responsibilities of the

contracting officer.619.705–6 –70 Reporting responsibilities.619.708–70 Solicitation provisions and con-

tract clauses.

Subpart 619.8—Contracting With the SmallBusiness Administration (the 8(a) Program)

619.801 Definitions.619.803 Selecting acquisitions for the 8(a)

program.619.803–70 Responsibilities of the Office of

Small and Disadvantaged Business Utili-zation (A/SDBU).

619.810 SBA appeals.619.812 Contract administration.619.870 Acquisition of technical require-

ments.



Subpart 619.2—Policies619.201 General policy.

(a) The Operations Director, Office ofSmall and Disadvantaged Business Uti-lization (A/SDBU), is responsible forperforming all functions and dutiesprescribed in FAR 19.201 (c) and (d).

(b) In addition to the requirements ofFAR 19.201(b), each head of the con-tracting activity (see 601.603–70), ordesignee, is responsible for establishingin coordination with the A/SDBU Oper-ations Director annual goals for theDOS small and disadvantaged businessprogram.

(c) The Assistant Secretary of Statefor Administration is the agency headfor the purposes of FAR 19.201(c).

(d) Pursuant to FAR 19.201(d), eachSmall and Disadvantaged Business Uti-lization Specialist (SDBUS) is respon-sible for—

(1) Maintaining a program to locatecapable small business, small disadvan-taged business, and women-owned busi-ness sources to fulfill DOS acquisitionrequirements;

(2) Coordinating inquiries and re-quests for advice from small business,small disadvantaged business, andwomen-owned business sources on DOScontracting and subcontracting oppor-tunities and other acquisition matters;

(3) Advising contracting activities onnew or revised small business, smalldisadvantaged business, or women-owned business policies, regulations,procedures, and other related informa-tion;

(4) Assuring that small business,small disadvantaged business andwomen-owned business concerns areprovided adequate specifications ordrawings by initiating actions, in writ-ing, with appropriate technical andcontracting personnel to ensure thatall necessary specifications or draw-ings for current and future acquisi-tions, as appropriate, are available;

(5) Reviewing all proposed acquisi-tions in excess of the simplifiedaquisition limitation to assure that


524

48 CFR Ch. 6 (10–1–97 Edition)619.402

small business, small disadvantagedbusiness, and women-owned businesssources will be afforded an equitableopportunity to compete and, as appro-priate, initiating recommendations forsmall business or small disadvantagedbusiness set-asides. This includes pro-posed contract modifications for newor additional requirements which donot fall within the original scope of thecontract and which exceed the sim-plified acquisition threshold. This doesnot include the exercising of contractoptions;

(6) Assuring that contract financingavailable under existing regulations isoffered when appropriate and that re-quests by small business concerns forsuch financing are not treated as ahandicap in the award of contracts;

(7) Providing assistance to the con-tracting officer in making determina-tions concerning responsibility of pro-spective contractors whenever smallbusiness concerns are involved;

(8) Participating in the evaluation ofa prime contractor’s small businessand small disadvantaged business sub-contracting plans;

(9) Assuring that the participation ofsmall business, small disadvantagedbusiness, and women-owned businessconcerns is accurately reported;

(10) Attending, as appropriate,debriefings to unsuccessful small busi-ness and small disadvantaged businessconcerns to assist those firms in under-standing requirements for responsive-ness and responsibility so that the firmmay be able to qualify for futureawards;

(11) Making available to SBA copiesof solicitations when so requested;

(12) When a bid or offer from a smallbusiness, small disadvantaged business,or women-owned business has been re-jected for nonresponsiveness or non-responsibility, upon request, aid, coun-sel, and assist that firm in understand-ing requirements for responsivenessand responsibility so that the firm maybe able to qualify for future awards;

(13) Participating in Government-in-dustry conferences to assist small busi-ness, small disadvantaged business andwomen-owned business concerns, in-cluding Business Opportunity/FederalAcquisition Conferences, MinorityBusiness Enterprises Acquisition Semi-

nars and Business Opportunity Com-mittee meetings;

(14) Maintaining a list of supplies andservices that have been placed as repet-itive small business set-asides;

(15) Participating in the develop-ment, implementation, and review ofautomated source systems to assurethat the interests of small business,small disadvantaged business, andwomen-owned business concerns arefully considered;

(16) Advising potential sources howthey can obtain information aboutcompetitive acquisitions;

(17) Providing small business, smalldisadvantaged business, and women-owned business sources information re-garding assistance available from Fed-eral agencies such as the Small Busi-ness Administration, Minority Busi-ness Development Agency, Bureau ofIndian Affairs, Economic DevelopmentAdministration, National ScienceFoundation, Department of Labor andothers, including State agencies andtrade associations; and

(18) Participating in interagency pro-grams relating to small business, smalldisadvantaged business, and labor sur-plus area matters as authorized by theA/SDBU Operations Director.


Subpart 619.4—Cooperation withthe Small Business Administration

619.402 Small Business Administrationprocurement center representa-tives.

619.402–70 DOS designee.Where the FAR requires action by a

Small Business Administration pro-curement center representative, butone has not been assigned to the DOScontracting activity, the A/SDBU Oper-ations Director shall perform the ac-tion so required.

Subpart 619.5—Set-Asides forSmall Business

619.501 General.(c) Contracting officers shall use De-

partment of State Form DS–1910, SmallBusiness/Labor Surplus Area Review—


525

Department of State 619.705–6–70

Actions Above the Simplified Acquisi-tion Threshold, to document set-asidedecisions.


619.505 Rejecting set-aside rec-ommendations.


619.506 Withdrawing or modifying setasides.

(b) The Procurement Executive shallresolve disagreements between the A/SDBU Operations Director and the con-tracting officer.

[59 FR 66759, Dec. 28, 1994]

Subpart 619.6—Certificates ofCompetency and Determina-tions of Eligibility

619.602 Procedures.

619.602–1 Referral.The contracting officer shall trans-

mit to the A/SDBU Operations Directorconcurrently with the submission tothe appropriate SBA Regional Office, acopy of the documentation supportingthe determination that a small busi-ness concern is not responsible, as re-quired by FAR 19.602–1(a).

Subpart 619.7—Subcontractingwith Small Business and SmallDisadvantaged Business Con-cerns

619.705 Responsibilities of the con-tracting officer under the sub-contracting assistance program.

619.705–1 General support of the pro-gram.

It is the Department’s policy to in-corporate its current fiscal year goalsas negotiated with the SBA into allpertinent Department solicitations, inaddition to the standard subcontractclauses. Incorporation of the goals doesnot require that large business primecontractors must subcontract, but doesrequire that to the extent they plan tosubcontract, specific goals be estab-lished for doing business with small,

small disadvantaged, and women-owned firms. Where funds are avail-able, an incentive clause such as thatfound in FAR 52.219–10, Incentive Sub-contracting Program for Small andSmall Disadvantaged Business Con-cerns, is encouraged.

[59 FR 66760, Dec. 28, 1994]

619.705–3 Preparing the solicitation.Whenever the clause at FAR 52.219–9,

Small Business and Small Disadvan-taged Business Subcontracting Pro-gram, is used in a solicitation for a ne-gotiated acquisition, a notificationalso must be included in the solicita-tion. This notification shall advise pro-spective offerors that subcontractingplans may be requested from all con-cerns determined to be in the competi-tive range. To further promote the useof small, disadvantaged, and women-owned firms by large prime contrac-tors, contracting officers are encour-aged to consider the adequacy of thesubcontracting plans, and/or past per-formance in achieving negotiated sub-contract goals, as part of the overallevaluation of the technical proposals.


619.705–4 Reviewing the subcontract-ing plan.

A/SDBU shall review subcontractingplans to determine if small and smalldisadvantaged businesses are affordedthe maximum practicable opportunityto participate as subcontractors. A/SDBU shall recommend to the con-tracting officer changes needed to sub-contracting plans found to be deficient.

619.705–6 Postaward responsibilitiesof contracting officer.

619.705–6–70 Reporting responsibil-ities.

(a) The contracting officer shall for-ward to the A/SDBU Operations Direc-tor a copy of each subcontracting planthat was incorporated into a contractor contract modification. Each con-tracting activity shall maintain a listof its active prime contracts that con-tain subcontracting plans.

(b) Contracting officers shall collectsubcontracting data from contractorsrequired to establish subcontracting


526

48 CFR Ch. 6 (10–1–97 Edition)619.708–70

plans in support of small and small dis-advantaged business concerns. Thisdata shall be collected annually andsemiannually, using Standard Form295, Summary Subcontracting Report,for the annual submissions, and Stand-ard Form 294, Subcontracting Reportfor Individual Contracts, for the semi-annual submissions. The head of thecontracting activity shall forwardthese reports to the A/SDBU Oper-ations Director, not later than the 30thday of the month following the close ofthe reporting period.


619.708–70 Solicitation provisions andcontract clauses.

The contracting officer shall insert aprovision substantially the same as theprovision at 652.219–70, Department ofState Subcontracting Goals, in solici-tations whenever the clause at FAR52.219–9, Small Business and Small Dis-advantaged Business SubcontractingPlan, is used.

[59 FR 66760, Dec. 28, 1994]

Subpart 619.8—Contracting withthe Small Business Administra-tion (the 8(a) Program)


National buy requirements includes all8(a) contracts performed outside theUnited States and processed by theSmall Business Administration.

[59 FR 66760, Dec. 28, 1994]

619.803 Selecting acquisitions for the8(a) program.

619.803–70 Responsibilities of the Of-fice of Small and DisadvantagedBusiness Utilization (A/SDBU).

A/SDBU shall review the capabilitiesof 8(a) concerns and disseminate thatinformation to DOS program and con-tracting personnel. As necessary, A/SDBU shall obtain from the SBA or8(a) concerns supplemental informa-tion for DOS program and contractingpersonnel.

619.810 SBA appeals.


[59 FR 66760, Dec. 28, 1994]

619.812 Contract administration.

(d) The Procurement Executive is theagency head for the purposes of FAR19.812(d).

[59 FR 66760, Dec. 28, 1994]

619.870 Acquisition of technical re-quirements.

(a) Offering Letter. When a decisionhas been made by the A/SDBU and con-tracting officer to process an acquisi-tion through the SBA under the 8(a)program, the contracting activity shallpromptly send to the applicable SBAoffice a letter offering the acquisitionto the SBA, with an information copyto the SDBUS. The offering lettershould transmit the statement of work,purchase description, technical datapackage, or specifications and suchother information deemed necessary bythe contracting officer.

(b) The contracting officer has great-er latitude in holding discussions withthe concerns solicited under an 8(a)program acquisition if under the $3million competitive threshold for 8(a)competition than under a non-8(a) pro-gram acquisition. Informal assess-ments of 8(a) concerns shall be withinthe parameters of 13 CFR 124.308(g).The technical evaluation must be care-fully reviewed to determine if anysource declared to be unacceptable iscapable of being made acceptable.


PART 622—APPLICATION OFLABOR LAWS TO GOVERNMENTACQUISITIONS

Subpart 622.3—Contract Work Hours andSafety Standards Act

Sec.622.302 Liquidated damages and overtime

pay.


527


Subpart 622.4—Labor Standards forContracts Involving Construction

622.401 Definitions.622.404 Davis-Bacon Act wage determina-

tions.622.404–3 Procedures for requesting wage de-

terminations.622.404–6 Modifications of wage determina-

tions.622.404–7 Correction of wage determinations

containing clerical errors.622.404–11 Wage determination appeals.622.406 Administration and enforcement.622.406–1 Policy.622.406–3 Additional classifications.622.406–8 Investigations.622.406–9 Withholding from or suspension of

contract payments.622.406–10 Disposition of disputes concern-

ing construction contract labor stand-ards enforcement.

622.406–11 Contract terminations.622.406–12 Cooperation with the Department

of Labor.

Subpart 622.6—Walsh-Healey PublicContracts Act

622.604 Exemptions.622.604–2 Regulatory exemptions.

Subpart 622.8—Equal EmploymentOpportunity

622.807 Exemptions.

Subpart 622.13—Special Disabled andVietnam Era Veterans

622.1303 Waivers.622.1308 Contract clauses.

Subpart 622.14—Employment of theHandicapped

622.1403 Waivers.622.1408 Contract clause.



Subpart 622.3—Contract WorkHours and Safety Standards Act

622.302 Liquidated damages and over-time pay.

The authority to make the deter-mination prescribed in FAR 22.302(c) isdelegated, without power of redelega-tion, to the head of the contracting ac-tivity.

[55 FR 5774, Feb. 16, 1990]

Subpart 622.4—Labor Standardsfor Contracts Involving Con-struction

SOURCE: 55 FR 5774, Feb. 16, 1990, unlessotherwise noted.


(b) Apprentices, trainees, helpers,and, in the case of contracts subject tothe Contract Work Hours and SafetyStandards Act, watchmen and guards.The terms ‘‘apprentice’’ and ‘‘trainee’’are defined as follows:

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

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

(3) The definition for helper as de-scribed in FAR 22.401 paragraph (b)(3)of the definition of Laborers or mechan-ics is reserved.

[59 FR 66760, Dec. 28, 1994]

622.404 Davis-Bacon Act wage deter-minations.

622.404–3 Procedures for requestingwage determinations.

The cognizant contracting activity(see 601.603–70) is the contracting agen-cy for the purposes of FAR 22.404–3(b)and (e)

622.404–6 Modifications of wage deter-minations.

The cognizant contracting activity isthe contracting agency for the pur-poses of FAR 22.404–6.

(b)(6) The head of the contracting ac-tivity is the agency head’s designee forthe purposes of FAR 22.404–6(b)(6).

[55 FR 5774, Feb. 16, 1990, as amended at 59FR 66760, Dec. 28, 1994]

622.404–7 Correction of wage deter-minations containing clerical er-rors.


622.404–11 Wage determination ap-peals.



528

48 CFR Ch. 6 (10–1–97 Edition)622.406

622.406 Administration and enforce-ment.

622.406–1 Policy.The cognizant contracting activity is

the contracting agency for the pur-poses of FAR 22.406–1(a).

622.406–3 Additional classifications.(b)(4) FAR 22.406–3 paragraph (b)(4) is

reserved.

[59 FR 66760, Dec. 28, 1994]

622.406–8 Investigations.(a) The chief of the contracting ac-

tivity is responsible for conductinglabor standards investigations as pre-scribed in FAR 22.406–8(a).

(d) The Procurement Executive is theagency head’s designee for the purposesof FAR 22.406–8(d).

622.406–9 Withholding from or suspen-sion of contract payments.

The authority to suspend contractpayments pursuant to FAR 22.406–9(b)is delegated, without power of redele-gation, to the head of the contractingactivity.

622.406–10 Disposition of disputes con-cerning construction contract laborstandards enforcement.

The cognizant contracting activity isthe contracting agency for the pur-poses of FAR 22.406–10(b).

622.406–11 Contract terminations.The cognizant contracting activity is

the contracting agency for the pur-poses of FAR 22.406–11.

622.406–12 Cooperation with the De-partment of Labor.

Any information furnished to the De-partment of Labor pursuant to FAR22.406–12(a) shall be submitted throughthe head of the contracting activity.

Subpart 622.6—Walsh-HealeyPublic Contracts Act

622.604 Exemptions

622.604–2 Regulatory exemptions.The Procurement Executive is the

agency head for the purposes of FAR22.604–2(c)(1).

Subpart 622.8—Equal EmploymentOpportunity

622.807 Exemptions.The Procurement Executive is the

agency head for the purposes of FAR22.807(a)(1).

Subpart 622.13—Special Disabledand Vietnam Era Veterans

622.1303 Waivers.The Procurement Executive is the


622.1308 Contract clauses.The Procurement Executive is the

agency head for the purposes of FAR22.1308 (a)(2) and (c).

[55 FR 5775, Feb. 16, 1990]

Subpart 622.14—Employment ofthe Handicapped

622.1403 Waivers.The Procurement Executive is the


622.1408 Contract clause.The Procurement Executive is the


[55 FR 5775, Feb. 16, 1990]

PART 623—ENVIRONMENT, CON-SERVATION, OCCUPATIONALSAFETY, AND DRUG–FREE WORK-PLACE

Subpart 623.1—Pollution Control and CleanAir and Water

Sec.623.104 Exemptions.623.107 Compliance responsibilities.

Subpart 623.3—Hazardous MaterialIdentification and Material Safety Data

623.302–70 Policy.

Subpart 623.4—Use of Recovered Materials

623.470 Affirmative procurement programfor recovered materials.

623.471 Purpose.623.472 Applicability.


529


623.473 Definitions.623.474 EPA guidelines.623.475 Responsibilities.623.476 Preference programs for guideline

items.623.476–1 Preference program for the pur-

chase of cement and concrete containingfly ash.

623.476–2 Preference program for buildinginsulation products containing recoveredmaterials.

623.476–3 Preference program for lubricatingoils containing recovered materials.

623.476–4 Preference program for retreadtires.

623.476–5 Preference program for paper andpaper products containing recovered ma-terials.

623.477 Promotion program.623.478 Evaluation and certification.623.479 Annual review and monitoring.623.480 Solicitation provisions and contract

clauses.

Subpart 623.5—Drug–Free Workplace

623.506 Suspension of payments, termi-nation of contract, and debarment andsuspension actions.



Subpart 623.1—Pollution Controland Clean Air and Water

623.104 Exemptions.The Procurement Executive is the

agency head for the purposes of FAR23.104(c).

623.107 Compliance responsibilities.The Procurement Executive is the


Subpart 623.3—Hazardous Mate-rial Identification and MaterialSafety Data

623.302–70 Policy.Any work which affects the safety

and/or health of post personnel, includ-ing the handling of hazardous mate-rials, shall comply with the applicablerequirements of the Department ofState Safety/Health and Environ-mental Management Resource Guide (6FAM 606.7). Requirements offices shallensure that any contractor operationsand activities, whether sponsored by

the post or other Department organiza-tion, are closely coordinated with thePost Occupational Safety and HealthOfficer during both planning and im-plementation phases.

[59 FR 66760, Dec. 28, 1994]

Subpart 623.4—Use of RecoveredMaterials


623.470 Affirmative procurement pro-gram for recovered materials.

623.471 Purpose.This section establishes the Depart-

ment of State’s Affirmative Procure-ment Program for Recovered Materialsin accordance with Section 6002 of theResource Conservation and RecoveryAct (RCRA) (42 U.S.C. 6962, Pub. L. 94–580). Section 6002 requires that eachagency develop an affirmative procure-ment plan to assure that items com-posed of recovered materials will bepurchased to the maximum extentpractical and which is consistent withFederal procurement law. It requiresthat preference be given in procure-ment programs to the purchase ofitems containing recycled materialsidentified in guidelines promulgated bythe Environmental Protection Agency(EPA). Executive Order 12780, FederalAgency Recycling and the Council onFederal Recycling and ProcurementPolicy, directed implementation ofcost effective affirmative procurementprograms for recycled items.

623.472 Applicability.The affirmative procurement pro-

gram is applicable to all domestic ac-quisition of items currently designatedby an EPA guideline or by futureguidelines promulgated by EPA. Therequirements of this section are not ap-plicable to acquisitions made and/orperformed outside the United States orits possessions.

623.473 Definitions.Affirmative procurement program is a

program which ensures that itemscomposed of recovered materials willbe purchased to the maximum extent


530

48 CFR Ch. 6 (10–1–97 Edition)623.474

practicable, consistent with Federalprocurement law. There are four com-ponents to an affirmative procurementprogram: (1) A preference program; (2)a promotion program; (3) proceduresfor requiring, obtaining and verifyingestimates and certifications of recov-ered materials content; and, (4) an an-nual review and monitoring.

Designated item is an item that hasbeen designated in an EPA procure-ment guideline as an item that is orcan be produced using recovered mate-rials whose procurement will advancethe purpose of RCRA.

Minimum-content standard is the mini-mum content of recovered materialsthat a designated item must containpursuant to specifications implement-ing the Department’s preference pro-gram.

Postconsumer recovered materials arewaste materials recovered from retailstores, office buildings, homes, and soforth after they have passed throughtheir end usage as a consumer item.Waste paper includes all items fromthe first two categories above in addi-tion to forest residues, and manufac-turing and other wastes.

Procurement guidelines are guidelinesissued by the EPA pursuant to Section6002 of RCRA: (1) Identifying itemsthat are or can be produced with recov-ered materials and where procurementwill advance the objectives of the Act;and, (2) providing recommended prac-tices for the procurement of suchitems.

Recovered materials are waste mate-rials and by-products that have beenrecovered or diverted from solid waste,not including those materials and by-products generated from, and com-monly reused within, an original man-ufacturing process.

Unreasonable price is the price forproducts containing recovered mate-rials which exceeds alternatives madewith virgin materials by 10 percent ormore, and which the requirements of-fice initiating the acquisition substan-tiates as exorbitant.

623.474 EPA guidelines.

(a) The EPA has published five guide-lines that designate the followingitems that are or can be produced using

recovered materials. Accordingly, con-tracting activities shall procure itemsproduced using recovered materials tothe maximum extent possible whenprocuring these designated items:

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

(2) Paper and paper products, 40 CFRpart 250;

(3) Lubricating oils, 40 CFR part 252;(4) Retread tires, 40 CFR part 253;

and,(5) Building insulation products, 40

CFR part 248.(b) Copies of these guidelines, as well

as future guidelines promulgated byEPA, may be obtained by calling EPA’sRecycled Products Information Clear-inghouse at (703) 941–4452.

(c) These guidelines are applicablewhen the Department purchases morethan $10,000 worth of a designated item,or if the cost of all such items pur-chased by the Department during thepreceding Fiscal Year was $10,000 ormore.

§ 623.475 Responsibilities.

(a) The requirements office initiatingan acquisition is responsible for deter-mining whether recovered materialsshould be included in the specifica-tions. Requirements offices may pur-chase items subject to the guidelinescontaining other than recovered mate-rials only if:

(1) The price of items with recoveredmaterials is unreasonable;

(2) The requirement for items pro-duced with recovered materials resultsin inadequate competition or adverselyaffects small business or the Depart-ment’s metrication program;

(3) Obtaining items with recoveredmaterials results in unusual and unrea-sonable delays; or

(4) Items produced with recoveredmaterials do not meet all reasonableperformance specifications.

(b) If the requirements office choosesto procure designated items that donot contain recovered materials, awritten justification must be submit-ted to the contracting officer.


531


623.476 Preference programs forguideline items.

623.476–1 Preference program for thepurchase of cement and concretecontaining fly ash.

Domestic contracts requiring thepurchase of cement and concrete shallspecify the performance requirementsof the products required under the con-tract using appropriate standards/spec-ifications when available. Consistentwith such performance specifications,such contracts shall allow the contrac-tor to deliver cement and concreteproducts that contain fly ash, a compo-nent of coal resulting from its combus-tion in electrical generating plants. Ar-chitects/Engineers shall specify per-formance requirements for the con-crete to be supplied.

623.476–2 Preference program forbuilding insulation products con-taining recovered materials.

Minimum content standards forbuilding insulation products have beenestablished by EPA guidelines. Domes-tic contracts for the design of struc-tures that will utilize building insula-tion products shall require that the Ar-chitect/Engineer include, as a designconsideration, the Department pref-erence for the use of building insula-tion produced with recovered mate-rials. Such contracts shall require thatthe Architect/Engineer specify the typeof building insulation products to besupplied and shall require the Archi-tect/Engineer to justify, in writing, thebasis of the selected product type if itis not in accordance with the EPAguideline.

623.476–3 Preference program for lu-bricating oils containing recoveredmaterials.

Contracts requiring the supply of lu-bricating oils, hydraulic fluids and gearoils shall require that products con-form to the EPA guideline.

623.476–4 Preference program for re-tread tires.

Contracts requiring replacementtires for automobiles, light and heavytrucks and trailers, and off-road tiresshall specify that retreading servicesshall be obtained if the carcass isretreadable. If such retreading services

are not practicable, replacement tiresshall be procured in accordance withthe EPA guideline.

623.476–5 Preference program forpaper and paper products contain-ing recovered materials.

(a) All contracts requiring the pur-chase of paper and paper products shallrequire that paper and paper productsdelivered to the Department meet theEPA guideline for recycled paper.

(b) Contracting officers shall requirecontractors to use recycled paper whensubmitting reports and otherdeliverables to the Department, whenfeasible.

(c) Contracting officers shall requireofferors/bidders to submit proposals/bids on recycled paper, double-sidedcopying to the maximum extent pos-sible.

623.477 Promotion program.

Items composed of recovered mate-rials shall be purchased under all newdomestic contracts to the maximumextent practicable. Contracting officersshall promote the fact that the Depart-ment is seeking to buy items contain-ing recovered materials at pre-proposaland pre-bid conferences when appro-priate.

623.478 Evaluation and certification.

(a) Contracting officers shall ensurethat vendors estimate in their offers/bids the percentage of recovered mate-rial of the total content of designateditems to be used under the contract.

(b) Contracting officers shall ensurethat contractors certify the percentageof recovered materials contained indesignated items actually suppliedunder the contract.

623.479 Annual review and monitor-ing.

The effectiveness of the preferenceprogram shall be reviewed annually byA/OPE. An assessment will be made todetermine if greater use of recoveredmaterial is possible for the existing re-quirements or if recovered materialsare causing undue delay, lack of com-petition, unreasonable prices or an un-acceptable level of performance.


532

48 CFR Ch. 6 (10–1–97 Edition)623.480

623.480 Solicitation provisions andcontract clauses.

(a) The contracting officer shall in-sert the provision at 652.223–70, Esti-mates of the Total Percentage of Re-covered Materials to be Utilized in thePerformance of the Contract, in all do-mestic contracting activity solicita-tions using recovered materials in theperformance of the work.

(b) The contracting officer shall in-sert the clause at 652.223–71, Certifi-cation of Minimum Content ActuallyUtilized in the Performance of the Con-tract, in all domestic solicitations andcontracts requiring the use of recov-ered materials.

(c) The contracting officer shall in-sert the provision at 652.223–72, Use ofDouble-Sided Copying in the Submis-sion of Bids or Proposals, in all domes-tic solicitations for supplies or serv-ices.

(d) The contracting officer shall in-sert the clause at 652.223–73, Use ofDouble-Sided Copying in the Submis-sion of Reports, in all domestic solici-tations and contracts for supplies orservices.

(e) The contracting officer shall in-sert the clause at 652.233–74, Use of FlyAsh as a Partial Replacement for Ce-ment and Concrete, in all domestic so-licitations and contracts for Architect/Engineer services for the design ofstructures or works that will use ce-ment and concrete products, unless therequirements office provides a writtenjustification for using virgin materials.

(f) The contracting officer shall in-sert the clause at 652.223–75, Use of Re-covered Materials in Building Insula-tion Products, in all domestic solicita-tions and contracts for Architect/Engi-neer services for the design of struc-tures or works that will utilize or in-corporate building insulation productscontaining recovered materials, unlessthe program office provides a writtenjustification for using virgin materials.

(g) The contracting officer shall in-sert the clause at 652.223–76, Use of Lu-bricating Oils Containing Re-RefinedOils, in all domestic solicitations andcontracts that require the delivery oflubricating oils, unless the program of-fice provides a written justification forusing virgin materials.

(h) The contracting officer shall in-sert the clause at 652.223–77, Use of Re-tread Tires, in all domestic solicita-tions and contracts that require the re-placement of tires for automobiles,light and heavy trucks and trailers,and off-road vehicles, unless the pro-gram office provides a written jus-tification for not using retread tires.This clause does not apply to the pur-chase of original equipment tires.

(i) The contracting officer shall in-sert the clause at 652.233–78, Use of Re-covered Materials in Paper and PaperProducts, in all domestic solicitationsand contracts that require the deliveryof reports or other paper products, un-less the program office provides a writ-ten justification for the use of virginmaterials.

Subpart 623.5—Drug-FreeWorkplace

623.506 Suspension of payments, ter-mination of contract, and debar-ment and suspension actions.

The authority to approve the deter-mination prescribed in FAR 23.506(e) isreserved to the Secretary of State.

[55 FR 5775, Feb. 16, 1990]

PART 624—PROTECTION OF PRI-VACY AND FREEDOM OF INFOR-MATION

AUTHORITY: 22 U.S.C. 2658; 40 U.S.C. 486(c);48 CFR Subpart 1.3.

Subpart 624.2—Freedom ofInformation Act

624.202 Policy.

DOS regulations implementing theFreedom of Information Act (5 U.S.C.552), as amended, are codified in Chap-ter 1, Department of State, SubchapterR, Access to Information, Part 171,Availability of information and recordsto the public, of Title 22 of the Code ofFederal Regulations (22 CFR Part 171).

[53 FR 26172, July 11, 1988]


533


PART 625—FOREIGN ACQUISITION

Subpart 625.1—Buy American Act—Supplies

Sec.625.102 Policy.625.105 Evaluating offers.625.108 Excepted articles, materials, and

supplies.

Subpart 625.2—Buy American Act—Construction Materials

625.202 Policy.625.203 Evaluating offers.625.204 Violations.

Subpart 625.3—Balance of PaymentsProgram

625.300 Scope of subpart.625.300–70 Overseas acquisitions.625.302 Policy.625.304 Excess and near-excess foreign cur-

rencies.

Subpart 625.7—Restrictions on CertainForeign Purchases

625.703 Exceptions.

Subpart 625.9—Additional ForeignAcquisition Clauses

625.901 Omission of examination of recordsclause.

625.903 Conditions for omission.



Subpart 625.1—Buy AmericanAct—Supplies

625.102 Policy.(a)(3) The authority to make the de-

termination prescribed in FAR25.102(a)(3) is delegated, without powerof redelegation, to the head of the con-tracting activity.

(b)(2) The authority to make the de-termination prescribed in FAR25.102(b)(2) is delegated, without powerof redelegation, to the head of the con-tracting activity.

[59 FR 66762, Dec. 28, 1994]

625.105 Evaluating offers.The authority to make the deter-

minations prescribed in FAR 25.105 isdelegated, without power of redelega-

tion, to the head of the contracting ac-tivity.

625.108 Excepted articles, materials,and supplies.

A/OPE is the DOS central agencycontrol point for furnishing to the ap-propriate FAR Council the documenta-tion prescribed in FAR 15.108(b) and (c).


Subpart 625.2—Buy AmericanAct—Construction Materials

625.202 Policy.(a)(2) The authority to make the de-

termination prescribed in FAR25.202(a)(2) is delegated, without powerof redelegation, to the head of the con-tracting activity.

(b) The authority to make the deter-mination prescribed in FAR 25.202(b) isdelegated, without power of redelega-tion, to the head of the contracting ac-tivity.

[59 FR 66762, Dec. 28, 1994]

625.203 Evaluating offers.The head of the contracting activity

is the agency head for the purposes ofFAR 25.203 (a) and (b).

[59 FR 66762, Dec. 28, 1994]

625.204 Violations.The Procurement Executive is the


Subpart 625.3—Balance ofPayments Program

625.300 Scope of subpart.

625.300–70 Overseas acquisitions.This program applies to acquisitions

of supplies and services for use outsidethe United States regardless of thecontractor’s location.

625.302 Policy.The authority to make the deter-

mination prescribed in FAR 25.302(b)(3)is delegated, without power of redele-gation, to the head of the contractingactivity. The authority prescribed inFAR 25.302(c) is delegated, without


534

48 CFR Ch. 6 (10–1–97 Edition)625.304

power of redelegation, to the head ofthe contracting activity.

625.304 Excess and near-excess foreigncurrencies.

The authority to make the deter-mination prescribed in FAR 25.304(c) isdelegated to the head of the contract-ing activity without power of redelega-tion.


Subpart 625.7—Restrictions onCertain Foreign Purchases

625.703 Exceptions.The authority to approve exceptions

for other contracts in excess of thesimplified acquisition threshold is dele-gated, without power of redelegation, othe head of the contracting activity.

[60 FR 39663, Aug. 3, 1995]

Subpart 625.9—Additional ForeignAcquisition Clauses

625.901 Omission of examination ofrecords clause.

(a) The Procurement Executive is theagency head for the purposes of FAR25.901.

(b) Each determination and findingsto omit FAR clause 52.215–1, Examina-tion of Records by Comptroller Gen-eral, shall be prepared in writing bythe contracting officer and submittedto the Procurement Executive for ap-proval.

(c) The Procurement Executive shallforward the approved determinationand findings to the requesting con-tracting activity for inclusion in thecontract file, or inform the contractingactivity in writing if the determinationand findings is not approved, as appro-priate.

(1)(ii) The report required by FAR25.901(c)(1)(ii) shall be prepared and for-warded to the Assistant Secretary ofState for Administration by the Pro-curement Executive.

[59 FR 66762, Dec. 28, 1994]

625.903 Conditions for omission.



535

SUBCHAPTER E—GENERAL CONTRACTING REQUIREMENTS

PART 627—PATENTS, DATA, ANDCOPYRIGHTS

Subpart 627.2—Patents

Sec.627.203 Patent indemnification of Govern-

ment by contractor.627.203–6 Clause for Government waiver of

indemnity.

Subpart 627.3—Patent Rights UnderGovernment Contracts

627.303 Contract clauses.627.304 Procedures.627.304–1 General.627.304–5 Appeals.



Subpart 627.2—Patents

627.203 Patent indemnification of Gov-ernment by contractor.

627.203–6 Clause for Governmentwaiver of indemnity.


Subpart 627.3—Patent RightsUnder Government Contracts

627.303 Contract clauses.The Procurement Executive is the

agency head’s designee for the purposesof FAR 27.303. Determinations issuedby the Procurement Executive shall bereviewed by the Office of the Legal Ad-viser.

627.304 Procedures.

627.304–1 General.The Procurement Executive is the

agency head’s designee for the purposesof FAR 27.304–1. Questions regardingfact-finding procedures as specified inFAR 27.304–1(a)(4) shall be referred toA/OPE. Determinations issued by theProcurement Executive shall be re-viewed by the Office of the Legal Ad-viser.

627.304–5 Appeals.The Procurement Executive is the

agency head’s designee for the purposesof FAR 27.304–5. Questions regardingthe appeals procedure as specified inFAR 27.304–5(b) shall be referred to A/OPE.

PART 628—BONDS ANDINSURANCE

Subpart 628.1—Bonds

Sec.628.101 Bid guarantees.628.101–1 Policy on use.628.106–6 Furnishing information.

Subpart 628.2—Sureties

628.203 Acceptability of individual surety.628.203–7 Exclusion of individual sureties.

Subpart 628.3—Insurance

628.305 Overseas workers’ compensation andwar-hazard insurance.

628.306 Insurance under fixed-price con-tracts.

628.307 Insurance under cost-reimbursementcontracts.

628.307–70 Insurance under labor-hour andtime-and-materials contracts.

Subpart 628–70—Indemnification

628.7001 DOSAR contract clause.



Subpart 628.1—Bonds


628.101 Bid guarantees.

628.101–1 Policy on use.(c) The Procurement Executive is the


628.106–6 Furnishing information.(c) The head of the contracting activ-

ity is the agency head’s designee forthe purposes of FAR 28.106–6(c).


536

48 CFR Ch. 6 (10–1–97 Edition)628.203

Subpart 628.2—Sureties

628.203 Acceptability of individualsurety.

(g) Evidence of possible criminal orfraudulent activities by an individualsurety shall be referred to the Office ofthe Inspector General.

[59 FR 66763, Dec. 28, 1994]

628.203–7 Exclusion of individual sure-ties.


[59 FR 66763, Dec. 28, 1994]

Subpart 628.3—Insurance


628.305 Overseas workers’ compensa-tion and war-hazard insurance.

(a) It is the Department’s policy thatacquisitions for services, includingconstruction but excluding personalservices contracts, which require con-tractor personnel to perform work out-side of the United States, shall includethe contractual obligation for coverageunder the Defense Base Act (42 U.S.C.Sections 1651–1654, as amended). Forthe purpose of this section only, ‘‘con-tractor personnel’’ includes individualswho are either:

(1) United States citizens or resi-dents, or

(2) Hired in the United States or itspossessions.

(b) The Department of State has en-tered into a contract with an insurancebroker and carrier to provide DefenseBase Act insurance, at a fixed rate forservices and construction, to coverDOS contracts which will require per-formance overseas by United Statescitizens, residents, or those employedin the United States. In countrieswhere local nationals and/or thirdcountry nationals will be employed toperform the contract, such countriesmay be waived by the Secretary ofLabor. Whenever such insurance is re-quired under the contract, the con-tracting officer shall insert:

(1) The clause at 652.228–71, Worker’sCompensation Insurance (Defense BaseAct)—Services;

(2) The clause at 652.228–72, Worker’sCompensation Insurance (Defense BaseAct)—Construction; and,

(3) The clause at 652.228–73, Waiver ofDefense Base Act.

(c) Upon award of a contract whichrequires Defense Base Act insurance,the contracting officer shall notify thesuccessful offeror of the name of theinsurance broker from which the con-tractor should acquire insurance.

(d) The authority to request a waiverfrom the Secretary of Labor of a par-ticular country, as set forth in FAR28.305(d), is reserved to the Secretary ofState. The Department has obtainedblanket waivers from the Secretary ofLabor for all contracts for services, in-cluding construction, awarded and/orperformed overseas. The waivers applyto all individuals who are not employ-ees hired in the United States, or whoare not United States citizens or resi-dents.

628.306 Insurance under fixed-pricecontracts.

(a) The contracting officer shall in-sert the provision at:

(1) 652.228–74, Defense Base Act Insur-ance Rates—Limitation—Services, insolicitations for fixed-price servicecontracts to be performed outside theUnited States by United States citizensor residents and/or those hired in theUnited States; or

(2) 652.228–75, Defense Base Act Insur-ance Rates—Limitation—Construction,in solicitations for fixed-price con-struction contracts to be performedoutside the United States by UnitedStates citizens or residents and/orthose hired in the United States.

628.307 Insurance under cost-reim-bursement contracts.

The contracting officer shall insertthe provision at 652.228–76, DefenseBase Act Insurance Rates—Limita-tion—Cost-Reimbursement, in solicita-tions for cost-reimbursement type con-tracts to be performed outside theUnited States by United States citizensor residents and/or those hired in theUnited States.


537


628.307–70 Insurance under labor-hourand time-and-materials contracts.

The contracting officer shall insertthe provision at 652.228–77, DefenseBase Act Insurance Rates—Limita-tion—Labor-Hour and Time-and-Mate-rial, in solicitations for labor-hour ortime-and-material type contracts to beperformed outside the United States byUnited States citizens or residents and/or those hired in the United States.

Subpart 628–70—Indemnification

628.7001 DOSAR contract clause.

(a) Contractors should not ordinarilybe required to assume risks which aprivate buyer would guard againstthrough insurance. There may be occa-sions, however, when a contractor’s as-sumption of such risks is in the best in-terest of the Government. The clausein paragraph (b) below is authorized foruse on those occasions. In the deter-mination of its use, the contracting of-ficer should weigh the advantages itprovides against the likelihood of a re-sultant increase in the contract price.

(b) The contracting officer shall in-sert the clause at 652.228–70, Indem-nification, in solicitations and con-tracts when it is determined that thecontractor’s assumption of risk is inthe best interest of the Government.

PART 629—TAXES


Sec.629.101 Resolving tax problems.

Subpart 629.2—Federal Excise Taxes

629.202 General exemptions.629.202–70 Exemption from other Federal

taxes.

Subpart 629.3—State and Local Taxes

629.302 Application of State and local taxesto the Government.

629.303 Application of State and local taxesto Government contractors and sub-contractors.

Subpart 629.4—Contract Clauses

629.401 Domestic contracts.629.401–70 DOSAR contract clause.




629.101 Resolving tax problems.

In certain instances, acquisitions byposts are exempt from various taxes inforeign countries. Contracting officersshall ascertain such exemptions andtake maximum advantage of them.

Subpart 629.2—Federal ExciseTaxes

629.202 General exemptions.

629.202–70 Exemptions from otherFederal taxes.

Taxable articles purchased for pres-entation abroad as gifts to foreign dig-nitaries and taxable articles purchasedfor presentation as gifts to foreign dig-nitaries visiting in the United Statesbut which are to be taken out of theUnited States may be exempt from re-tail taxes or manufacturers excisetaxes, in accordance with the letter ofOctober 18, 1963, from the Chief, ExciseTax Branch, Internal Revenue Service.

Subpart 629.3—State and LocalTaxes

629.302 Application of State and localtaxes to the Government.

The Office of the Legal Adviser is theagency-designated counsel for the pur-poses of FAR 29.302(a).

629.303 Application of State and localtaxes to Government contractorsand subcontractors.

The authority to make the deter-mination prescribed in FAR 29.303(a) isdelegated, without power of redelega-tion, to the head of the contracting ac-tivity (see 601.603–70). The Office of theLegal Adviser is the agency-designatedcounsel for the purposes of FAR29.303(c).


538

48 CFR Ch. 6 (10–1–97 Edition)629.401

Subpart 629.4—Contract Clauses

629.401 Domestic contracts.

629.401–70 DOSAR contract clause.The contracting officer shall insert

the clause at 652.229–71, Excise Tax Ex-emption Statement for ContractorsWithin the United States, in solicita-tions and contracts if the prospectivecontractor is located inside the UnitedStates and the acquisition involves ex-port of supplies to an overseas post.

PART 630—COST ACCOUNTINGSTANDARDS


Subpart 630.3—CAS ProgramRequirements

630.201–5 Waiver.The Procurement Executive is the


[53 FR 26173, July 11, 1988]

PART 631—CONTRACT COSTPRINCIPLES AND PROCEDURES


Subpart 631.1—Applicability

631.101 Objectives.The Procurement Executive is the


[59 FR 66764, Dec. 28, 1994]

PART 632—CONTRACT FINANCING

Subpart 632.4—Advance Payments

Sec.632.402 General.632.407 Interest.

Subpart 632.7—Contract Funding

632.703 Contract funding requirements.632.703–3 Contracts crossing fiscal years.

Subpart 632.8—Assignment of Claims

632.803 Policies.

Subpart 632.9—Prompt Payment

632.903 Policy.632.908 Contract clauses.



Subpart 632.4—AdvancePayments

632.402 General.(b) Advance payments shall be au-

thorized sparingly. Contracting officersshould consider the use of partial pay-ments, fast payments, or more frequentpayments as alternatives to advancepayments.

(c)(1)(iii) The authority to make thedetermination prescribed in FAR32.402(c)(1)(iii) is delegated, withoutpower of redelegation, to the head ofthe contracting activity (see 601.603–70). For acquisitions by overseas posts,the head of the contracting activityshall obtain the concurrence of theProcurement Executive before makinga determination pursuant to this sec-tion.


632.407 Interest.(d) The Procurement Executive is the

agency head’s designee for the purposesof FAR 32.407(d).

[59 FR 66764, Dec. 28, 1994]

Subpart 632.7—Contract Funding

632.703 Contract funding require-ments.

632.703–3 Contracts crossing fiscalyears.

(a) The State Department Basic Au-thorities Act of 1956, as amended (22U.S.C. 2696(e)), allows funds from an-nual appropriations to extend beyondthe fiscal year in which the acquisitionwas funded. This authority may beused for acquisitions of supplies orservices, regardless of dollar amount orcontract type. Use of this authority re-quires that:

(1) The acquisition normally wouldbe considered severable (i.e., the serv-ices are repetitive and can be started


539


or stopped any time; would normallybe funded and performed within a fiscalyear; and are not services integral tothe creation of an end product. An ex-ample is janitorial services);

(2) The base performance period istwelve months, begins in the currentfiscal year, and crosses into the nextfiscal year; and,

(3) Full funding for twelve months isavailable in the current year.

(b) If the acquisition involves morethan one source of funds, the contractshall be priced to identify the source offunds (by allotment) with the relevantportion of the total supplies or serv-ices. For current Department con-tracts, bilateral modifications are au-thorized where necessary to convert toa performance period that crosses fis-cal years, as long as the requisite fund-ing is available as described in para-graph (a), and provided that the totalcontract length does not increase.

(c) Use of this authority shall be doc-umented in the contract file and be in-cluded as part of the Advance Acquisi-tion Plan and Price Negotiation Memo-randum. If neither document is rel-evant to the acquisition, the contract-ing officer shall prepare a written doc-ument to the file indicating compli-ance with this subsection.

(d) For acquisitions conducted byoverseas posts that are funded by an-other agency, the contracting officershall ensure that funding for the fulltwelve-month period is available attime of award if the authority in 22U.S.C. 2696(e) will be used.

[59 FR 66764, Dec. 28, 1994]

Subpart 632.8—Assignment ofClaims

632.803 Policies.

(b) The assignment of claims shall beprohibited for all personal services con-tracts. The assignment of claims shallalso be prohibited for all contractsawarded and performed overseas, un-less approval is received from the Pro-curement Executive.

[59 FR 66764, Dec. 28, 1994]

Subpart 632.9—Prompt Payment

632.903 Policy.

The authority to make the deter-mination prescribed in FAR 32.903 isdelegated, without power of redelega-tion, to the head of the contracting ac-tivity. Before making a determinationconcerning early invoice and contractfinancing payments, the head of thecontracting activity shall consult withthe Office of Fiscal Operations direc-tor, or designee.

[55 FR 5775, Feb. 16, 1990]


(a) The contracting officer may in-sert a clause substantially the same asthe clause at 652.232–70, PaymentSchedule and Invoice Submission(Fixed-Price), in fixed-price type solici-tations and contracts.

(b) The contracting officer may in-sert a clause substantially the same asthe clause at 652.232–71, Voucher Sub-mission (cost-Reimbursement), in cost-reimbursement type solicitations andcontracts.

[59 FR 66764, Dec. 28, 1994]

PART 633—PROTESTS, DISPUTES,AND APPEALS

Subpart 633.1—Protests

Sec.633.102 General.633.103 Protests to the agency.633.104 Protests to GAO.633.105 Protests to GSBCA.

Subpart 633.2—Disputes and Appeals

633.203 Applicability.633.211 Contracting officer’s decision.633.214–70 Alternative dispute resolution.633.270 Disputes and appeals under DOS con-

tracts subject to the Contract DisputesAct of 1978.

633.270–1 Scope of section.633.270–2 Designation.633.270–3 DOS support.




540

48 CFR Ch. 6 (10–1–97 Edition)633.102

Subpart 633.1—Protests633.102 General.

All communications relative to pro-tests filed with the General AccountingOffice (GAO) or the General ServicesAdministration Board of Contract Ap-peals (GSBCA) shall be coordinatedwith the Office of the Legal Adviser.

633.103 Protests to the agency.For protests filed with the Depart-

ment and received before award, thecontracting office shall obtain the ad-vice of the Office of the Legal Adviserbefore making the determination pre-scribed in FAR 33.103(a).

633.104 Protests to GAO.(a) General. (1) Upon being tele-

phonically advised by the GAO of thereceipt of a protest, before or afteraward, the Office of the Legal Advisershall inform the appropriate head ofthe contracting activity, who shall im-mediately notify the contracting offi-cer. For protests concerning ADP ac-quisitions, the Office of the Legal Ad-viser shall also inform the Deputy As-sistant Secretary for Information Man-agement. After receiving a copy of theprotest from GAO and its request foran administrative report, the Office ofthe Legal Adviser shall promptly pro-vide the same to the head of the con-tracting activity involved, who shallpromptly provide a copy to the con-tracting officer and request a writtenreport in conformance with FAR33.104(a)(2).

(2) In addition to the requirements inFAR 33.104(a)(2), the report responsiveto the protest shall be appropriately ti-tled and dated, shall cite the GAO filenumber, and shall be prepared andsigned by the contracting officer. Thecontracting officer shall prepare thereport with the assistance of the Officeof the Legal Adviser. If appropriate,the report shall contain a statementregarding any urgency for the acquisi-tion and the extent to which a delay inaward may result in significant per-formance difficulties or additional ex-pense to the Government. If award isnot urgent, the report shall include anestimate of the length of time anaward may be delayed without signifi-cant expense or difficulty in perform-

ance. The head of the contracting ac-tivity shall submit to the Office of theLegal Adviser an original and two com-plete copies of the contracting officer’sreport. The contracting officer shallprovide one complete copy to each in-terested party who responded to GAO,to the contracting officer, or to the Of-fice of the Legal Adviser pursuant tothe notification prescribed in para-graph (a)(3) below. In submitting thereport to GAO, the Office of the LegalAdviser shall identify all parties towhom the report has been furnished.

(3) As prescribed in FAR 33.104(a)(3)and 4 CFR 21.3, the contracting officershall promptly notify all interestedparties, including offerors (or the con-tractor if the protest is after award) in-volved in or affected by the protest,that a protest has been filed with theGAO and the basis for the protest. Thecontracting officer shall place a writ-ten record of such notifications in thecontract file. The contracting officershall promptly transmit by letter acopy of the protest to all interestedparties previously notified and includea statement requiring furnishing ofviews and information directly to theGAO. The contracting officer shall sendcopies of such cover letters concur-rently to the Office of the Legal Ad-viser. Cover letters shall contain aspecified period of time for submissionof comments, in accordance with FAR33.104(a)(3), and include instructionsthat any comments submitted to theGAO should also be submitted simulta-neously to the contracting officer andthe Office of the Legal Adviser. Mate-rials submitted by the protester maybe withheld from interested parties inaccordance with 4 CFR 21.3(b).

(4) All DOS personnel shall handleprotests on a priority basis. If the spe-cific circumstances of the protest re-quire a longer period than allowedunder FAR 33.104(a)(3), the head of thecontracting activity shall immediatelynotify the Office of the Legal Adviser,which shall prepare a written requestfor extension of the period in accord-ance with 4 CFR 21.3(d). The head ofthe contracting activity shall deliverthe protest report to the Office of theLegal Adviser within 15 work daysfrom the date of telephonic notifica-tion by the Office of the Legal Adviser.


541


For reports involving use of the 10work day express option provided atFAR 33.104(a)(4), the Office of the LegalAdviser shall establish the report deliv-ery date after consultation with thehead of the contracting activity.

(b) Protests before award. If a protestbefore award has been filed with GAOand the contracting officer determinesin writing that it is necessary to makeaward under the circumstances pre-scribed in FAR 33.104(b)(1), the con-tracting officer shall first obtain ad-vice from the Office of the legal Ad-viser. The contracting officer shall sub-mit the written determination to thehead of the contracting activity for ap-proval.

(f) Notice to GAO. The authority tosubmit the report prescribed in FAR33.104(f) is delegated, without power ofredelegation, to the head of the con-tracting activity. The report shall besubmitted to the Comptroller Generalthrough the Office of the Legal Ad-viser.


633.105 Protests to GSBCA.(a) Upon receipt of a copy of a protest

to GSBCA, the contracting officer orthe official designated in the solicita-tion shall immediately notify the Of-fice of the Legal Adviser and the Dep-uty Assistant Secretary for Informa-tion Management. The contracting of-ficer is responsible for compliance withthe requirements in FAR 33.105(a)(2).The contracting officer shall include inthe contract file a record of such noti-fications to all parties and related cor-respondence with GSBCA. The con-tracting officer shall provide to the Of-fice of the Legal Adviser a copy of thelist of interested parties notified, si-multaneously with submission of thelist to the GSBCA.

(b) The contracting officer shall sub-mit to the Office of the Legal Adviseran original and two copies of the pro-test file, documented in conformancewith FAR 33.105(b), within 8 work daysafter the filing of a protest. The con-tracting officer also shall provide acomplete copy of the file to the pro-tester and all other interested partieswithin 10 work days after filing of theprotest. The protest file shall be orga-

nized to comply with the requirementsof Rule 4(b) of the GSBCA Rules of Pro-cedure (48 CFR Ch. 61). The Office ofthe Legal Adviser shall then submitthe file to the GSBCA within 10 workdays after filing of the protest.

(c) The Office of the Legal Advisershall represent the contracting officerat any hearing on suspension of theagency’s delegation of procurement au-thority or at any hearing on the meritsof the protest. The Office of the LegalAdviser shall notify the contracting of-ficer and the Deputy Assistant Sec-retary for Information Management ofthe results of any hearing.

(d) The authority to execute the de-termination and findings (D&F) pre-scribed in FAR 33.105(d)(2) is delegated,without power of redelegation, to thehead of the contracting activity.


Subpart 633.2—Disputes andAppeals

633.203 Applicability.The Procurement Executive is the

agency head for the purposes of FAR33.203(b).

633.211 Contracting officer’s decision.(a) In the second sentence of FAR

33.211(a)(4)(v), contracting officers shallreplace ‘‘the Board of Contract Ap-peals’’ with ‘‘Armed Services Board ofContract Appeals, Skyline 6, 5109 Lees-burg Pike, Falls Church, VA 22041.’’

(b) Prior to issuing a contracting of-ficer’s final decision, the contractingofficer shall obtain assistance, as ap-propriate, from the Office of the LegalAdviser.

633.214–70 Alternative dispute resolu-tion.

(a) Policy. The Department’s goal isto resolve contract disputes before theissuance of a contracting officer’s finaldecision under the Contract DisputesAct. Contracting officers shall considerall possible means of reaching a nego-tiated settlement, consistent with theGovernment’s best interests, beforeissuing a final decision on a contractorclaim under the process outlined inFAR 33.206 through 33.211.


542

48 CFR Ch. 6 (10–1–97 Edition)633.214–70

(b) When to use ADR. (1) Factors favor-ing ADR. Contracting officers shouldconsider using ADR in those caseswhere:

(i) Only facts are in dispute;(ii) The facts are clearly not favor-

able to the Government;(iii) The anticipated costs (in time

and money) are less than the antici-pated costs of litigation;

(iv) Settlement attempts havereached an impasse;

(v) ADR techniques have been usedsuccessfully in similar situations;

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

(vii) The claim has merit but itsvalue is overstated.

(2) Factors disfavoring ADR. The fol-lowing circumstances do not favor useof ADR:

(i) Cases involving disputes con-trolled by clear legal precedent, mak-ing compromise difficult;

(ii) The resolution will have a signifi-cant impact on other pending cases oron the future conduct of Departmentbusiness;

(iii) The dispute is primarily overissues of law;

(iv) A decision of precedential valueis needed;

(v) A significant policy question isinvolved;

(vi) A full public record of the pro-ceeding is important;

(vii) The outcome could significantlyinvolve persons who are not parties tothe contract;

(viii) The costs of pursuing an ADRprocedure (in time and money) exceedthe cost of litigation;

(ix) The nature of the case may causeADR to be used merely for delay or dis-covery; or,

(x) The case involves criminal viola-tions.

(3) Initial action. Immediately uponreceipt of a claim, the contracting offi-cer shall send a letter acknowledgingreceipt of the claim and soliciting thecontractor’s views on submitting thisclaim for ADR. In every dispute, thefirst step toward resolution shall beunassisted negotiations, in which theparties try to work out the disagree-ment among themselves. If this fails,before issuing a final decision, the con-tracting officer shall consult first with

the head of the contracting activity,and contact the Office of the Legal Ad-viser and A/OPE to determine whetherthe disagreement appears susceptibleto resolution by ADR. Considerationshall be given to pursuing additionalfact-finding or designating a neutralexpert in the disputed issue to providean advisory opinion.

(c) Methods of ADR. If the initial ac-tion to resolve the dispute fails, andthe contracting officer issues a finaldecision which is appealed, ADR maystill be feasible. The ASBCA issues anotice regarding ADR to all contrac-tors who file appeals under the Con-tract Disputes Act. This notice de-scribes the following ADR techniques,which contracting officers are urged todiscuss with contractors at any time:

(1) Settlement judge. A settlementjudge is either an administrative judgeor hearing examiner who is appointedby the parties in dispute for the pur-pose of facilitating settlement. Theagenda is flexible and based on the spe-cifics of the individual dispute. Byholding a frank, in-depth discussion ofthe strengths and weaknesses of eachparty’s position, the settlement judgemay be able to foster a settlement ofthe dispute. The settlement judge maymeet with the parties jointly or indi-vidually, and the settlement judge’srecommendations are not binding.Typically, the settlement judge’s opin-ions, based on his or her experience inhandling prior disputes, will help theparties realize whether their argu-ments have merit or not.

(2) Minitrial. A minitrial is not an ac-tual trial but rather a flexible, expe-dited, but structured procedure inwhich each party presents an abbre-viated version of its position both to aneutral advisor (who may be appointedby the ASBCA) and to principals of theparties who have full contractual au-thority to conclude a settlement. Theparties mutually decide on the form ofpresentation without regard to tradi-tional judicial proceedings or rules ofevidence. An advance agreement by theparties specifies the procedure to befollowed in making presentations, aswell as the role of the neutral advisor.Upon conclusion of the presentations,settlement negotiations are conducted.


543


The neutral advisor may assist the par-ties in negotiating settlement, includ-ing making non-binding recommenda-tions.

(3) Summary trial with binding decision.A summary trial with binding decisionis a procedure in which the schedulingof an appeal is expedited and the par-ties try their appeal informally beforean administrative judge or panel ofjudges. The length of the trial and thetime for presentation and decision aretailored to the needs of the particularcase. Trial procedures and rules appli-cable to appeals are modified or elimi-nated to expedite resolution of the ap-peal. The parties must agree, however,that all decisions, rulings, and ordersby the judge(s) are final, conclusive,and not appealable, and may not be setaside, except for fraud. A summary‘‘bench’’ decision is issued at the con-clusion of the trial or a summary writ-ten decision will be issued within ten(10) days of either the trial’s conclusionor receipt of a trial transcript.

(4) Mediation. Mediation is a processin which a neutral and impartial thirdparty assists the Government and thecontractor in conflict to negotiate anacceptable settlement of contestedissues. The mediator is jointly selectedand is asked by the disputing parties toassist them to reach a voluntary agree-ment. The mediator has no decision-making authority and cannot impose adecision. Mediation assistance involvesworking with the parties to improvetheir communications, clarify or inter-pret data, identify key issues to be dis-cussed, design an effective negotiationprocess, generate settlement options,or help to identify or formulate areasof agreement. Additional informationis available in Army Corps of EngineersIWR Pamphlet 91–ADR–P–3, Mediation,September 1991; and AdministrativeConference of the U.S., Mediation: APrimer for Federal Agencies, availablefrom A/OPE.

(5) Arbitration. Non-binding arbitra-tion is a process in which a dispute isjointly submitted by the Governmentand a contractor to an impartial andneutral person or panel who provides awritten, non-binding opinion used as aguide for negotiations toward a settle-ment. Although the AdministrativeDispute Resolution Act of 1990 (Pub. L.

101–552) allows agencies to use bindingarbitration, the law provides that theagency head may vacate any arbitra-tion award within 30 days after it isserved on all parties. For this reason,non-binding arbitration is preferable.Additional information is available inArmy Corps of Engineers IWR Pam-phlet 91–ADR–P–2, Non-Binding Arbi-tration, September 1990, available fromA/OPE.

(6) Partnering. Partnering involves anagreement in principle to share therisks involved in completing a project,and to establish and promote a part-nership environment. Partnering itselfis not a contractual agreement and itdoes not create any legally enforceablerights, but instead partnering seeks tocreate a new cooperative attitude incompleting Government contracts. Thethree basic steps in partnering are:

(i) Establish the new relationshipthrough personal contact among theprincipals for the Government and thecontractor before the work begins;

(ii) Prepare a joint statement ofgoals establishing common objectivesin specific detail for reaching thegoals; and,

(iii) Identify specific dispute preven-tion processes designed to head offproblems, evaluate performance, andpromote cooperation. Additional infor-mation is available in Army Corps ofEngineers IWR Pamphlet 91–ADR–P–4,Partnering, December 1991, availablefrom A/OPE.

(d) ADR procedures. The ADR methodshall be selected voluntarily by boththe Government and the contractor.Both parties shall agree on the proce-dures to be followed, including theagenda and amount of time allowed foreach party to present its case. The par-ties may choose not to have a writtentranscript or hearing on the record, asthis might inhibit settlement. Also,the decision rendered, if any, shouldnot be considered to establish anyprecedent for future litigation unlessthe parties agree otherwise. In caseswhere the parties agree to pay jointlyfor a third-party neutral advisor, it isrecommended that the parties and theadvisor agree on a fair and reasonableprice. The Government would thenissue a simplified acquisition (if the


544

48 CFR Ch. 6 (10–1–97 Edition)633.270

dollar amount does not exceed the sim-plified acquisition limitation) for 50%of the agreed price, and the advisorwould submit separate invoices (eachfor 50% of the price) to the Governmentand the contractor.

[59 FR 66764, Dec. 28, 1994]

633.270 Disputes and appeals underDOS contracts subject to the Con-tract Disputes Act of 1978.

633.270–1 Scope of section.This section concerns disputes relat-

ing to DOS contracts and the transferof certain appellate and review func-tions from the Department of State tothe Armed Services Board of ContractAppeals.

633.270–2 Designation.The Armed Services Board of Con-

tract Appeals (ASBCA) is the author-

ized representative of the Secretary ofState and the Procurement Executivefor the purposes of hearing and resolv-ing disputes relating to DOS contractssubject to the Contract Disputes Act of1978. The ASBCA shall hear and deter-mine appeals by contractors from con-tracting officers’ final decisions on dis-puted issues relating to DOS contractssubject to the Contract Disputes Act of1978.

633.270–3 DOS support.

The Procurement Executive shall en-sure the support of all DOS personnelin processing appeals before theASBCA. The Procurement Executive isauthorized to require such DOS officersand employees to cooperate for thispurpose.


545

SUBCHAPTER F—SPECIAL CATEGORIES OF CONTRACTING

PART 634—MAJOR SYSTEMACQUISITION

Sec.634.001 Definitions.634.001–70 Supplemental definitions.634.002 Policy.634.003 Responsibilities.634.005 General requirements.634.005–6 Full production.



634.001 Definitions.Major system:(a) The definition of ‘‘major system’’

in OMB Circular No. A–109, Major Sys-tem Acquisitions (A–109), provides noexclusions; however, FAR 34.001 ex-cludes from the definition of ‘‘majorsystem’’ construction or other im-provements to real property. Acquisi-tion of capital project systems by theOffice of Foreign Buildings, whichwould otherwise be subject to the re-quirements of A–109 are thus exemptedfrom these requirements. Under sepa-rate authority, the DOS has other ex-isting controls that provide the nec-essary review, approval, and monitor-ing procedures to manage capitalproject systems acquisitions by the Of-fice of Foreign Buildings.

(b) Pursuant to A–109 and paragraph(b) of the definition of ‘‘major system’’prescribed in FAR 34.001, any DOS sys-tem shall be considered a major systemif total acquisition costs with privateindustry are expected to equal or ex-ceed $30,000,000.

(c) The acquisition executive is theUnder Secretary for Management forthe purposes of paragraph (c) of thedefinition of ‘‘major system’’ pre-scribed in FAR 34.001. The acquisitionexecutive is authorized to designate asa major system acquisition any DOSsystem not expected to meet or exceedthe $30,000,000 threshold identified inparagraph (b) above; provided, that thedetermination shall be made in accord-ance with the requirements of A–109,FAR Part 34, and this part 634.

(d) Classification as a major systemacquisition is independent of the num-

ber of component DOS contracting ac-tivities involved in the process. Amajor system acquisition may occurentirely within the jurisdiction of asingle contracting activity or it mayinvolve more than one DOS contract-ing activity.

(e) Each major system acquisitionshall be in response to a need of one ofthe DOS major missions, which areidentified in volume 1 of the ForeignAffairs Manual System.


634.001–70 Supplemental definitions.

Section five of A–109 defines severalterms in addition to those defined inFAR 34.001.

Major Acquisition Program Office (A/IM/MAPO) is located within the Officeof Information Management. It hasmanagerial and operational respon-sibilities relative to all major informa-tion resource acquisitions.


634.002 Policy.

The objective of A–109 is to assure ef-fectiveness and efficiency in acquiringmajor systems. Section six of A–109provides general policy guidelines inaddition to those prescribed in FAR34.002.

634.003 Responsibilities.

(a) The Procurement Executive is theagency head’s designee for the purposesof FAR 34.003(a). Written proceduresfor acquiring Federal InformationProcessing (FIP) resources by A/IM/MAPO are contained in the ‘‘SourceSelection Procedures Guide’’, issued bythat Office.

(b) The Under Secretary for Manage-ment is the agency head for the pur-poses of FAR 34.003(c) and the acquisi-tion executive for the purposes of A–109.



546

48 CFR Ch. 6 (10–1–97 Edition)634.005

634.005 General requirements.

634.005–6 Full production.The Deputy Secretary is the agency

head for the purposes of FAR 34.005–6.

[59 FR 66766, Dec. 28, 1994]

PART 636—CONSTRUCTION ANDARCHITECT-ENGINEER CONTRACTS


Sec.636.101 Applicability.636.101–70 Exception.

Subpart 636.2—Special Aspects ofContracting for Construction

636.209 Construction contracts with archi-tect-engineer firms.

Subpart 636.6—Architect-Engineer Services

636.602 Selection of firms for architect-engi-neer contracts.

636.602–4 Selection authority.636.602–5 Short selection processes for con-

tracts not to exceed the simplified acqui-sition threshold.



Subpart 636.1—General636.101 Applicability.

636.101–70 Exception.Contracts for overseas construction,

including capital improvements, alter-ations, and major repairs, may be ex-cepted from the provisions of the FAR(48 CFR Ch. 1) under the authority ofthe Foreign Service Buildings Act,1926, as amended, 22 U.S.C. 292 et seq.,as further codified at section 474 ofTitle 40, Public Buildings, Property,and Works, of the U.S. Code.


Subpart 636.2—Special Aspects ofContracting for Construction

636.209 Construction contracts witharchitect-engineer firms.

The Procurement Executive is thehead of the agency for the purposes ofFAR 36.209.

Subpart 636.6—Architect-EngineerServices

636.602 Selection of firms for archi-tect-engineer contracts.

636.602–4 Selection authority.(a) The final selection decision shall

be made as designated by the DeputyAssistant Secretary for Foreign Build-ings Operations for acquisitions issuedby that office; the Director, MoscowEmbassy Buildings Control Office, forMoscow chancery building(s) only; and,the appropriate head of the contractingactivity for all other actions.

[59 FR 66766, Dec. 28, 1994]

636.602–5 Short selection processes forcontracts not to exceed the sim-plified acquisition threshold.

The short selection process describedin FAR 36.602–5 is authorized for use forcontracts not expected to exceed thesimplified acquisition threshold.


PART 637—SERVICE CONTRACTING

Subpart 637.1—Service Contracts—General

Sec.637.103 Contracting officer responsibility.637.104 Personal services contracts.637.104–70 DOS personal services contracts.637.106 Funding and term of service con-

tracts.637.110 Solicitation provisions and contract

clauses.



Subpart 637.1—ServiceContracts—General

637.103 Contracting officer respon-sibility.

The Office of the Legal Adviser is theDOS legal counsel for the purposes ofFAR 37.103(a)(2).

637.104 Personal services contracts.The Office of the Legal Adviser is the

DOS legal counsel for the purposes ofFAR 37.104(e).


547


637.104–70 DOS personal services con-tracts.

Pursuant to FAR 37.104(b), DOS stat-utory authorities for personal servicescontracts are—

(a) For the Department, section 2(c)of the State Department Basic Au-thorities Act of 1956, as amended (22U.S.C. 2669);

(b) For the Bureau of Population,Refugees, and Migration, section 5(a)(6)of the Migration and Refugee Assist-ance Act of 1962, as amended (22 U.S.C.2605);

(c) For the Bureau for InternationalNarcotics and Law Enforcement Af-fairs, section 636(a)(3) of the ForeignAssistance Act of 1961, as amended (22U.S.C. 2396);

(d) For the Foreign Service Institute,section 704(a)(4) of the Foreign ServiceAct of 1980, as amended (22 U.S.C. 4024);

(e) For the Office of Foreign Mis-sions, section 208(d) of Title II—Au-thorities Relating to the Regulation ofForeign Missions, of the State Depart-ment Basic Authorities Act of 1956, asamended (22 U.S.C. 4308);

(f) For the Office of Foreign Build-ings and the Moscow Embassy ControlOffice, section 5 of the Foreign ServiceBuildings Act, 1926, as amended (22U.S.C. 296);

(g) For the U.S. Mission to theUnited Nations, section 7 of the UnitedNations Participation Act of 1945, asamended (22 U.S.C. 287e); and

(h) For the Bureau of InternationalOrganization Affairs, the separateState Department appropriations acts.


637.106 Funding and term of servicecontracts.

The Department’s statutory author-ity for authorizing contracts for serv-

ices funded by annual appropriations tobe performed in two fiscal years, if thetotal amount for such contracts is obli-gated in the earlier fiscal year, is 22U.S.C. 2696(e). See DOSAR 632.703–3.

[59 FR 66766, Dec. 28, 1994]

637.110 Solicitation provisions andcontract clauses.

(a) The contracting officer shall in-sert the clause at 652.237–70, Compen-satory Time Off, in personal servicescontracts awarded in support of Inter-national Narcotics Control programsoverseas, if the contracting officer de-termines its use appropriate.

(b) The contracting officer shall in-sert the clause at 652.237–71, Identifica-tion/Building Pass, in all solicitationsand contracts where contractor person-nel require frequent and continuing ac-cess to Department of State facilities.

(c) The contracting officer shall in-sert a clause substantially the same asthe clause at 652.237–72, Observance ofLegal Holidays and AdministrativeLeave, in all solicitations and con-tracts where contractor personnel willbe working on-site in any Departmentof State facility.

[59 FR 66766, Dec. 28, 1994]

PART 639—ACQUISITION OFINFORMATION RESOURCES


639.001–70 Policy.

(a) The Assistant Secretary of Statefor Administration is the Department’sDesignated Senior Official as defined inthe Federal Information ResourcesManagement Regulation (FIRMR) 201–39.201.

[59 FR 66766, Dec. 28, 1994]


548

SUBCHAPTER G—CONTRACT MANAGEMENT

PART 642—CONTRACTADMINISTRATION

Subpart 642.2—Assignment of ContractAdministration

Sec.642.270 Contracting Officer’s Representative

(COR).642.271 DOSAR contract clause.

Subpart 642.6—Corporate AdministrativeContracting Officer

642.602 Assignment and location.

Subpart 642.14—Traffic and TransportationManagement

642.1406–2 Contract clause.642.1406–2 –70 DOSAR contract clauses.



Subpart 642.2—Assignment ofContract Administration

642.270 Contracting Officer’s Rep-resentative (COR).

(a) Scope. Contracting officers maydesignate technically qualified person-nel as their authorized representativesto assist in the administration of con-tracts. This section is mandatory fordomestic contracting activities andrecommended for overseas contractingactivities.

(b) Policy. It is Department policythat only Department of State employ-ees who have completed adequatetraining and have the necessary experi-ence and judgment shall be appointedas CORs. This policy shall be reinforcedby contracting officers and adminis-tered jointly by A/OPE and FSI. Re-quired training shall be funded by theCOR’s office.

[59 FR 66766, Dec. 28, 1994]

642.271 DOSAR contract clause.The contracting officer shall insert a

clause substantially the same as theclause at 652.242–70, Contracting Offi-cer’s Representative, in solicitationsand contracts when appointment of a

contracting officer’s representative isanticipated.


Subpart 642.6—CorporateAdministration Contracting Officer642.602 Assignment and location.


Subpart 642.14—Traffic andTransportation Management

642.1406–2 Contract clause.

642.1406–2–70 DOSAR contractclauses.

(a) The contracting officer shall in-sert the clause at 652.242–71, Notice ofShipment, in solicitations and con-tracts entered into and performed out-side the United States, when overseasshipment of supplies is required.

(b) The contracting officer shall in-sert the clause at 652.242–72, ShippingInstructions, in solicitations and con-tracts with a source in the UnitedStates and overseas shipment of sup-plies is required.

PART 643—CONTRACTMODIFICATIONS


Subpart 643.1—General643.102 Policy.

643.102–70 Contract compliance andreview.

(a) When applicable, the contractingofficer shall ensure the proposed con-tract modification complies with thecompetition requirements of FAR Part6 and DOSAR Part 606.

(b) Subpart 604.70 prescribes the re-view requirements for modifying con-tracts for supplies and services, includ-ing construction. The contracting offi-cer shall submit such contract modi-fications to A/OPE when:


549


(i) The modification itself exceedsthe thresholds established in604.7002(a);

(ii) The modification will cause thecontract to exceed the thresholds es-tablished in 604.7002(a); or,

(iii) Any proposed change under themodification results in an increase ordecrease exceeding the thresholds in604.7002(a) in any of the individual costelements of the existing contract.


PART 645—GOVERNMENTPROPERTY

Subpart 645.3—Providing GovernmentProperty to Contractors

Sec.645.302 Providing facilities.645.302–1 Policy.

Subpart 645.6—Reporting, Redistribution,and Disposal of Contractor Inventory

645.608 Screening of contractor inventory.645.608–6 Waiver of screening requirements.645.610 Sale of surplus contractor inventory.645.610–2 Exemptions from sale by GSA.



Subpart 645.3—Providing Govern-ment Property to Contractors

645.302 Providing facilities.

645.302–1 Policy.

The authority to make the deter-mination prescribed in FAR 45.302–1(a)(4) is delegated, without power ofredelegation, to the head of the con-tracting activity (see 601.603–70).

Subpart 645.6—Reporting, Redis-tribution, and Disposal of Con-tractor Inventory

645.608 Screening of contractor inven-tory.

645.608–6 Waiver of screening require-ments.


645.610 Sale of surplus contractor in-ventory.

645.610–2 Exemptions from sale byGSA.

The Procurement Executive is theagency head for the purposes of FAR45.610–2(a).

PART 646—QUALITY ASSURANCE


Subpart 646.7—Warranties


646.710–70 DOSAR contract clause.

The contracting officer shall insertthe clause at 652.246–70, CommercialWarranty, in solicitations and con-tracts for commercial supplies or serv-ices awarded and performed outside theUnited States.

[53 FR 26177, July 11, 1988]

PART 647—TRANSPORTATION



The FAR and DOSAR do not apply tothe acquisition of transportation serv-ices via Government bill of lading(GBL) or other similar forms.

[59 FR 66767, Dec. 28, 1994]

PART 648—VALUE ENGINEERING

AUTHORITY: 22 U.S.C. 2658; 40 U.S.C. 486(c);48 CFR 1.3.


550

48 CFR Ch. 6 (10–1–97 Edition)648.102

Subpart 648.1—Policies andProcedures

648.102 Policies.(a) The authority to grant exemp-

tions prescribed in FAR 48.102(a), or toextend future contract savings or shar-ing pursuant to FAR 48.102(g), is dele-gated, without power of redelegation,to the head of the contracting activity(see 601.603–70).

[55 FR 5775, Feb. 16, 1990]

Subpart 648.2—Contract Clauses648.201 Clauses for supply or service

contracts.The authority to determine exemp-

tions prescribed in FAR 48.201(a)(6) isdelegated, without power of redelega-tion, to the head of the contracting ac-tivity.

[55 FR 5775, Feb. 16, 1990]

PART 649—TERMINATION OFCONTRACTS


Subpart 649.1—General Principles.

649.106 Fraud or other criminal con-duct.

If the Termination Contracting Offi-cer (TCO) suspects fraud or othercriminal conduct related to the settle-ment of a terminated contract, theTCO shall discontinue negotiations andreport the facts to the Office of the In-spector General.

[59 FR 66767, Dec. 28, 1994]

649.111 Review of proposed settle-ments.

All proposed termination settlementsshall be reviewed and approved by the

Office of the Legal Adviser for legalsufficiency. In addition,

(a) All proposed termination settle-ments from domestic contracting ac-tivities shall be approved by the headof the contracting activity; and,

(b) All proposed termination settle-ments from overseas contracting ac-tivities shall be approved by the Pro-curement Executive.

[59 FR 66767, Dec. 28, 1994]

PART 651—USE OF GOVERNMENTSOURCES BY CONTRACTORS


Subpart 651.70—Contractor Use ofTravel Advances, OfficialTravel Orders, and Govern-ment Travel Requisitions

651.701 Policy.(a) It is the Department’s policy that

contractors shall not:(1) Receive travel advances from the

Department for contract-related trav-el;

(2) Travel under official travel or-ders; or,

(3) Receive Government Travel Req-uisitions (GTRs) for transportation.

(b) All contract-related travel shallbe performed on the contractor’s ac-count with reimbursement providedafter submission of a proper voucher.

(c) This policy does not apply to per-sonal services contractor; provided,that such contractors are paid throughthe Department’s payroll system andthey are subject to the standard pay-roll deductions of Federal WithholdingTax and FICA. It also does not apply tocontracts awarded by the Office of Lan-guage Services (A/OPR/LS).

[59 FR 66767, Dec. 28, 1994]


551

SUBCHAPTER H—CLAUSES AND FORMS

PART 652—SOLICITATION PROVI-SIONS AND CONTRACT CLAUSES


Subpart 652.1—Instructions for UsingProvisions and Clauses

652.100 Scope of subpart.652.100–70 Policy.652.102 Incorporating provisions and

clauses.652.102–1 Incorporation by reference.

Subpart 652.2—Texts of Provisions andClauses

652.200 Scope of subpart.652.203–70 Prohibition Against the Use of

Federal Employees.652.203–71 Certification Regarding Federal

Employment.652.204–70 Security Requirements.652.204–71 Security Requirements—Person-

nel.652.206–70 Competition Advocacy/Ombuds-

man.652.214–70 Notices.652.214–71 Authorization to Perform.652.216–70 Ordering—Indefinite-Delivery

Contract.652.216–71 Price Adjustment.652.219–70 Department of State Sub-

contracting Goals.652.223–70 Estimates of the Total Percent-

age of Recovered Materials to be Utilizedin the Performance of the Contract.

652.223–71 Certification of Minimum Con-tent Actually Utilized in the Perform-ance of the Contract.

652.223–72 Use of Double-Sided Copying inthe Submissions of Bids or Proposals.

652.223–73 Use of Double-Sided Copying inthe Submission of Reports.

652.223–74 Use of Fly Ash as a Partial Re-placement for Cement and Concrete.

652.223–75 Use of Recovered Materials inBuilding Insulation Products.

652.223–76 Use of Lubricating Oils Contain-ing Re-Refined Oils.

652.223–77 Use of Retread Tires.652.223–78 Use of Recovered Materials in

Paper and Paper Products.652.228–70 Indemnification.652.228–71 Worker’s Compensation Insurance

(Defense Base Act)—Services.652.228–72 Worker’s Compensation Insurance

(Defense Base Act)—Construction.652.228–73 Waiver of the Defense Base Act.652.228–74 Defense Base Act Insurance

Rates—Limitation—Services.

652.228–75 Defense Base Act InsuranceRates—Limitation—Construction.

652.228–76 Defense Base Act InsuranceRates—Limitation—Cost-Reimburse-ment.

652.228–77 Defense Base Act InsuranceRates—Limitation—Labor-Hour andTime-and-Materials.

652.229–70 Excise Tax Exemption Statementfor Contractors Within the UnitedStates.

652.232–70 Payment Schedule and InvoiceSubmission (Fixed-Price).

652.232–71 Voucher Submission (Cost-Reim-bursement).

652.237–70 Compensatory time off.652.237–71 Identification/Building Pass.652.237–72 Observance of Legal Holidays and

Administrative Leave.652.242–70 Contracting Officer’s Representa-

tive (COR).652.242–71 Notice of Shipments.652.242–72 Shipping Instructions.652.246–70 Commercial Warranty.




This part sets forth solicitation pro-visions and contract clauses, in addi-tion to those prescribed in FAR Part52, for use in DOS acquisitions.

Subpart 652.1—Instructions forUsing Provisions and Clauses


652.100–70 Policy.

(a) The solicitation provisions andcontract clauses in FAR Subpart 52.2 orthis Subpart 652.2 shall be used as pre-scribed therein, except when the use ofany provision or clause is prohibited byor inconsistent with local laws, or thesupplies or services could not be ob-tained if the provision or clause wereto be included.

(b) The contracting officer shall jus-tify the exclusion of any provisions orclauses in accordance with FAR Sub-part 1.4 and 601.470.


552

48 CFR Ch. 6 (10–1–97 Edition)652.102

652.102 Incorporating provisions andclauses.

652.102–1 Incorporation by reference.The Procurement Executive is the

agency head for the purposes of FAR52.102–1(a)(2)(ii).

Subpart 652.2—Texts of Provisionsand Clauses

652.200 Scope of subpart.This subpart sets forth the text of all

DOSAR provisions and clauses, and foreach provision and clause provides across-reference to the location in theDOSAR that prescribes its use.

652.203–70 Prohibition Against the Useof Federal Employees.

As prescribed in 603.670, insert thefollowing clause:

PROHIBITION AGAINST THE USE OF FEDERALEMPLOYEES (DEC 1994)

In accordance with Federal AcquisitionRegulation 3.601, contracts are not to beawarded to Federal employees or a businessconcern or other organization owned or sub-stantially owned or controlled by one ormore Federal employees. For the purposes ofthis contract, this prohibition against theuse of Federal employees includes any workperformed by the contractor or any of itsemployees, subcontractors, or consultants.(End of clause)

[59 FR 66767, Dec. 28, 1994]

652.203–71 Certification RegardingFederal Employment.

As prescribed in 603.670, insert thefollowing provision:

CERTIFICATION REGARDING FEDERALEMPLOYMENT (DEC 1994)

By submitting an offer, the offeror herebycertifies that it is not owned or substantiallyowned or controlled by one or more Federalemployees.(End of provision)

[59 FR 66767, Dec. 28, 1994]

652.204–70 Security Requirements.As prescribed in 604.404–70, insert the

following clause in solicitations andcontracts performed outside the UnitedStates to the extent the contract in-volves access to classified information(‘‘Confidential,’’ ‘‘Secret,’’ or ‘‘Top Se-cret’’) or administratively controlled

information (‘‘Limited Official Use’’).Contractors or contract employeesthat are not U.S. citizens shall nothave access to classified or administra-tively controlled information.

SECURITY REQUIREMENTS (JULY 1988)

(a) This clause applies to the extent thatthis contract involves information the Gov-ernment has determined to be classified(‘‘Confidential,’’ ‘‘Secret,’’ or ‘‘Top Secret,’’hereinafter referred to as ‘‘classified’’) or ad-ministratively controlled (‘‘Limited OfficialUse,’’ hereinafter referred to as ‘‘administra-tively controlled’’).

(b) The Contractor (1) shall be responsiblefor safeguarding all classified or administra-tively controlled information in accordancewith paragraph (d) below and shall not sup-ply, disclose, or otherwise permit any unau-thorized person access to classified or admin-istratively controlled information; (2) shallnot make or permit to be made any repro-ductions of classified information or admin-istratively controlled information, exceptwith the prior written authorization of theContracting Officer, Post Security Officer, orRegional Security Officer; (3) shall submit tothe Contracting Officer, at such times as theContracting Officer may direct, an account-ing of all reproductions of classified or ad-ministratively controlled information; and(4) shall not incorporate in any other projectany matter which will disclose classified oradministratively controlled information ex-cept with the prior written authorization ofthe Contracting Officer.

(c) The Contractor shall not permit anynon-U.S. citizen access to classified or ad-ministratively controlled information. TheContractor shall not permit any individualaccess to classified information without theprior written authorization of the Contract-ing Officer, Post Security Officer, or Re-gional Security Officer.

(d) The Contractor shall follow the proce-dures for classifying, marking, handling,transmitting, disseminating, storage, and de-stroying official materials in accordancewith the Uniform Regulations (Foreign Af-fairs Manual, Volume 5, Chapter 900, ‘‘Policyand Procedural Security’’). The ContractingOfficer, Post Security Officer, or RegionalSecurity Officer shall provide a copy of thisdocument to the Contractor. The Contract-ing Officer shall provide any supplements tothese regulations to the Contractor in writ-ing.

(e) The Contractor agrees to submit imme-diately to the Contracting Officer, Post Se-curity Officer, a complete detailed report,appropriately classified, of any informationwhich the Contractor may have concerningexisting or threatened espionage, sabotage,or subversive activity.


553


(f) The Government agrees that when nec-essary it shall indicate by security classi-fication or administratively controlled des-ignation the degree of importance to the na-tional security of information to be fur-nished by the Contractor to the Governmentor by the Government to the Contractor. TheGovernment shall give written notice to theContractor of such security classification oradministratively controlled designation andof any subsequent changes thereof. The Con-tractor shall rely on any letter or other writ-ten instrument signed by the Contracting Of-ficer changing a security classification oradministratively controlled designation ofinformation.

(g) The Contractor agrees to certify aftercompletion of this contract that it has sur-rendered or disposed of all classified or ad-ministratively controlled information in itscustody in accordance with applicable secu-rity regulations or instructions.

(End of clause)

652.204–71 Security Requirements—Personnel.

As prescribed in 604.404–70, insert thefollowing clause in solicitations andcontracts performed outside the UnitedStates.

SECURITY REQUIREMENTS—PERSONNEL (JULY1988)

The Contractor agrees, if directed by theContracting Officer, to furnish the Govern-ment with the name, date and place of birth,current address, and such other biographicalinformation as is readily available to theContractor, concerning any individual beforepermitting said individual to perform underthis contract. The Contractor further agreesto permit only those individuals approved bythe Government to be used in the perform-ance of this contract.

(End of clause)

652.206–70 Competition Advocacy/Om-budsman.


COMPETITION ADVOCACY/OMBUDSMAN (DEC1994)

The Department of State’s CompetitionAdvocate is responsible for assisting indus-try in removing restrictive requirementsfrom Department of State solicitations andremoving barriers to full and open competi-tion. If such a solicitation is considered com-petitively restrictive or does not appearproperly conducive to competition and con-tracting practices, potential offerors are en-couraged to first contact the contracting of-

fice for the respective solicitation identifiedelsewhere in this solicitation. If concerns arenot adequately addressed, contact the De-partment of State Competition Advocate on(703) 516–1680, or write to: U.S. Department ofState, Competition Advocate, Office of theProcurement Executive, A/OPE/CA, Suite603, SA–6, Washington, DC 20522–0602.

(End of provision)

[59 FR 66767, Dec. 28, 1994]

652.214–70 Notices.

As prescribed in 614.201–7–70(b), insertthe following clause in solicitationsand contracts entered into and per-formed outside the United States.

NOTICES (DEC 1994)

Any notice or request relating to this con-tract given by either party to the other shallbe in writing. Said notice or request shall bemailed or delivered by hand to the otherparty at the address provided in the scheduleof the contract. All modifications to the con-tract must be made in writing by the Con-tracting Officer.

(End of clause)

[53 FR 26177, July 11, 1988. Redesignated andamended at 59 FR 66767, Dec. 28, 1994]

652.214–71 Authorization to Perform.

As prescribed in 614.201–7–70(c), insertthe following provisions:

AUTHORIZATION TO PERFORM (DEC 1994)

The Contractor warrants that (a) it has ob-tained authorization to operate and do busi-ness in the country or countries in whichthis contract will be performed; (b) it has ob-tained all necessary licenses and permits re-quired to perform this contract; and (c) itshall comply fully with all laws, decrees,labor standards and regulations of said coun-try or countries during the performance ofthis contract.

(End of provision)

[53 FR 26177, July 11, 1988. Redesignated andamended at 59 FR 66767, Dec. 28, 1994]

652.216–70 Ordering—Indefinite-Deliv-ery Contract.

As prescribed in 616.505–70, insert thefollowing clause in solicitations andcontracts when a definite-quantitycontract, a requirements contract, oran indefinite-quantity contract is con-templated.


554

48 CFR Ch. 6 (10–1–97 Edition)652.216–71

ORDERING—INDEFINITE-DELIVERY CONTRACTS(DEC 1994)

The Government shall use one of the fol-lowing forms to issue orders under this con-tract:

(a) The Optional Form 347, Order for Sup-plies or Services, and Optional Form 348,Order for Supplies or Services Schedule—Continuation; or,

(b) The Optional Form 206, Purchase Order,Receiving Report and Voucher, and OptionalForm 206A, Continuation Sheet.(End of clause)


652.216–71 Price Adjustment.As prescribed in 616.203–4, insert a

clause substantially the same as fol-lows:

PRICE ADJUSTMENT (DEC 1994)

(a) The contract cost may be adjustedbased on increases or decreases in actualcosts of direct service labor which result di-rectly from laws enacted and effective dur-ing the term of this contract by the [insertname of country] Government.

(b) For the contracting officer to considerany request for adjustment, the contractorshall demonstrate in writing:

(1) That the change in the law occurredsubsequent to the award date of the con-tract; and,

(2) That the change in the law could nothave been reasonably anticipated prior tocontract award; and,

(3) How the change in the law directly af-fects the direct cost of direct service laborunder the contract.

(c) The contractor shall present docu-mentation that clearly supports any requestfor adjustment, including the calculation ofthe amount of adjustment requested. Thisdocumentation must identify and providethe appropriate portions of the text of theparticular law from which the request is de-rived.

(d) Any request for adjustment shall becertified by signature by an officer or gen-eral partner of the contractor having overallresponsibility for the conduct of the contrac-tor’s affairs.

(e) No adjustment shall be made to thecontract price that relates to any overhead,fixed costs, profit or fee for the contractor.Only the amount charged to direct servicelabor cost shall be considered by the Govern-ment as basis for contract price adjustments.

(f) No request by the contractor for an ad-justment under this clause shall be allowedif asserted after final payment under thiscontract has been made.

(g) This clause shall only apply to laws en-acted by the [insert name of country] Govern-

ment meeting the criteria set forth above inparagraph (a). No adjustments shall be madedue to currency devaluations fluctuations inexchange rates.

(End of clause)

[59 FR 66768, Dec. 28, 1994]

652.219–70 Department of State Sub-contracting Goals.

As prescribed in 619.708–70, insert aprovision substantially the same as fol-lows:

DEPARTMENT OF STATE SUBCONTRACTING

GOALS (DEC 1994)

(a) The offeror shall provide a Small,Small Disadvantaged and Woman-Owned En-terprise Subcontracting Plan that details itsapproach to selecting and using Small,Small Disadvantaged, and Woman-OwnedBusiness Enterprises as requested by thecontracting officer.

(b) For the fiscal year [insert appropriatefiscal year], the Department’s subcontractinggoals are as follows:

(1) Goal for subcontracting to SB:llllllll

(2) Goal for subcontracting to SDB:llllllll

(3) Goal for subcontracting to SWB:llllllll

(4) Omnibus goals (if applicable):(i) 10% to minority business(ii) 10% to small business

(End of provision)

[59 FR 66768, Dec. 28, 1994]

652.223–70 Estimates of the Total Per-centage of Recovered Materials tobe Utilized in the Performance ofthe Contract.

As prescribed in 623.480(a), insert thefollowing provision:

ESTIMATES OF THE TOTAL PERCENTAGE OF RE-COVERED MATERIALS TO BE UTILIZED IN THE

PERFORMANCE OF THE CONTRACT (DEC 1994)

(a) As required under Section 6002 of theResource Conservation and Recovery Act, anofficer or employee of the offeror shall esti-mate the total percentage of recovered mate-rial to be utilized in the performance of thecontract.

(b) I, (insert name of certifier) am an officeremployee responsible for the preparation ofthis offer and hereby estimate the total per-centage of recovered material to be utilizedin the performance of the contract as fol-lows:


555


ProductEstimate of total percent ofrecovered material to be uti-

lized

(End of provision)

[59 FR 66768, Dec. 28, 1994]

652.223–71 Certification of MinimumContent Actually Utilized in thePerformance of the Contract.

As prescribed in 623.480(b), insert thefollowing clause:

CERTIFICATION OF MINIMUM CONTENT ACTU-ALLY UTILIZED IN THE PERFORMANCE OF THE

CONTRACT (DEC 1994)

(a) As required under Section 6002 of theResource Conservation and Recovery Act, anofficer or employee of the contractor shallexecute the following certification:

I, (insert name of certifier) am an officer oremployee responsible for the performance ofthis contract and hereby certify the follow-ing minimum recovered material contentwas actually utilized in the performance ofthis contract:

Product Percent of minimum recov-ered material actually utilized

(b) The contractor shall submit this cer-tification by January 31 in each year duringthe period of performance of this contract.The period of the certification shall coverthe preceding calendar year.

————————————————————————Signature of the officer or employee

————————————————————————Typed name of officer or employee

————————————————————————Title

————————————————————————Name of company, firm, or organization

————————————————————————Date

(End of clause)

[59 FR 66768, Dec. 28, 1994]

652.223–72 Use of Double-Sided Copy-ing in the Submissions of Bids orProposals.

As prescribed in 623.480(c), insert thefollowing provision:

USE OF DOUBLE-SIDED COPYING IN THE SUB-MISSIONS OF BIDS OR PROPOSALS (DEC 1994)

(a) For the purposes of this provision,‘‘double-sided copying’’ means copying twoone-sided originals on to the front and backside of one sheet of paper.

(b) Unless otherwise stated in the solicita-tion, offerors shall use double-sided copyingto reproduce all bids or proposals in responseto this solicitation.

(End of provision)

[59 FR 66768, Dec. 28, 1994]

652.223–73 Use of Double-Sided Copy-ing in the Submission of Reports.

As prescribed in 623.480(d), insert thefollowing clause:

USE OF DOUBLE-SIDED COPYING IN THESUBMISSION OF REPORTS (DEC 1994)

(a) For the purposes of this clause, ‘‘dou-ble-sided copying’’ means copying two one-sided originals on to the front and back sideof one sheet of paper.

(b) Unless otherwise stated in this contractor otherwise directed by the contracting offi-cer, the contractor shall use double-sidedcopying to reproduce any progress report,draft report, of final report produced underthis contract.

(End of clause)

[59 FR 66769, Dec. 28, 1994]

652.223–74 Use of Fly Ash as a PartialReplacement for Cement and Con-crete.

As prescribed in 623.480(e), insert thefollowing clause:

USE OF FLY ASH AS A PARTIAL REPLACEMENTFOR CEMENT AND CONCRETE (DEC 1994)

The Architect/Engineer shall specify theperformance requirements of the cement andconcrete products required under the con-tract using standard specifications whenavailable. Consistent with such performancespecifications, the Architect/Engineer shallspecify the use of fly ash, a finely dividedresidue resulting from the combustion ofcoal, as a partial replacement for cementand concrete to the maximum extent prac-ticable in accordance with ANSI/ASTMStandards and all applicable codes.

(End of clause)

[59 FR 66769, Dec. 28, 1994]


556

48 CFR Ch. 6 (10–1–97 Edition)652.223–75

652.223–75 Use of Recovered Materialsin Building Insulation Products.

As prescribed in 623.480(f), insert thefollowing clause:

USE OF RECOVERED MATERIALS IN BUILDINGINSULATION PRODUCTS (DEC 1994)

(a) This clause applies to building insula-tion products used in the construction of

ceilings, floors, foundations, and walls, andincludes blanket, board, spray-in place andloose-fill insulations.

(b) The Department’s minimum contentstandard for recovered material in buildinginsulation products is set forth below.

Material type Percent by weight

Cellulose loose-fill and spray on ................................................................ 75% post-consumer recovered material.Perlite composition board ........................................................................... 23% post-consumer recovered paper.Plastic Rigid Foams—polyisocyanurate/polyurethane:

Rigid foam ........................................................................................... 9% recovered material.Foam-in-place ..................................................................................... 5% recovered material.Glass fiber reinforced .......................................................................... 6% recovered material.

Phenolic rigid foam ..................................................................................... 5% recovered material.Rock Wool .................................................................................................. 75% recovered material.

NOTE: The minimum content standards arebased on the weight of the material (not vol-ume) in the insulating core only.

(c) The Architect/Engineer shall include asa design consideration the Department’spreference for the use of building insulationproduced with recovered materials. The Ar-chitect/Engineer shall specify the type ofbuilding insulation products to be supplied,and shall justify in writing the basis of theselected product type if it is listed above, orif any product listed above has a higher min-imum content standard than the selectedproduct.(End of clause)

[59 FR 66769, Dec. 28, 1994]

652.223–76 Use of Lubricating OilsContaining Re-Refined Oils.

As prescribed in 623.480(g), insert thefollowing clause:

USE OF LUBRICATING OILS CONTAINING RE-REFINED OILS (DEC 1994)

(a) If the contractor is required to supplylubricating oils, hydraulic fluids, or gear oilsunder this contract, the contractor shallsupply products conforming to the listedmilitary specifications as set forth below un-less the contracting officer determines thatthe listed products will not satisfy the De-partment’s needs.

EPA LUBRICATING OILS CONTAINING RE-REFINED OIL

(1) Engine Lubricating Oils(i) MIL–L–46152 (or current version)—Lu-

bricating Oil Internal Combustion En-gine, Administrative Service

(ii) API Engine Service Category SF–1980Gasoline Engine Warranty MaintenanceService

(iii) API Engine Service Category CC-Die-sel Engine Service

(iv) MIL–L–2104D (or current version)—Lu-bricating Oil Internal Combustion En-gine, Tactical Service

(v) API Engine Service Category CD-DieselEngine Service

(vi) MIL–L–21260D (or current version)—Lubricating Oil Internal Combustion En-gine, Preservative and Break-In

(vii) MIL–L–4617 (or current version)—Lu-bricating Oil, Internal Combustion En-gine, Arctic

(2) Hydraulic Fluids(i) MIL–H–5606 (or current version)—Hy-

draulic Fluid, Petroleum Base: Aircraft,Missile, and Ordnance

(ii) MIL–H–6083 (or current version)—Hy-draulic Fluid, Petroleum Base: Preserva-tion and Operation

(3) Gear Oils(i) MIL–L–2105d (or current version)—Lu-

bricating Oil, Gear, Multipurpose

(b) Copies of the above specifications maybe obtained from: Standardization DocumentOrder Desk, Building 4, Section D, 700 Rob-bins Avenue, Philadelphia, PA 19111–5094.

(c) Any lubricating oils, hydraulic fluids,or gear oils delivered under this contractthat conform to the above listed militaryspecifications shall contain a minimum of25% re-refined oils.

(End of clause)

[59 FR 66769, Dec. 28, 1994]

652.223–77 Use of Retread Tires.As prescribed in 623.480(h), insert the

following clause:

USE OF RETREAD TIRES (DEC 1994)

(a) If the contractor is required to main-tain or replace Government tires under this


557


contract, the contractor shall to the maxi-mum extent practicable obtain retreadingservices for existing tires, if the carcass isretreadable, from firms identified in the U.S.General Services Administration’s FederalSupply Schedule 26 II, Pneumatic Tires.

(b) If such retreading services are not prac-ticable, replacement retread tires shall beprocured in accordance with GSA specifica-tion ZZ–T–381 for replacement tires.(End of clause)

[59 FR 66769, Dec. 28, 1994]

652.223–78 Use of Recovered Materialsin Paper and Paper Products.

As prescribed in 623.480(i), insert thefollowing clause:

USE OF RECOVERED MATERIALS IN PAPER ANDPAPER PRODUCTS (DEC 1994)

(a) If the contractor is required under thiscontract to deliver any of the paper andpaper products listed below, all such itemsdelivered shall meet the minimum contentstandards for recovered materials,postconsumer recovered materials, or wastepaper set forth in paragraph (b).

(1) Recovered materials are defined aswaste material and by-products that havebeen recovered or diverted from solid waste,not including those materials and by-prod-ucts generated from, and commonly reusedwithin, an original manufacturing process.

(2) Postconsumer recovered materials aredefined as waste materials recovered fromretail stores, office buildings, homes and soforth after they passed through their endusage as a consumer item.

(3) Waste paper is defined as all items fromthe first two categories above in addition toforest residues, and manufacturing and otherwastes.

(b) Unless otherwise stated in this contractor otherwise directed by the contracting offi-cer, the contractor shall use ‘‘High GradeBleached Printing and Writing Papers’’ asdefined in this clause to produce all progressreports, final reports, and any other productsrequired to be delivered to the Governmentunder this contract.

MINIMUM CONTENT STANDARDS FOR SELECTEDPAPER AND PAPER PRODUCTS

Newsprint

40% minimum postconsumer recovered mate-rials

High Grade Bleached Printing and WritingPapers

Offset printing—50% minimum waste paperMimeo and duplicator paper—50% minimum

waste paperWriting (stationery)—50% minimum waste

paper

Office paper (e.g., note pads)—50% minimumwaste paper

Paper for high speed copiers—50% minimumwaste paper

Envelopes—50% minimum waste paperForm bond including computer paper and

carbonless—50% minimum waste paperBook papers—50% minimum waste paperBond papers—50% minimum waste paperLedger—50% minimum waste paperCover stock—50% minimum waste paperCotton fiber papers—25% minimum recov-

ered materials and 50% minimum wastepaper

Tissue Products

Toilet tissue—20% minimum postconsumerrecovered materials

Paper towels—40% minimum postconsumerrecovered materials

Paper napkins—30% minimum postconsumerrecovered materials

Facial tissue—5% minimum postconsumerrecovered materials

Doilies—40% minimum postconsumer recov-ered materials

Industrial wipes—0% minimumpostconsumer recovered materials

Unbleached Packaging

Corrugated boxes—35% minimumpostconsumer recovered materials

Fiber boxes—35% minimum postconsumer re-covered materials

Brown papers (e.g., bags)—5% minimumpostconsumer recovered materials

Recycled Paperboard

Reclycled paperboard products—80% mini-mum postconsumer recovered materials

Pad backing—90% minimum postconsumerrecovered materials

(End of clause)

[59 FR 66769, Dec. 28, 1994]

652.228–70 Indemnification.As prescribed in 628.7001(b), insert the

following clause in solicitations andcontracts when the contractor’s as-sumption of risk is in the best interestof the Government.

INDEMNIFICATION (JULY 1988)

The Contractor expressly agrees to indem-nify and to save the Government, its officers,agents, servants, and employees harmlessfrom and against any claim, loss, damages,injury, and liability, however caused, result-ing from or arising out of the Contractor’sfault or negligence in connection with theperformance of work under this contract.Further, any negligence or alleged neg-ligence of the Government, its officers,agents, servants, or employees, shall not bar


558

48 CFR Ch. 6 (10–1–97 Edition)652.228–71

a claim for indemnification unless the act oromission of the Government, its officers,agents, servants, or employees is the solecompetent, and producing cause of suchclaim, loss, damages, injury, or liability.

(End of clause)

652.228–71 Worker’s Compensation In-surance (Defense Base Act)—Serv-ices.

As prescribed in 628.305(b)(1), insertthe following clause:

WORKER’S COMPENSATION INSURANCE

(DEFENSE BASE ACT)—SERVICES (DEC 1994)

(a) This clause supplements FAR 52.228–3.(b) The contractor agrees to procure De-

fense Base Act (DBA) insurance pursuant tothe terms of the contract between the De-partment of State and the Department’sDBA insurance carrier unless the contractorhas a DBA self-insurance program approvedby the Department of Labor. The contractorshall submit a copy of the Department of La-bor’s approval to the contracting officerupon contract award.

(c) Since the Department of State has se-cured a waiver of DBA coverage for contrac-tor’s employees who are not citizens of, resi-dents of, or hired in the United States, thecontractor agrees to provide such employeeswith worker’s compensation benefits as re-quired by the laws of the country in whichthe employees are working, or by the laws ofthe employee’s native country, whichever of-fers greater benefits.

(d) The contractor agrees to insert a clausesubstantially the same as this one in all sub-contracts to which the DBA is applicable.Subcontractors shall be required to insert asimilar clause in any of their subcontractssubject to the DBA.

(e) The cost of DBA insurance is paid on anannual basis. If the period of performance ofthis contract extends beyond one year, theDepartment shall reimburse the contractorfor any additional insurance cost on a reim-bursable basis through a contract modifica-tion.

(f) Should the rates for DBA insurance cov-erage increase during the performance ofthis contract, the Department shall reim-burse the contractor for the increased costthrough a contract modification. In theevent the DBA insurance rates decrease dur-ing contract performance, the contractorshall reduce the reimbursable cost propor-tionately.

(End of clause)

[59 FR 66770, Dec. 28, 1994]

652.228–72 Worker’s Compensation In-surance (Defense Base Act)—Con-struction.


WORKER’S COMPENSATION INSURANCE (DE-FENSE BASE ACT)—CONSTRUCTION (DEC.1994)

(a) This clause supplements FAR 52.228–4.(b) The contractor agrees to procure De-

fense Base Act (DBA) insurance pursuant tothe terms of the contract between the De-partment of State and the Department’sDBA insurance carrier unless the contractorhas a DBA self-insurance program approvedby the Department of Labor. The contractorshall submit a copy of the Department of La-bor’s approval to the contracting officerupon contract award. The current rate underthe Department of State contract is [con-tracting officer insert current rate] of com-pensation for construction.

(c) Since the Department of State has se-cured a waiver of DBA coverage for contrac-tor’s employees who are not citizens of, resi-dents of, or hired in the United States, thecontractor agrees to provide such employeeswith worker’s compensation benefits as re-quired by the laws of the country in whichthe employees are working, or by the laws ofthe employee’s native country, whichever of-fers greater benefits.

(d) The contractor agrees to insert a clausesubstantially the same as this one in all sub-contracts to which the DBA is applicable.Subcontractors shall be required to insert asimilar clause in any of their subcontractssubject to the DBA.

(e) Should the rates for DBA insurancecoverage increase or decrease during the per-formance of this contract, the Departmentshall modify this contract accordingly.

(f) The contractor shall demonstrate to thesatisfaction of the contracting officer thatthe equitable adjustment as a result of theinsurance increase or decrease does not in-clude any reserve for such insurance. Adjust-ment shall not include any overhead, profit,general and administrative expense, etc.

(End of clause)

[59 FR 66770, Dec. 28, 1994]

652.228–73 Waiver of the Defense BaseAct.


WAIVER OF THE DEFENSE BASE ACT (DEC 1994)

(a) Upon recommendation of the Secretaryof State, the Secretary of Labor may waivethe applicability of the Defense Base Actwith respect to any contract, subcontract, or


559


subordinate contract; work location; or clas-sification of employees.

(b) Either the contractor or the Depart-ment of State may request a waiver fromcoverage. Such a waiver may apply to anyemployees who are not U.S. citizens, notresidents of, or are not hired in the UnitedStates. Waivers requested by the contractorshall be submitted to the contracting officerfor approval and further submission to thecontracting officer for approval and furthersubmission to the Department of Labor. Ap-plication for a waiver shall be submitted onDepartment of Labor Form BEC–565. Wheresuch waivers are granted from coverageunder the DBA, the waiver is conditioned onproviding other worker’s compensation cov-erage to employees to which the waiver ap-plies. Usually this takes the form of securingworker’s compensation coverage of the coun-try where work will be performed or of theemployee’s native country, whichever offersgreater benefits. Information as to whether aDBA waiver has been obtained by the De-partment for a particular country may beobtained from the contracting officer.(End of clause)

[59 FR 66770, Dec. 28, 1994]

652.228–74 Defense Base Act InsuranceRates—Limitation—Services.

As prescribed in 628.306(a)(1), insertthe following provision:

DEFENSE BASE ACT INSURANCE RATES—LIMITATION—SERVICES (DEC 1994)

(a) The Department of State has enteredinto a contract with an insurance carrier toprovide DBA insurance to Department ofState contractors at a contracted rate. Therates for this insurance are as follows:

Services @ [contracting officer insert currentrate] of compensation.

(b) Bidders/Offerors should compute thetotal compensation (direct salary plus dif-ferential, but excluding per diem, housing al-lowance and other miscellaneous post allow-ances) to be paid to employees who will becovered by DBA insurance and the cost ofDBA insurance in their bid/proposal usingthe foregoing rate, and insert the totals inthe spaces provided. The DBA insurance costshall be included in the total fixed price. TheDBA insurance costs shall be reimbursed di-rectly to the contractor.(1) Compensation of Covered Employees:

llllllll

(2) Defense Base Act Insurance Costs:llllllll

(3) Total Cost: llllllll

(c) Bidders/Offerors shall include a state-ment as to whether or not local nationals orthird country nationals will be employed onthe resultant contract.

(End of provision)

[59 FR 66771, Dec. 28, 1994]

652.228–75 Defense Base Act InsuranceRates—Limitation—Construction.

As prescribed in 628.306(a)(2), insertthe following provision:

DEFENSE BASE ACT INSURANCE RATES—LIMITATION—CONSTRUCTION (DEC 1994)

(a) The Department of State has enteredinto a contract with an insurance carrier toprovide DBA insurance to Department ofState contractors at a contracted rate. Therates for this insurance are as follows:

Construction @ [contracting officer insertcurrent rate] of compensation.

(b) Bidders/Offerors should compute thetotal compensation (direct salary plus dif-ferential, but excluding per diem, housing al-lowance and other miscellaneous post allow-ances) to be paid to employees who will becovered by DBA insurance and the cost ofDBA insurance in their bid/proposal usingthe foregoing rate, and insert the totals inthe spaces provided for the base year andeach year thereafter, if applicable The DBAinsurance cost shall be included in the totalfixed price. The DBA insurance costs shall bereimbursed directly to the contractor.

(1) Compensation of Covered Employees:llllllll

(2) Defense Base Act Insurance Costs:llllllll

(3) Total Cost: llllllll

(End of provision)

[59 FR 66771, Dec. 28, 1994]

652.228–76 Defense Base Act InsuranceRates—Limitation—Cost-Reim-bursement.


DEFENSE BASE ACT INSURANCE RATES—LIMITATION—COST-REIMBURSEMENT (DEC 1994)

(a) The Department of State has enteredinto a contract with an insurance carrier forDefense Base Act (DBA) insurance which ap-plies to all contracts entered into by the De-partment which requires DBA insurance cov-erage. In preparing the cost proposal, the of-feror shall use the following rates in comput-ing the cost for such insurance:

Services—[contracting officer insert currentrate] of compensation (direct salary plus dif-ferential but excluding per diem, housing al-lowance, education allowance, and mis-cellaneous allowances); and

(2) Construction—[contracting officer insertcurrent rate] of compensation.


560

48 CFR Ch. 6 (10–1–97 Edition)652.228–77

(b) These rates apply to all job classifica-tions in those particular categories. The suc-cessful offeror shall be advised of the nameand address of the insurance broker who willprocess the DBA insurance coverage.

(c) Should an offeror compute or includehigher DBA insurance rates, the rates shallbe disallowed.

(d) Offerors shall include in their proposalsa statement as to whether or not local na-tionals or third country nationals are pro-posed on this contract.

(End of provision)

[59 FR 66771, Dec. 28, 1994]

652.228–77 Defense Base Act InsuranceRates—Limitation—Labor-Hour andTime-and-Materials.

As prescribed in 628.307–70, insert thefollowing provision:

DEFENSE BASE ACT INSURANCE RATES—LIMI-TATION—LABOR-HOUR AND TIME-AND-MATE-RIALS (DEC 1994)

(a) The Department of State has enteredinto a contract with an insurance carrier forDefense Base Act (DBA) insurance which ap-plies to all contracts entered into by the De-partment which requires DBA insurance cov-erage. In preparing the cost proposal, the of-feror shall use the following rates in comput-ing the cost for such insurance:

(1) Services—[contracting officer insert cur-rent rate] of compensation (direct salary plusdifferential but excluding per diem, housingallowance, education allowance, and mis-cellaneous allowances); and

(2) Construction—[contracting officer insertcurrent rate] of compensation.

(b) These rates apply to all job classifica-tions in those particular categories. The suc-cessful offeror shall be advised of the nameand address of the insurance broker who willprocess the DBA insurance coverage.

(c) Offerors shall include in their proposalsa statement as to whether or not local na-tionals or third country nationals are pro-posed on this contract.

(End of provision)

[59 FR 66771, Dec. 28, 1994]

652.229–70 Excise Tax ExemptionStatement for Contractors Withinthe United States.

As prescribed in 629.401–70, insert thefollowing clause in solicitations andcontracts if the prospective contractoris located inside the United States andthe acquisition involves export of sup-plies to an overseas post.

EXCISE TAX EMEMPTION STATEMENT FOR CON-TRACTORS WITHIN THE UNITED STATES (JULY1988)

This is to certify that the item(s) coveredby this contract is/are for export solely forthe use of the U.S. Foreign Service Postidentified in the contract schedule.

The Contractor shall use a photocopy ofthis contract as evidence of intent to export.Final proof of exportation may be obtainedfrom the agent handling the shipment. Suchproof shall be accepted in lieu of payment ofexcise tax.

(END OF CLAUSE)

652.232–70 Payment Schedule and In-voice Submission (Fixed-Price).

As prescribed in 632.908(a), the con-tracting officer may insert a clausesubstantially the same as follows:

PAYMENT SCHEDULE AND INVOICE SUBMISSION(FIXED-PRICE) (DEC 1994)

(a) General. The Government shall pay thecontractor as full compensation for all workrequired, performed and accepted under thiscontract, inclusive of all costs and expenses,the firm fixed-price stated in Section B ofthis contract.[Use paragraph (b) only if partial paymentsapply. Otherwise, paragraph (a) above assumesthe contractor will be paid in full amount uponcompletion of all contractural requirements].

(b) Payment Schedule. Payments will bemade in accordance with the following par-tial payment schedule:

Partial pay-ment No.

Specific de-liverable Delivery date Payment

amount

123

[Continue as necessary]

(c) Invoice Submission. Invoices shall be sub-mitted in an original and [contracting officerinsert appropriate number of copies] copies tothe Office identified in Block 5 of the SF–26or Block 7 of the SF–33. To constitute a prop-er invoice, the invoice must include all itemsper FAR 52.232–25, ‘‘Prompt Payment’’.

(d) Contractor Remittance Address. Paymentshall be made to the contractor’s address asspecified on the cover page of this contract,unless a separate remittance address is spec-ified below:

————————————————————————

————————————————————————

————————————————————————

————————————————————————

(End of clause)

[59 FR 66771, Dec. 28, 1994]


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652.232–71 Voucher Submission (Cost-Reimbursement).

As prescribed in 632.908(b), the con-tracting officer may insert a clausesubstantially the same as follows:

VOUCHER SUBMISSION (COST-REIMBURSEMENT)(DEC 1994)

(a) General. The contractor shall submit,on a monthly basis [contracting officer maysubstitute a different time frame, if appropriate],an original and [contracting officer insert ap-propriate number] copies of each voucher. Inaddition to the items necessary per FAR52.232–25, ‘‘Prompt Payment’’, the vouchershall show the elements of cost for the bill-ing period and the cumulative costs to date.All vouchers shall be submitted to the officeidentified in Block 5 of the SF–26 or Block 7of the SF–33.

(b) Contractor Remittance Address. Paymentshall be made to the contractor’s address asspecified on the cover page of this contract,unless a separate remittance address is spec-ified below:

————————————————————————

————————————————————————

————————————————————————

————————————————————————

(End of clause)

[59 FR 66772, Dec. 28, 1994]

652.237–70 Compensatory time off.As prescribed in 637.110(a), insert the

following clause:

COMPENSATORY TIME OFF (DEC 1994)

(a) Compensatory time off means timefrom work during the personal service con-tract employee’s basic work week in ex-change for performing an equal amount of ir-regular of occasional overtime work which isofficially ordered or approved.

(b) At the discretion of the Contracting Of-ficer’s Representative (COR), the contractormay earn compensatory time off in accord-ance with 3 FAM Section 232.6—Compen-satory Time Off. Compensation time off re-maining to the credit of a personal servicescontract employee at the end of a 16-weekperiod and/or at the end of the contract pe-riod shall be forfeited.

(c) Compensatory time may not be con-verted to overtime.

(End of clause)

[59 FR 66772, Dec. 28, 1994]

652.237–71 Identification/BuildingPass.

As prescribed in 637.110(b), insert thefollowing clause.

IDENTIFICATION/BUILDING PASS (DEC 1994)

(a) The contractor shall obtain a Depart-ment of State building pass for all employeesperforming under this contract who requirefrequent and continuing access to Depart-ment of State facilities. Passes shall beissued only to contractor employees who areUnited States citizens. Passes will be issuedby the Bureau of Diplomatic Security, Officeof Procedural Security, Domestic FacilitiesDivision. They shall be used for the purposeof contractor performance only, and shallnot be used for any other purpose.

(b) The contractor shall submit an applica-tion in the form prescribed by the COR. Thecontractor shall also provide a letter oncompany letterhead to accompany the appli-cation containing the following information:

(1) The purpose for which the pass is beingrequested;

(2) The type of access the applicant re-quires;

(3) Whether or not the applicant has avalid security clearance; and,

(4) The contract number and period of per-formance of the contract.

(c) The complete package, including theCOR’s approval memorandum, shall be deliv-ered to the Building Pass Application Unit,Room 309, State Annex Number 1, ColumbiaPlaza, 2401 E Street, NW., Washington, DC;or, the post security officer, if the contractis performed at a U.S. owned or leased build-ing overseas. The employee(s) for whom thepass(es) is/are being requested may be re-quired to personally submit the applicationand to provide evidence of identity andUnited States citizenship.

(d) All contractor employees shall wear thepasses in plain sight at all times while in De-partment of State buildings. All contractoremployees shall show their passes when en-tering these buildings and upon request.

(e) All passes shall be returned to the CORupon separation of the employee, or expira-tion or termination of the contract. Finalpayment under this contract shall not bemade until all passes are returned to theCOR.

(End of clause)

[59 FR 66772, Dec. 28, 1994]

652.237–72 Observance of Legal Holi-days and Administrative Leave.

As prescribed in 637.110(c), insert thefollowing clause:

OBSERVANCE OF LEGAL HOLIDAYS ANDADMINISTRATIVE LEAVE (DEC 1994)

(a) The Department of State observes thefollowing days as holidays:

New Year’s DayMartin Luther King’s BirthdayPresidents’ Day


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48 CFR Ch. 6 (10–1–97 Edition)652.242–70

Memorial DayIndependence DayLabor DayColumbus DayVeterans DayThanksgiving DayChristmas DayAny other day designated by Federal law,Executive Order, or Presidential Proclama-tion.

(b) When any such day falls on a Saturday,the preceding Friday is observed; when anysuch day falls on a Sunday, the followingMonday is observed. Observance of such daysby Government personnel shall not be causefor additional period of performance or enti-tlement to compensation except as set forthin the contract. If the contractor’s personnelwork on a holiday, no form of holiday orother premium compensation will be reim-bursed either as a direct or indirect cost, un-less authorized pursuant to an overtimeclause elsewhere in this contract.

(c) When the Department of State grantsadministrative leave to its Government em-ployees, assigned contractor personnel inGovernment facilities shall also be dis-missed. However, the contractor agrees tocontinue to provide sufficient personnel toperform round-the-clock requirements ofcritical tasks already in operation or sched-uled, and shall be guided by the instructionsissued by the contracting officer or his/herduly authorized representative.

(d) For fixed-price contracts, if services arenot required or provided because the buildingis closed due to inclement weather, unantici-pated holidays declared by the President,failure of Congress to appropriate funds, orsimilar reasons, deductions will be computedas follows:

(1) The deduction rate in dollars per daywill be equal to the per month contract pricedivided by 21 days per month.

(2) The deduction rate in dollars per daywill be multiplied by the number of daysservices are not required or provided. If serv-ices are provided for portions of days, appro-priate adjustment will be made by the con-tracting officer to ensure that the contractoris compensated for services provided.

(e) If administrative leave is granted tocontractor personnel as a result of condi-tions stipulated in any ‘‘Excusable Delays’’clause of this contract, it will be withoutloss to the contractor. The cost of salariesand wages to the contractor for the period ofany such excused absence shall be a reim-bursable item of direct cost hereunder foremployees whose regular time is normallycharged, and a reimbursable item of indirectcost for employees whose time is normallycharged indirectly in accordance with thecontractor’s accounting policy.(End of clause)

[59 FR 66772, Dec. 28, 1994]

652.242–70 Contracting Officer’s Rep-resentative (COR).

As prescribed in 642.271, insert aclause substantially the same as fol-lows:

CONTRACTING OFFICER’S REPRESENTATIVE(COR) (DEC 1994)

(a) The Contracting Officer may designatein writing one or more Government employ-ees, by name and position title, to take ac-tion for the Contracting Officer under thiscontract. Each designee shall be identified asa Contracting Officer’s Representative(COR). Such designation(s) shall specify thescope and limitations of the authority so del-egated; provided, that the designee shall notchange the terms or conditions of the con-tract, unless the COR is a warranted Con-tracting Officer and this authority is dele-gated in the designation.

(b) The COR is [insert name of COR].

(End of clause)


652.242–71 Notice of Shipments.As prescribed in 642.1406–2–70(a), in-

sert the following clause in solicita-tions and contracts entered into andperformed outside the United States,when overseas shipment of supplies isrequired.

NOTICE OF SHIPMENTS (JULY 1988)

At the time of delivery of supplies to a car-rier for onward transportation, the Contrac-tor shall give notice of prepaid shipment tothe consignee establishment, and to suchother persons as instructed by the Contract-ing Officer. If the Contractor has not re-ceived such instructions by 24 hours prior tothe delivery time, the Contractor shall con-tact the Contracting Officer and request in-structions from the Contracting Officer con-cerning the notice of shipment to be given.

(End of clause)

652.242–72 Shipping Instructions.As prescribed in 642.1406–2–70(b), in-

sert the following clause in solicita-tions and contracts with a source inthe United States and requiring over-seas shipment of supplies.

SHIPPING INSTRUCTIONS (DEC 1994)

(a) Each packing box shall be of solid con-struction in accordance with best commer-cial practices and sufficiently strong in di-rect ratio to the weight of the contents to


563


withstand excessively rough handling whilein transit overseas. It shall be constructed oflumber that is well seasoned, reasonablysound, free from bad cross grain and fromknots or knotholes that interfere with nail-ing or that occupy more than 1⁄3 of the widthof the piece of lumber. Box shall be con-structed with three-way corners and diago-nal bracing. All nails shall be cement-coated,of correct size and properly spaced to avoidsplitting or warping, and shall be driven intothe grain of the wood. Dimension of lumbershall be in accordance with the followingtable, dependent upon the weight of the con-tents:

Weight of box andcontents

Minimum dimensions of lumber forstruts, frame members, and single

diagonal braces

Up to 45 kg ................. 19.05 × 57.15mm46 to 113 kg ............... 22.23 × 73.03mm114 to 181 kg ............. 22.23 × 98.43mm182 to 272 kg ............. 22.23 × 123.83mm or 25.4 × 98.43

mm

(b) Each box shall be lined with waterproofpaper and shall be bound with 19.05mm″ steelstraps firmly stapled in position to preventthe straps from slipping off the box. Articlesmust be secured and braced inside the ship-ping container to prevent the articles fromshifting.

(c) Packing cases weighing 453.5kg andmore must be equipped with skids. Each skidshall consist of two end sections of 50.8 ×152.4mm lumber placed flat and a center sec-tion of 50.8 × 101.6mm lumber placed flat andthen arranged in line to provide 254mm fork-lift spaces between center and end sections.When goods are ready for shipment, the Con-tractor shall prepare four (4) copies of apacking list, indicating the contract and, ifapplicable, order numbers; case number;itemized list of contents; net and grossweights in kilograms; and outside dimen-sions, including all clears, of each shippingcontainer. The Contractor shall providethree (3) copies of the packing list to theU.S. Despatch Agent as specified in the con-tract or order. The Contractor shall placethe fourth copy of the packing list in pack-ing case number one, which shall be markedas such so that it is easily identified by theconsignee. Upon receipt of the packing list,the Despatch Agent will furnish exportmarks and instructions regarding shipmentto the port specified, depending upon steam-er services available at the time.

(d) The export marks shall be stenciled onone side of each box reserved for that pur-pose, and the appropriate case number sten-ciled in the lower left-hand corner of thesame side. The contract and, as necessary,order numbers, net and gross weights in kilo-grams shall be stenciled on the same side.However, if the size of the box is too small toaccommodate all stenciling on one side, the

contract and order numbers and weights maybe stenciled on the side opposite that usedfor the export marks and case number.

(e) The contract and, as necessary, ordernumbers must appear on all containers andpapers relating to this clause.

(End of clause)


652.246–70 Commercial Warranty.As prescribed in 646.710–70, insert the

following clause in solicitations andcontracts for commercial supplies orservices awarded and performed outsidethe United States.

COMMERCIAL WARRANTY (JULY 1988)

The Contractor agrees that the supplies orservices furnished under this contract shallbe covered by the most favorable commercialwarranties the Contractor gives to any cus-tomer for such supplies or services. Therights and remedies provided herein are inaddition to and to not limit any rights af-forded to the Government by any otherclause of this contract.

(End of clause)

PART 653—FORMS



653.101 Requirements for use of forms.653.101–70 Policy.653.110 Continuation sheets.

Subpart 653.2—Prescription of Forms

653.200 Scope of subpart.653.213 Simplified acquisition procedures

(SF’s 18, 30, 44, 1165, OF’s 347, 348).653.213–70 DOS Forms (OF–206, OF–206A, OF–

127, DST–1918, DST–1919, DST–1920).653.217 Special contracting methods.653.217–70 DOS form DS–1921, Award/Modi-

fication of Interagency AcquisitionAgreement.

653.219 Small business and small disadvan-taged business concerns.

653.219–70 DOS form DS–1910, Small Busi-ness/Labor Surplus Area Review—Ac-tions Above the Simplified AcquisitionThreshold.

Subpart 653.3—Illustrations of Forms

653.300 Scope of subpart.653.303 Agency forms.


564

48 CFR Ch. 6 (10–1–97 Edition)653.000

653.302 .127 Optional Form 127, Receivingand Inspection Report.

653.302 .206 Optional Form 206, PurchaseOrder, Receiving Report and Voucher.

653.302 .206A Optional Form 206A, PurchaseOrder, Receiving Report and Voucher—Continuation Sheet.

653.303– DST–1089 Department of StateForm 1089, Order—Supplies or Services.




This part prescribes DOSAR forms inaddition to those provided in FAR Part53.


653.101 Requirements for use of forms.

653.101–70 Policy.

The forms in FAR Subpart 53.2 or inSubpart 653.2 shall be used as precribedtherein, except when the use of anyform is prohibited by or inconsistentwith local laws, or the supplies or serv-ices could not be obtained if the formwere used. The contracting officer shalljustify the exclusion of any form in ac-cordance with FAR Subpart 1.4 and601.470.

653.110 Continuation sheets.

The provisions of FAR 53.110 alsoapply to forms prescribed in theDOSAR.

Subpart 653.2—Prescription ofForms


This subpart prescribes or referencesoptional and DOS forms for use in ac-quisition. Consistent with FAR 53.200,this subpart is arranged by subjectmatter, in the same order as and keyedto the parts of the DOSAR in which theform usage requirements are addressed.

653.213 Simplified acquisition proce-dures (SF’s 18, 30, 44, 1165, OF’s 347,348).

653.213–70 DOS Forms (OF–206, OF–206A, OF–127, DST–1918, DST–1919,DST–1920).

As provided in 613.505–2 and 613.505–70,the following forms are prescribedfor use in simplified acquisitions, deliv-ery orders, and blanket purchase agree-ments:

(a) Optional Form (OF) 206, PurchaseOrder, Receiving Report and Voucher,and Optional Form (OF) 206A, Continu-ation Sheet. OF–206 and OF–206A areprescribed for use by overseas contract-ing activities in lieu of the OF–347 andOF–348, as specified in 613.505–2(a).

(b) Optional Form (OF) 127, Receivingand Inspection Report. OF/127 is pre-scribed for use by overseas contractingactivities as a receiving report whenusing the OF–206, as specified in613.505–2(b). The OF–127 may be used asa receiving report in conjunction withother contract forms (e.g., SF–26, SF–33) by both domestic and overseas con-tracting activities.

(c) DST–1918, Purchase Order File.DST–1918 is prescribed for use in re-cording and documenting relevant datapertaining to open market simplifiedacquisitions, as specified in 613.505–70.

(d) DST–1919, Deliver Order File.DST–1919 is prescribed for use in re-cording and documenting relevant datapertaining to delivery orders issuedagainst GSA mandatory and non-mandatory schedule contracts, as wellas Department of State and other agen-cy contracts, as specified in 613.505–70.

(e) DST–1920, Blanket PurchaseAgreement (BPA) File. DST–1920 is pre-scribed for use in recording and docu-menting relevant data pertaining toBlanket Purchase Agreements, as spec-ified in 613.505–70.


653.217 Special contracting methods.

653.217–70 DOS form DS–1921, Award/Modification of Interagency Acqui-sition Agreement.

As prescribed in 617.504–70(b)(5)(i),DS–1921 is prescribed for use whenawarding or modifying Economy Act


565


Interagency Acquisition Agreementswhere the Department is the request-ing agency.

[59 FR 66773, Dec. 28, 1994]

653.219 Small business and small dis-advantaged business concerns.

653.219–70 DOS form DS–1910, SmallBusiness/Labor Surplus Area Re-view—Actions Above the SimplifiedAcquisition Threshold.

As prescribed in 619.501(c), DS–1910 isprescribed for use in documenting set-aside decisions.


Subpart 653.3—Illustrations ofForms


This subpart contains illustrations offorms prescribed in the DOSAR but notillustrated in FAR Subpart 53.3.

653.303 Agency forms.

This section illustrates the DOSforms that are specified by the DOSARfor use in acquisitions. The forms areillustrated in numerical order. Thesubsection numbers correspond withthe DOS form numbers.


566

48 CFR Ch. 6 (10–1–97 Edition)653.303


567



568

48 CFR Ch. 6 (10–1–97 Edition)653.303


569



570

48 CFR Ch. 6 (10–1–97 Edition)653.303


571



572

48 CFR Ch. 6 (10–1–97 Edition)653.303
