[Federal Register: February 7, 2005 (Volume 70, Number 24)]
[Rules and Regulations]               
[Page 6505-6542]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07fe05-24]                         


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Part II





Department of Transportation





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48 CFR Chapter 12



Re-issuance of the Department of Transportation Acquisition Regulation; 
Interim Final Rule


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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

48 CFR Chapter 12

[Docket No. OST-2004-19899]
RIN 2105-AD28

 
Re-issuance of the Department of Transportation Acquisition 
Regulation

AGENCY: Office of the Secretary, DOT.

ACTION: Interim final rule with request for comments.

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SUMMARY: The Department of Transportation is reissuing the 
Transportation Acquisition Regulation (TAR). This interim final rule 
reflects changes made to implement and/or supplement the Federal 
Acquisition Regulation (FAR). The TAR has been substantially revised to 
update references to obsolete policies, procedures and organizations; 
incorporate electronic links to references such as provisions to the 
FAR, U.S. Codes, the Code of Federal Regulations; and adopt by 
reference Office of Federal Procurement Policy Letters and Executive 
orders. The reissued TAR eliminates coverage that is unnecessary or 
duplicates the FAR or other directives. Only coverage that is suitable 
and necessary will be retained in the regulation. These efforts will 
create a 2004 edition of the TAR that is consistent with the 2001 
edition of the FAR. The 2004 edition of the TAR will replace the 1994 
edition.

DATES: This rule is effective April 8, 2005. Comments should be 
received by March 9, 2005. Late-filed comments will be considered to 
the extent practicable.

ADDRESSES: Comments on this interim final rule should be filed with: 
the Docket Management System, U.S. Department of Transportation, Room 
PL-401, 400 Seventh Street, SW., Washington, DC 20590-0001. Please 
identify the docket number OST-2004-19899 at the beginning of your 
comments. You may also submit comments through the internet to http://dms.dot.gov.
 You may review the public docket containing comments to 

these proposed regulations in person in the Dockets Office between 9 
a.m. and 5 p.m., Monday through Friday, except Federal holidays. The 
Dockets Office is on the plaza level of the NASSIF Building at the 
Department of Transportation at the above address. Also, you may review 
comments to the docket on the Internet at http://dms.dot.gov. Search by 

using the last set of digits in the docket number (omitting the ``OST-
2004'').

FOR FURTHER INFORMATION CONTACT: Rita Williams, Office of the Senior 
Procurement Executive, M-60, 400 Seventh Street SW., Washington, DC 
20590, (202) 366-9956.

SUPPLEMENTARY INFORMATION:

A. Background

    The Department of Transportation (DOT) has determined that changes 
to the Transportation Acquisition Regulation (TAR) are necessary to 
implement and align it with the 2001 Federal Acquisition Regulation 
(FAR). DOT conducted a comprehensive review of the 1994 Edition of the 
TAR with the goal of updating obsolete coverage, and implementing new 
internal policies applicable to the DOT acquisition workforce. As a 
result, the TAR Re-write team under the direction of the Senior 
Procurement Executive, has undertaken a complete re-write of the TAR.
    The TAR re-write project was conducted in coordination with all 
Operating Administrations (OAS) of the DOT. OAs participated in the 
development of the new TAR language and devised processes that were 
most efficient and least burdensome to its users.
    All United States Coast Guard (USCG) specific language and 
subsequent clauses were removed from the TAR as a result of the 
transfer of USCG from the DOT to the Department of Homeland Security on 
March 1, 2003. As a result of organizational restructuring within DOT, 
the Federal Motor Carrier Safety Administration (FMSCA) was established 
as an OA and given an appropriate agency code for the purpose of 
assigning contract numbers. The delegations of authority and 
responsibilities for internal acquisition functions have been 
authorized at the lowest reasonable level or allowed by higher level 
regulations or statutes. During the re-write of TAR, care was taken to 
eliminate unnecessary coverage including clauses, forms and obsolete 
DOT notices or orders that no longer exist, and restructured language 
that was misaligned with the FAR coverage. The goal of re-writing the 
TAR was to ensure the regulation would only contain current and 
appropriate coverage for a Department level acquisition regulation, and 
to remove and re-designate any internal agency guidance from the TAR to 
the Transportation Acquisition Manual (TAM). To implement Executive 
Order 13043, the Seat Belt Use Policies and Programs clause was 
established. In addition, implementation of the Federal Information 
Security Management Act of 2002 and the Computer Security Act of 1987 
required the establishment of the Requirements for Unclassified 
Information Technology Resources and revision of the Qualification of 
Contractor Employees clauses respectively.
    Those parts which contain no coverage, and have been reserved are: 
Parts 1208, 1209, 1210, 1212, 1218, 1220, 1221, 1225, 1226, 1229, 1230, 
1234, 1238, 1240, 1241, 1243, 1244, and 1248 through 1251.

B. Regulatory Analysis and Notices

    The Department has determined that this rule is not a significant 
regulatory action, and therefore, was not subject to review under 
Executive Order 12866 or under the Department's Regulatory Policies and 
Procedures. The Department does not believe that there would be 
significant federalism implications to warrant the preparation of a 
federalism assessment.

C. Regulatory Flexibility Act

    The Department certifies that this final rule does not have a 
significant economic impact on a substantial number of small entities 
within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et 
seq., because the rule merely restates previous TAR coverage, deletes 
certification requirements which do not significantly alter the amount 
of information currently required, and makes various editorial 
revisions.
    This proposed rule is not expected to have a significant impact on 
a substantial number of small entities because any additional costs 
associated with the rule can be factored into the contract price and 
there is no distinction on this issue between a large or small 
business. Therefore, an Initial Regulatory Flexibility Analysis has not 
been performed. Comments are solicited from small businesses and other 
interested parties and will be considered in accordance with section 
610 of the Act in the development of the final rule.

D. Paperwork Reduction Act

    The information collection requirements associated with this rule 
have been submitted to the Office of Management and Budget (OMB) for 
approval in accordance with 44 U.S.C. chapter 35 under OMB No. 2105-
0517; Administration: Office of the Secretary of Transportation;
    Title: Transportation Acquisition Regulation (TAR);
    Summary: This proposal implements requirements of the Federal 
Acquisition Regulation (FAR), other regulations and

[[Page 6507]]

statutes to solicit, negotiate, award, and administer contracts;
    Use of Information: This information supports the needs of the 
Department of Transportation to evaluate offers, to ensure appropriate 
contract controls are in place, and to minimize conditions conducive to 
fraud, waste, and abuse.
    Burden Estimate: 2,514 hours; Forms: DOT Form 1681 and DOT Form 
4220.43; clauses: 1252.217-76, 1252.237-70 and 73, 1252.242-70 and 72, 
and 1252.245-70.
    Respondents (including number of): The likely respondents to this 
proposed information are contractors and offerors who will respond to 
solicitations or are awarded DOT contracts.
    Frequency: Reports are submitted at different times depending upon 
the need or requirements stipulated in the FAR or TAR.
    Average burden hours per respondent: 7 hours 45 minutes. Comments 
on the proposed information collection requirement should be sent to 
the DOT rulemaking.
    The agency is soliciting comments to--
    (1) evaluate whether the proposed information requirements are 
necessary;
    (2) evaluate the accuracy of the Agency's estimate of the burden;
    (3) enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) minimize the burden of the collection of information on those 
who are to respond, including through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology.
    Individuals and organizations may submit comments on the 
information collection requirement by directing them to the address 
listed in the ADDRESSES section of the document. Comments may also be 
submitted to the Office of Information and Regulatory Affairs, OMB, New 
Executive Building, Room 10202, 725 17th Street, NW., Washington, DC 
20053. Attention: Desk Officer for the Department of Transportation.

E. Justification for Interim Final Rule

    This rulemaking pertains exclusively to procedures concerning 
public contracts. Consequently, the requirements of the Administrative 
Procedure Act for notice and an opportunity for public comment prior to 
issuing a final rule do not apply. Under 5 U.S.C. Sec.  553(a)(2), 
matters relating to, among other things, public contracts are not 
subject to notice and comment requirements. For this reason, the 
Department has not issued a notice of proposed rulemaking for this 
final rule. However, consistent with the Department's Regulatory 
Policies and Procedures, the Department is providing an opportunity for 
public comment before the final rule goes into effect.

List of Subjects in 48 CFR Chapter 12

    Government procurement.

    This rule is issued this 13th day of January, 2005, at 
Washington, DC, under the delegated authority of the Senior 
Procurement Executive pursuant to 49 CFR 1.59a (a)(1).
David J. Litman,
Senior Procurement Executive.


0
For the reasons set out in the preamble, 48 CFR chapter 12 is revised 
to read as follows:

CHAPTER 12--DEPARTMENT OF TRANSPORTATION

SUBCHAPTER A--GENERAL

Part

1201 Federal Acquisition Regulation System
1202 Definitions of words and terms
1203 Improper business practices and personal conflicts of interest
1204 Administrative matters

SUBCHAPTER B--ACQUISITION PLANNING

1205 Publicizing contract actions
1206 Competition requirements
1207 Acquisition planning
1208 [Reserved]
1209 [Reserved]
1210 [Reserved]
1211 Describing agency needs
1212 [Reserved]

SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES

1213 Simplified acquisition procedures
1214 Sealed bidding
1215 Contracting by negotiation
1216 Types of contracts
1217 Special contracting methods
1218 [Reserved]

SUBCHAPTER D--SOCIOECONOMIC PROGRAMS

1219 Small business programs
1220 [Reserved]
1221 [Reserved]
1222 Application of labor laws to government acquisitions
1223 Environment, energy and water efficiency, renewable energy 
technologies, occupational safety, and drug-free workplace
1224 Protection of privacy and freedom of information
1225 [Reserved]
1226 [Reserved]

SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS

1227 Patents, data and copyrights
1228 Bonds and insurance
1229 [Reserved]
1230 [Reserved]
1231 Contract cost principles and procedures
1232 Contract financing
1233 Protests, disputes and appeals

SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING

1234 [Reserved]
1235 Research and development contracting
1236 Construction and architect-engineer contracts
1237 Service contracting
1238 [Reserved]
1239 Acquisition of information technology
1240 [Reserved]
1241 [Reserved]

SUBCHAPTER G--CONTRACT MANAGEMENT

1242 Contract administration and audit services
1243 [Reserved]
1244 [Reserved]
1245 Government property
1246 Quality assurance
1247 Transportation
1248 [Reserved]
1249 [Reserved]
1250 [Reserved]
1251 [Reserved]

SUBCHAPTER H--CLAUSES AND FORMS

1252 Solicitations provisions and contract clauses
1253 Forms

PART 1201--FEDERAL ACQUISITION REGULATIONS SYSTEM

Subpart 1201.1--Purpose, Authority, Issuance
Sec.
1201.101 Purpose.
1201.104 Applicability.
1201.105 Issuance.
1201.105-1 Publication and code arrangement.
1201.105-2 Arrangement of regulations.
1201.105-3 Copies.
1201.106 OMB Approval under the Paperwork Reduction Act.

Subpart 1201.2--Administration

1201.201 Maintenance of the FAR.
1201.201-1 The two councils.

Subpart 1201.3--Agency Acquisition Regulations

1201.301 Policy.
1201.301-70 Amendment of (TAR) 48 CFR Chapter 12.
1201.301-71 Effective date.
1201.301-72 TAC or TN numbering.
1201.304 Agency control and compliance procedures.

Subpart 1201.4-70--Deviations From the FAR and TAR

1201.403 Individual deviations. 1201.105
1201.404 Class deviations.

[[Page 6508]]

Subpart 1201.6--Career Development, Contracting Authority and 
Responsibilities

1201.602-3 Ratification of unauthorized commitments.
1201.603-1 General.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.
    Appendix to Part 1252-TAR Matrix

Subpart 1201.1--Purpose, Authority, Issuance


1201.101  Purpose.

    The Department of Transportation (DOT) Acquisition Regulation (TAR) 
establishes uniform acquisition policies and procedures, which 
implement and supplement the Federal Acquisition Regulation (FAR).


1201.104  Applicability.

    (a) Statute, the (FAR) Title 48, Code of Federal Regulations (CFR) 
chapter 1, and (TAR) 48 CFR chapter 12 apply to all acquisitions within 
the Department unless otherwise excluded by statute, the (FAR) 48 CFR 
chapter 1, or (TAR) 48 CFR chapter 12.
    (b) The following order of precedence applies to resolve any 
question of applicability concerning an acquisition regulation or a 
procedure found within (TAR) 48 CFR chapter 12 or the Transportation 
Acquisition Manual (TAM):
    (1) Statute;
    (2) (FAR) 48 CFR chapter 1 or other applicable regulation;
    (3) (TAR) 48 CFR chapter 12;
    (4) DOT Orders; and
    (5) TAM.
    (c) The Maritime Administration may depart from the requirements of 
the (FAR) 48 CFR chapter 1 and (TAR) 48 CFR chapter 12 as authorized by 
40 U.S.C. 113(e)(15) but shall adhere to those regulations to the 
maximum extent practicable. Exceptions from the requirements of the 
(FAR) 48 CFR chapter 1 and/or (TAR) 48 CFR chapter 12 shall be 
documented according to Maritime Administration procedures or in each 
contract file, as appropriate.
    (d) The (FAR) 48 CFR chapter 1, (TAR) 48 CFR chapter 12 and TAM do 
not apply to the Federal Aviation Administration as provided by the 
Department of Transportation and Related Agencies Appropriations Act, 
1996, Public Law 104-50, unless otherwise directed by the Office of the 
Secretary of Transportation.


1201.105  Issuance.


1201.105-1  Publication and code arrangement.

    (a) The (TAR) 48 CFR chapter 12 is published in:
    (1) The Federal Register; and
    (2) Cumulative form in the CFR.
    (b) The TAR is issued as chapter 12 of Title 48 of the CFR.


1201.105-2  Arrangement of regulations.

    (a) General. The (TAR) 48 CFR chapter 12, which encompasses both 
Department and Operating Administration (OA)-specific guidance (see 
(TAR) 48 CFR 1201.3), conforms with the arrangement and numbering 
system prescribed by (FAR) 48 CFR 1.104. Guidance that is OA-specific 
contains the OA's acronym directly after the heading. The following 
acronyms apply:

FHWA--Federal Highway Administration
FMCSA--Federal Motor Carrier Safety Administration
FRA--Federal Railroad Administration
FTA--Federal Transit Administration
MARAD--Maritime Administration
NHTSA--National Highway Traffic Safety Administration
OST--Office of the Secretary
RSPA--Research and Special Programs Administration
SLSDC--Saint Lawrence Seaway Development Corporation

    (b) Numbering. (1) Departmentwide guidance. (i) The numbering 
illustrations at (FAR) 48 CFR 1.105-2 apply to (TAR) 48 CFR chapter 12.
    (ii) Coverage within (TAR) 48 CFR chapter 12 is identified by the 
prefix ``12'' followed by the complete (FAR) 48 CFR chapter 1 cite. For 
example, (TAR) 48 CFR 1201.201-1(b)).
    (iii) Coverage in (TAR) 48 CFR chapter 12 that supplements (FAR) 48 
CFR chapter 1 will use part, subpart, section and subsection numbers 
ending in ``70'' through ``89'' (e.g., (TAR) 48 CFR 1201.301-70). A 
series of numbers beginning with ``70'' is used for provisions and 
clauses.
    (iv) Coverage in (TAR) 48 CFR chapter 12, other than that 
identified with a ``70'' or higher number, that implements the (FAR) 48 
CFR chapter 1 uses the identical number sequence and caption of the 
(FAR) 48 CFR chapter 1 segment being implemented, which may be to the 
paragraph level. Paragraph numbers and letters are not always shown 
sequentially, but may be shown by the specific FAR paragraph 
implemented. For example, (TAR) 48 CFR 1201.201-1 contains only 
paragraph (b) because only this paragraph, correlated with FAR, 
implements (TAR) 48 CFR chapter 12.
    (2) Operating Administration-unique guidance. Supplementary 
material for which there is no counterpart in (FAR) 48 CFR chapter 1 or 
(TAR) 48 CFR chapter 12 shall be identified using chapter, part, 
subpart, section, or subsection numbers of ``90'' and higher.
    (c) References and citations. (TAR) 48 CFR chapter 12 may be 
referred to as the Department of Transportation Acquisition Regulation 
or the TAR. Cross reference to the FAR in (TAR) 48 CFR chapter 12 will 
be cited by ``FAR'' followed by the FAR numbered cite, and cross 
reference to the TAM in (TAR) 48 CFR chapter 12 will be cited by 
``TAM'' followed by the TAM numbered cite. References to specific cites 
within (TAR) 48 CFR chapter 12 will be referenced by the numbered cite 
only.


1201.105-3  Copies.

    (a) Copies of the TAR in Federal Register, and CFR form may be 
purchased from the Superintendent of Documents, Government Printing 
Office, Washington, DC 20402. The electronic version of the Federal 
Register may be found at http://www.nara.gov and the CFR at http://www.gpoaccess.gov.
    (b) The (TAR) 48 CFR chapter 12 and Transportation Acquisition 
Circulars (TACs) are available on the Internet at http://www.dot.gov/ost/m60
.



1201.106  OMB Approval Under the Paperwork Reduction Act.

    (a) Data collection by regulation. The information collection and 
recordkeeping requirements contained in (TAR) 48 CFR chapter 12 have 
been approved by the Office of Management and Budget (OMB).
    (b) Data collection under proposed contracts. Under the regulations 
implementing the requirements of the Paperwork Reduction Act (5 CFR 
1320), OMB must approve, prior to obligation of funds, proposed 
contracts which require the collection of information from ten or more 
non-Federal persons or entities. Solicitations requiring this level of 
information collection may be released prior to OMB approval provided 
that:
    (1) A statement is included in the solicitation to the effect that 
the contract will not be awarded until OMB approval of the information 
collection requirements of the proposed contract has been obtained; and
    (2) Enough time is permitted to allow receipt of OMB approval prior 
to contract award.

Subpart 1201.2--Administration


1201.201  Maintenance of the FAR.


1201.201-1  The two councils.

    (b) The SPE is responsible for providing a DOT representative to 
the

[[Page 6509]]

Civilian Agency Acquisition Council (CAAC).

Subpart 1201.3--Agency Acquisition Regulations


1201.301  Policy.

    (a)(1) Acquisition regulations. (i) Departmentwide acquisition 
regulations. The Department of Transportation's (DOT's) Senior 
Procurement Executive (SPE) is the individual having authority to issue 
or authorize the issuance of agency regulations that implement or 
supplement the FAR and to include agency-unique policies, etc. that 
govern the contracting process. This authority was re-delegated from 
the Assistant Secretary for Administration.
    (ii) Operating Administration (OA) acquisition regulations. OA 
acquisition regulations, and any changes thereto, shall be reviewed and 
approved by the Senior Procurement Executive (SPE) for insertion into 
the (TAR) 48 CFR chapter 12 as a TAR supplemental regulation before the 
SPE submits the proposed coverage for publication in the Federal 
Register in accordance with (FAR) 48 CFR 1.501. OA regulations may be 
more restrictive or require higher approval levels than those permitted 
by (TAR) 48 CFR chapter 12 unless otherwise specified.
    (2) Acquisition procedures. The SPE is the individual who issues or 
authorizes the issuance of internal agency guidance at any 
organizational level. DOT internal operating procedures are contained 
in the Transportation Acquisition Manual (TAM). OA procedures necessary 
to implement or supplement the (FAR) 48 CFR chapter 1, (TAR) 48 CFR 
chapter 12, or TAM may be issued by the Head of the Contracting Agency 
(HCA), who may delegate this authority to any organizational level 
deemed appropriate. OA procedures may be more restrictive or require 
higher approval levels than those permitted by the TAM unless otherwise 
specified.
    (b) The authority of the agency head under (FAR) 48 CFR 1.301(b) to 
establish procedures to ensure that agency acquisition regulations are 
published for comment in the Federal Register in conformance with the 
procedures in FAR Subpart 1.5 is delegated to the Office of the General 
Counsel, Assistant General Counsel for Regulation and Enforcement (C-
50).


1201.301-70  Amendment of (TAR) 48 CFR chapter 12.

    (a) Changes to the regulation may be the result of recommendations 
from internal DOT personnel, other Government agencies, or the public. 
Changes shall be submitted in the following format to the Office of the 
Senior Procurement Executive (OSPE), 400 7th Street, SW., Washington, 
DC 20590:
    (1) Problem: Succinctly state the problems created by current (TAR) 
48 CFR chapter 12 language and describe the factual or legal reasons 
necessitating regulatory change.
    (2) Recommendation: Identify the recommended change by using the 
current language (if applicable), and crossing out the deleted words 
with a horizontal line. Insert proposed language in brackets. If the 
change is extensive, deleted language may be displayed by forming a box 
with diagonal lines connecting the corners.
    (3) Discussion: Explain why the change is necessary and how it will 
solve the problem. Address any cost or administrative impact on 
Government activities, offerors, and contractors. Provide any other 
information and documents such as statutes, legal decisions, 
regulations, reports, etc., that may be helpful.
    (4) Point of contact: Provide a point of contact who can answer 
questions regarding the recommendation.
    (b) The (TAR) 48 CFR chapter 12 is maintained by the SPE through 
the TAR/TAM change process. This process consists of input from various 
DOT elements including representatives from DOT OAs specifically 
designated to formulate Departmental acquisition policies and 
procedures.
    (1) Transportation Acquisition Circular (TAC). TACs (see (TAR) 48 
CFR 1201.301-72) will be used to amend (TAR) 48 CFR chapter 12.
    (2) TAR Notice (TN). (i) TNs shall be issued when interim guidance 
is necessary and as often as may be necessary, under any of the 
following circumstances:
    (A) To quickly promulgate selected material in a general or 
narrative manner, in advance of a TAC issuance;
    (B) To disseminate other acquisition related information; or
    (C) To issue guidance which may be effective for a period of 1 year 
or less.
    (ii) Each TN will expire by a specific date.


1201.301-71  Effective date.

    Unless otherwise stated, the following applies--
    (a) Statements in TACs or TNs to the effect that the material 
therein is ``effective upon receipt,'' ``upon a specified date,'' or 
that changes set forth in the document are ``to be used upon receipt,'' 
mean that any new or revised provisions, clauses, procedures, or forms 
must be included in solicitations, contracts or modifications issued 
thereafter; and
    (b) Unless expressly directed by statute or regulation, 
solicitations in process or completed negotiations when the TAC or TN 
is received, new information such as forms and clauses, need not be 
included if the chief of the contracting office determines that it 
would not be in the best interest of the Government to include the new 
information.


1201.301-72  TAC or TN numbering.

    TACs and TNs will be numbered consecutively on a fiscal year basis 
beginning with number ``01'' prefixed by the last two digits of the 
fiscal year (e.g., TNs 04-01 and 04-02 indicate the first two TNs 
issued in fiscal year 2004).


1201.304  Agency control and compliance procedures.

    (a) DOT shall control the proliferation of acquisition regulations 
and any revisions thereto (except as noted in paragraph (b) of this 
section) by using an internal (TAR) 48 CFR chapter 12 change process 
that involves input from many DOT elements including OA representatives 
on the Procurement Management Council. The OA member shall represent 
their OA's viewpoint along with Departmentwide considerations in 
reaching a decision on (TAR) 48 CFR chapter 12 changes.
    (b) OA-unique regulations will not be processed through the TAR/TAM 
change process, but shall be reviewed by OA legal counsel and submitted 
to the OSPE for review and approval. (See (TAR) 48 CFR 1252.101 for 
additional instructions pertaining to provisions and clauses.)

Subpart 1201.4-70--Deviations From the FAR and TAR


1201.403  Individual deviations.

    The Head of the Contracting Activity, or designee with a rank that 
is no lower than that of Senior Executive Service (SES) official or 
that of a Flag Officer, may authorize individual deviations (unless 
(FAR) 48 CFR 1.405(e) applies). However, see TAM 1201.403.


1201.404  Class deviations.

    The SPE may grant in writing class deviations from the (FAR) 48 CFR 
chapter 1 and (TAR) 48 CFR chapter 12, unless (FAR) 48 CFR 1.405(e) 
applies.

[[Page 6510]]

Subpart 1201.6--Career Development, Contracting Authority and 
Responsibilities


1201.602-3  Ratification of unauthorized commitments.

    (b) Policy. DOT policy requires that all procurement decisions 
shall be made only by Government officials having authority to carry 
out such acquisitions. Procurement decisions made by other than 
authorized personnel are contrary to Departmental policy and may be 
considered matters of serious misconduct on the part of the employee 
making an unauthorized commitment. Disciplinary action against an 
employee who makes an unauthorized commitment may be considered.


1201.603-1  General.

    Each DOT OA is responsible for appointing its contracting officers.

PART 1202--DEFINITIONS OF WORDS AND TERMS

Subpart 1202.1--Definitions
Sec.
1202.1 Definitions.
Subpart 1202.70--Internet Links
1202.7000 General.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1202.1--Definitions


1202.1  Definitions.

    Agency, Federal agency or Executive agency means the Department of 
Transportation.
    Chief Information Officer means the Director of the Office of the 
Chief Information Officer (CIO) (S-80).
    Chief of the Contracting Office (COCO) means the individual(s) 
responsible for managing the contracting office(s) within an Operating 
Administration.
    Contracting activity includes all the contracting offices within an 
Operating Administration and is the same as the term ``procuring 
activity.''
    Contracting officer (CO) means an individual authorized by virtue 
of their position or by appointment to perform the functions assigned 
by the Federal Acquisition Regulation (FAR), the Transportation 
Acquisition Regulation (TAR) and Transportation Acquisition Manual 
(TAM).
    Department of Transportation means all of the Operating 
Administrations included within the Department of Transportation (DOT).
    Head of the agency or agency head for Departmental procurement 
means the Deputy Secretary except for acquisition actions that, by the 
terms of a statute or delegation, must be done specifically by the 
Secretary of Transportation.
    Head of the Contracting Activity (HCA) means the individual 
responsible for managing the contracting offices within an Operating 
Administration who is a member of the Senior Executive Service or a 
flag officer and is the same as the term ``Head of the Procuring 
Activity.''
    Head of the Operating Administration (HOA) means the individual 
appointed by the President to manage the operating administration.
    Operating Administration (OA) means the following components of 
DOT:
    (1) Federal Aviation Administration (FAA); (FAA is exempt from FAR, 
TAR and TAM pursuant to the Department of Transportation and Related 
Agencies Appropriations Act, 1996, Public Law 104-50;
    (2) Federal Highway Administration (FHWA);
    (3) Federal Motor Carrier Safety Administration (FMCSA);
    (4) Federal Railroad Administration (FRA);
    (5) Federal Transit Administration (FTA);
    (6) Maritime Administration (MARAD);
    (7) National Highway Traffic Safety Administration (NHTSA);
    (8) Office of the Secretary of Transportation (OST);
    (9) Research and Special Programs Administration (RSPA);
    (10) Saint Lawrence Seaway Development Corporation (SLSDC).
    Senior Procurement Executive (SPE) means the Director of the Office 
of the Senior Procurement Executive (M-60).
    Small Business Specialist (SBS) means the individual appointed by 
each HCA to assist the Director, Office of the Small and Disadvantaged 
Business Utilization in carrying out the purpose of the Small Business 
Act.

Subpart 1202.70--Internet Links


1202.7000  General.

    Most documents cited throughout (TAR) 48 CFR chapter 12, can be 
found on the internet. (TAR) 48 CFR chapter 12 will cite the 
corresponding internet address.

PART 1203--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST

Subpart 1203.1--Safeguards
Sec.
1203.101-3 Agency regulations.
Subpart 1203.2--Contractor Gratuities to Government Personnel
1203.203 Reporting suspected violations of the Gratuities clause.
1203.204 Treatment of violations.
Subpart 1203.3--Reports of Suspected Antitrust Violations
1203.301 General.
1203.303 Reporting suspected antitrust violations.
Subpart 1203.4--Contingent Fees
1203.405 Misrepresentations or violations of the Covenant Against 
Contingent Fees.
Subpart 1203.5--Other Improper Business Practices
1203.502 Subcontractor kickbacks.
1203.502-2 Subcontractor kickbacks.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1203.1--Safeguards


1203.101-3  Agency regulations.

    (b) 5 CFR part 2635, Standards of Ethical Conduct for Employees of 
the Executive Branch, takes precedence over the DOT regulation at 49 
CFR part 99.

Subpart 1203.2--Contractor Gratuities to Government Personnel


1203.203  Reporting suspected violations of the Gratuities clause.

    (a) Suspected violations of the Gratuities clause shall be reported 
to the contracting officer responsible for the acquisition (or the COCO 
if the contracting officer is suspected of the violation). The 
contracting officer (or COCO) shall obtain from the person reporting 
the violation, and any witnesses to the violation, the following 
information:
    (1) The date, time, and place of the suspected violation;
    (2) The name and title (if known) of the individual(s) involved in 
the violation; and
    (3) The details of the violation (e.g., the gratuity offered or 
intended) to obtain a contract or favorable treatment under a contract.
    (b) The person reporting the violation and witnesses (if any) 
should be requested to sign and date the information certifying that 
the information furnished is true and correct.
    (c) The COCO shall report suspected violations to the Office of the 
Inspector General (OIG) (J-1), 400 7th Street, SW., Washington, DC 
20590, with a copy to General Counsel (C-1) and the OA's Chief Counsel.


1203.204  Treatment of violations.

    (a) The HCA is authorized to determine whether a Gratuities clause 
violation has occurred. If the HCA has been personally and 
substantially involved in the procurement,

[[Page 6511]]

Government legal counsel advice should be sought to determine if a 
substitute for the HCA should be designated.
    (b) The COCO shall ensure that the contractor is afforded the 
hearing procedures required by (FAR) 48 CFR 3.204(b). Government legal 
counsel should be consulted regarding the appropriateness of the 
hearing procedures.
    (c) If the HCA determines that the alleged gratuities violation 
occurred during the ``conduct of an agency procurement'' the COCO shall 
consult with Government legal counsel regarding the approach for 
appropriate processing of either the Procurement Integrity Act 
violation and/or the Gratuities violation.

Subpart 1203.3--Reports of Suspected Antitrust Violations


1203.301  General.

    (b) The same procedures contained in (TAR) 48 CFR 1203.203 shall 
also be followed for suspected antitrust violations, except reports of 
suspected antitrust violations shall be coordinated with legal counsel 
for referral to the Department of Justice, if deemed appropriate.


1203.303  Reporting suspected antitrust violations.

    (b) The same procedures contained in (TAR) 48 CFR 1203.203 shall 
also be followed for suspected antitrust violations, except reports of 
suspected antitrust violations shall be coordinated with legal counsel 
for referral to the Department of Justice, if deemed appropriate.

Subpart 1203.4--Contingent Fees


1203.405  Misrepresentations or violations of the Covenant Against 
Contingent Fees.

    (a) and (b)(4) The same procedures contained in (TAR) 48 CFR 
1203.203 shall also be followed for misrepresentation or violations of 
the covenant against contingent fees, except reports of 
misrepresentation or violations of the covenant against contingent fees 
shall be coordinated with legal counsel for referral to the Department 
of Justice, if deemed appropriate.

Subpart 1203.5--Other Improper Business Practices


1203.502  Subcontractor kickbacks.


1203.502-2  Subcontractor kickbacks.

    (g) The same procedures contained in (TAR) 48 CFR 1203.203 shall 
also be followed for subcontractor kickbacks.

PART 1204--ADMINISTRATIVE MATTERS

Subpart 1204.1--Contract Execution
Sec.
1204.103 Contract clause.
Subpart 1204.8--Government Contract Files
1204.804-5 Procedures for closing out contract.
1204.804-570 Supporting closeout documents.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1204.1--Contract Execution


1204.103  Contract clause.

    The contracting officer shall insert the clause at (FAR) 48 CFR 
52.204-1, Approval of Contract, filled in as appropriate, in 
solicitations and contracts when approval to award the resulting 
contract must be obtained from an official at a level above the 
contracting officer.

Subpart 1204.8--Government Contract Files


1204.804-5  Procedures for closing out contract files.


1204.804-570  Supporting closeout documents.

    (a) When applicable (see paragraphs (a)(1) through (4) of this 
section) and prior to contract closeout, the contracting officer shall 
obtain the listed DOT and Department of Defense (DOD) forms from the 
contractor to facilitate contract closeout.
    (1) Form DOT F 4220.4, Contractor's Release, see (FAR) 48 CFR 
52.216-7;
    (2) Form DOT F 4220.45, Contractor's Assignment of Refunds, 
Rebates, Credits and Other Amounts, (FAR) 48 CFR 52.216-7;
    (3) Form DOT F 4220.46, Cumulative Claim and Reconciliation 
Statement, see (FAR) 48 CFR 4.804-5(a)(13); and
    (4) DD Form 882, Report of Inventions and Subcontracts http://www.dior.whs.mil/forms/DD0882.PDF
, see (FAR) 48 CFR 52.227-14.

    (b) The forms listed in paragraph (a) of this section are used 
primarily for the closeout of cost-reimbursement, time-and-materials, 
and labor-hour contracts. However, the forms may also be used for 
closeout of other contract types or when necessary to protect the 
Government's interest.

PART 1205--PUBLICIZING CONTRACT ACTIONS

Subpart 1205.1--Dissemination of Information
Sec.
1205.101 Methods of disseminating information.
Subpart 1205.4--Release of Information
1205.402 General public.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1205.1--Dissemination Of Information


1205.101  Methods of disseminating information.

    (b) The DOT Office of Small and Disadvantaged Business Utilization 
(S-40), 400 7th Street, SW., Washington, DC 20590 publishes a 
Procurement Forecast of planned procurements each fiscal year on their 
Web site at: http://osdbuweb.dot.gov/business/procurement/forecast.html
.


Subpart 1205.4--Release of Information


1205.402  General public.

    (a) Upon request, DOT will furnish the general public with the 
following information on proposed contracts and contract awards:
    (1) Prior to the opening of sealed bids or the closing date for 
receipt of proposals, the names of firms invited to submit sealed bids 
or proposals;
    (2) Prior to the opening of sealed bids or the closing date for 
receipt of proposals, the names of firms which attended pre-proposal or 
pre-bid conferences, if any;
    (3) After the opening of sealed bids, names of firms which 
submitted bids; and
    (4) After contract award, the names of firms which submitted 
proposals.
    (b) Requests for other specific information shall be processed in 
accordance with the DOT Freedom of Information Act rules and 
regulations ((TAR) 48 CFR 1224.203).

PART 1206--COMPETITION REQUIREMENTS

Subpart 1206.5--Competition Advocates

Sec.
1206.501 Requirement.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1206.5--Competition Advocates


1206.501  Requirement.

    The DOT Senior Competition Advocate (SCA) is the Deputy Assistant 
Secretary for Administration.

PART 1207--ACQUISITION PLANNING

Subpart 1207.3--Contractor Versus Government Performance
Sec.

[[Page 6512]]

1207.302 General.
1207.305 Solicitation provisions and contract clause.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1207.3--Contractor Versus Government Performance


1207.302  General.

    DOT follows OMB Circular A-76, Performance of Commercial 
Activities, and (FAR) 48 CFR 7.3 when cost comparisons between 
Government and contractor performance are conducted.


1207.305  Solicitation provisions and contract clause.

    The contracting officer may insert clause (TAR) 48 CFR 1252.237-73, 
Key Personnel, in solicitations and contracts when the acquisition is 
conducted pursuant to OMB Circular A-76 and meets the clause 
prescription requirements at (TAR) 48 CFR 1237.110(b).

PART 1211--DESCRIBING AGENCY NEEDS

Subpart 1211.1--Selecting and Developing Requirements Documents
Sec.
1211.101 Order of precedence for requirements documents.
Subpart 1211.2--Using and Maintaining Requirements Documents
1211.204-70 Solicitation provisions and contract clauses.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1211.1--Selecting and Developing Requirements Documents


1211.101  Order of precedence for requirements documents.

    Safeguards to ensure safety, security (including sensitive 
information and information technology security) and environmental 
protection shall be included, as applicable, in requirements documents.

Subpart 1211.2--Using and Maintaining Requirements Documents


1211.204-70  Solicitation provisions and contract clauses.

    The contracting officer shall insert the clause at (TAR) 48 CFR 
1252.211-70, Index for Specifications, when an index or table of 
contents may be furnished with the specification.

PART 1213--SIMPLIFIED ACQUISITION PROCEDURES

Subpart 1213.71--Department of Transportation Procedures for Acquiring 
Training Services
Sec.
1213.7100 Applicability.
1213.7101 Solicitation provision and contract clause.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1213.71--Department of Transportation Procedures for 
Acquiring Training Services


1213.7100  Applicability.

    (a) DOT policy at (TAR) 48 CFR 1237.7000 also applies to the 
Standard Form (SF) 182, Request, Authorization, Agreement and 
Certification of Training, which may be used to acquire training 
services; however, the policy does not apply to training services 
acquired by the Government purchase/credit card. The Government 
purchase/credit card can only be used to acquire training services 
valued at $2,500 or less.
    (b) As reflected in (TAR) 48 CFR 1237.7002, this policy does not 
apply to training attended by DOT employees which is scheduled and 
conducted by Government sources of supply, educational institutions, or 
private entities where DOT does not control or sponsor the training. 
Examples of when the policy does and does not apply include:
    (1) When SF 182s are issued for three DOT employees to attend a one 
week course at a university or other private entity, the policy does 
not apply. DOT does not control this course because the university or 
private entity has a contract in place with the training provider and 
DOT is placing an order under an existing contract; and
    (2) When DOT awards a contract to a university or other private 
entity to provide training for DOT and/or other Government personnel, 
the policy applies. DOT controls this course; therefore, no soliciting 
or advertising of private non-Government training while conducting the 
contracted-for training is permitted.


1213.7101  Solicitation provision and contract clause.

    (a) Contracting officers shall insert the provision at (TAR) 48 CFR 
1252.237-71, Certification of Data, in all solicitations and requests 
for quotations, and the clause at (TAR) 48 CFR 1252.237-72, Prohibition 
on Advertising, in solicitations, requests for quotations, and all 
contracts (e.g., purchase orders, SF 182s) for training services when 
the content and/or presentation of the training is controlled by DOT. 
(Notice: The Secretary of Transportation has determined that the 
certification required by (TAR) 48 CFR 1252.237-71 shall be retained in 
accordance with Section 4301(b)(1)(B)(i)(II) of the Federal Acquisition 
Reform Act (Public Law 104-106, 41 U.S.C. 425, note) and DOT Memorandum 
dated July 17, 1996.)
    (b) Contracting officers shall incorporate the successful offeror's 
certified data into any resultant contract(s). Certified data may be 
adopted by reference, if the contracting officer determines it contains 
information sufficient to reliably describe the certified data 
submitted. For example, this type of information includes dated 
material such as resumes and company or personnel qualifications.

PART 1214--SEALED BIDDING

Subpart 1214.3--Submission of Bids
Sec.
1214.302 Bid submission.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1214.3--Submission of Bids


1214.302  Bid submission.

    (b)(1) Contracting officers may permit telegraphic bids to be 
communicated by means of a telephone call from the telegraph office to 
the designated office provided that procedures and controls have been 
established by the COCO for receiving and safeguarding these incoming 
bids.

PART 1215--CONTRACTING BY NEGOTIATION

Subpart 1215.2--Solicitation and Receipt of Proposals and Information
Sec.
1215.207 Handling proposals and information.
Subpart 1215.4--Contract Pricing
1215.404 Proposal analysis.
1215.404-470 Payment of profit or fee.
Subpart 1215.6--Unsolicited Proposals
1215.602 Policy.
1215.603 General.
1215.604 Agency points of contact.
1215.606 Agency procedures.
1215.606-1 Receipt and initial review.
1215.606-2 Evaluation.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1215.2--Solicitation and Receipt of Proposals and 
Information


1215.207  Handling proposals and information.

    (a) Offeror's proposals and information received in response to a

[[Page 6513]]

request for information shall be marked as required by TAM 1203.104-4, 
as applicable.
    (b) Proposals may be released outside the Government whenever it is 
the only means of receiving the most competent technical and/or 
management evaluation available.

Subpart 1215.4--Contract Pricing


1215.404  Proposal analysis.


1215.404-470  Payment of profit or fee.

    The contracting officer shall not pay profit or fee on 
undefinitized contracts or undefinitized contract modifications. Any 
profit or fee earned shall be paid after the contract or modification 
is definitized.

Subpart 1215.6--Unsolicited Proposals


1215.602  Policy.

    DOT's policy encourages submission of new and innovative ideas that 
will support DOT's mission. Through the various Operating 
Administrations (OAs), DOT is responsible for transportation safety 
improvements, international transportation agreements and the 
continuity of transportation services in the public interest.


1215.603  General.

    DOT will accept unsolicited proposals from any entity for review 
and consideration. However, DOT will not pay any costs associated with 
the preparation of these proposals. Proposals that do not meet the 
definition and applicable content and marking requirements of (FAR) 48 
CFR 15.6 will not be considered under any circumstances and will be 
returned to the submitter.


1215.604  Agency points of contact.

    (a) The DOT does not have a centralized location to receive 
unsolicited proposals. The type of effort submitted in the proposal 
determines which DOT OA should receive and evaluate the proposal.
    (b) Unsolicited proposals should be submitted to the responsible OA 
contracting office for appropriate handling. Specific information 
concerning the mission of each DOT OA is available on the worldwide web 
at http://www.dot.gov. Prospective contractors are urged to contact 

these contracting/procurement offices prior to submitting a proposal to 
ensure that the unsolicited proposal reaches the correct contracting 
office for action. This action will reduce unnecessary paperwork and 
wasted time for both the Government and the prospective contractors.


1215.606  Agency procedures.

    (a) The Chief of the Contracting Office is responsible for 
establishing procedures for controlling unsolicited proposals received 
in the contracting office. Within ten working days after receipt of an 
unsolicited proposal, the contracting office shall review the proposal 
and determine whether the proposal meets the content and marking 
requirements of (FAR) 48 CFR 15.6. If the proposal does not meet these 
requirements, it shall be returned to the submitter giving the reasons 
for noncompliance.
    (b) The OA contracting office is the designated point of contact 
for receipt and handling of unsolicited proposals. Persons within DOT 
who receive unsolicited proposals, such as technical personnel, shall 
forward the document to their responsible contracting office.


1215.606-1  Receipt and initial review.

    (a) The agency contact point must make an initial review 
determination within seven calendar days after receiving a proposal.
    (b) If the proposal meets the requirements at (FAR) 48 CFR 15.606-
1(a), the agency contact point must acknowledge receipt within three 
calendar days after making the initial review determination and advise 
the offeror of the general timeframe for completing the evaluation.
    (c) If the proposal does not meet the requirements of (FAR) 48 CFR 
15.606-1(a), the agency contact point must return the proposal within 
three calendar days after making the determination. The agency point of 
contact must inform the offeror, in writing, of the reasons for 
returning the proposal.


1215.606-2  Evaluation.

    (a) Comprehensive evaluations should be completed within sixty 
calendar days after making the initial review determination. If 
additional time is needed, then the agency contact point shall advise 
the offeror accordingly and provide a new evaluation completion date. 
The evaluating office must neither reproduce nor disseminate the 
proposal to other offices without the consent of the contracting office 
from which the proposal was received for evaluation. If additional 
information from the offeror is required by the evaluating office, the 
evaluator must convey this request to the responsible contracting 
office. The evaluator shall not directly contact the proposal 
originator.
    (b) If the evaluator recommends acceptance of the proposal, the 
responsible contracting officer shall ensure compliance with all of the 
requirements of (FAR) 48 CFR 15.607.

PART 1216--TYPES OF CONTRACTS

Subpart 1216.2--Fixed-Price Contracts
Sec.
1216.203 Fixed-price contracts with economic price adjustment.
1216.203-4 Contract clauses.
1216.203-470 Solicitation provision.
Subpart 1216.4--Incentive Contracts
1216.406-70 DOT contract clauses.
Subpart 1216.5--Indefinite-Delivery Contracts
1216.505 Ordering.
Subpart 1216.6--Time-and-Materials, Labor-Hour, and Letter Contracts
1216.603 Letter contracts.
1216.603-4 Contract clauses.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1216.2--Fixed-Price Contracts


1216.203  Fixed-price contracts with economic price adjustment.


1216.203-4  Contract clauses.


1216.203-470  Solicitation provision.

    The contracting officer shall insert the provision at (TAR) 48 CFR 
1252.216-70, Evaluation of Offers Subject to an Economic Price 
Adjustment Clause, in solicitations containing an economic price 
adjustment clause.

Subpart 1216.4--Incentive Contracts


1216.406-70  DOT contract clauses.

    (a) As authorized by (FAR) 48 CFR 16-406(e), the contracting 
officer shall insert the clause at (TAR) 48 CFR 1252.216-71, 
Determination of Award Fee, in all cost-plus-award-fee solicitations 
and contracts.
    (b) The contracting officer shall insert the clause at (TAR) 48 CFR 
1252.216-72, Performance Evaluation Plan, in all cost-plus-award-fee 
solicitations and contracts.
    (c) The contracting officer shall insert the clause at (TAR) 48 CFR 
1252.216-73, Distribution of Award Fee, in all cost-plus-award-fee 
solicitations and contracts.

Subpart 1216.5--Indefinite-Delivery Contracts


1216.505  Ordering.

    (b)(5) Unless otherwise designated by the Head of the Operating 
Administration, the Competition Advocate for the Operating 
Administration (OA) is designated as the OA Task and Delivery Order 
Ombudsman. If any corrective action is needed after reviewing 
complaints from

[[Page 6514]]

contractors on task and delivery order contracts, the OA Ombudsman 
shall provide a written determination of such action to the contracting 
officer. Issues that cannot be resolved within the OA, shall be 
forwarded to the DOT Task and Delivery Order Ombudsman for review and 
resolution. The DOT Task and Delivery Order Ombudsman is located in the 
Office of the Senior Procurement Executive.

Subpart 1216.6--Time-and-Materials, Labor-Hour, and Letter 
Contracts


1216.603  Letter contracts.


1216.603-4  Contract clauses.

    The contracting officer shall insert the clause at (TAR) 48 CFR 
1252.216-74, Settlement of Letter Contract, in all definitized letter 
contracts.

PART 1217--SPECIAL CONTRACTING METHODS

Subpart 1217.70--Fixed Price Contracts for Vessel Repair, Alteration or 
Conversion
Sec.
1217.7000 Definition.
1217.7001 Clauses.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1217.70--Fixed Price Contracts for Vessel Repair, 
Alteration or Conversion


1217.7000  Definition.

    Lay Days means the time allowed to the master of a vessel for 
loading and unloading the same.


1217.7001  Clauses.

    (a) The clause at (TAR) 48 CFR 1252.217-70, Guarantee, shall be 
used where general guarantee provisions are deemed desirable by the 
contracting officer.
    (1) When inspection and acceptance tests will afford full 
protection to the Government in ascertaining conformance to 
specifications and the absence of defects and deficiencies, no 
guarantee clause for that purpose shall be included in the contract.
    (2) The customary guarantee period, to be inserted in the first 
sentence of the clause at (TAR) 48 CFR 1252.217-70, Guarantee, is 60 
days. In certain instances, it may be advisable for the contracting 
officer to include a contract clause for a guarantee period longer than 
60 days. These instances are as follows:
    (i) If, as result of a full inquiry, the contracting officer 
determines that there will be no increased costs as a result of a 
longer guarantee period, the contracting officer may substitute 
guarantee longer than the usual 60 days; or
    (ii) When the contracting officer's inquiry discloses that 
increased costs will result or are expected to result from a longer 
guarantee period, the contracting officer shall submit a letter to the 
Chief of the Contracting Office, requesting approval for use of 
guarantee period in excess of 60 days. The letter must contain 
sufficient facts to justify the use of a longer guarantee period. Upon 
approval, the contracting officer may insert a longer period in the 
first sentence of the clause at (TAR) 48 CFR 1252.217-70, Guarantee.
    (b) The following clauses are required:
    (1) (TAR) 48 CFR 1252.217-71 through (TAR) 48 CFR 1252.217-74; and,
    (2) (TAR) 48 CFR 1252.217-76 through (TAR) 48 CFR 1252.217-80.
    (c) (TAR) 48 CFR 1252.217-75 may be included in sealed bid fixed-
price solicitations and contracts for vessel repair, alteration, or 
conversion which are to be performed within the United States, its 
possessions, or Puerto Rico.
    (d) Unless inappropriate, the clauses set forth in (TAR) 48 CFR 
1252.217-71 through (TAR) 48 CFR 1252.217-74 and (TAR) 48 CFR 1252.217-
76 through (TAR) 48 CFR 1252.217-80 shall be included.
    (e) (TAR) 48 CFR 1252.217- may be included in negotiated 
solicitations and contracts to be performed outside the United States.

PART 1219--SMALL BUSINESS PROGRAMS

Subpart 1219.2--Policies
Sec.
1219.201 General policy.
Subpart 1219.8--Contracting with the Small Business Administration (The 
8(a) Program)
1219.800 General.
1219.811-3 Contract clauses.
1219.812 Contract administration.
Subpart 1219.10--Small Business Competitiveness Demonstration Program
1219.1003 Purpose.
1219.1005 Applicability.
Appendix A to Part 1219--Targeted Industry Categories

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1219.2--Policies


1219.201  General policy.

    (c) The Director, Office of Small and Disadvantaged Business 
Utilization (S-40), is responsible for carrying out the functions and 
duties in sections 8, 15, and 31 of the Small Business Act, as amended. 
(15 U.S.C. 637, 644, and 657.)

Subpart 1219.8--Contracting with the Small Business Administration 
(The 8(a) Program)


1219.800  General.

    (f) The Small Business Administration (SBA) and DOT have entered 
into a Partnership Agreement (PA) authorizing DOT contracting officers 
to enter into direct 8(a) contracts on behalf of SBA.


1219.811-3  Contract clauses.

    (d)(3) When an acquisition is processed pursuant to the DOT/SBA 
Partnership Agreement, the contracting officer shall use the clause at 
(FAR) 48 CFR 52.219-18, Notification of Competition Limited to Eligible 
8(a) Concerns, with its Alternate III, (TAR) 48 CFR 1252.219-72.
    (f) The contracting officer shall insert the clause at 1252.219-71, 
Section 8(a) Direct Awards, in all solicitations and contracts 
processed under the PA. In accordance with the CAAC Letter 98-3, the 
following FAR clauses shall not be used when processing a Direct 8(a) 
award under the MOU: (FAR) 48 CFR 52.219-11, Special 8(a) Contract 
Conditions, (FAR) 48 CFR 52.219-12, Special 8(a) Subcontract 
Conditions, and (FAR) 48 CFR 52.219-17, Section 8(a) Award.


1219.812  Contract administration.

    (d) All direct 8(a) awards made pursuant to the PA are subject to 
15 U.S.C. 637(a) (21). These contracts contain the clause at (TAR) 48 
CFR 1252.219-71, Section 8(a) Direct Award, which requires the 8(a) 
contractor to notify the SBA and the contracting officer when ownership 
of the firm is being transferred.

Subpart 1219.10--Small Business Competitiveness Demonstration 
Program


1219.1003  Purpose.

    (b) Contracting officers shall use the targeted industry categories 
listed at (TAR) 48 CFR 1219.1005(b) to expand small business 
participation in the small business competitive demonstration program.


1219.1005  Applicability.

    (b) Targeted industry categories. DOT's targeted industry 
categories are shown in Appendix A to this part.

                         Appendix A to Part 1219
------------------------------------------------------------------------
                                             FPDS products and service
      Targeted industry categories*                     code
------------------------------------------------------------------------
(1) Engineering Development..............  AT94
(2) Systems Engineering Services (Only)..  R414

[[Page 6515]]


(3) Radio/TV Communication Equipment       5820
 (except airborne).
(4) Maintenance, Repair, and Rebuilding    J028/J010
 of engines, turbines, components and
 weapons equipment.
(5) ADP Central Processing Units:
  Analog.................................  7020
  Digital................................  7021
  Hybrid.................................  7022
(6) ADP Support Equipment................  7035
(7) ADP Components.......................  7050
(8) ADP Development Services and ADP       D302/D305
 Teleprocessing and Timesharing Services.
(9) Gas Turbines and Jet Engines,          2840
 Aircraft; and Components.
(10) Radar Equipment (except airborne)     5840/AT31
 and Navigation and Navigational Aids
 (basic research).
------------------------------------------------------------------------
\*\ The industry categories were derived from Federal Procurement Data
  System Product and Service Codes Manual.

PART 1222--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

Subpart 1222.1--Basic Labor Policies
Sec.
1222.101 Labor relations.
1222.101-70 Admittance of union representatives to DOT 
installations.
1222.101-71 Contract clauses.
Subpart 1222.4--Labor Standards for Contracts Involving Construction
1222.406 Administration and enforcement.
1222.406-9 Withholding from or suspension of contract payments.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1222.1--Basic Labor Policies


1222.101  Labor relations.


1222.101-70  Admittance of union representatives to DOT installations.

    (a) It is DOT policy to admit labor union representatives of 
contractor employees to DOT installations to visit work sites and 
transact labor union business with contractors, their employees, or 
union stewards pursuant to existing union collective bargaining 
agreements. Their presence shall not interfere with the contractor's 
work progress under a DOT contract nor violate the safety or security 
regulations that may be applicable to persons visiting the 
installation. The union representatives will not be permitted to 
conduct meetings, collect union dues, or make speeches concerning union 
matters while visiting a work site.
    (b) Whenever a union representative is denied entry to a work site, 
the person denying entry shall make a written report to the DOT labor 
coordinator, the Office of the General Counsel, Office of Environmental 
Law, Civil Rights and General Law (C-10), within the Office of the 
Secretary of Transportation or corresponding OA labor advisor, within 
two working days after the request for entry is denied. The report 
shall include the reason(s) for the denial, the name of the 
representative denied entry, the union affiliation and number, and the 
name and title of the person that denied the entry.


1222.101-71  Contract clauses.

    (a) When applicable, the contracting officer may insert the clause 
at (TAR) 48 CFR 1252.222-70, Strikes or Picketing Affecting Timely 
Completion of the Contract Work, in solicitations and contracts.
    (b) When applicable the contracting officer may insert the clause 
at (TAR) 48 CFR 1252.222-71, Strikes or Picketing Affecting Access to a 
DOT Facility, in solicitations and contracts.

Subpart 1222.4--Labor Standards for Contracts Involving 
Construction


1222.406  Administration and enforcement.


1222.406-9  Withholding from or suspension of contract payments.

    (c) Disposition of contract payments withheld or suspended. (1) 
Forwarding wage underpayments to the Secretary of the Treasury. The 
contracting officer shall ensure that a completed Form DOT F 4220.7, 
Employee Claim for Wage Restitution, is obtained from each employee 
claiming restitution under the contract. The Comptroller General 
(Claims Division) must receive this form with a completed Standard Form 
(SF) 1093, Schedule of Withholding Under the Davis-Bacon Act or the 
Contract Work Hours and Safety Standards Act, before payment can be 
made to the employee.

PART 1223--ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE 
ENERGY TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE

Subpart 1223.3--Hazardous Material Identification and Material Safety 
Data
Sec.
1223.303 Contract clause.
Subpart 1223.70--Safety Requirements for Selected DOT Contracts
1223.7000 Contract clauses.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1223.3--Hazardous Material Identification and Material 
Safety Data


1223.303  Contract clause.

    The contracting officer shall insert the clause at (TAR) 48 CFR 
1252.223-70, Removal or Disposal of Hazardous Substances--Applicable 
Licenses and Permits, in solicitations and contracts involving the 
removal or disposal of hazardous waste material.

Subpart 1223.70--Safety Requirements for Selected DOT Contracts


1223.7000  Contract clauses.

    (a) Where all or part of a contract will be performed on 
Government-owned or leased property, the contracting officer shall 
insert the clause at (TAR) 48 CFR 1252.223-71, Accident and Fire 
Reporting.
    (b) For all solicitations and contracts under which human test 
subjects will be utilized, the contracting officer shall insert the 
clause at (TAR) 48 CFR 1252.223-72, Protection of Human Subjects. Upon 
written request, copies of the applicable National Highway Traffic 
Safety Administration (NHTSA) policies and procedures may be obtained 
from NHTSA's Associate Administrator for Administration (NPO-200), 400 
7th Street, SW., Washington DC 20590.
    (c) Pursuant to Executive Order 13043, Increasing Seat Belt Use in 
the United States, the contracting officer shall insert the clause at 
(TAR) 48 CFR 1252.223-73, Seat Belt Use Policies and Programs in all 
solicitations and contracts, exceeding the simplified acquisition 
threshold.

PART 1224--PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION

Subpart 1224.1--Protection of Individual Privacy
Sec.
1224.102-70 General.
1224.103 Procedures.
Subpart 1224.2--Freedom of Information Act
1224.203 Policy.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1224.1--Protection of Individual Privacy


1224.102-70  General.

    (a) Systems of records to which the Privacy Act applies shall not 
be released except by the Government regardless of whether the 
Government or a contractor acting on behalf of the Government is 
maintaining the records. Examples of systems of records are:

[[Page 6516]]

    (1) Personnel, payroll and background records personal to any 
officer or employee of DOT, or other person, including his or her 
residential address;
    (2) Medical histories and medical records concerning individuals, 
including applications for licenses; and
    (3) Any other detailed record containing information identifiable 
with a particular person.
    (b) Examples of systems of records to which the Privacy Act does 
not apply are:
    (1) Records that are maintained by a contractor on individuals 
employed by the contractor in the process of providing goods and 
services to the Federal government; and
    (2) Records generated on contract students pursuant to their 
attendance (e.g., admission forms, grade reports) when contracting with 
an educational institution. These records must be similar to those 
maintained on other students, must not reveal their identities, and 
must not be commingled with records of other students.


1224.103  Procedures.

    DOT rules and regulations implementing the Privacy Act of 1974 are 
located at 49 CFR part 10.

Subpart 1224.2--Freedom of Information Act


1224.203  Policy.

    DOT rules and regulations implementing the Freedom of Information 
Act (FOIA) and the names and addresses of the OA FOIA offices are 
located in 49 CFR Part 7. Specific contract award information shall be 
requested from the FOIA office of the OA making the contract award.

PART 1227--PATENTS, DATA, AND COPYRIGHTS

Subpart 1227.3--Patent Rights Under Government Contracts
Sec.
1227.304 Procedures.
1227.304-5 Appeals.
1227.305 Administration of patent rights clauses.
1227.305-4 Conveyance of invention rights acquired by the 
Government.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1227.3--Patent Rights Under Government Contracts


1227.304  Procedures.


1227.304-5  Appeals.

    (b) Agency actions listed at (FAR) 48 CFR 27.304-5(a)(1) and (a)(3) 
through (a)(5) may be appealed to the Head of the Contracting Activity 
(HCA). Actions under this section shall be coordinated with the legal 
counsel of the responsible office.
    (1) Actions must be appealed within 30 days of receipt of the 
written statement required by (FAR) 48 CFR 27.304-5(a). The contractor 
must present all pertinent arguments in the appeal along with 
documentary evidence, if any.
    (2) The HCA shall issue a determination within 45 days from the 
date the contractor's appeal is received.
    (c) Appeals of decisions rendered under (FAR) 48 CFR 27.304-5(a)(2) 
are subject to the following requirements:
    (1) Actions must be appealed within 30 days of receipt of the 
written statement required by (FAR) 48 CFR 27.304-5(a). The contractor 
must present all pertinent arguments in the appeal along with 
documentary evidence, if any.
    (2) The HCA may hold an informal hearing if deemed appropriate or 
at the request of the contractor. The informal hearing shall be held 
after all fact-finding is completed.
    (i) If a hearing is held, there shall be a transcribed record of 
the same. A copy of the transcript shall be available to the contractor 
at cost.
    (ii) Transcription of the hearing may be waived by mutual agreement 
of the parties.
    (3) The HCA shall designate an impartial fact-finding official. The 
official conducting the fact-finding shall prepare findings of fact and 
transmit them to the HCA promptly after the conclusion of the fact-
finding proceeding along with a recommended determination.
    (i) A copy of the findings of fact shall be sent to the contractor 
(assignee or exclusive licensee) by registered or certified mail. The 
contractor (assignee or exclusive licensee) and agency representatives 
will be given 30 days to submit written arguments to the HCA; and, upon 
request by the contractor oral arguments will be held before the HCA as 
part of an informal hearing. The HCA will make the final determination 
as to whether the initial agency action was appropriate under the 
relevant laws and procedures (See 1227.304-5(c)(4)).
    (ii) Any portion of the informal hearing that involves testimony or 
evidence shall be closed to the public. Agencies shall not disclose any 
such information obtained in the course of the appeal to persons 
outside the government except when such release is authorized by the 
contractor (assignee or licensee).
    (4) The HCA's final determination shall be based on the findings of 
facts, together with any other information and written or oral 
arguments submitted by the contractor (assignee or exclusive licensee) 
and agency representatives, and any other information in the 
administrative record. The HCA may reject only those facts that have 
been found clearly erroneous and must explicitly state the rejection 
and the basis for the contrary finding. The HCA shall provide the 
contractor (assignee or exclusive licensee) a written determination by 
certified or registered mail no later than 90 days after fact-finding 
is completed or no later than 90 days after oral arguments, whichever 
is later.


1227.305  Administration of patent rights clauses.


1227.305-4  Conveyance of invention rights acquired by the Government.

    Solicitations and contracts that include a patent rights clause 
must provide the contractor the means to report inventions made in the 
course of contract performance and at contract completion. This 
requirement may be fulfilled by requiring the contractor to submit a DD 
Form 882, Report of Inventions and Subcontracts.

PART 1228--BONDS AND INSURANCE

Subpart 1228.1--Bonds and Other Financial Protections
Sec.
1228.106 Administration.
1228.106-1 Bonds and bond-related forms.
1228.106-6 Furnishing of information.
1228.106-70 Execution and administration of bonds.
1228.106-71 Performance and payment bonds for certain contracts.
1228.106-7100 Waiver.
1228.106-7101 Exception.
1228.106-470 Contract clause.
Subpart 1228.3--Insurance
1228.306 Insurance under fixed-price contracts.
1228.306-70 Contracts for lease of aircraft.
1228.307-1 Group insurance plans.
1228.311-1 Contract clause.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1228.1--Bonds and Other Financial Protections


1228.106  Administration.


1228.106-1  Bonds and bond-related forms.

    (b) Standard Form (SF) 25, Performance Bond, prescribed at (FAR) 48 
CFR 28.106-1(b), shall provide coverage for taxes imposed by the United 
States which are collected, deducted, or withheld from wages paid by 
the contractor. Forms other than the SF 25 (e.g., a commercial form) 
shall not

[[Page 6517]]

be used by contractors when a performance bond is required.


1228.106-6  Furnishing of information.

    (b) When furnishing surety information, the inquirer should also be 
informed that:
    (1) Persons believing that they have legal remedies under the 
Miller Act (40 U.S.C. 3131-3134) are cautioned to consult their own 
legal advisor regarding the proper steps to take to obtain remedies.
    (2) On construction contracts exceeding $2,000, if the contracting 
officer is informed (through routine compliance checking, a complaint, 
or a request for information) that a laborer, mechanic, apprentice, 
trainee, watchman, or guard employed by the contractor or subcontractor 
at any tier may have been paid wages less than those required by the 
applicable labor standards provisions of the contract, the contracting 
officer shall promptly initiate an investigation in accordance with 
(FAR) 48 CFR subpart 22.4, irrespective of the employee's rights under 
the Miller Act. When an employee's request for information is involved, 
the contracting officer shall inform the inquirer that such 
investigation will be made. To insure proper payment to such employees, 
this investigation is required pursuant to the provisions of the Davis-
Bacon Act, Contract Work Hours and Safety Standards Act (40 U.S.C. 
3141), and Copeland (Anti-Kickback) Act (41 U.S.C. 51-58).
    (c) When furnishing a copy of a payment bond and contract in 
accordance with (FAR) 48 CFR 28.106-6(b), the requirement for a copy of 
the contract may be satisfied by furnishing a machine-duplicate copy of 
the contractor's first pages which show the contract number and date, 
the contractor's name and signature, the contracting officer's 
signature, and the description of the contract work. The contracting 
officer furnishing the copies shall place the statement ``Certified to 
be a true and correct copy'' followed by his/her signature, title and 
name of the OA. The fee for furnishing the requested certified copies 
shall be determined in accordance with the DOT Freedom of Information 
Act regulation, 49 CFR part 7, (TAR) 48 CFR 1224.203).


1228.106-70  Execution and administration of bonds.

    (a) The contracting officer shall notify the surety within 30 days, 
of the contractor's failure to perform in accordance with the terms of 
the contract.
    (b) When a partnership is a principal on a bond, the names of all 
the members of the firm shall be listed in the bond following the name 
of the firm, and the phrase ``a partnership composed of.'' If a 
principal is a corporation, the state of incorporation must also appear 
on the bond.
    (c) Performance or payment bond(s), other than an annual bond, 
shall not predate the contract to which it pertains.
    (d) Bonds may be filed with the original contract to which they 
apply, or all bonds can be separately maintained and reviewed quarterly 
for validity. If separately maintained, each contract file shall cross-
reference the applicable bonds.


1228.106-71  Performance and payment bonds for certain contracts.


1228.106-7100  Waiver.

    (a) Pursuant to the authority vested in the Secretary of 
Transportation by the Miller Act, the requirements of 40 U.S.C. 3131 et 
seq. are waived, to the extent authorized in 40 U.S.C. 3134(b), with 
respect to contracts for the construction, alteration, or repair of 
vessels when the contract is made under sections 1535 and 1536 of Title 
31, the Merchant Marine Act 1936 (46 App. U.S.C. 1101 et seq.), or the 
Merchant Ship Sales Act of 1946 (50 App. U.S.C. 1735 et seq.), 
regardless of the terms of the contracts as to payment or title.
    (b) The Miller Act's requirement that certain contracts have 
payment bonds in place in order to protect the public, including the 
Government, material, men and laborers is not generally necessary with 
respect to the classes of contracts described under (TAR) 48 CFR 
1228.106-7100(a). Inasmuch as the Government would directly or 
indirectly bear the burden of premiums for performance and payment 
bonds obtained in connection with such contracts, a substantial savings 
can be made by waiving the requirement that they be obtained. However, 
unusual circumstances may arise in which either payment or performance 
bonds, or both, will be advantageous in connection with certain such 
contracts.


1228.106-7101  Exception.

    A performance and payment bond for the contracts described under 
(TAR) 48 CFR 1228.106-7100(a) may be advantageous in view of unusual 
circumstances arising in connection with such contracts. Requests for 
the authority to include the requirement for either a performance or 
payment bond, or both in the contracts described under (TAR) 48 CFR 
1228.106-7100(a) shall be submitted by the contracting officer to the 
HCA, before a solicitation is issued.


1228.106-470  Contract clause.

    The contracting officer must insert the clause at (TAR) 48 CFR 
1252.228-73, Notification of Miller Act Payment Bond Protection, in 
solicitations and contracts when payment bonds are required.

Subpart 1228.3--Insurance


1228.306  Insurance under fixed-price contracts.


1228.306-70  Contracts for lease of aircraft.

    (a) The contracting officer shall insert the clauses at (TAR) 48 
CFR 1252.228-70 through 1252.228-72, unless otherwise indicated by the 
specific instructions for their use, in any contract for the lease of 
aircraft (including aircraft used in out-service flight training).
    (b) The contracting officer shall insert the clause at (TAR) 48 CFR 
1252.228-70, Loss of or Damage to Leased Aircraft, in any contract for 
the lease of aircraft, except in the following circumstances:
    (1) When the hourly rental rate does not exceed $250 and the total 
rental cost for any single transaction is not in excess of $2,500:
    (2) When the cost of hull insurance does not exceed 10 percent of 
the contract rate; or
    (3) When the lessor's insurer does not grant a credit for uninsured 
hours, thereby preventing the lessor from granting the same to the 
Government.
    (c) The contracting officer must insert the clause at (TAR) 48 CFR 
1252.228-71, Fair Market Value of Aircraft, when fair market value of 
the aircraft can be determined.
    (d) 49 U.S.C. 44112, as amended, provides that an aircraft lessor 
under a lease of 30 days or more is not liable for injury or death of 
persons, or damage or loss of property, unless the aircraft is in the 
actual possession or control of the lessor and the damage occurs 
because of
    (1) The aircraft, engine or propeller, or
    (2) The flight of, or an object falling from, the aircraft, engine, 
or propeller. On short-term or intermittent-use leases, however, the 
owner may be liable for damage caused by operation of the aircraft. It 
is usual for the aircraft owner to retain insurance covering this 
liability during the term of such lease. Such insurance can, often for 
little or no increase in premium, be made to cover the Government's 
exposure to liability as well. In order to take advantage of this 
coverage, the Risks and Indemnities clause at (TAR) 48 CFR 1252.228-72

[[Page 6518]]

prescribed in paragraph (d)(1) of this section shall be used.
    (1) The contracting officer shall insert the clause at (TAR) 48 CFR 
1252.228-72, Risk and Indemnities, in any contract for out-service 
flight training or for the lease of aircraft when the Government will 
have exclusive use of the aircraft for a period of less than thirty 
days.
    (2) Any contract for out-service flight training shall include a 
clause in the contract schedule stating substantially that the 
contractor's personnel shall at all times during the course of the 
training be in command of the aircraft and that at no time must other 
personnel be permitted to take command of the aircraft.


1228.307-1  Group insurance plans.

    (a) Prior approval requirements. The contracting officer shall 
instruct the contractor on a contract-by-contract basis on proposed 
purchases of group insurance plans. Legal advice should be sought where 
necessary on the advantages to the Government.


1228.311-1  Contract clause.

    The contracting officer shall insert the clause at (FAR) 48 CFR 
52.228-7, Insurance Liability to Third Persons, as prescribed in FAR 
28.311-1 unless it is waived by an official one level above the 
contracting officer.

PART 1231--CONTRACT COST PRINCIPLES AND PROCEDURES

Subpart 1231.2--Contracts With Commercial Organizations
Sec.
1231.205 Selected costs.
1231.205-32 Precontract costs.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1231.2--Contracts With Commercial Organizations


1231.205  Selected costs.


1231.205-32  Precontract costs.

    (a) The decision to incur precontract costs is that of the 
contractor. No DOT employee can authorize, demand, or require a 
contractor to incur precontract costs. The contracting officer may 
advise the prospective contractor that any costs incurred before 
contract award are at the contractor's sole risk and that if 
negotiations fail to result in a binding contract, payment of these 
costs may not be made by the Government.
    (b) When the contracting officer determines that incurring 
precontract costs was necessary to meet the proposed contract delivery 
schedule of a cost-reimbursement contract, the clause at (TAR) 48 CFR 
1252.231-70, Date of Incurrence of Costs, may be inserted in the 
resultant contract.

PART 1232--CONTRACT FINANCING

Subpart 1232.70--Contract Payments
Sec.
1232.7002 Invoice and voucher review and approval.
Appendix A to Part 1232--Instructions for Completing The SF 1034
Appendix B to Part 1232--Instructions for Completing the SF 1035

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1232.70--Contract Payments


1232.7002  Invoice and voucher review and approval.

    (a) Under fixed-price contracts, the contracting officer shall 
require the contractor to submit an invoice or voucher in order to 
receive payment under the contract. The invoice or voucher may be on a 
form or company letterhead as long as it meets the requirements of the 
Management and Budget (OMB) regulation at 5 CFR part 1315 as 
implemented by (FAR) 48 CFR Subpart 32.9, and the contract.
    (b) Under other than fixed-price contracts, the contracting office 
shall require the contractor to submit the SF 1034, Public Voucher for 
Purchases and Services Other Than Personal, and the SF 1035, Public 
Voucher for Purchases and Services Other Than Personal (Continuation 
Sheet), to request payments. The forms must be completed as required by 
Appendix A to this part, Instructions for Completing the SF 1034, and 
Appendix B to this part, Instructions for Completing the SF 1035.

    Appendix A to Part 1232--Instructions for Completing the SF 1034
   [The SF 1034, Public Voucher for Purchases and Services Other Than
 Personal, shall be completed in accordance with the below instructions.
       The numbered items correspond to the entries on the form.]
------------------------------------------------------------------------
                                            Data to be inserted in the
         Caption on the SF 1034                       block
------------------------------------------------------------------------
1. U.S. Department, Bureau, or           Name and address of the
 establishment and location.              contracting office which
                                          issued the contract.
2. Date voucher prepared...............  Date voucher submitted to the
                                          designated billing office
                                          cited under the contract or
                                          order.
3. Contract No. and date...............  Contract No. and, when
                                          applicable, the Order No. and
                                          date as shown on the award
                                          document.
4. Requisition No. and date............  Leave blank or fill-in in
                                          accordance with the
                                          instructions in the contract.
5. Voucher No..........................  Start with ``1'' and number
                                          consecutively. A separate
                                          series of consecutive numbers
                                          must be used beginning with
                                          ``1'' for each contract number
                                          or order number (when
                                          applicable). Note: Insert the
                                          word ``FINAL'' if this is the
                                          last voucher.
6. Schedule No.; paid by; date invoice   Leave all these blocks blank.
 received; discount terms; payee's
 account No.; shipped from/to; weight;
 government B/L.
7. Payee's name and address............  Name and address of contractor
                                          as it appears on the contract.
                                          If the contract is assigned to
                                          a bank, also show ``CONTRACT
                                          ASSIGNED'' below the name and
                                          address of the contractor.
8. Number and date or order............  Leave blank. (See 3
                                          above.)
9. Date of delivery or service.........  The period for which the
                                          incurred costs are being
                                          claimed (e.g., month and year;
                                          beginning and ending date of
                                          services, etc.).
10. Articles or services...............  Insert the following: ``For
                                          detail, see the total amount
                                          of the claim transferred from
                                          the attached SF 1035, page X
                                          of X.'' One space below this
                                          line, insert the following:
                                          ``COST REIMBURSABLE-
                                          PROVISIONAL PAYMENT.''
11. Quantity; unit price; (cost; per)..  Leave blank.
12. Amount.............................  Insert the total amount claimed
                                          from the last page of the SF
                                          1035.
Payee must NOT use the space below.....  Do NOT write or type below this
                                          line.
------------------------------------------------------------------------


[[Page 6519]]

Appendix B to Part 1232--Instructions for Completing the SF 1035

    The SF 1035, Public Voucher for Purchases and Services Other 
Than Personal (Continuation Sheet), shall be completed in accordance 
with the below instructions.
    1. Use the same basic instructions for the SF 1035 as used for 
the SF 1034. Ensure that the contract and, if applicable, order 
number, are shown on each continuation sheet. Use as many sheets as 
necessary to show the information required by the contract, 
contracting officer, or responsible audit agency; however, if more 
than one sheet of SF 1035 is used, each sheet shall be in numerical 
sequence.
    2. The following items are generally entered below the line with 
Number and Date of Order; Date of Delivery or Service; Articles or 
Services; Quantity; Unit Price; and Amount (but do not necessarily 
tie to these captions).
    3. Description of data to be inserted as it applies to the 
contract or order number.
    a. Show, as applicable, the target or estimated costs, target or 
fixed-fee, and total contract value, as adjusted by any 
modifications to the contract or order. The FAR permits the 
contracting officer to withhold a percentage of fixed fee until a 
reserve is set aside in an amount that is considered necessary to 
protect the Government's interest.
    b. Show the following costs and supporting data (as applicable) 
to the contract or order:
    (1) Direct Labor. List each labor category, rate per labor hour, 
hours worked, and extended total labor dollars per labor category.
    (2) Premium Pay/Overtime. List each labor category, rate per 
labor hour, hours worked, and the extended total labor dollars per 
labor category. Note: Advance written authorization must be received 
from the contracting officer to work overtime or to pay premium 
rates; therefore, identify the contracting officer's written 
authorization to the contractor.
    (3) Fringe Benefits. If fringe benefits are included in the 
overhead pool, no entry is required. If the contract allows for a 
separate fringe benefit pool, cite the formula (rate and base) in 
effect during the time the costs were incurred. If the contract 
allows for billing fringe benefits as a direct expense, show the 
actual fringe benefit costs.
    (4) Materials, Supplies, Equipment. Show those items normally 
treated as direct costs. Expendable items need not be itemized and 
may be grouped into major classifications such as office supplies. 
However, items valued at $5,000 or more must be itemized. See (FAR) 
48 CFR part 45, Government Property, for reporting of property.
    (5) Travel. List the name and title of traveler, place of 
travel, and travel dates. If the travel claim is based on the actual 
costs expended, show the amount for the mode of travel (i.e., 
airline, private auto, taxi, etc.), lodging, meals, and other 
incidental expenses separately, on a daily basis. These actual costs 
must be supported with receipts to substantiate the costs paid. 
Travel costs for consultants must be shown separately and also 
supported.
    (6) Other Direct Costs. Itemize those costs that cannot be 
placed in categories (1) through (5) above. Categorize these costs 
to the extent possible.
    (7) Total Direct Costs. Cite the sum of categories (1) through 
(6) above.
    (8) Overhead. Cite the rate, base, and extended amount.
    (9) G&A Expense. Cite the rate, base, and extended amount.
    (10) Total Costs. Cite the sum of categories (7) through (9) 
above.
    (11) Fee. Cite the rate, base, and extended amount.
    (12) Total Cost and Fee Claimed. Enter this amount on the SF 
1034.

Completion Voucher

    The completion (final) voucher is the last voucher to be 
submitted for incurred, allocable, and allowable costs expended to 
perform the contract or order. This voucher should include all 
contract reserves, allowable cost withholdings, balance of fixed 
fee, etc. However, the amount of the completion voucher when added 
to the total amount previously paid cannot exceed the total amount 
of the contract.

PART 1233--PROTESTS, DISPUTES, AND APPEALS

Subpart 1233.1 Protests
Sec.
1233.103 Protests to the agency.
1233.104 Protests to GAO.
Subpart 1233.2--Disputes and Appeals
1233.211 Contracting officer's decision.
1233.214 Alternative dispute resolution (ADR).

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1233.1--Protests


1233.103  Protests to the agency.

    (c) DOT Operating Administrations (OAs) shall consider the use of 
Alternate Dispute Resolution (ADR) in all agency protest actions.


1233.104  Protests to GAO.

    The protest process at the Government Accountability Office (GAO) 
may include ADR assistance by GAO. The contracting officer shall, with 
advice of counsel, explore the possibility of using ADR for all GAO 
protests.

Subpart 1233.2--Disputes and Appeals


1233.211  Contracting officer's decision.

    For DOT contracts, the Board of Contract Appeals (BCA) referenced 
at (FAR) 48 CFR 33.211 is the Department of Transportation Board of 
Contract Appeals (S-20), 400 7th Street, SW., Washington, DC 20590. The 
DOTBCA Rules of Procedure are contained in 48 CFR chapter 63, part 
6301.


1233.214  Alternative dispute resolution (ADR).

    (c) The Administrative Dispute Resolution Act (ADRA) of 1990, 
Public Law 101-552, as reauthorized by the Administrative Dispute 
Resolution Act (ADRA) of 1996, Public Law 104-320, authorizes and 
encourages agencies to use mediation, conciliation, arbitration, and 
other techniques for the prompt and informal resolution of disputes, 
either before or after appeal, and for other purposes. ADR procedures 
may be used when:
    (1) There is mutual consent by the parties to participate in the 
ADR process (with consent being obtained either before or after an 
issue in controversy has arisen);
    (2) Prior to the submission of a claim; and
    (3) In resolution of a formal claim. Use of ADR shall be 
coordinated with counsel. For all matters filed with the DOTBCA, the 
DOTBCA Alternate Dispute Resolution (ADR) procedures contained in 48 
CFR Chapter 63, Section 6302.30, ADR Methods (Rule 30), will be 
distributed to the parties, if ADR procedures are used.
    (d) Pursuant to the ADRA, DOT has appointed a Dispute Resolution 
Specialist, who is responsible for the operations of the Center for 
Alternative Dispute Resolution, (C-4). The Center may provide an 
internal DOT neutral agreeable to the parties to conduct any of the 
alternative means of dispute resolution set forth in the ADRA, 5 U.S.C. 
571(3) on a non-reimbursable basis for DOT operating administrations 
and their contracting partners. Alternative means of dispute resolution 
include settlement negotiations, conciliation, facilitation, mediation, 
fact finding, mini-trials, and arbitration, or any combination of these 
methods. The Center may also arrange for an external public or private 
neutral at the parties' expense.

PART 1235--RESEARCH AND DEVELOPMENT CONTRACTING

Sec.
1235.003 Policy.
Subpart 1235.70--Research Misconduct
1235.7000 Contract clause.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.


1235.003  Policy.

    (b) Cost sharing. DOT cost sharing policies shall be in accordance 
with (FAR) 48 CFR 16.303, (FAR) 48 CFR 42.707(a), and Operating 
Administration (OA) procedures.

[[Page 6520]]

Subpart 1235.70--Research Misconduct


1235.7000  Contract clause.

    The contracting officer shall insert the clause at (TAR) 48 CFR 
1252.235-70, Research Misconduct, in all solicitations and contracts 
for research and development. For further information, see DOT's 
Implementation Guidance for Executive Office of the President, Office 
of Science and Technology Policy, ``Federal Policy on Research 
Misconduct,'' dated February 2002.

PART 1236--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

Subpart 1236.5--Contract Clauses
Sec.
1236.570 Special precautions for work at operating airports.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1236.5--Contract Clauses


1236.570  Special precautions for work at operating airports.

    Where any acquisition will require work at an operating airport, 
insert the clause at (TAR) 48 CFR 1252.236-70, Special Precautions for 
Work at Operating Airports, in solicitations and contracts.

PART 1237--SERVICE CONTRACTING

Subpart 1237.1--Service Contracts--General
Sec.
1237.110 Solicitation provisions and contract clauses.
Subpart 1237.70--Department of Transportation Procedures for Acquiring 
Training Services
1237.7000 Policy.
1237.7001 Certification of data.
1237.7002 Applicability.
1237.7003 Solicitation provisions and contract clause.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1237.1--Service Contracts--General


1237.110  Solicitation provisions and contract clauses.

    (a) Contracting officers shall insert the clause at (TAR) 48 CFR 
1252.237-70, Qualifications of Contractor Employees, in all 
solicitations and contracts for supplies and/or services where 
contractor employees will have access to Government facilities, 
sensitive information, including proprietary data and/or resources.
    (b) The contracting officer shall insert the clause at (TAR) 48 CFR 
1252.237-73, Key Personnel, in solicitations and contracts for services 
when the selection for award is substantially based on the offeror's 
possession of special capabilities regarding personnel.

Subpart 1237.70--Department of Transportation Procedures for 
Acquiring Training Services


1237.7000  Policy.

    When training services are provided under contract, DOT policy 
requires that all prospective contractors:
    (a) Certify that the data provided concerning company 
qualifications, background statements, etc., is current, accurate, and 
complete; and
    (b) Agree to not solicit or advertise private, non-Government 
training while conducting a training course.


1237.7001  Certification of data.

    Towards fulfilling DOT's policy at (TAR) 48 CFR 1237.7000(a), 
contracting officers shall request information from prospective 
contractors for certification purposes. The type of information 
requested is dependent upon the criticality of the service and/or any 
unique or essential qualification requirements.


1237.7002  Applicability.

    The policy at (TAR) 48 CFR 1237.7000 applies to all contracts (as 
defined in FAR 2.101) awarded by DOT for training services when DOT 
controls the content and/or presentation of the course. This policy 
does not apply to courses attended by DOT employees that are offered 
and sponsored by Government sources of supply, educational 
institutions, or private entities where DOT does not control the course 
content or presentation. (See (TAR) 48 CFR 1213.7100 for examples.)


1237.7003  Solicitation provisions and contact clause.

    (a) The contracting officer shall insert the provision at (TAR) 48 
CFR 1252.237-71, Certification of Data, in solicitations and the clause 
at (TAR) 48 CFR 1252.237-72, Prohibition on Advertising, in 
solicitations and contracts for training services when the content and/
or presentation of the course is controlled by DOT.
    (b) Contracting officers shall incorporate the successful offeror's 
certified data into any resultant contract(s). Certified data may be 
adopted by reference, if the contracting officer determines it contains 
sufficient descriptive information (i.e., dated material such as 
resumes, company and/or personnel qualifications) to reliably describe 
the certified data submitted.

PART 1239--ACQUISITION OF INFORMATION TECHNOLOGY

Subpart 1239.1--General
Sec.
1239.70 Solicitation provision and contract clause.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1239.1--General


1239.70  Solicitation provision and contract clause.

    The contracting officer shall insert the provision at (TAR) 48 CFR 
1252.239-71, Information Technology Security Plan and Accreditation, 
and the clause at (TAR) 48 CFR 1252.239-70, Security Requirements for 
Unclassified Information Technology Resources, in all solicitations and 
contracts, exceeding the micro-purchase threshold, that include 
information technology services.

PART 1242--CONTRACT ADMINISTRATION AND AUDIT SERVICES

Subpart 1242.70--Contract Administration Clauses
Sec.
1242.7000 Contract clauses.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1242.70--Contract Administration Clauses


1242.7000  Contract clauses.

    (a) The contracting officer may use the clause at (TAR) 48 CFR 
1252.242-70, Dissemination of Information--Educational Institutions, in 
lieu of the clause at (TAR) 48 CFR 1252.242-72, Dissemination of 
Contract Information, in DOT research contracts with educational 
institutions that require the release or coordination of information.
    (b) The contracting officer shall insert the clause at (TAR) 48 CFR 
1252.242-71, Contractor Testimony, in all solicitations and contracts 
issued by National Highway Traffic Safety Administration (NHTSA). Other 
Operating Administrations (OAs) may use the clause as deemed 
appropriate.
    (c) The contracting officer may insert the clause at (TAR) 48 CFR 
1252.242-72, Dissemination of Contract Information, in all DOT 
contracts, except contracts that require the release or coordination of 
information.
    (d) The contracting officer shall insert the clause at (TAR) 48 CFR 
1252.242-73, Contracting Officer's Technical Representative, in 
solicitations and contracts when it is intended that a representative 
will be assigned to the

[[Page 6521]]

contract to perform functions of a technical nature.

PART 1245--GOVERNMENT PROPERTY

Subpart 1245.5--Management of Government Property in the Possession of 
Contractors
Sec.
1245.505 Records and reports of Government property.
1245.505-14 Reports of Government property.
1245.505-70 Contract clauses.
1245.508-2 Reporting results of inventories.
1245.511 Audit of property control system.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1245.5--Management of Government Property in the Possession 
of Contractors


1245.505  Records and reports of Government Property.


1245.505-14  Reports of Government property.

    When Government property is furnished to or acquired by the 
contractor to perform the contract, the contract shall require the 
contractor to submit annual reports (see (FAR) 48 CFR 45.505-14) to the 
contracting officer not later than September 15 of each year. The 
contractor's report shall be submitted on Form DOT F 4220.43, 
Contractor Report of Government Property.


1245.505-70  Contract clauses.

    Contracting officers shall insert the clause at (TAR) 48 CFR 
1252.245-70 in solicitations and contracts when the contract will 
require Government provided or contractor acquired property.


1245.508-2  Reporting results of inventories.

    The inventory report shall also include the following:
    (a) Name and title of the individual(s) that performed the physical 
inventory;
    (b) An itemized, categorized listing of all property capitalized:
    (1) Land and rights therein;
    (2) Other real property;
    (3) Plant equipment;
    (4) Special test equipment; agency peculiar property; and
    (5) Special tooling; and
    (c) An itemized listing of the property lost, damaged, destroyed, 
or stolen, the circumstances surrounding each incident, and the 
resolution of the incident.


1245.511  Audit of property control system.

    (a) The property administrator (or other Government official 
authorized by the contracting officer) shall audit the contractor's 
property control system whenever there are indications that the 
contractor's property control system may be deficient. Examples of 
deficiencies are:
    (1) Failure of the contractor to acknowledge receipt of Government-
furnished property;
    (2) Failure of the contractor to submit the annual property reports 
required by (TAR) 48 CFR 1245.505-14;
    (3) Failure of the contractor to reconcile its physical inventory 
with its property control record; or
    (4) Failure of the contractor to submit a Government property 
listing when requested by the property administrator.
    (b) When it is determined that the contractor's property control 
system is deficient, the property administrator, in coordination with 
the contracting officer, shall discuss the deficiencies with the 
contractor. If the contractor does not take action to correct the 
deficiencies, the contracting officer shall provide the contractor with 
a written notice of the deficiencies and the date all deficiencies must 
be corrected.

PART 1246--QUALITY ASSURANCE

Subpart 1246.1--General
Sec.
1246.101 Definitions.
1246.101-70 Additional definitions.
Subpart 1246.7--Warranties
1246.705 Limitations.
1246.706 Warranty terms and conditions.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1246.1--General


1246.101  Definitions.


1246.101-70  Additional definitions.

    At no additional cost to the Government means at no increase in 
price for firm-fixed-price contracts, at no increase in target or 
ceiling price for fixed price incentive contracts (see (FAR) 48 CFR 
46.707), or at no increase in estimated cost or fee for cost-
reimbursement contracts.
    Defect means any condition or characteristic in any supplies or 
services furnished by the contractor under the contract that is not in 
compliance with the requirements of the contract.
    Major acquisition means an acquisition or project as defined by TAM 
Chapter 1234, Major System Acquisition.
    Performance requirements means the operating capabilities, 
maintenance, and reliability characteristics of a system that are 
determined to be necessary for it to fulfill the requirement for which 
the system is designed.

Subpart 1246.7--Warranties


1246.705  Limitations.

    (a) The following restrictions are applicable to DOT contracts:
    (1) The contractor shall not be required to honor the warranty on 
any property furnished by the Government except for:
    (i) Defects in installation; and
    (ii) Installation or modification in such a manner that invalidates 
a warranty provided by the manufacturer of the property.
    (2) Any warranty obtained shall specifically exclude coverage of 
damage in time of war (combat damage) or national emergency.
    (3) Contracting officers shall not include in a warranty clause any 
terms that require the contractor to incur liability for loss, damage, 
or injury to third parties.
    (b) [Reserved]


1246.706  Warranty terms and conditions.

    (a) When appropriate and cost effective, the contracting officer 
shall comply with the following requirements when developing the 
warranty terms and conditions:
    (1) Identify the affected line item(s) and the applicable 
specification(s);
    (2) Require that the line item's design and manufacture will 
conform to:
    (i) An identified revision of a top-level drawing; and/or
    (ii) An identified specification or revision thereof;
    (3) Require that the line item conform to the specified Government 
performance requirements;
    (4) Require that all line items and components delivered under the 
contract will be free from defects in materials and workmanship;
    (5) State that if the contractor fails to comply with specification 
or there are defects in material and workmanship, the contractor will 
bear the cost of all work necessary to achieve the specified 
performance requirements, including repair and/or replacement of all 
parts;
    (6) Require the timely replacement/repair of warranted items and 
specify lead times for replacement/repair where possible;
    (7) Identify the specific paragraphs containing Government 
performance requirements that the contractor must meet;
    (8) Ensure that any performance requirements identified as goals or 
objectives beyond specification requirements are excluded from the 
warranty provision;
    (9) Specify what constitutes the start of the warranty period 
(e.g., delivery, acceptance, in-service date), the ending

[[Page 6522]]

of the warranty (e.g., passing a test or demonstration, or operation 
without failure for a specified time period), and circumstances 
requiring an extension of warranty duration (e.g., extending the 
warranty period as a result of mass defect correction during warranty 
period);
    (10) Identify what transportation costs will be paid by the 
contractor in relation to the warranty coverage;
    (11) In addition to combat damage, identify any conditions which 
will not be covered by the warranty, and
    (12) Identify any limitation on the total dollar amount of the 
contractor's warranty exposure, or agreement to share costs after a 
certain dollar threshold to avoid unnecessary warranty returns.
    (b) In addition to the terms and conditions listed in paragraph (a) 
of this section, the contracting officer shall consider the following 
when a warranty clause is being used for a major acquisition:
    (1) For line items or components which are commercially available, 
obtaining a warranty as is normally provided by the manufacturer or 
supplier, in accordance with (FAR) 48 CFR 46.703(d) and (FAR) 48 CFR 
46.710(b)(2).
    (2) Obtaining a warranty of compliance with the stated requirements 
for line items or components provided in accordance with either design 
and manufacturing or performance requirements as specified in the 
contract or any modification to that contract.
    (3) The warranty provided under paragraph (b)(2) of this section 
shall provide that in the event the line items or any components 
thereof fails to meet the terms of the warranty provided, the 
contracting officer may:
    (i) Require the contractor to promptly take such corrective action 
as the contracting officer determines to be necessary at no additional 
cost to the Government, including repairing or replacing all parts 
necessary to achieve the requirements set forth in the contract;
    (ii) Require the contractor to pay costs reasonably incurred by the 
United States in taking necessary corrective action; or
    (iii) Equitably reduce the contract price.
    (4) Inserting remedies, exclusions, limitations and durations, 
provided these are consistent with the specific requirements of this 
subpart and (FAR) 48 CFR 46.706.
    (5) Excluding from the terms of the warranty certain defects for 
specified supplies (exclusions) and limiting the contractor's liability 
under the terms of the warranty (limitations), as appropriate, if 
necessary to derive a cost-effective warranty in light of the technical 
risk, contractor financial risk, or other program uncertainties.
    (6) Structuring of a broader and more comprehensive warranty where 
such is advantageous. Likewise, the contracting officer may narrow the 
scope of a warranty when appropriate (e.g., where it would be 
inequitable to require a warranty of all performance requirements 
because a contractor had not designed the system).
    (c) Any contract that contains a warranty clause must contain 
warranty implementation procedures, including warranty notification 
content and procedures, and identify the individuals responsible for 
implementation of warranty provisions. The contract may also permit the 
contractor's participation in investigation of system failures, 
providing that the contractor is reimbursed at established rates for 
fault isolation work, and that the Government receive credit for any 
payments where equipment failure is covered by warranty provisions.

PART 1247--TRANSPORTATION

Subpart 1247.5--Ocean Transportation by U.S.-Flag Vessels
Sec.
1247.506 Procedures.

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1247.5--Ocean Transportation by U.S.-Flag Vessels


1247.506  Procedures.

    (a) The Maritime Administration (MARAD) is the enforcing agency of 
the cargo preference statutes. MARAD can assist contractors in locating 
U.S.-flag carriers and determine when such services are not available 
and they can assist contracting officers in evaluating costs, services, 
and other matters regarding ocean transportation.
    (d) If no transportation officer is available, the contracting 
officer shall submit a copy of the rated ``on board'' bill of lading, 
for each shipment, no later than 20 days after the vessel's loading 
date for exports and 30 days for imports as stated in 46 CFR 381.3. All 
non-vessel ocean common carrier bills of lading should be accompanied 
by the underlying carrier's ocean bill of lading. The documents shall 
be sent to the Maritime Administration, Office of Cargo Preference, 
MAR-590, 400 Seventh Street, SW., Washington, DC 20590. The bill of 
lading shall contain the following information:
    (1) Name of sponsoring Government agency or department;
    (2) Name of vessel;
    (3) Vessel flag of registry;
    (4) Date of loading;
    (5) Port of loading;
    (6) Port of final discharge;
    (7) Commodity description;
    (8) Gross weight in kilos;
    (9) Total ocean freight revenue in U.S. dollars.

PART 1252--SOLICITATIONS PROVISIONS AND CONTRACT CLAUSES

Subpart 1252.1--Instructions for Using Provisions and Clauses
Sec.
1252.101 Using Part 1252.
Subpart 1252.2--Text of Provisions and Clauses
1252.211-70 Index for specifications.
1252.216-70 Evaluation of offers subject to an economic price 
adjustment clause.
1252.216-71 Determination of award fee.
1252.216-72 Performance evaluation plan.
1252.216-73 Distribution of award fee.
1252.216-74 Settlement of letter contract.
1252.217-70 Guarantee.
1252.217-71 Delivery and shifting of vessel.
1252.217-72 Performance.
1252.217-73 Inspection and manner of doing work.
1252.217-74 Subcontracts.
1252.217-75 Lay days.
1252.217-76 Liability and insurance.
1252.217-77 Title.
1252.217-78 Discharge of liens.
1252.217-79 Delays.
1252.217-80 Department of Labor Safety and Health Regulations for 
Ship Repairing.
1252.219-71 Section 8(a) Direct Awards.
1252.219-72 Notification of Competition Limited to Eligible 8(a) 
Concerns--Alternate III.
1252.222-70 Strikes or picketing affecting timely completion of the 
contract work.
1252.222-71 Strikes or picketing affecting access to a DOT facility.
1252.223-70 Removal or disposal of hazardous substances--applicable 
licenses and permits.
1252.223-71 Accident and fire reporting.
1252.223-72 Protection of human subjects.
1252.223-73 Seat belt use policies and programs.
1252.228-70 Loss of or damage to leased aircraft.
1252.228-71 Fair market value of aircraft
1252.228-72 Risk and indemnities.
1252.228-73 Notification of Miller Act payment bond protection.
1252.231-70 Date of incurrence of costs.
1252.235-70 Research misconduct.
1252.236-70 Special precautions for work at operating airports.
1252.237-70 Qualifications of contractor employees.
1252.237-71 Certification of data.
1252.237-72 Prohibition on advertising.
1252.237-73 Key personnel.

[[Page 6523]]

1252.239-70 Security requirements for unclassified information 
technology resources.
1252.239-71 Information technology security plan and accreditation.
1252.242-70 Dissemination of information--educational institutions.
1252.242-71 Contractor testimony.
1252.242-72 Dissemination of contract information.
1252.242-73 Contracting officer's technical representative.
1252.245-70 Government property reports.
Appendix to Part 1252--TAR Matrix

    Authority: 5 U.S.C. 301; 41 U.S.C. 418b; (FAR) 48 CFR 1.3.

Subpart 1252.1--Instructions for Using Provisions and Clauses


1252.101  Using Part 1252.

    (b) Numbering.
    (2)(i) Provisions or clauses that supplement the FAR.
    (A) Agency-prescribed provisions and clauses permitted by TAR and 
used on a standard basis (i.e., normally used in two or more 
solicitations or contracts regardless of contract type) shall be 
prescribed and contained in the TAR. Operating Administrations (OAs) 
desiring to use a provision or a clause on a standard basis shall 
submit a request containing a copy of the clause(s), justification for 
its use, and evidence of legal counsel review to the Office of the 
Senior Procurement Executive in accordance with (TAR) 48 CFR 1201.304 
for possible inclusion in the TAR.
    (B) Provisions and clauses used on a one-time basis (i.e., non-
standard provisions and clauses) may be approved by the contracting 
officer, unless a higher level is designated by the OA. This authority 
is permitted subject to:
    (1) Evidence of legal counsel review in the contract file;
    (2) Inserting these clauses in the appropriate sections of the 
uniform contract format; and
    (3) Ensuring the provisions and clauses do not deviate from the 
requirements of the FAR and TAR.

Subpart 1252.2--Text of Provisions and Clauses


1252.211-70  Index for specifications.

    As prescribed in (TAR) 48 CFR 1211.204-70, insert the following 
clause:

Index for Specifications (Apr 2005)

    If an index or table of contents is furnished in connection with 
specifications, such index or table of contents is for convenience 
only. Its accuracy and completeness is not guaranteed, and it is not 
a part of the specification. In case of discrepancy between the 
index or table of contents and the specifications, the 
specifications shall govern.

(End of clause)


1252.216-70  Evaluation of offers subject to an economic price 
adjustment clause.

    As prescribed in (TAR) 48 CFR 1216.203-470, insert the following 
provision:

Evaluation of Offers Subject to an Economic Price Adjustment Clause 
(Oct 1994)

    Offers shall be evaluated without an amount for an economic 
price adjustment being added. Offers will be rejected which: (1) 
Increase the ceiling stipulated; (2) limit the downward adjustment; 
or (3) delete the economic price adjustment clause. If the offer 
stipulates a ceiling lower than that included in the solicitation, 
the lower ceiling will be incorporated into any resulting contract.

(End of provision)


1252.216-71  Determination of award fee.

    As prescribed in (TAR) 48 CFR 1216.406, insert the following 
clause:

Determination of Award Fee (Apr 2005)

    (a) The Government shall evaluate contractor performance at the 
end of each specified evaluation period to determine the amount of 
award. The contractor agrees that the amount of award and the award 
fee methodology are unilateral decisions to be made at the sole 
discretion of the Government.
    (b) Contractor performance shall be evaluated according to a 
Performance Evaluation Plan. The contractor shall be periodically 
informed of the quality of its performance and areas in which 
improvements are expected.
    (c) The contractor shall be promptly advised, in writing, of the 
determination and reasons why the award fee was or was not earned. 
The contractor may submit a performance self-evaluation for each 
evaluation period. The amount of award is at the sole discretion of 
the Government but any self-evaluation received within ------ 
(insert number) days after the end of the current evaluation period 
will be given such consideration, as may be deemed appropriate by 
the Government.
    (d) The amount of award fee which can be awarded in each 
evaluation period is limited to the amounts set forth at (identify 
location of award fee amounts). Award fee which is not earned in an 
evaluation period cannot be reallocated to future evaluation 
periods.

(End of clause)


1252.216-72  Performance evaluation plan.

    As prescribed in (TAR) 48 CFR 1216.406(b), insert the following 
clause:

Performance Evaluation Plan (Oct 1994)

    (a) A Performance Evaluation Plan shall be unilaterally 
established by the Government based on the criteria stated in the 
contract and used for the determination of award fee. This plan 
shall include the criteria used to evaluate each area and the 
percentage of award fee (if any) available for each area. A copy of 
the plan shall be provided to the contractor ------ (insert number) 
calendar days prior to the start of the first evaluation period.
    (b) The criteria contained within the Performance Evaluation 
Plan may relate to: (1) Technical (including schedule) requirements, 
if appropriate; (2) Management; and (3) Cost.
    (c) The Performance Evaluation Plan may, consistent with the 
contract, be revised unilaterally by the Government at any time 
during the period of performance. Notification of such changes shall 
be provided to the contractor ------ (insert number) calendar days 
prior to the start of the evaluation period to which the change will 
apply.

(End of clause)


1252.216-73  Distribution of award fee.

    As prescribed in (TAR) 48 CFR 1216.406(c), insert the following 
clause:

Distribution of Award Fee (Apr 2005)

    (a) The total amount of award fee available under this contract 
is assigned according to the following evaluation periods and 
amounts:
Evaluation Period:
Available Award Fee: (insert appropriate information)

    (b) After the contractor has been paid 85 percent of the base 
fee and potential award fee, the Government may withhold further 
payment of the base fee and award fee until a reserve is set aside 
in an amount that the Government considers necessary to protect its 
interest. This reserve shall not exceed 15 percent of the total base 
fee and potential award fee or $100,000, whichever is less. 
Thereafter, base fee and award fee payments may continue.
    (c) In the event of contract termination, either in whole or in 
part, the amount of award fee available shall represent a prorata 
distribution associated with evaluation period activities or events 
as determined by the Government.
    (d) The Government will promptly make payment of any award fee 
upon the submission by the contractor to the contracting officer's 
authorized representative, of a public voucher or invoice in the 
amount of the total fee earned for the period evaluated. Payment may 
be made without using a contract modification.

(End of clause)


1252.216-74  Settlement of letter contract.

    As prescribed in (TAR) 48 CFR 1216.603-4, insert the following 
clause:

Settlement of Letter Contract (Oct 1994)

    (a) This contract constitutes the definitive contract 
contemplated by issuance of letter contract ------ (insert number) 
dated -------- (insert effective date). It supersedes the letter 
contract and its modification number(s) -------- (insert number(s)) 
and, to the extent of any inconsistencies, governs.
    (b) The cost(s) and fee(s), or price(s), established in this 
definitive contract represents full and complete settlement of 
letter contract (insert number and modification number(s) -------- 
(insert

[[Page 6524]]

number(s)). Payment of the agreed upon fee or profit withheld 
pending definitization of the letter contract, may commence 
immediately at the rate and times stated within this contract.

(End of clause)


1252.217-70  Guarantee.

    As prescribed at (TAR) 48 CFR 1217.7001(a), insert the following 
clause:

Guarantee (Apr 2005)

    (a) In the event any work performed or materials furnished by 
the contractor prove defective or deficient within 60 days from the 
date of redelivery of the vessel(s), the Contractor, as directed by 
the Contracting Officer and at its own expense, shall correct and 
repair the deficiency to the satisfaction of the Contracting 
Officer.
    (b) If the Contractor or any subcontractor has a guarantee for 
work performed or materials furnished that exceeds the 60 day 
period, the Government shall be entitled to rely upon the longer 
guarantee until its expiration.
    (c) With respect to any individual work item identified as 
incomplete at the time of redelivery of the vessel(s), the guarantee 
period shall run from the date the item is completed.
    (d) If practicable, the Government shall give the Contractor an 
opportunity to correct the deficiency.
    (1) If the Contracting Officer determines it is not practicable 
or is otherwise not advisable to return the vessel(s) to the 
Contractor, or the Contractor fails to proceed with the repairs 
promptly, the Contracting Officer may direct that the repairs be 
performed elsewhere, at the Contractor's expense.
    (2) If correction and repairs are performed by other than the 
Contractor, the Contracting Officer may discharge the Contractor's 
liability by making an equitable deduction in the price of the 
contract.
    (e) The Contractor's liability shall extend for an additional 90 
day guarantee period on those defects or deficiencies that the 
Contractor corrected.
    (f) At the option of the Contracting Officer, defects and 
deficiencies may be left uncorrected. In that event, the Contractor 
and Contracting Officer shall negotiate an equitable reduction in 
the contract price. Failure to agree upon an equitable reduction 
shall constitute a dispute under the Disputes clause of this 
contract.

(End of clause)


1252.217-71  Delivery and shifting of vessel.

    As prescribed at (TAR) 48 CFR 1217.7001(b) and (c), insert the 
following clause:

Delivery and Shifting of Vessel (Oct 1994)

    The Government shall deliver the vessel to the Contractor at his 
place of business. Upon completion of the work, the Government shall 
accept delivery of the vessel at the Contractor's place of business. 
The Contractor shall provide, at no additional charge, upon 24 
hours' advance notice, a tug or tugs and docking pilot, acceptable 
to the Contracting Officer, to assist in handling the vessel between 
(to and from) the Contractor's plant and the nearest point in a 
waterway regularly navigated by vessels of equal or greater draft 
and length. While the vessel is in the hands of the Contractor, any 
necessary towage, cartage, or other transportation between ship and 
shop or elsewhere, which may be incident to the work herein 
specified, shall be furnished by the Contractor without additional 
charge to the Government.

(End of clause)


1252.217-72  Performance.

    As prescribed at (TAR) 48 CFR 1217.7001(b) and (c), insert the 
following clause:

Performance (Oct 1994)

    (a) Upon the award of the contract, the Contractor shall 
promptly start the work specified and shall diligently prosecute the 
work to completion. The Contractor shall not start work until the 
contract has been awarded except in the case of emergency work 
ordered by the Contracting Officer in writing.
    (b) The Government shall deliver the vessel described in the 
contract at the time and location specified in the contract. Upon 
completion of the work, the Government shall accept delivery of the 
vessel at the time and location specified in the contract.
    (c) The Contractor shall without charge--
    (1) Make available to personnel of the vessel while in dry dock 
or on a marine railway, sanitary lavatory and similar facilities at 
the plant acceptable to the Contracting Officer;
    (2) Supply and maintain suitable brows and gangways from the 
pier, dry dock, or marine railway to the vessel;
    (3) Treat salvage, scrap or other ship's material of the 
Government resulting from performance of the work as items of 
Government-furnished property, in accordance with the Government 
Property (Fixed Price Contracts) clause;
    (4) Perform, or pay the cost of, any repair, reconditioning or 
replacement made necessary as the result of the use by the 
Contractor of any of the vessel's machinery, equipment or fittings, 
including, but not limited to, winches, pumps, rigging, or pipe 
lines; and
    (5) Furnish suitable offices, office equipment and telephones at 
or near the site of the work for the Government's use.
    (d) The contract will state whether dock and sea trials are 
required to determine whether or not the Contractor has 
satisfactorily performed the work.
    (1) If dock and sea trials are required, the vessel shall be 
under the control of the vessel's commander and crew.
    (2) The Contractor shall not conduct dock and sea trials not 
specified in the contract without advance approval of the 
Contracting Officer. Dock and sea trials not specified in the 
contract shall be at the Contractor's expense and risk.
    (3) The Contractor shall provide and install all fittings and 
appliances necessary for dock and sea trials. The Contractor shall 
be responsible for care, installation, and removal of instruments 
and apparatus furnished by the Government for use in the trials.
(End of clause)


1252.217-73  Inspection and manner of doing work.

    As prescribed at (TAR) 48 CFR 1217.7001(b) and (c), insert the 
following clause:

Inspection and Manner of Doing Work (Oct 1994)

    (a) The Contractor shall perform work in accordance with the 
contract, any drawings and specifications made a part of the job 
order, and any change or modification issued under the Changes 
clause.
    (b)(1) Except as provided in paragraph (b)(2