80 FR 30416 - Amendments to the HUD Acquisition Regulation (HUDAR)
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Federal Register Volume 80, Issue 102 (May 28, 2015)
Federal Register Volume 80, Issue 102 (May 28, 2015)
| Page Range | 30416-30430 | |
| FR Document | 2015-12275 |
[Federal Register Volume 80, Number 102 (Thursday, May 28, 2015)] [Proposed Rules] [Pages 30416-30430] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-12275] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 48 CFR Parts 2404, 2406, 2408, 2409, 2411, 2415, 2427, 2428, 2432, 2437, 2444, 2452 [Docket No. FR-5814-P-01] RIN 2501-AD73 Amendments to the HUD Acquisition Regulation (HUDAR) AGENCY: Office of the Chief Procurement Officer, HUD. ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: This proposed rule would amend the HUDAR to implement miscellaneous changes necessary to update the HUDAR. These changes include a correction to the designation of Source Selection Authorities, limited delegation of Head of Contracting Activity authorities, incorporation of the HUDAR Matrix, addition of new clauses, certain administrative corrections, and incorporation of Alternates to various clauses to allow for electronic invoicing. DATES: Comment due date: July 27, 2015. ADDRESSES: Interested persons are invited to submit comments regarding this proposed rule to the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 7th Street SW., Room 10276, Washington, DC 20410-0500. Communications must refer to the above docket number and title. There are two methods for submitting public comments. All submissions must refer to the above docket number and title. 1. Submission of Comments by Mail. Comments may be submitted by mail to the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 7th Street SW., Room 10276, Washington, DC 20410-0500. 2. Electronic Submission of Comments. Interested persons may submit comments electronically through the Federal eRulemaking Portal at www.regulations.gov. HUD strongly encourages commenters to submit comments electronically. Electronic submission of comments allows the commenter maximum time to prepare and submit a comment, ensures timely receipt by HUD, and enables HUD to make them immediately available to the public. Comments submitted electronically through the www.regulations.gov Web site can be viewed by other commenters and interested members of the public. Commenters should follow the instructions provided on that site to submit comments electronically. Note: To receive consideration as public comments, comments must be submitted through one of the two methods specified above. Again, all submissions must refer to the docket number and title of the rule. No Facsimile Comments. Facsimile (FAX) comments are not acceptable. Public Inspection of Public Comments. All properly submitted comments and communications submitted to HUD will be available for public inspection and copying between 8 a.m. and 5 p.m. weekdays at the above address. Due to security measures at the HUD Headquarters building, an advance appointment to review the public comments must be scheduled by calling the Regulations Division at 202-708-3055 (this is not a toll-free number). Individuals with speech or hearing impairments may access this number [[Page 30417]] via TTY by calling the Federal Relay Service, toll-free, at 800-877- 8339. Copies of all comments submitted are available for inspection and downloading at www.regulations.gov. FOR FURTHER INFORMATION CONTACT: Lisa D. Maguire, Assistant Chief Procurement Officer for Policy, Systems and Risk Management, Office of the Chief Procurement Officer, Department of Housing and Urban Development, 451 7th Street SW., Washington, DC 20410; telephone number 202-708-0294 (this is not a toll-free number) and fax number 202-708- 8912. Persons with hearing or speech impairments may access Ms. Maguire's telephone number via TTY by calling the toll-free Federal Relay Service at 800-877-8339. SUPPLEMENTARY INFORMATION: I. Background The uniform regulation for the procurement of supplies and services by federal departments and agencies, the Federal Acquisition Regulation (FAR), was promulgated on September 19, 1983 (48 FR 42102). The FAR is codified in title 48, chapter 1, of the Code of Federal Regulations. HUD promulgated its regulation to implement the FAR on March 1, 1984 (49 FR 7696). The HUDAR (title 48, chapter 24 of the Code of Federal Regulations) is prescribed under section 7(d) of the Department of HUD Act (42 U.S.C. 3535(d)); section 205(c) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 121(c)); and the general authorization in FAR 1.301. The HUDAR was last revised by final rule published on December 10, 2012 (77 FR 73524), and a subsequent correcting amendment published on August 15, 2013 (78 FR 49697). II. This Proposed Rule This proposed rule would amend the HUDAR at 48 CFR chapter 24, as follows: The rule proposes several administrative corrections, including: Revising section 2404.7001 to refer to the correct contract clause 2452.204-70, ``Preservation of, and Access to, Contract Records (Tangible and Electronically Stored Information (ESI) Formats),'' and removing the title and redesignating the clause that is codified at section 2432.705-70 as 2432.705-70(a). In part 2406, the rule would add section 2406.303 which requires the use of HUD Form 24012 \1\ for justifications for other than full and open competition, and section 2406.304(a)(3), which designates the HUD Deputy Chief Procurement Officer as the responsible official with the authority to approve, in writing, justifications for other than full and open procurements for proposed contracts over $12.5 million, but not exceeding $62.5 million. --------------------------------------------------------------------------- \1\ See http://portal.hud.gov/hudportal/documents/huddoc?id=24012.pdf. --------------------------------------------------------------------------- In part 2408, this rule would add subpart 2408.4, ``Federal Supply Schedules,'' and, in that subpart, would add section 2408.405-6(c)(2), which requires the use of HUD form 24013 for justifications for limiting sources exceeding the simplified acquisition threshold when using the Federal Supply Schedules.\2\ This rule would also add section 24(d)(3) which designates the HUD Deputy Chief Procurement Officer as the responsible official with the authority to approve, in writing, justifications for Limited Source considerations for proposed Federal Supply Schedule order or Blanket Purchase Agreement (BPA) with an estimated value exceeding $12.5 million, but not exceeding $62.5 million. --------------------------------------------------------------------------- \2\ See http://www.acquisition.gov/far/html/Subpart%2038_1.html#wp1075980. --------------------------------------------------------------------------- In part 2409, this rule would add subpart 2409.1, entitled ``Responsible Prospective Contractors,'' and, within that subpart, section 2409.105, ``Procedures,'' which includes information to be collected in determining financial responsibility. This rule would also: Revise section 2415.303(a) to HUDAR section 2415.303(a)(1) and, except for those acquisitions identified in HUDAR section 2415.303(a)(2), designate HUD Assistant Secretaries, or their equivalent, as the Source Selection Authorities for selections made using the tradeoff process and to allow Assistant Secretaries to delegate this function to other departmental officials; Add section 2415.303(a)(2) to designate HUD's General Counsel as the Source Selection Authority, regardless of contract amount, in all Headquarters procurements for legal services, unless the General Counsel specifically designates another agency official to perform that function; Clarify section 2415.305(a)(5) to apply to Best Value Tradeoff technical evaluations; Add part 2444 and, within that part, section 2444.204 entitled ``Subcontracting Policies and Procedures''; and Codify a class deviation approved by HUD's Chief Procurement Officer dated April 10, 2013 to add Alternate 1 to clauses 2452.232-70 and 2452.232-71. In part 2452, the proposed rule would: Add clause 2452.232-74, entitled ``Not to Exceed Limitation,'' and, in part 2432, add a reference to that clause and requirements regarding its use at section 2432.705; Revise clause 2452.237-77(c)(1)(A) to change ``21 days per month'' to ``number of business days in the month''; Add clause 2452.237-79, ``Post-Award Conference,'' and a reference to that clause and requirements regarding its use at section 2437.110(e)(5); Add clause 2452.237-81, ``Labor Categories, Unit Prices Per Hour and Payment,'' and a reference to that clause and requirements regarding its use at section 2437.110(e)(6); Add section 2452.244-70, ``Consent to Subcontract,'' and a reference to that clause and requirements regarding its use at section 2444.204; and Incorporate a new HUDAR matrix under subpart 2452.3. III. Findings and Certifications Paperwork Reduction Act Statement The information collection requirements contained in this proposed rule are currently approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned OMB control number 2535-0091. The information collection requirements for the HUDAR are currently approved by OMB under control number 2535-0091. In accordance with the Paperwork Reduction Act, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information, unless the collection displays a currently valid OMB control number. Unfunded Mandates Reform Act Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531- 1538) (UMRA) establishes requirements for federal agencies to assess the effects of their regulatory actions on state, local, and tribal governments and the private sector. This rule does not impose any federal mandate on any state, local, or tribal government or the private sector within the meaning of UMRA. Regulatory Flexibility Act The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) generally requires an agency to conduct a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements, unless the agency certifies that the rule will not have a significant economic impact on a substantial [[Page 30418]] number of small entities. This proposed rule makes technical changes to existing contracting procedures and does not make any major changes that would significantly impact businesses. Accordingly, the undersigned certifies that this rule will not have a significant economic impact on a substantial number of small entities. Notwithstanding HUD's determination that this rule will not have a significant economic impact on a substantial number of small entities, HUD specifically invites comments regarding less burdensome alternatives to this rule that will meet HUD's objectives as described in this preamble. Environmental Impact This proposed rule does not direct, provide for assistance or loan and mortgage insurance for, or otherwise govern or regulate real property acquisition, disposition, leasing, rehabilitation, alteration, demolition, or new construction, or establish, revise, or provide for standards for construction or construction materials, manufactured housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this proposed rule is categorically excluded from environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321). Executive Order 13132, Federalism Executive Order 13132 (entitled ``Federalism'') prohibits an agency from publishing any rule that has federalism implications if the rule imposes substantial direct compliance costs on state and local governments and is not required by statute, or the rule preempts state law, unless the agency meets the consultation and funding requirements of section 6 of the Executive Order. This proposed rule would not have federalism implications and would not impose substantial direct compliance costs on state and local governments or preempt state law within the meaning of the Executive Order. List of Subjects 48 CFR Part 2404 Government procurement. 48 CFR Part 2406 Government procurement. 48 CFR Part 2408 Government procurement. 48 CFR Part 2409 Government Procurement 48 CFR Part 2411 Government Procurement. 48 CFR Part 2415 Government procurement. 48 CFR Part 2432 Government procurement. 48 CFR Part 2437 Government procurement. 48 CFR Part 2444 Government procurement. 48 CFR Part 2452 Government procurement. For the reasons discussed in the preamble, and pursuant to the authority under 42 U.S.C. 3535(d), HUD proposes to amend 48 CFR chapter 24 as follows: PART 2404--ADMINISTRATIVE MATTERS 0 1. The authority citation for part 2404 continues to read as follows: Authority: 42 U.S.C. 3535(d). Subpart 2404.7--Contractor Records Retention 0 2. Revise section 2404.7001 to read as follows: 2404.7001 Contract clause. The contracting officer shall insert the clause at 2452.204-70, ``Preservation of, and Access to, Contract Records (Tangible and Electronically Stored Information (ESI) Formats),'' in all solicitations and contracts exceeding the simplified acquisition threshold. The contracting officer shall use the basic clause with its Alternate I in cost-reimbursement type contracts. The contracting officer shall use the basic clause with its Alternate II in labor-hour and time-and-materials contracts. PART 2406--COMPETITION REQUIREMENTS 0 3. The authority citation for part 2406 is revised to read as follows: Authority: 40 U.S.C. 121(c); 41 U.S.C. 3301 et seq.; 42 U.S.C. 3535(d). Subpart 2406.3--Other Than Full and Open Competition 0 4. Add section 2406.303 to read as follows: 2406.303 Justifications. Justifications for Other Than Full and Open Competition must be prepared and approved using the latest version of HUD Form 24012. 0 5. Add paragraph (a)(3) to section 2406.304 to read as follows: 2406.304 Approval of the justification. (a)(3) HUD's Chief Procurement Officer, as the Head of Contracting Activity, has delegated the authority to the Deputy Chief Procurement Officer to approve, in writing, justifications for other than full and open competition procurements for proposed contracts over $12.5 million, but not exceeding $62.5 million. * * * * * PART 2408--REQUIRED SOURCES OF SUPPLIES AND SERVICES 0 6. The authority citation for part 2408 is revised to read as follows: Authority: 40 U.S.C. 121(c); 42 U.S.C. 3535(d). 0 7. Add subpart 2408.4 to read as follows: Subpart 2408.4--Federal Supply Schedules 2408.404 Pricing. (d) Supplies offered on the schedule are listed at fixed prices. Services offered on the schedule are priced either at hourly rates, or at fixed price for performance of a specific task (e.g., installation, maintenance, and repair). GSA has determined the prices of supplies and fixed-price services, and rates for services offered at hourly rates, to be fair and reasonable for the purpose of establishing the schedule contract. GSA's determination does not relieve the ordering activity contracting officer from the responsibility of making a determination of fair and reasonable pricing for individual orders, BPAs, and orders under BPAs. Contracting Officers shall follow the general principles and techniques outlined in FAR Section 15.404-1, Proposal Analysis Techniques, to ensure that the final agreed-to price is fair and reasonable, keeping in mind that the complexity and circumstances of each acquisition should determine the level of detail of the analysis required. 2408.405-6 Limiting sources. (c)(2) Justifications for Limiting Sources, under the Federal Supply Schedules when exceeding the simplified acquisition threshold, must be prepared and approved using the latest version of HUD Form 24013. (d)(3) HUD's Chief Procurement Officer, as the Head of Contracting Activity, has delegated the authority to the Deputy Chief Procurement Officer to approve, in writing, justifications for Limited Source considerations for a proposed Federal Supply Schedule order or Blanket Purchase Agreement (BPA) with an estimated value [[Page 30419]] exceeding $12.5 million, but not exceeding $62.5 million. PART 2409--CONTRACTOR QUALIFICATIONS 0 8. The authority citation for part 2409 continues to read as follows: Authority: 40 U.S.C. 121(c); 42 U.S.C. 3535(d). 0 9. Add subpart 2409.1 to read as follows: Subpart 2409.1--Responsible Prospective Contractors 2409.105 Procedures. (a) The contracting officer shall perform a financial review when the contracting officer does not otherwise have sufficient information to make a positive determination of financial responsibility. In addition, the contracting officer shall consider performing a financial review-- (1) Prior to award of a contract, when-- (A) The contractor is on a list requiring pre-award clearance or other special clearance before award; (B) The contractor is listed on the Consolidated List of Contractors Indebted to the Government, or is otherwise known to be indebted to the Government; (C) The contractor may receive Government assets such as contract financing payments or Government property; (D) The contractor is experiencing performance difficulties on other work; or (E) The contractor is a new company or a new supplier of the item. (2) At periodic intervals after award of a contract, when-- (A) Any of the conditions in paragraphs (1)(B) through (1)(E) of this subsection are applicable; or (B) There is any other reason to question the contractor's ability to finance performance and completion of the contract. (b) The contracting officer shall obtain the type and depth of financial and other information that is required to establish a contractor's financial capability or disclose a contractor's financial condition. While the contracting officer should not request information that is not necessary for protection of the Government's interests, the contracting officer must insist upon obtaining the information that is necessary. The unwillingness or inability of a contractor to present reasonably requested information in a timely manner, especially information that a prudent business person would be expected to have and to use in the professional management of a business, may be a material fact in the determination of the contractor's responsibility and prospects for contract completion. (c) The contracting officer shall obtain the following information to the extent required to protect the Government's interest. In addition, if the contracting officer concludes that information not listed herein is required to determine financial responsibility, that information should be requested. The information must be for the person(s) who are legally liable for contract performance. If the contractor is not a corporation, the contracting officer shall obtain the required information for each individual/joint venturer/partner: (1) Balance sheet and income statement-- (A) For the current fiscal year (interim); (B) For the most recent fiscal year and, preferably, for the 2 preceding fiscal years. These should be certified by an independent public accountant or by an appropriate officer of the firm; and (C) Forecasted for each fiscal year for the remainder of the period of contract performance. (2) Summary history of the contractor and its principal managers, disclosing any previous insolvencies--corporate or personal, and describing its products or services. (3) Statement of all affiliations disclosing-- (A) Material financial interests of the contractor; (B) Material financial interests in the contractor; (C) Material affiliations of owners, officers, members, directors, major stockholders; and (D) The major stockholders if the contractor is not a widely- traded, publicly-held corporation. (4) Statement of all forms of compensation to each officer, manager, partner, joint venturer, or proprietor, as appropriate-- (A) Planned for the current year; (B) Paid during the past 2 years; and (C) Deferred to future periods. (5) Business base and forecast that-- (A) Shows, by significant markets, existing contracts and outstanding offers, including those under negotiation; and (B) Is reconcilable to indirect cost rate projections. (6) Cash forecast for the duration of the contract. (7) Financing arrangement information that discloses-- (A) Availability of cash to finance contract performance; (B) Contractor's exposure to financial crisis from creditor's demands; (C) Degree to which credit security provisions could conflict with Government title terms under contract financing; (D) Clearly stated confirmations of credit with no unacceptable qualifications; and (E) Unambiguous written agreement by a creditor if credit arrangements include deferred trade payments or creditor subordinations/repayment suspensions. (8) Statement of all state, local, and Federal tax accounts, including special mandatory contributions, e.g., environmental superfund. (9) Description and explanation of the financial effect of issues such as-- (A) Leases, deferred purchase arrangements, or patent or royalty arrangements; (B) Insurance, when relevant to the contract; (C) Contemplated capital expenditures, changes in equity, or contractor debt load; (D) Pending claims either by or against the contractor; (E) Contingent liabilities such as guarantees, litigation, environmental, or product liabilities; (E) Validity of accounts receivable and actual value of inventory, as assets; and (F) Status and aging of accounts payable. (10) Significant ratios such as-- (A) Inventory to annual sales; (B) Inventory to current assets; (C) Liquid assets to current assets; (D) Liquid assets to current liabilities; (E) Current assets to current liabilities; and (F) Net worth to net debt. PART 2411--DESCRIBING AGENCY NEEDS 0 10. The authority citation for part 2411 is revised to read as follows: Authority: 40 U.S.C. 121(c); 42 U.S.C. 3535(d). Subpart 2411.4--Delivery or Performance Schedules 2411.404 [Removed] 0 11. Remove section 2411.404. PART 2415--CONTRACTING BY NEGOTIATION 0 12. The authority citation for part 2415 is revised to read as follows: Authority: 40 U.S.C. 121(c); 41 U.S.C. 3301-3306 and 3105; 42 U.S.C. 3535(d). [[Page 30420]] Subpart 2415.2--Solicitation and Receipt of Proposals and Quotations 0 13. Revise section 2415.209(a)(1) to read as follows: 2415.209 Solicitation provisions. (a)(1) The Contracting Officer shall insert a provision substantially the same as the provision at 2452.215-70, Proposal Content, in all solicitations for negotiated procurements expected to exceed the simplified acquisition limit. The provision may be used in simplified acquisitions when it is necessary to obtain business proposal information in making the award selection. If the proposed contract requires work on, or access to, HUD systems or applications (see the clause at 2452.239-70), the provision shall be used with its Alternate I. When the contracting officer has determined that it is necessary to limit the size of the technical and management portion of offers submitted by offerors, the provision shall be used with its Alternate II. * * * * * Subpart 2415.3--Source Selection 0 14. In section 2415.303, redesignate paragraph (a) as (a)(1); revise the redesignated paragraph; and add section 2415.303(a)(2), all to read as follows: 2415.303 Responsibilities. (a)(1) Except as identified in HUDAR Section 2415.303(a)(2), HUD's Chief Procurement Officer, as the Senior Procurement Executive, designates Assistant Secretaries, or their equivalent, for requiring activities as the Source Selection Authorities for selections made using the tradeoff process. Assistant Secretaries may delegate this function to other departmental officials. This designation also applies to acquisitions not performed under the requirements of FAR Part 15, but utilizing tradeoff analysis. (a)(2) HUD's Chief Procurement Officer, as the Senior Procurement Executive, designates HUD's Office of General Counsel (OGC) as the Source Selection Authority, regardless of contract amount, in all Headquarters procurements for legal services, unless (s)he specifically designates another agency official to perform that function. Any Headquarters office desiring to procure outside legal services for the Department shall obtain OGC approval before advertising or soliciting proposals for such services. OGC shall determine whether the services are necessary and the extent of OGC involvement in the procurement. * * * * * 0 15. In section 2415.305, revise paragraph (a)(3) to read as follows: 2415.305 Proposal evaluation. (a) * * * (3) Technical evaluation when tradeoffs are performed. The TEP shall rate each proposal based on the evaluation factors specified in the solicitation. The TEP shall identify each proposal as being acceptable, unacceptable but capable of being made acceptable, or unacceptable. A proposal shall be considered unacceptable if it is so clearly deficient that it cannot be corrected through written or oral discussions. Under the tradeoff process, predetermined threshold levels of technical acceptability for proposals shall not be employed. A technical evaluation report, which complies with FAR 15.305(a)(3), shall be prepared and signed by the technical evaluators, furnished to the contracting officer, and maintained as a permanent record in the official procurement file. PART 2432--CONTRACT FINANCING 0 19. The authority citation for part 2432 continues to read as follows: Authority: 31 U.S.C. 3901-3905; 40 U.S.C. 121(c); 42 U.S.C. 3535(d). Subpart 2432.7--Contract Funding 0 16. Revise section 2432.705 to read as follows and remove section 2432.705-70: 2432.705 Contract clauses. (a) The contracting officer shall insert the clause at 2452.232-72, ``Limitation of Government's Obligation,'' in solicitations and resultant incrementally funded fixed-price contracts as authorized by 2432.703-1. The contracting officer shall insert the information required in the table in paragraph (b) and the notification period in paragraph (c) of the clause. (b) The contracting officer shall insert the clause at 2452.232-74, ``Not To Exceed Limitation'' in all solicitations and contracts where the total estimated funds needed for the performance period are not yet obligated. 2432.705-70 [Removed] PART 2437--SERVICE CONTRACTING 0 17. The authority citation for part 2437 continues to read as follows: Authority: 40 U.S.C. 121(c); 42 U.S.C. 3535(d). Subpart 2437.1--Service Contracts--General 0 18. Revise section 2437.110(e)(2); add paragraphs 2437.111(e)(5) and (e)(6); all to read as follows: 2437.110 Solicitation provisions and contract clauses. (e)(1) * * * (2) The Contracting Officer shall insert the clause at 2452.237-73, ``Conduct of Work and Technical Guidance,'' in all solicitations and contracts for services. (3) * * * (4) * * * (5) The contracting officer shall insert the clause at 2452.237-79, ``Post Award Conference,'' in all solicitations and contracts for services when the CO deems that a Post Award Conference is necessary. (6) The contracting officer shall insert the clause at 2452.237-81, ``Labor Categories, Unit Prices Per Hour and Payment,'' in all indefinite quantity and requirements solicitations and contracts when level of effort task orders will be issued. 0 19. Add part 2444 and heading to read as follows: PART 2444--SUBCONTRACTING POLICIES AND PROCEDURES Authority: 40 U.S.C. 121(c); 42 U.S.C. 3535(d). Subpart 2444.2--Contract Clauses 2444.204 Contract clauses. (a) Insert HUDAR clause 2452.244-70 Consent to Subcontract, in contracts and task orders with an estimated value exceeding $10,000,000. PART 2452--SOLICITATION PROVISIONS AND CONTRACT CLAUSES 0 29. The authority citation for part 2452 continues to read as follows: Authority: 40 U.S.C. 121(c); 42 U.S.C. 3535(d). Subpart 2452.2--Texts of Provisions and Clauses 2452.211-70 [Removed] 0 20. Remove section 2452.211-70 including Alternate I. 0 21. Revise section 2452.215-70 to read as follows: 2452.215-70 Proposal content. As prescribed in 2415.209(a), insert a provision substantially the same as the following: PROPOSAL CONTENT ([Insert month and year of publication of final rule],) [[Page 30421]] (a) Proposals shall be submitted in two parts as described in paragraphs (c) and (d) below. Each of the parts must be complete in itself so that evaluation of each part may be conducted independently, and so the identified parts of each proposal may be evaluated strictly on its own merit. Proposals shall be submitted in the format, if any, prescribed elsewhere in this solicitation. Proposals shall be enclosed in sealed packaging and addressed to the office specified in the solicitation. The offeror's name and address, the solicitation number and the date and time specified in the solicitation for proposal submission must appear in writing on the outside of the package. (b) The number of proposals required are an original and [insert number] copies of Part I, and [insert number] copies of Part II. (c) Part I--Technical Proposal (1) The offeror shall submit the information required in Instructions to Offerors designated under Part I--Technical Proposal. (d) Part II--Business Proposal (1) The offeror shall complete the Representations and Certifications provided in Section K of this solicitation and include them in Part II, Business Proposal. (2) The offeror shall provide information to support the offeror's proposed costs or prices as prescribed elsewhere in Instructions to Offerors for Part II--Business Proposal. (3) The offeror shall submit any other information required in Instructions to Offerors designated under Part II--Business Proposal. (End of provision) Alternate I ([Insert month and year of publication of final rule]) As prescribed in 2415.209(a), if the proposed contract requires work on, or access to, sensitive automated systems as described in 2452.239-70, add the following subparagraph, numbered sequentially, to paragraph (d): The offeror shall describe in detail how the offeror will maintain the security of automated systems as required by clause 2452.239-70 in Section I of this solicitation and include it in Part II, Business Proposal. (End of Provision) Alternate II ([Insert month and year of publication of final rule]) As prescribed in 2415.209(a), add the following paragraph (e) when the size of any proposal Part I or Part II will be limited: (e) Size limits of Parts I and II. (1) Offerors shall limit submissions of Parts I and II of their initial proposals to the page limitations identified in the Instructions to Offerors. Offerors are cautioned that if any Part of their proposal exceeds the stipulated limits for that Part, the Government will evaluate only the information contained in the pages up through the permitted number. Pages beyond that limit will not be evaluated. (2) A page shall consist of one side of a single sheet of 8\1/2\'' x 11'' paper, single spaced, using not smaller than 12 point type font, and having margins at the top, bottom, and sides of the page of no less than one inch in width. (3) Any exemptions from this limitation are stipulated under the Instructions to Offerors. (4) Offerors are encouraged to use recycled paper and to use both sides of the paper (see the FAR clause at 52.204-4). (End of Provision) 0 22. Revise section 2452.232-70 to read as follows: 2452.232-70 Payment schedule and invoice submission (Fixed-Price). As prescribed in 2432.908(c)(2), insert the following clause in all fixed-price solicitations and contracts: PAYMENT SCHEDULE AND INVOICE SUBMISSION (FIXED-PRICE) ([Insert month and year of publication of final rule]) (a) Payment Schedule. Payment of the contract price (see Section B of the contract) will be made upon completion and acceptance of all work unless a partial payment schedule is included below. [Contracting Officer insert schedule information]: ------------------------------------------------------------------------ Applicable Partial payment number contract Delivery Pay deliverable date amount ------------------------------------------------------------------------ 1. 2. 3. ------------------------------------------------------------------------ [Continue as necessary] (b) Submission of Invoices. (1) The Contractor shall submit invoices as follows: Original to the payment office and one copy each to the Contracting Officer and a copy to the Government Technical Representative (GTR) identified in the contract. To constitute a proper invoice, the invoice must include all items required by the FAR clause at 52.232-25, ``Prompt Payment.'' (2) To assist the government in making timely payments, the contractor is also requested to include on each invoice the appropriation number shown on the contract award document (e.g., block 14 of the Standard Form (SF) 26, block 21 of the SF-33, or block 25 of the SF-1449). The contractor is also requested to clearly indicate on the mailing envelope that an invoice is enclosed. (c) Contractor Remittance Information. The contractor shall provide the payment office with all information required by other payment clauses or other supplemental information (e.g., contracts for commercial services) contained in this contract. (d) Final Invoice Payment. The final invoice shall not be paid prior to certification by the Contracting Officer that all work has been completed and accepted. (End of clause) Alternate I ([Insert month and year of publication of final rule]). Delete paragraph (b)(1) of HUDAR Clause 2452.232-70 Payment Schedule and Invoice Submission (Fixed-price) and replace with the following Alternate, when requiring invoices to be submitted electronically via email, in fixed price contracts other than performance-based contracts under which performance-based payments will be used: The contractor shall submit invoices electronically via email to the email addresses shown on the contract award document (e.g., block 12 of the Standard Form (SF) 26, block 25 of the SF-33, or block 18a of the SF-1449) and carbon copy the Contracting Officer and the Government Technical Representative (GTR). To constitute a proper invoice, the invoice must include all items required by the FAR clause at 52.232-25, ``Prompt Payment.'' The contractor shall clearly include in the Subject line of the email: INVOICE INCLUDED; CONTRACT/ORDER #: _____, INVOICE NUMBER _____ and Contract Line Item Number(s) ____. (End of Alternate) 0 23. Revise section 2452.232-71 to read as follows: 2452.232-71 Voucher submission (cost-reimbursement, time-and- materials, and labor-hour). As prescribed in 2432.908(c)(3), insert the following clause in all cost-reimbursement, time-and-materials, and labor-hour solicitations and contracts: VOUCHER SUBMISSION (COST-REIMBURSEMENT, TIME-AND-MATERIALS, AND LABOR HOUR) ([Insert month and year of publication of final rule]) (a) Voucher Submission. (1) The contractor shall submit, _____ [Contracting Officer insert billing period, e.g., monthly], an original [[Page 30422]] and two copies of each voucher. In addition to the items required by the clause at FAR 52.232-25, ``Prompt Payment,'' the voucher shall show the elements of cost for the billing period and the cumulative costs to date. The Contractor shall submit all vouchers, except for the final voucher, as follows: Original to the payment office and one copy each to the Contracting Officer and the Government Technical Representative (GTR) identified in the contract. The contractor shall submit all copies of the final voucher to the Contracting Officer. (2) To assist the government in making timely payments, the contractor is requested to include on each voucher the applicable appropriation number(s) shown on the award or subsequent modification document (e.g., block 14 of the Standard Form (SF) 26, or block 21 of the SF-33). The contractor is also requested to clearly indicate on the mailing envelope that a payment voucher is enclosed. (b) Contractor Remittance Information. (1) The Contractor shall provide the payment office with all information required by other payment clauses contained in this contract. (2) For cost reimbursement, time-and-materials and labor-hour contracts, the Contractor shall aggregate vouchered costs by the individual task for which the costs were incurred and clearly identify the task or job. (c) Final Payment. The final payment shall not be made until the Contracting Officer has certified that the contractor has complied with all terms of the contract. (End of clause) Alternate I ([Insert month and year of publication of final rule]). Delete paragraph (a)(1) of HUDAR clause 2452.232-71, Voucher Submission (Cost-Reimbursement, Time-and-Materials, and Labor-Hour).) and replace with the following Alternate, when requiring invoices to be submitted electronically via email, in all cost-reimbursement, time-and- materials, and labor-hour type solicitations and contracts: The contractor shall submit invoices electronically via email to the email addresses shown on the contract award document (e.g., block 12 of the Standard Form (SF) 26, block 25 of the SF-33, or block 18a of the SF-1449) and carbon copy the Contracting Officer and the Government Technical Representative. To constitute a proper invoice, the invoice must include all items required by the FAR clause at 52.232-25, ``Prompt Payment.'' The contractor shall clearly include in the Subject line of the email: INVOICE INCLUDED; CONTRACT/ORDER #: _____, INVOICE NUMBER _____ and Contract Line Item Number(s) _____. In addition to the items required by the clause at FAR 52.232-25, Prompt Payment, the voucher shall show the elements of cost for the billing period and the cumulative costs to date. The contractor shall also submit supporting documentation such as time cards to verify the hours/costs vouchered. (End of Alternate) 0 24. Add section 2452.232-74 to read as follows: 2452.232-74 Not to exceed limitation. As prescribed in 2432.705(b), insert the following clause in all solicitations and contracts where the total estimated funds needed for the performance of the contract are not yet obligated. NOT TO EXCEED LIMITATION ([Insert month and year of publication of final rule]) (a) The total estimated funds needed for the performance of this contract are not yet obligated. The total obligation of funds available at this time for performance of work or deliveries is [FILLIN#1#Insert Amount]. The Government shall not order, nor shall the contractor be required to accept orders for, or perform work or make deliveries that exceed the stated funding limit. (b) The Government may unilaterally increase the amount obligated through contract modification(s) until the full contract value has been obligated. (End of clause) 0 25. Revise section 2452.237-73 to read as follows: 2452.237-73 Conduct of work and technical guidance. As prescribed in 2437.110(e)(2), insert the following clause in all contracts for services: CONDUCT OF WORK AND TECHNICAL GUIDANCE ([Insert month and year of publication of final rule]) (a) The Contracting Officer will provide the contractor with the name and contact information of the Government Technical Representative (GTR) assigned to this contract. The GTR will serve as the contractor's liaison with the Contracting Officer with regard to the conduct of work. The Contracting Officer will notify the contractor in writing of any change to the current GTR's status or the designation of a successor GTR. (b) The GTR for liaison with the contractor as to the conduct of work is [to be inserted at time of award] or a successor designated by the Contracting Officer. The Contracting Officer will notify the contractor in writing of any change to the current GTR's status or the designation of a successor GTR. (c) The GTR will provide guidance to the contractor on the technical performance of the contract. Such guidance shall not be of a nature which: (1) Causes the contractor to perform work outside the statement of work or specifications of the contract; (2) Constitutes a change as defined in FAR 52.243 1; (3) Causes an increase or decrease in the cost of the contract; (4) Alters the period of performance or delivery dates; or (5) Changes any of the other express terms or conditions of the contract. (d) The GTR will issue technical guidance in writing or, if issued orally, he/she will confirm such direction in writing within five calendar days after oral issuance. The GTR may issue such guidance via telephone, facsimile (fax), or electronic mail. (e) Other specific limitations [to be inserted by Contracting Officer]: (f) The contractor shall promptly notify the Contracting Officer whenever the contractor believes that guidance provided by any government personnel, whether or not specifically provided pursuant to this clause, is of a nature described in paragraph (b) above. (End of clause) 0 26. Revise paragraph 2452.237-77(c)(1)(A) to read as follows: 2452.237-77 Temporary closure of HUD facilities. ([Insert month and year of publication of final rule]) * * * * * (c) * * * (1) * * * (A) The deduction rate in dollars per day will be equal to the per month contract price divided by the number of business days in each month. * * * * * 0 27. Add section 2452.242-79 to read as follows: 2452.237-79 Post award conference. As prescribed in 2437.110(e)(5), insert the following clause in all contracts for services: POST AWARD CONFERENCE ([Insert month and year of publication of final rule]) The Contractor shall be required to attend a post-award conference on DATE _____ to be held at ADDRESS _____, unless other arrangements are made. All Contractors must have a valid ID for security clearance into the building. [[Page 30423]] (End of clause) 0 28. Add section 2452.237-81 to read as follows: 2452.237-81 Labor categories, unit prices per hour and payment. As prescribed in 2437.110(e)(6), insert the following clause in all indefinite quantity and requirements solicitations and contracts when level of effort task orders will be issued. LABOR CATEGORIES, UNIT PRICES PER HOUR AND PAYMENT ([Insert month and year of publication of final rule]) The contractor shall provide the following types of labor at the corresponding unit price per hour in accordance with the terms of this contract: ----------------------------------------------------------------------- ----------------------------------------------------------------------- ----------------------------------------------------------------------- The unit price per hour is inclusive of the hourly wage plus any applicable labor overhead, General and Administrative (G&A) expenses, and profit. Payment shall be made to the contractor upon delivery to, and acceptance by, the Government office requesting services. The total amounts billed shall be derived by multiplying the actual number of hours worked per category by the corresponding price per hour. (End of clause) 0 29. Revise section 2452.239-70 to read as follows: 2452.239-70 Access to HUD systems. As prescribed in 2439.107(a), insert the following clause: ACCESS TO HUD SYSTEMS ([Insert month and year of publication of final rule]) (a) Definitions: As used in this clause-- ``Access'' means the ability to obtain, view, read, modify, delete, and/or otherwise make use of information resources. ``Application'' means the use of information resources (information and information technology) to satisfy a specific set of user requirements (see OMB Circular A-130). ``Contractor employee'' means an employee of the prime contractor or of any subcontractor, affiliate, partner, joint venture, or team members with which the contractor is associated. It also includes consultants engaged by any of those entities. ``Mission-critical system'' means an information technology or telecommunications system used or operated by HUD or by a HUD contractor, or organization on behalf of HUD, that processes any information, the loss, misuse, disclosure, or unauthorized access to, or modification of which would have a debilitating impact on the mission of the agency. ``NACI'' means a National Agency Check with Inquiries, the minimum background investigation prescribed by OPM. ``PIV Card'' means the Personal Identity Verification (PIV) Card, the Federal Government-issued identification credential (i.e., identification badge). ``Sensitive information'' means any information of which the loss, misuse, or unauthorized access to, or modification of, could adversely affect the national interest, the conduct of federal programs, or the privacy to which individuals are entitled under section 552a of title 5, United States Code (the Privacy Act), but which has not been specifically authorized under criteria established by an Executive Order or an Act of Congress to be kept secret in the interest of national defense or foreign policy. ``System'' means an interconnected set of information resources under the same direct management control, which shares common functionality. A system normally includes hardware, software, information, data, applications, communications, and people (see OMB Circular A-130). System includes any system owned by HUD or owned and operated on HUD's behalf by another party. (b) General. (1) The performance of this contract requires contractor employees to have access to a HUD system or systems. All such employees who do not already possess a current PIV Card acceptable to HUD shall be required to provide personal background information, undergo a background investigation (NACI or other OPM-required or approved investigation), including an FBI National Criminal History Fingerprint Check, and obtain a PIV Card prior to being permitted access to any such system in performance of this contract. HUD may accept a PIV Card issued by another Federal Government agency but shall not be required to do so. No contractor employee will be permitted access to any HUD system without a PIV Card. (2) All contractor employees who require access to mission-critical systems or sensitive information contained within a HUD system or application(s) are required to have a more extensive background investigation. The investigation shall be commensurate with the risk and security controls involved in managing, using, or operating the system or applications(s). (c) Citizenship-related requirements. Each affected contractor employee as described in paragraph (b) of this clause shall be: (1) A United States (U.S.) citizen; or, (2) A national of the United States (see 8 U.S.C. 1408); or, (3) An alien lawfully admitted into, and lawfully permitted to be employed in the United States, provided that for any such individual, the Government is able to obtain sufficient background information to complete the investigation as required by this clause. Failure on the part of the contractor to provide sufficient information to perform a required investigation or the inability of the Government to verify information provided for affected contractor employees will result in denial of their access. (d) Background investigation process. (1) The Government Technical Representative (GTR) shall notify the contractor of those contractor employee positions requiring background investigations. (i) For each contractor employee requiring access to HUD information systems, the contractor shall submit the following properly completed forms: Standard Form (SF) 85, ``Questionnaire for Non- Sensitive Positions,'' FD 258 (Fingerprint Chart), and a partial Optional Form (OF) 306 (Items 1, 2, 6, 8-13, 16, and 17). (ii) For each contractor employee requiring access to mission- critical systems and/or sensitive information contained within a HUD system and/or application(s), the contractor shall submit the following properly completed forms: SF-85P, ``Questionnaire for Public Trust Positions;'' FD 258; and a Fair Credit Reporting Act form (authorization for the credit-check portion of the investigation). Contractor employees shall not complete the Medical Release behind the SF-85P. (iii) The SF-85, 85P, and OF-306 are available from OPM's Web site, http://www.opm.gov. The GTR will provide all other forms that are not obtainable via the Internet. (2) The contractor shall deliver the forms and information required in paragraph (d)(1) of this clause to the GTR. (3) Affected contractor employees who have had a federal background investigation without a subsequent break in federal employment or federal contract service exceeding 2 years may be exempt from the investigation requirements of this clause subject to verification of the previous [[Page 30424]] investigation. For each such employee, the contractor shall submit the following information in lieu of the forms and information listed in paragraph (d)(1) of this clause: Employee's full name, Social Security number, and place and date of birth. (4) The investigation process shall consist of a range of personal background inquiries and contacts (written and personal) and verification of the information provided on the investigative forms described in paragraph (d)(1) of this clause. (5) Upon completion of the investigation process, the GTR will notify the contractor if any contractor employee is determined to be unsuitable to have access to the system(s), application(s), or information. Such an employee may not be given access to those resources. If any such employee has already been given access pending the results of the background investigation, the contractor shall ensure that the employee's access is revoked immediately upon receipt of the GTR's notification. (6) Failure of the GTR to notify the contractor (see subparagraph (d)(1)) of any employee who should be subject to the requirements of this clause and is known, or should reasonably be known, by the contractor to be subject to the requirements of this clause, shall not excuse the contractor from making such employee(s) known to the GTR. Any such employee who is identified and is working under the contract, without having had the appropriate background investigation or furnished the required forms for the investigation, shall cease to perform such work immediately and shall not be given access to the system(s)/application(s) described in paragraph (b) of this clause until the contractor has provided the investigative forms required in paragraph (d)(1) of this clause for the employee to the GTR. (7) The contractor shall notify the GTR in writing whenever a contractor employee for whom a background investigation package was required and submitted to HUD, or for whom a background investigation was completed, terminates employment with the contractor or otherwise is no longer performing work under this contract that requires access to the system(s), application(s), or information. The contractor shall provide a copy of the written notice to the Contracting Officer. (e) PIV Cards. (1) HUD will issue a PIV Card to each contractor employee who is to be given access to HUD systems and does not already possess a PIV Card acceptable to HUD (see paragraph (b) of this clause). HUD will not issue the PIV Card until the contractor employee has successfully cleared an FBI National Criminal History Fingerprint Check, and HUD has initiated the background investigation for the contractor employee. Initiation is defined to mean that all background information required in paragraph (d)(1) of this clause has been delivered to HUD. The employee may not be given access prior to those two events. HUD may issue a PIV Card and grant access pending the completion of the background investigation. HUD will revoke the PIV Card and the employee's access if the background investigation process (including adjudication of investigation results) for the employee has not been completed within 6 months after the issuance of the PIV Card. (2) PIV Cards shall identify individuals as contractor employees. Contractor employees shall display their PIV Cards on their persons at all times while working in a HUD facility, and shall present cards for inspection upon request by HUD officials or HUD security personnel. (3) The contractor shall be responsible for all PIV Cards issued to the contractor's employees and shall immediately notify the GTR if any PIV Card(s) cannot be accounted for. The contractor shall promptly return PIV Cards to HUD as required by the FAR clause at 52.204-9. The contractor shall notify the GTR immediately whenever any contractor employee no longer has a need for his/her HUD-issued PIV Card (e.g., the employee terminates employment with the contractor, the employee's duties no longer require access to HUD systems). The GTR will instruct the contractor as to how to return the PIV Card. Upon expiration of this contract, the GTR will instruct the contractor as to how to return all HUD-issued PIV Cards not previously returned. Unless otherwise directed by the Contracting Officer, the contractor shall not return PIV Cards to any person other than the GTR. (f) Control of access. HUD shall have and exercise full and complete control over granting, denying, withholding, and terminating access of contractor employees to HUD systems. The GTR will notify the contractor immediately when HUD has determined that an employee is unsuitable or unfit to be permitted access to a HUD system. The contractor shall immediately notify such employee that he/she no longer has access to any HUD system, physically retrieve the employee's PIV Card from the employee, and provide a suitable replacement employee in accordance with the requirements of this clause. (g) Incident response notification. An incident is defined as an event, either accidental or deliberate, that results in unauthorized access, loss, disclosure, modification, or destruction of information technology systems, applications, or data. The contractor shall immediately notify the GTR and the Contracting Officer of any known or suspected incident, or any unauthorized disclosure of the information contained in the system(s) to which the contractor has access. (h) Nondisclosure of information. (1) Neither the contractor nor any of its employees shall divulge or release data or information developed or obtained during performance of this contract, except to authorized government personnel with an established need to know, or upon written approval of the Contracting Officer. Information contained in all source documents and other media provided by HUD is the sole property of HUD. (2) The contractor shall require that all employees who may have access to the system(s)/applications(s) identified in paragraph (b) of this clause sign a pledge of nondisclosure of information. The employees shall sign these pledges before they are permitted to perform work under this contract. The contractor shall maintain the signed pledges for a period of 3 years after final payment under this contract. The contractor shall provide a copy of these pledges to the GTR. (i) Security procedures. (1) The Contractor shall comply with applicable federal and HUD statutes, regulations, policies, and procedures governing the security of the system(s) to which the contractor's employees have access including, but not limited to: (i) The Federal Information Security Management Act (FISMA) of 2002; (ii) OMB Circular A-130, Management of Federal Information Resources, Appendix III, Security of Federal Automated Information Resources; (iii) HUD Handbook 2400.25, Information Technology Security Policy; (iv) HUD Handbook 732.3, Personnel Security/Suitability; (v) Federal Information Processing Standards 201 (FIPS 201), Sections 2.1 and 2.2; (vi) Homeland Security Presidential Directive 12 (HSPD-12); and (vii) OMB Memorandum M-05-24, Implementing Guidance for HSPD-12. The HUD Handbooks are available online at: http://www.hud.gov/offices/adm/hudclips/ or from the GTR. [[Page 30425]] (2) The contractor shall develop and maintain a compliance matrix that lists each requirement set forth in paragraphs, (b), (c), (d), (e), (f), (g), (h), (i)(1), and (m) of this clause with specific actions taken, and/or procedures implemented, to satisfy each requirement. The contractor shall identify an accountable person for each requirement, the date upon which actions/procedures were initiated/completed, and certify that information contained in this compliance matrix is correct. The contractor shall ensure that information in this compliance matrix is complete, accurate, and up-to- date at all times for the duration of this contract. Upon request, the contractor shall provide copies of the current matrix to the contracting officer and/or government technical representative. (3) The Contractor shall ensure that its employees, in performance of the contract, receive annual training (or once if the contract is for less than one year) in HUD information technology security policies, procedures, computer ethics, and best practices in accordance with HUD Handbook 2400.25. (j) Access to contractor's systems. The Contractor shall afford authorized personnel, including the Office of Inspector General, access to the Contractor's facilities, installations, operations, documentation (including the compliance matrix required under paragraph (i)(2) of this clause), databases, and personnel used in performance of the contract. Access shall be provided to the extent required to carry out, but not limited to, any information security program activities, investigation, and audit to safeguard against threats and hazards to the integrity, availability, and confidentiality of HUD data and systems, or to the function of information systems operated on behalf of HUD, and to preserve evidence of computer crime. (k) Contractor compliance with this clause. Failure on the part of the contractor to comply with the terms of this clause may result in termination of this contract for default. (l) Physical access to Federal Government facilities. The contractor and any subcontractor(s) shall also comply with the requirements of HUDAR clause 2452.237-75 when the contractor's or subcontractor's employees will perform any work under this contract on site in a HUD or other Federal Government facility. (m) Subcontracts. The contractor shall incorporate this clause in all subcontracts where the requirements specified in paragraph (b) of this section are applicable to performance of the subcontract. (End of clause) 0 30. Add section 2452.244-70 to read as follows: 2452.244-70 Consent to subcontract. As prescribed in HUDAR Section 2444.204(a), insert the following clause in contracts and task orders with an estimated value exceeding $10,000,000. CONSENT TO SUBCONTRACT ([Insert month and year of publication of final rule]) (a) Due to the substantive nature of subcontracting that may be necessary during performance of this contract, the Contracting Officer has determined that a consent for individual subcontracts is required to adequately protect the Government. Consent is required for-- (1) Cost-reimbursement, time-and-materials, or labor-hour subcontracts, or combination of such, in excess of $150,000 per year to a single subcontractor or consultant; (2) Fixed price subcontracts in excess of 25% of the annual contract value to a single subcontractor or consultant. (b) If subcontracts meeting the above parameters were not provided during the negotiation of the original contract award, the Contractor shall obtain post award consent and provide signed copies of the subcontract agreements within 10 days of consent. (c) The Contractor shall provide the Contracting Officer with 30 days advance notification prior to changing subcontractors or existing subcontracting agreements, unless precluded due to circumstances beyond the control of the contractor. If advance notification is not feasible, the Contractor shall provide notification to the Contracting Officer no later than 10 days after the Contractor identifies the need to replace a subcontractor. The notification shall include a copy of the proposed new subcontracting agreement. Upon consent and finalization of the final subcontract agreement, the Contractor shall provide a copy of the signed agreement to the Contracting Officer. (d) The Contracting Officer's consent to a subcontract does not constitute a determination of the acceptability of the subcontract terms or price, or of the allowability of costs. (e) If not required elsewhere in the contract, no more than 30 calendar days after award, the Contractor shall provide a separate continuity of services plan to the Contracting Officer that will ensure services performed by subcontractors that cost more than 25% of the cost/price of the contract will continue uninterrupted in the event of performance problems or default by the subcontractor. (End of clause) 0 31. Add subpart 2452.3 to read as follows: Subpart 2452.3--Matrix 0 32. Add section 2452.3 to read as follows: 2452.3 Provision and clause matrix. HUDAR Matrix. BILLING CODE 4210-67-P [[Page 30426]] [GRAPHIC] [TIFF OMITTED] TP28MY15.004 [[Page 30427]] [GRAPHIC] [TIFF OMITTED] TP28MY15.005 [[Page 30428]] [GRAPHIC] [TIFF OMITTED] TP28MY15.006 [[Page 30429]] [GRAPHIC] [TIFF OMITTED] TP28MY15.007 [[Page 30430]] [GRAPHIC] [TIFF OMITTED] TP28MY15.008 Dated: April 13, 2015. Keith W. Surber, Acting Chief Procurement Officer. [FR Doc. 2015-12275 Filed 5-27-15; 8:45 am] BILLING CODE 4210-67-C
![30416 Federal Register / Vol. 80, No. 102 / Thursday, May 28, 2015 / Proposed Rules
EPA-APPROVED NEBRASKA REGULATIONS
Nebraska Title State effective date EPA approval date Explanation
citation
STATE OF NEBRASKA
Department of Environmental Quality
Title 129—Nebraska Air Quality Regulations
* * * * * * *
129–4 ......................... Ambient Air Quality 8/18/08 ....................... 5/28/15, [Insert Fed- This revision to Chapter 4 repeals the annual
Standards. eral Register cita- National Ambient Air Quality Standard
tion]. (NAAQS) for PM10 and adopts the Federal
24-hour NAAQS for PM2.5. The standard
was reduced from 65 to 35 micrograms
per cubic meter by EPA on December 18,
2006.
* * * * * * *
* * * * * (e) * * *
EPA–APPROVED NEBRASKA NONREGULATORY PROVISIONS
Name of nonregulatory Applicable geographic
SIP area or nonattainment State submittal date EPA approval date Explanation
provision area
* * * * * * *
(28) Section 110(a)(2) Statewide ................... 4/3/2008, 8/29/2011 ... 5/28/2015, [Insert This action addresses the following CAA ele-
Infrastructure Re- Federal Register ments: 110(a)(2)(A), (B), (C), (D)(i)(II),
quirements for the citation]. (D)(ii), (E), (F), (G), (H), (J), (K), (L), and
1997 and 2006 (M).
PM2.5 NAAQS.
[FR Doc. 2015–12811 Filed 5–27–15; 8:45 am] Alternates to various clauses to allow and submit a comment, ensures timely
BILLING CODE 6560–50–P for electronic invoicing. receipt by HUD, and enables HUD to
DATES: Comment due date: July 27, make them immediately available to the
2015. public. Comments submitted
ADDRESSES: Interested persons are
electronically through the
DEPARTMENT OF HOUSING AND
invited to submit comments regarding www.regulations.gov Web site can be
URBAN DEVELOPMENT
this proposed rule to the Regulations viewed by other commenters and
48 CFR Parts 2404, 2406, 2408, 2409, Division, Office of General Counsel, interested members of the public.
2411, 2415, 2427, 2428, 2432, 2437, Department of Housing and Urban Commenters should follow the
2444, 2452 Development, 451 7th Street SW., Room instructions provided on that site to
10276, Washington, DC 20410–0500. submit comments electronically.
[Docket No. FR–5814–P–01] Communications must refer to the above Note: To receive consideration as public
docket number and title. There are two comments, comments must be submitted
RIN 2501–AD73 through one of the two methods specified
methods for submitting public
comments. All submissions must refer above. Again, all submissions must refer to
Amendments to the HUD Acquisition the docket number and title of the rule.
Regulation (HUDAR) to the above docket number and title.
1. Submission of Comments by Mail. No Facsimile Comments. Facsimile
AGENCY: Office of the Chief Procurement Comments may be submitted by mail to (FAX) comments are not acceptable.
Officer, HUD. the Regulations Division, Office of Public Inspection of Public
ACTION: Proposed rule. General Counsel, Department of Comments. All properly submitted
Housing and Urban Development, 451 comments and communications
SUMMARY: This proposed rule would 7th Street SW., Room 10276, submitted to HUD will be available for
amend the HUDAR to implement Washington, DC 20410–0500. public inspection and copying between
wreier-aviles on DSK5TPTVN1PROD with PROPOSALS
miscellaneous changes necessary to 2. Electronic Submission of 8 a.m. and 5 p.m. weekdays at the above
update the HUDAR. These changes Comments. Interested persons may address. Due to security measures at the
include a correction to the designation submit comments electronically through HUD Headquarters building, an advance
of Source Selection Authorities, limited the Federal eRulemaking Portal at appointment to review the public
delegation of Head of Contracting www.regulations.gov. HUD strongly comments must be scheduled by calling
Activity authorities, incorporation of the encourages commenters to submit the Regulations Division at 202–708–
HUDAR Matrix, addition of new comments electronically. Electronic 3055 (this is not a toll-free number).
clauses, certain administrative submission of comments allows the Individuals with speech or hearing
corrections, and incorporation of commenter maximum time to prepare impairments may access this number
VerDate Sep<11>2014 16:53 May 27, 2015 Jkt 235001 PO 00000 Frm 00034 Fmt 4702 Sfmt 4702 E:\FR\FM\28MYP1.SGM 28MYP1](https://thefederalregister.org/doc/80_FR_30518/page/1.svg)
![Federal Register / Vol. 80, No. 102 / Thursday, May 28, 2015 / Proposed Rules 30419
exceeding $12.5 million, but not expected to have and to use in the (B) Contractor’s exposure to financial
exceeding $62.5 million. professional management of a business, crisis from creditor’s demands;
may be a material fact in the (C) Degree to which credit security
PART 2409—CONTRACTOR determination of the contractor’s provisions could conflict with
QUALIFICATIONS responsibility and prospects for contract Government title terms under contract
■ 8. The authority citation for part 2409 completion. financing;
continues to read as follows: (c) The contracting officer shall obtain (D) Clearly stated confirmations of
the following information to the extent credit with no unacceptable
Authority: 40 U.S.C. 121(c); 42 U.S.C. required to protect the Government’s qualifications; and
3535(d). interest. In addition, if the contracting (E) Unambiguous written agreement
■ 9. Add subpart 2409.1 to read as officer concludes that information not by a creditor if credit arrangements
follows: listed herein is required to determine include deferred trade payments or
financial responsibility, that creditor subordinations/repayment
Subpart 2409.1—Responsible information should be requested. The suspensions.
Prospective Contractors information must be for the person(s) (8) Statement of all state, local, and
2409.105 Procedures. who are legally liable for contract Federal tax accounts, including special
performance. If the contractor is not a mandatory contributions, e.g.,
(a) The contracting officer shall
corporation, the contracting officer shall environmental superfund.
perform a financial review when the
obtain the required information for each (9) Description and explanation of the
contracting officer does not otherwise
individual/joint venturer/partner: financial effect of issues such as—
have sufficient information to make a (1) Balance sheet and income
positive determination of financial (A) Leases, deferred purchase
statement—
responsibility. In addition, the arrangements, or patent or royalty
(A) For the current fiscal year
contracting officer shall consider arrangements;
(interim);
performing a financial review— (B) For the most recent fiscal year (B) Insurance, when relevant to the
(1) Prior to award of a contract, and, preferably, for the 2 preceding contract;
when— fiscal years. These should be certified by (C) Contemplated capital
(A) The contractor is on a list an independent public accountant or by expenditures, changes in equity, or
requiring pre-award clearance or other an appropriate officer of the firm; and contractor debt load;
special clearance before award; (C) Forecasted for each fiscal year for (D) Pending claims either by or
(B) The contractor is listed on the the remainder of the period of contract against the contractor;
Consolidated List of Contractors performance. (E) Contingent liabilities such as
Indebted to the Government, or is (2) Summary history of the contractor guarantees, litigation, environmental, or
otherwise known to be indebted to the and its principal managers, disclosing product liabilities;
Government; any previous insolvencies—corporate or (E) Validity of accounts receivable
(C) The contractor may receive personal, and describing its products or and actual value of inventory, as assets;
Government assets such as contract services. and
financing payments or Government (3) Statement of all affiliations (F) Status and aging of accounts
property; disclosing— payable.
(D) The contractor is experiencing (A) Material financial interests of the (10) Significant ratios such as—
performance difficulties on other work; contractor;
or (A) Inventory to annual sales;
(B) Material financial interests in the (B) Inventory to current assets;
(E) The contractor is a new company contractor;
or a new supplier of the item. (C) Liquid assets to current assets;
(C) Material affiliations of owners,
(2) At periodic intervals after award of (D) Liquid assets to current liabilities;
officers, members, directors, major
a contract, when— stockholders; and (E) Current assets to current liabilities;
(A) Any of the conditions in (D) The major stockholders if the and
paragraphs (1)(B) through (1)(E) of this contractor is not a widely-traded, (F) Net worth to net debt.
subsection are applicable; or publicly-held corporation.
(B) There is any other reason to PART 2411—DESCRIBING AGENCY
(4) Statement of all forms of
question the contractor’s ability to NEEDS
compensation to each officer, manager,
finance performance and completion of partner, joint venturer, or proprietor, as ■ 10. The authority citation for part
the contract. appropriate— 2411 is revised to read as follows:
(b) The contracting officer shall obtain (A) Planned for the current year;
the type and depth of financial and Authority: 40 U.S.C. 121(c); 42 U.S.C.
(B) Paid during the past 2 years; and 3535(d).
other information that is required to (C) Deferred to future periods.
establish a contractor’s financial (5) Business base and forecast that— Subpart 2411.4—Delivery or
capability or disclose a contractor’s (A) Shows, by significant markets, Performance Schedules
financial condition. While the existing contracts and outstanding
contracting officer should not request offers, including those under 2411.404 [Removed]
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information that is not necessary for negotiation; and ■ 11. Remove section 2411.404.
protection of the Government’s (B) Is reconcilable to indirect cost rate
interests, the contracting officer must projections. PART 2415—CONTRACTING BY
insist upon obtaining the information (6) Cash forecast for the duration of NEGOTIATION
that is necessary. The unwillingness or the contract.
inability of a contractor to present (7) Financing arrangement ■ 12. The authority citation for part
reasonably requested information in a information that discloses— 2415 is revised to read as follows:
timely manner, especially information (A) Availability of cash to finance Authority: 40 U.S.C. 121(c); 41 U.S.C.
that a prudent business person would be contract performance; 3301–3306 and 3105; 42 U.S.C. 3535(d).
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Subpart 2415.2—Solicitation and ■ 15. In section 2415.305, revise Subpart 2437.1—Service Contracts—
Receipt of Proposals and Quotations paragraph (a)(3) to read as follows: General
■ 13. Revise section 2415.209(a)(1) to 2415.305 Proposal evaluation. ■ 18. Revise section 2437.110(e)(2); add
read as follows: paragraphs 2437.111(e)(5) and (e)(6); all
(a) * * * to read as follows:
2415.209 Solicitation provisions. (3) Technical evaluation when
(a)(1) The Contracting Officer shall tradeoffs are performed. The TEP shall 2437.110 Solicitation provisions and
insert a provision substantially the same contract clauses.
rate each proposal based on the
as the provision at 2452.215–70, evaluation factors specified in the (e)(1) * * *
Proposal Content, in all solicitations for (2) The Contracting Officer shall
solicitation. The TEP shall identify each
negotiated procurements expected to insert the clause at 2452.237–73,
proposal as being acceptable,
exceed the simplified acquisition limit. ‘‘Conduct of Work and Technical
The provision may be used in simplified unacceptable but capable of being made
Guidance,’’ in all solicitations and
acquisitions when it is necessary to acceptable, or unacceptable. A proposal contracts for services.
obtain business proposal information in shall be considered unacceptable if it is (3) * * *
making the award selection. If the so clearly deficient that it cannot be (4) * * *
proposed contract requires work on, or corrected through written or oral (5) The contracting officer shall insert
access to, HUD systems or applications discussions. Under the tradeoff process, the clause at 2452.237–79, ‘‘Post Award
(see the clause at 2452.239–70), the predetermined threshold levels of Conference,’’ in all solicitations and
provision shall be used with its technical acceptability for proposals contracts for services when the CO
Alternate I. When the contracting officer shall not be employed. A technical deems that a Post Award Conference is
has determined that it is necessary to evaluation report, which complies with necessary.
limit the size of the technical and FAR 15.305(a)(3), shall be prepared and (6) The contracting officer shall insert
management portion of offers submitted signed by the technical evaluators, the clause at 2452.237–81, ‘‘Labor
by offerors, the provision shall be used furnished to the contracting officer, and Categories, Unit Prices Per Hour and
with its Alternate II. maintained as a permanent record in the Payment,’’ in all indefinite quantity and
* * * * * official procurement file. requirements solicitations and contracts
when level of effort task orders will be
Subpart 2415.3—Source Selection PART 2432—CONTRACT FINANCING issued.
■ 19. Add part 2444 and heading to read
■ 14. In section 2415.303, redesignate
■ 19. The authority citation for part as follows:
paragraph (a) as (a)(1); revise the
redesignated paragraph; and add section 2432 continues to read as follows:
PART 2444—SUBCONTRACTING
2415.303(a)(2), all to read as follows: Authority: 31 U.S.C. 3901–3905; 40 U.S.C. POLICIES AND PROCEDURES
121(c); 42 U.S.C. 3535(d).
2415.303 Responsibilities.
(a)(1) Except as identified in HUDAR Authority: 40 U.S.C. 121(c); 42 U.S.C.
Subpart 2432.7—Contract Funding 3535(d).
Section 2415.303(a)(2), HUD’s Chief
Procurement Officer, as the Senior ■ 16. Revise section 2432.705 to read as Subpart 2444.2—Contract Clauses
Procurement Executive, designates follows and remove section 2432.705–
Assistant Secretaries, or their 70: 2444.204 Contract clauses.
equivalent, for requiring activities as the (a) Insert HUDAR clause 2452.244–70
Source Selection Authorities for 2432.705 Contract clauses. Consent to Subcontract, in contracts and
selections made using the tradeoff (a) The contracting officer shall insert task orders with an estimated value
process. Assistant Secretaries may the clause at 2452.232–72, ‘‘Limitation exceeding $10,000,000.
delegate this function to other
of Government’s Obligation,’’ in
departmental officials. This designation PART 2452—SOLICITATION
solicitations and resultant incrementally
also applies to acquisitions not PROVISIONS AND CONTRACT
performed under the requirements of funded fixed-price contracts as CLAUSES
FAR Part 15, but utilizing tradeoff authorized by 2432.703–1. The
analysis. contracting officer shall insert the ■ 29. The authority citation for part
(a)(2) HUD’s Chief Procurement information required in the table in 2452 continues to read as follows:
Officer, as the Senior Procurement paragraph (b) and the notification Authority: 40 U.S.C. 121(c); 42 U.S.C.
Executive, designates HUD’s Office of period in paragraph (c) of the clause. 3535(d).
General Counsel (OGC) as the Source (b) The contracting officer shall insert
Selection Authority, regardless of Subpart 2452.2—Texts of Provisions
the clause at 2452.232–74, ‘‘Not To
contract amount, in all Headquarters and Clauses
Exceed Limitation’’ in all solicitations
procurements for legal services, unless and contracts where the total estimated 2452.211–70 [Removed]
(s)he specifically designates another funds needed for the performance ■ 20. Remove section 2452.211–70
agency official to perform that function. period are not yet obligated. including Alternate I.
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Any Headquarters office desiring to ■ 21. Revise section 2452.215–70 to
procure outside legal services for the 2432.705–70 [Removed]
read as follows:
Department shall obtain OGC approval
before advertising or soliciting PART 2437—SERVICE CONTRACTING 2452.215–70 Proposal content.
proposals for such services. OGC shall As prescribed in 2415.209(a), insert a
determine whether the services are ■ 17. The authority citation for part provision substantially the same as the
necessary and the extent of OGC 2437 continues to read as follows: following:
involvement in the procurement. Authority: 40 U.S.C. 121(c); 42 U.S.C. PROPOSAL CONTENT ([Insert month
* * * * * 3535(d). and year of publication of final rule],)
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(a) Proposals shall be submitted in to the page limitations identified in the (e.g., block 14 of the Standard Form (SF)
two parts as described in paragraphs (c) Instructions to Offerors. Offerors are 26, block 21 of the SF–33, or block 25
and (d) below. Each of the parts must be cautioned that if any Part of their of the SF–1449). The contractor is also
complete in itself so that evaluation of proposal exceeds the stipulated limits requested to clearly indicate on the
each part may be conducted for that Part, the Government will mailing envelope that an invoice is
independently, and so the identified evaluate only the information contained enclosed.
parts of each proposal may be evaluated in the pages up through the permitted (c) Contractor Remittance
strictly on its own merit. Proposals shall number. Pages beyond that limit will Information. The contractor shall
be submitted in the format, if any, not be evaluated. provide the payment office with all
prescribed elsewhere in this solicitation. (2) A page shall consist of one side of information required by other payment
Proposals shall be enclosed in sealed a single sheet of 81⁄2″ x 11″ paper, single clauses or other supplemental
packaging and addressed to the office spaced, using not smaller than 12 point information (e.g., contracts for
specified in the solicitation. The type font, and having margins at the top, commercial services) contained in this
offeror’s name and address, the bottom, and sides of the page of no less contract.
solicitation number and the date and than one inch in width. (d) Final Invoice Payment. The final
time specified in the solicitation for (3) Any exemptions from this invoice shall not be paid prior to
proposal submission must appear in limitation are stipulated under the certification by the Contracting Officer
writing on the outside of the package. Instructions to Offerors. that all work has been completed and
(b) The number of proposals required (4) Offerors are encouraged to use accepted.
are an original and [insert number] recycled paper and to use both sides of (End of clause)
copies of Part I, and [insert number] the paper (see the FAR clause at 52.204– Alternate I ([Insert month and year of
copies of Part II. 4). publication of final rule]). Delete
(c) Part I—Technical Proposal (End of Provision) paragraph (b)(1) of HUDAR Clause
(1) The offeror shall submit the 2452.232–70 Payment Schedule and
■ 22. Revise section 2452.232–70 to
information required in Instructions to Invoice Submission (Fixed-price) and
Offerors designated under Part I— read as follows:
replace with the following Alternate,
Technical Proposal. 2452.232–70 Payment schedule and when requiring invoices to be submitted
(d) Part II—Business Proposal invoice submission (Fixed-Price). electronically via email, in fixed price
(1) The offeror shall complete the As prescribed in 2432.908(c)(2), insert contracts other than performance-based
Representations and Certifications the following clause in all fixed-price contracts under which performance-
provided in Section K of this solicitations and contracts: based payments will be used:
solicitation and include them in Part II, PAYMENT SCHEDULE AND The contractor shall submit invoices
Business Proposal. INVOICE SUBMISSION (FIXED-PRICE) electronically via email to the email
(2) The offeror shall provide ([Insert month and year of publication addresses shown on the contract award
information to support the offeror’s of final rule]) document (e.g., block 12 of the Standard
proposed costs or prices as prescribed (a) Payment Schedule. Payment of the Form (SF) 26, block 25 of the SF–33, or
elsewhere in Instructions to Offerors for contract price (see Section B of the block 18a of the SF–1449) and carbon
Part II—Business Proposal. contract) will be made upon completion copy the Contracting Officer and the
(3) The offeror shall submit any other and acceptance of all work unless a Government Technical Representative
information required in Instructions to partial payment schedule is included (GTR). To constitute a proper invoice,
Offerors designated under Part II— below. the invoice must include all items
Business Proposal. [Contracting Officer insert schedule required by the FAR clause at 52.232–
(End of provision) information]: 25, ‘‘Prompt Payment.’’ The contractor
Alternate I ([Insert month and year of shall clearly include in the Subject line
Partial Applicable of the email: INVOICE INCLUDED;
publication of final rule]) Delivery Pay
payment contract
As prescribed in 2415.209(a), if the number deliverable date amount CONTRACT/ORDER #: lllll,
proposed contract requires work on, or INVOICE NUMBER lllll and
access to, sensitive automated systems 1. Contract Line Item Number(s) llll.
as described in 2452.239–70, add the 2. (End of Alternate)
following subparagraph, numbered 3.
■ 23. Revise section 2452.232–71 to
sequentially, to paragraph (d): read as follows:
The offeror shall describe in detail [Continue as necessary]
how the offeror will maintain the (b) Submission of Invoices. 2452.232–71 Voucher submission (cost-
security of automated systems as (1) The Contractor shall submit reimbursement, time-and-materials, and
required by clause 2452.239–70 in invoices as follows: Original to the labor-hour).
Section I of this solicitation and include payment office and one copy each to the As prescribed in 2432.908(c)(3), insert
it in Part II, Business Proposal. Contracting Officer and a copy to the the following clause in all cost-
Government Technical Representative reimbursement, time-and-materials, and
(End of Provision) (GTR) identified in the contract. To labor-hour solicitations and contracts:
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Alternate II ([Insert month and year of constitute a proper invoice, the invoice VOUCHER SUBMISSION (COST-
publication of final rule]) must include all items required by the REIMBURSEMENT, TIME-AND-
As prescribed in 2415.209(a), add the FAR clause at 52.232–25, ‘‘Prompt MATERIALS, AND LABOR HOUR)
following paragraph (e) when the size of Payment.’’ ([Insert month and year of publication
any proposal Part I or Part II will be (2) To assist the government in of final rule])
limited: making timely payments, the contractor (a) Voucher Submission.
(e) Size limits of Parts I and II. is also requested to include on each (1) The contractor shall submit,
(1) Offerors shall limit submissions of invoice the appropriation number lllll [Contracting Officer insert
Parts I and II of their initial proposals shown on the contract award document billing period, e.g., monthly], an original
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and two copies of each voucher. In clearly include in the Subject line of the successor designated by the Contracting
addition to the items required by the email: INVOICE INCLUDED; Officer. The Contracting Officer will
clause at FAR 52.232–25, ‘‘Prompt CONTRACT/ORDER #: lllll, notify the contractor in writing of any
Payment,’’ the voucher shall show the INVOICE NUMBER lllll and change to the current GTR’s status or the
elements of cost for the billing period Contract Line Item Number(s) llll designation of a successor GTR.
and the cumulative costs to date. The l. In addition to the items required by (c) The GTR will provide guidance to
Contractor shall submit all vouchers, the clause at FAR 52.232–25, Prompt the contractor on the technical
except for the final voucher, as follows: Payment, the voucher shall show the performance of the contract. Such
Original to the payment office and one elements of cost for the billing period guidance shall not be of a nature which:
copy each to the Contracting Officer and and the cumulative costs to date. The (1) Causes the contractor to perform
the Government Technical contractor shall also submit supporting work outside the statement of work or
Representative (GTR) identified in the documentation such as time cards to specifications of the contract;
contract. The contractor shall submit all verify the hours/costs vouchered. (2) Constitutes a change as defined in
copies of the final voucher to the (End of Alternate) FAR 52.243 1;
Contracting Officer. (3) Causes an increase or decrease in
■ 24. Add section 2452.232–74 to read
(2) To assist the government in the cost of the contract;
making timely payments, the contractor as follows:
(4) Alters the period of performance
is requested to include on each voucher 2452.232–74 Not to exceed limitation. or delivery dates; or
the applicable appropriation number(s) As prescribed in 2432.705(b), insert (5) Changes any of the other express
shown on the award or subsequent the following clause in all solicitations terms or conditions of the contract.
modification document (e.g., block 14 of and contracts where the total estimated (d) The GTR will issue technical
the Standard Form (SF) 26, or block 21 funds needed for the performance of the guidance in writing or, if issued orally,
of the SF–33). The contractor is also contract are not yet obligated. he/she will confirm such direction in
requested to clearly indicate on the NOT TO EXCEED LIMITATION writing within five calendar days after
mailing envelope that a payment ([Insert month and year of publication oral issuance. The GTR may issue such
voucher is enclosed. of final rule]) guidance via telephone, facsimile (fax),
(b) Contractor Remittance (a) The total estimated funds needed or electronic mail.
Information. for the performance of this contract are (e) Other specific limitations [to be
(1) The Contractor shall provide the not yet obligated. The total obligation of inserted by Contracting Officer]:
payment office with all information funds available at this time for (f) The contractor shall promptly
required by other payment clauses performance of work or deliveries is notify the Contracting Officer whenever
contained in this contract. [FILLIN#1#Insert Amount]. The the contractor believes that guidance
(2) For cost reimbursement, time-and- Government shall not order, nor shall provided by any government personnel,
materials and labor-hour contracts, the the contractor be required to accept whether or not specifically provided
Contractor shall aggregate vouchered orders for, or perform work or make pursuant to this clause, is of a nature
costs by the individual task for which deliveries that exceed the stated funding described in paragraph (b) above.
the costs were incurred and clearly limit.
identify the task or job. (End of clause)
(b) The Government may unilaterally
(c) Final Payment. The final payment ■ 26. Revise paragraph 2452.237–
increase the amount obligated through
shall not be made until the Contracting 77(c)(1)(A) to read as follows:
contract modification(s) until the full
Officer has certified that the contractor contract value has been obligated. 2452.237–77 Temporary closure of HUD
has complied with all terms of the facilities. ([Insert month and year of
contract. (End of clause)
publication of final rule])
■ 25. Revise section 2452.237–73 to
(End of clause) * * * * *
read as follows:
Alternate I ([Insert month and year of (c) * * *
publication of final rule]). Delete 2452.237–73 Conduct of work and (1) * * *
paragraph (a)(1) of HUDAR clause technical guidance. (A) The deduction rate in dollars per
2452.232–71, Voucher Submission As prescribed in 2437.110(e)(2), insert day will be equal to the per month
(Cost-Reimbursement, Time-and- the following clause in all contracts for contract price divided by the number of
Materials, and Labor-Hour).) and replace services: business days in each month.
with the following Alternate, when CONDUCT OF WORK AND * * * * *
requiring invoices to be submitted TECHNICAL GUIDANCE ([Insert month ■ 27. Add section 2452.242–79 to read
electronically via email, in all cost- and year of publication of final rule]) as follows:
reimbursement, time-and-materials, and (a) The Contracting Officer will
labor-hour type solicitations and provide the contractor with the name 2452.237–79 Post award conference.
contracts: and contact information of the As prescribed in 2437.110(e)(5), insert
The contractor shall submit invoices Government Technical Representative the following clause in all contracts for
electronically via email to the email (GTR) assigned to this contract. The services:
addresses shown on the contract award GTR will serve as the contractor’s POST AWARD CONFERENCE ([Insert
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document (e.g., block 12 of the Standard liaison with the Contracting Officer with month and year of publication of final
Form (SF) 26, block 25 of the SF–33, or regard to the conduct of work. The rule])
block 18a of the SF–1449) and carbon Contracting Officer will notify the The Contractor shall be required to
copy the Contracting Officer and the contractor in writing of any change to attend a post-award conference on
Government Technical Representative. the current GTR’s status or the DATE lllll to be held at
To constitute a proper invoice, the designation of a successor GTR. ADDRESS lllll, unless other
invoice must include all items required (b) The GTR for liaison with the arrangements are made. All Contractors
by the FAR clause at 52.232–25, contractor as to the conduct of work is must have a valid ID for security
‘‘Prompt Payment.’’ The contractor shall [to be inserted at time of award] or a clearance into the building.
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(End of clause) HUD, that processes any information, using, or operating the system or
■ 28. Add section 2452.237–81 to read the loss, misuse, disclosure, or applications(s).
as follows: unauthorized access to, or modification (c) Citizenship-related requirements.
of which would have a debilitating Each affected contractor employee as
2452.237–81 Labor categories, unit prices impact on the mission of the agency. described in paragraph (b) of this clause
per hour and payment. ‘‘NACI’’ means a National Agency shall be:
As prescribed in 2437.110(e)(6), insert Check with Inquiries, the minimum (1) A United States (U.S.) citizen; or,
the following clause in all indefinite background investigation prescribed by (2) A national of the United States
quantity and requirements solicitations OPM. (see 8 U.S.C. 1408); or,
and contracts when level of effort task ‘‘PIV Card’’ means the Personal (3) An alien lawfully admitted into,
orders will be issued. Identity Verification (PIV) Card, the and lawfully permitted to be employed
LABOR CATEGORIES, UNIT PRICES Federal Government-issued in the United States, provided that for
PER HOUR AND PAYMENT ([Insert identification credential (i.e., any such individual, the Government is
month and year of publication of final identification badge). able to obtain sufficient background
rule]) ‘‘Sensitive information’’ means any information to complete the
The contractor shall provide the information of which the loss, misuse, investigation as required by this clause.
following types of labor at the or unauthorized access to, or Failure on the part of the contractor to
corresponding unit price per hour in modification of, could adversely affect provide sufficient information to
accordance with the terms of this the national interest, the conduct of perform a required investigation or the
contract: federal programs, or the privacy to inability of the Government to verify
lllllllllllllllllll which individuals are entitled under information provided for affected
lllllllllllllllllll section 552a of title 5, United States contractor employees will result in
lllllllllllllllllll Code (the Privacy Act), but which has denial of their access.
not been specifically authorized under (d) Background investigation process.
The unit price per hour is inclusive of
criteria established by an Executive (1) The Government Technical
the hourly wage plus any applicable
Order or an Act of Congress to be kept Representative (GTR) shall notify the
labor overhead, General and
secret in the interest of national defense contractor of those contractor employee
Administrative (G&A) expenses, and
or foreign policy. positions requiring background
profit. Payment shall be made to the ‘‘System’’ means an interconnected investigations.
contractor upon delivery to, and set of information resources under the (i) For each contractor employee
acceptance by, the Government office same direct management control, which requiring access to HUD information
requesting services. The total amounts shares common functionality. A system systems, the contractor shall submit the
billed shall be derived by multiplying normally includes hardware, software, following properly completed forms:
the actual number of hours worked per information, data, applications, Standard Form (SF) 85, ‘‘Questionnaire
category by the corresponding price per communications, and people (see OMB for Non-Sensitive Positions,’’ FD 258
hour. Circular A–130). System includes any (Fingerprint Chart), and a partial
(End of clause) system owned by HUD or owned and Optional Form (OF) 306 (Items 1, 2, 6,
■ 29. Revise section 2452.239–70 to operated on HUD’s behalf by another 8–13, 16, and 17).
read as follows: party. (ii) For each contractor employee
(b) General. requiring access to mission-critical
2452.239–70 Access to HUD systems. (1) The performance of this contract systems and/or sensitive information
As prescribed in 2439.107(a), insert requires contractor employees to have contained within a HUD system and/or
the following clause: access to a HUD system or systems. All application(s), the contractor shall
ACCESS TO HUD SYSTEMS ([Insert such employees who do not already submit the following properly
month and year of publication of final possess a current PIV Card acceptable to completed forms: SF–85P,
rule]) HUD shall be required to provide ‘‘Questionnaire for Public Trust
(a) Definitions: As used in this personal background information, Positions;’’ FD 258; and a Fair Credit
clause— undergo a background investigation Reporting Act form (authorization for
‘‘Access’’ means the ability to obtain, (NACI or other OPM-required or the credit-check portion of the
view, read, modify, delete, and/or approved investigation), including an investigation). Contractor employees
otherwise make use of information FBI National Criminal History shall not complete the Medical Release
resources. Fingerprint Check, and obtain a PIV behind the SF–85P.
‘‘Application’’ means the use of Card prior to being permitted access to (iii) The SF–85, 85P, and OF–306 are
information resources (information and any such system in performance of this available from OPM’s Web site, http://
information technology) to satisfy a contract. HUD may accept a PIV Card www.opm.gov. The GTR will provide all
specific set of user requirements (see issued by another Federal Government other forms that are not obtainable via
OMB Circular A–130). agency but shall not be required to do the Internet.
‘‘Contractor employee’’ means an so. No contractor employee will be (2) The contractor shall deliver the
employee of the prime contractor or of permitted access to any HUD system forms and information required in
any subcontractor, affiliate, partner, without a PIV Card. paragraph (d)(1) of this clause to the
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joint venture, or team members with (2) All contractor employees who GTR.
which the contractor is associated. It require access to mission-critical (3) Affected contractor employees
also includes consultants engaged by systems or sensitive information who have had a federal background
any of those entities. contained within a HUD system or investigation without a subsequent
‘‘Mission-critical system’’ means an application(s) are required to have a break in federal employment or federal
information technology or more extensive background contract service exceeding 2 years may
telecommunications system used or investigation. The investigation shall be be exempt from the investigation
operated by HUD or by a HUD commensurate with the risk and requirements of this clause subject to
contractor, or organization on behalf of security controls involved in managing, verification of the previous
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(2) The contractor shall develop and (k) Contractor compliance with this award consent and provide signed
maintain a compliance matrix that lists clause. Failure on the part of the copies of the subcontract agreements
each requirement set forth in contractor to comply with the terms of within 10 days of consent.
paragraphs, (b), (c), (d), (e), (f), (g), (h), this clause may result in termination of (c) The Contractor shall provide the
(i)(1), and (m) of this clause with this contract for default. Contracting Officer with 30 days
specific actions taken, and/or (l) Physical access to Federal advance notification prior to changing
procedures implemented, to satisfy each Government facilities. The contractor subcontractors or existing
requirement. The contractor shall and any subcontractor(s) shall also subcontracting agreements, unless
identify an accountable person for each comply with the requirements of precluded due to circumstances beyond
requirement, the date upon which HUDAR clause 2452.237–75 when the the control of the contractor. If advance
actions/procedures were initiated/ contractor’s or subcontractor’s notification is not feasible, the
completed, and certify that information employees will perform any work under Contractor shall provide notification to
contained in this compliance matrix is this contract on site in a HUD or other the Contracting Officer no later than 10
correct. The contractor shall ensure that Federal Government facility. days after the Contractor identifies the
information in this compliance matrix is (m) Subcontracts. The contractor shall need to replace a subcontractor. The
complete, accurate, and up-to-date at all incorporate this clause in all notification shall include a copy of the
times for the duration of this contract. subcontracts where the requirements proposed new subcontracting
Upon request, the contractor shall specified in paragraph (b) of this section agreement. Upon consent and
provide copies of the current matrix to are applicable to performance of the finalization of the final subcontract
the contracting officer and/or subcontract. agreement, the Contractor shall provide
government technical representative. (End of clause) a copy of the signed agreement to the
(3) The Contractor shall ensure that its ■ 30. Add section 2452.244–70 to read Contracting Officer.
employees, in performance of the as follows: (d) The Contracting Officer’s consent
contract, receive annual training (or to a subcontract does not constitute a
2452.244–70 Consent to subcontract.
once if the contract is for less than one determination of the acceptability of the
year) in HUD information technology As prescribed in HUDAR Section subcontract terms or price, or of the
security policies, procedures, computer 2444.204(a), insert the following clause allowability of costs.
ethics, and best practices in accordance in contracts and task orders with an (e) If not required elsewhere in the
with HUD Handbook 2400.25. estimated value exceeding $10,000,000. contract, no more than 30 calendar days
CONSENT TO SUBCONTRACT
(j) Access to contractor’s systems. The after award, the Contractor shall provide
([Insert month and year of publication
Contractor shall afford authorized a separate continuity of services plan to
of final rule])
personnel, including the Office of (a) Due to the substantive nature of the Contracting Officer that will ensure
Inspector General, access to the subcontracting that may be necessary services performed by subcontractors
Contractor’s facilities, installations, during performance of this contract, the that cost more than 25% of the cost/
operations, documentation (including Contracting Officer has determined that price of the contract will continue
the compliance matrix required under a consent for individual subcontracts is uninterrupted in the event of
paragraph (i)(2) of this clause), required to adequately protect the performance problems or default by the
databases, and personnel used in Government. Consent is required for— subcontractor.
performance of the contract. Access (1) Cost-reimbursement, time-and- (End of clause)
shall be provided to the extent required materials, or labor-hour subcontracts, or
to carry out, but not limited to, any ■ 31. Add subpart 2452.3 to read as
combination of such, in excess of follows:
information security program activities, $150,000 per year to a single
investigation, and audit to safeguard subcontractor or consultant; Subpart 2452.3—Matrix
against threats and hazards to the (2) Fixed price subcontracts in excess
integrity, availability, and of 25% of the annual contract value to ■ 32. Add section 2452.3 to read as
confidentiality of HUD data and a single subcontractor or consultant. follows:
systems, or to the function of (b) If subcontracts meeting the above
information systems operated on behalf parameters were not provided during 2452.3 Provision and clause matrix.
of HUD, and to preserve evidence of the negotiation of the original contract HUDAR Matrix.
computer crime. award, the Contractor shall obtain post BILLING CODE 4210–67–P
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Document Created: 2018-02-21 10:33:27
Document Modified: 2018-02-21 10:33:27
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Proposed rule. | |
| Dates | Comment due date: July 27, 2015. | |
| Contact | Lisa D. Maguire, Assistant Chief Procurement Officer for Policy, Systems and Risk Management, Office of the Chief Procurement Officer, Department of Housing and Urban Development, 451 7th Street SW., Washington, DC 20410; telephone number 202-708-0294 (this is not a toll-free number) and fax number 202-708- 8912. Persons with hearing or speech impairments may access Ms. Maguire's telephone number via TTY by calling the toll-free Federal Relay Service at 800-877-8339. | |
| FR Citation | 80 FR 30416 | |
| RIN Number | 2501-AD73 | |
| CFR Citation | 48
CFR
2404 48 CFR 2406 48 CFR 2408 48 CFR 2409 48 CFR 2411 48 CFR 2415 48 CFR 2427 48 CFR 2428 48 CFR 2432 48 CFR 2437 48 CFR 2444 48 CFR 2452 | |
| CFR Associated | Government Procurement and Government Procurement |
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