83_FR_1329 83 FR 1321 - Revise and Streamline VA Acquisition Regulation To Adhere to Federal Acquisition Regulation Principles (VAAR Case 2014-V005-Parts 812, 813)

83 FR 1321 - Revise and Streamline VA Acquisition Regulation To Adhere to Federal Acquisition Regulation Principles (VAAR Case 2014-V005-Parts 812, 813)

DEPARTMENT OF VETERANS AFFAIRS

Federal Register Volume 83, Issue 8 (January 11, 2018)

Page Range1321-1326
FR Document2018-00169

The Department of Veterans Affairs (VA) is proposing to amend and update its VA Acquisition Regulation (VAAR) in phased increments to revise or remove any policy superseded by changes in the Federal Acquisition Regulation (FAR), to remove procedural guidance internal to VA into the VAAM, and to incorporate any new agency specific regulations or policies. These changes seek to streamline and align the VAAR with the FAR and remove outdated and duplicative requirements and reduce burden on contractors. The VAAM incorporates portions of the removed VAAR as well as other internal agency acquisition policy. VA will rewrite certain parts of the VAAR and VAAM, and as VAAR parts are rewritten, will publish them in the Federal Register. To minimize the number of rules published, VA will combine related topics.

Federal Register, Volume 83 Issue 8 (Thursday, January 11, 2018)
[Federal Register Volume 83, Number 8 (Thursday, January 11, 2018)]
[Proposed Rules]
[Pages 1321-1326]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-00169]


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DEPARTMENT OF VETERANS AFFAIRS

48 CFR Parts 812, 813, and 852

RIN 2900-AP58


Revise and Streamline VA Acquisition Regulation To Adhere to 
Federal Acquisition Regulation Principles (VAAR Case 2014-V005--Parts 
812, 813)

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: The Department of Veterans Affairs (VA) is proposing to amend 
and update its VA Acquisition Regulation (VAAR) in phased increments to 
revise or remove any policy superseded by changes in the Federal 
Acquisition Regulation (FAR), to remove procedural guidance internal to 
VA into the VAAM, and to incorporate any new agency specific 
regulations or policies. These changes seek to streamline and align the 
VAAR with the FAR and remove outdated and duplicative requirements and 
reduce burden on contractors. The VAAM incorporates portions of the 
removed VAAR as well as other internal agency acquisition policy. VA 
will rewrite certain parts of the VAAR and VAAM, and as VAAR parts are 
rewritten, will publish them in the Federal Register. To minimize the 
number of rules published, VA will combine related topics.

DATES: Comments must be received on or before March 12, 2018 to be 
considered in the formulation of the final rule.

[[Page 1322]]


ADDRESSES: Written comments may be submitted through 
www.Regulations.gov; by mail or hand-delivery to Director, Regulation 
Policy and Management (00REG), Department of Veterans Affairs, 810 
Vermont Avenue NW, Room 1063B, Washington, DC 20420; or by fax to (202) 
273-9026. Comments should indicate that they are submitted in response 
to ``RIN 2900-AP58--Revise and Streamline VA Acquisition Regulation to 
Adhere to Federal Acquisition Regulation Principles (VAAR Case 2014-
V005--Parts 812, 813).'' Copies of comments received will be available 
for public inspection in the Office of Regulation Policy and 
Management, Room 1063B, between the hours of 8:00 a.m. and 4:30 p.m., 
Monday through Friday (except holidays). Please call (202) 461-4902 for 
an appointment. This is not a toll-free number. In addition, during the 
comment period, comments may be viewed online through the Federal 
Docket Management System (FDMS) at www.Regulations.gov.

FOR FURTHER INFORMATION CONTACT: Mr. Ricky Clark, Senior Procurement 
Analyst, Procurement Policy and Warrant Management Services, 003A2A, 
425 I Street NW, Washington DC 20001, (202) 632-5276. This is not a 
toll-free telephone number.

SUPPLEMENTARY INFORMATION:

Background

    This action is being taken under the authority of the Office of 
Federal Procurement Policy (OFPP) Act which provides the authority for 
an agency head to issue agency acquisition regulations that implement 
or supplement the FAR. This authority ensures that Government 
procurements are handled fairly and consistently, that the Government 
receives overall best value, and that the Government and contractors 
both operate under a known set of rules.
    The proposed rule would update the VAAR to current FAR titles, 
requirements, and definitions; it would correct inconsistencies and 
removes redundancies and duplicate material already covered by the FAR; 
it would also delete outdated material or information and appropriately 
renumber VAAR text, clauses, and provisions where required to comport 
with FAR format, numbering and arrangement. All amendments, revisions, 
and removals have been reviewed and concurred with by an Integrated 
Product Team of agency stakeholders.
    The VAAR uses the regulatory structure and arrangement of the FAR 
and headings and subject areas are broken up consistent with the FAR 
content. The VAAR is divided into subchapters, parts (each of which 
covers a separate aspect of acquisition), subparts, sections, and 
subsections.
    The Office of Federal Procurement Policy Act, as codified in 41 
U.S.C. 1707, provides the authority for the Federal Acquisition 
Regulation and for the issuance of agency acquisition regulations 
consistent with the FAR.
    When Federal agencies acquire supplies and services using 
appropriated funds, the purchase is governed by the FAR, set forth at 
Title 48 Code of Federal Regulations (CFR), chapter 1, parts 1 through 
53, and the agency regulations that implement and supplement the FAR. 
The VAAR is set forth at Title 48 CFR, chapter 8, parts 801 to 873.
    VA is proposing to revise the VAAR to add new policy or regulatory 
requirements and to remove any guidance that is applicable only to VA's 
internal operating processes or procedures. Codified acquisition 
regulations may be amended and revised only through rulemaking.

Discussion and Analysis

    The VA proposes to make the following changes to the VAAR in this 
phase of its revision and streamlining initiative. For procedural 
guidance cited below that is proposed to be deleted from the VAAR, each 
section cited for removal has been considered for inclusion in VA's 
internal agency operating procedures in accordance with FAR 
1.301(a)(2). Similarly, delegations of authority that are removed from 
the VAAR will be included in the VA Acquisition Manual (VAAM) as 
internal agency guidance.

VAAR Part 812--Acquisition of Commercial Items

    In VAAR part 812, we propose to replace the 38 U.S.C. 501 citation 
with 41 U.S.C. 1702 which addresses the acquisition planning and 
management responsibilities of VA's Chief Acquisition Officer, and add 
the citation for 38 U.S.C. 8127-8128 which addresses small business 
concerns owned and controlled by Veterans.
    In subpart 812.1, Acquisition of Commercial Items--General, we 
propose to delete 812.102, Applicability, as unnecessary duplication of 
language in the FAR.
    We propose to add 812.102-70, Applicability of Veterans 
preferences, to state that the preferences in subpart 819.70 apply to 
part 812.
    We propose to revise 812.301, Solicitation provisions and contract 
clauses for the acquisition of commercial items, to delete the existing 
text and replace paragraph (f) with new text prescribing insertion into 
solicitations and contracts for commercial acquisitions the provision 
852.212-70, Provisions Applicable to VA Acquisition of Commercial 
Items, and the clause 852.212-71, Contract Terms and Conditions 
Applicable to VA Acquisition of Commercial Items, which will list all 
VAAR provisions and clauses from other parts that are available for use 
in commercial acquisitions. We propose to allow a contracting officer 
to indicate with a checkmark the specific provisions and clauses that 
apply to the acquisition. We propose to add a new provision 852.212-72, 
Gray Market Items, to require vendors of medical equipment to be an 
Original Equipment Manufacturer (OEM), authorized dealer, authorized 
distributor or authorized reseller of such equipment.
    We propose to revise the list of provisions and clauses and to 
incorporate them into the new provision and clause being prescribed. 
The following provisions and clauses are not included in revised 
section 812.301(f) and further action on them will be addressed in 
future proposed rules--
    852.203-71, Display of Department of Veterans Affairs Hotline 
Poster.
    852.207-70, Report of Employment Under Commercial Activities.
    852.211-71, Special Notice.
    852.211-72, Technical Industry Standards.
    852.211-73, Brand Name or Equal.
    852.211-74, Liquidated Damages.
    852.211-75, Product Specifications.
    852.214-70, Caution to Bidders--Bid Envelopes.
    852.216-70, Estimated Quantities.
    We propose to add the following provisions and clauses to those 
available for use in commercial acquisitions based on their potential 
applicability for commercial item purchases--
    852.215-70, Service-Disabled Veteran-Owned and Veteran-Owned Small 
Business Evaluation Factors.
    852.215-71, Evaluation Factor Commitments.
    852.219-9, VA Small Business Subcontracting Plan Minimum 
Requirements.
    852.219-10, VA Notice of Total Service-Disabled Veteran-Owned Small 
Business Set-Aside.
    852.219-11, VA Notice of Total Veteran-Owned Small Business Set-
Aside.
    852.222-70, Contract Work Hours and Safety Standards Act--Nursing 
Home Care Contract Supplement.
    852.232-72, Electronic Submission of Payment Requests.

[[Page 1323]]

    852.246-73, Noncompliance with Packaging, Packing, and/or Marking 
Requirements.
    852.247-70, Determining Transportation Costs for Bid Evaluation.
    We propose to remove 812.302, Tailoring of provisions and clauses 
for the acquisition of commercial items, in its entirety since it deals 
with internal procedures for obtaining a waiver to allow tailoring of 
provisions and clauses to be inconsistent with customary commercial 
practice.

VAAR Part 813--Simplified Acquisition Procedures

    In VAAR part 813, we propose to add the citation for 41 U.S.C. 1702 
which addresses the acquisition planning and management 
responsibilities of VA's Chief Acquisition Officer.
    We propose to add 813.003-70, Policy, which would explain that the 
Veterans First Contracting Program has broad applicability in contracts 
using Simplified Acquisition Procedures, and 813.102, Source list, to 
require that contracting officers use the Vendor Information Pages 
(VIP) database to verify Service-Disabled Veteran-Owned Small Business 
and Veteran-Owned Small Business status.
    We propose to remove 813.106, Soliciting competition, evaluation of 
quotations or offers, award and documentation, since paragraph (a) 
addresses internal procedures and paragraph (b) contains material that 
is adequately addressed in FAR. We will retain the title since 813.106-
70 is being added.
    We propose to remove 813.106-3, Award and documentation, since it 
is material adequately addressed in FAR.
    We propose to remove 813.106-70, Oral purchase orders, because the 
FAR contains no authority to issue oral purchase orders.
    We propose to add 813.106-70, Soliciting competition, evaluation of 
quotations or offers, award and documentation--the Veterans First 
Contracting Program, which emphasizes that contracting officers can use 
other than competitive procedures under specified circumstances when 
awarding to Service-Disabled Veteran-Owned Businesses (SDVOSBs) or 
Veteran-Owned Small Businesses (VOSBs).
    We propose to revise 813.202, Purchase guidelines, to renumber it 
as 813.203 to correspond to the FAR coverage; to delete the words 
``open market'' as unnecessary; and to spell out Service-Disabled 
Veteran-Owned Small Businesses and Veteran-Owned Small Businesses the 
first times the acronyms are used.
    We propose to remove 813.302, Purchase orders and 813.302-5, 
Clauses, because they incorrectly prescribe a clause in part 837.
    We propose to add 813.305-70, VA's imprest funds and third party 
drafts policy, to state that the Government-wide commercial purchase 
card and/or convenience checks shall be used in lieu of imprest funds 
and third party drafts.
    We propose to remove 813.307, Forms, and include it in VA's 
internal procedural guidance.

VAAR Part 852--Solicitation Provisions and Contract Clauses

    In VAAR part 852, we propose to replace the 38 U.S.C. 501 citation 
with 41 U.S.C. 1702 which addresses the acquisition planning and 
management responsibilities of VA's Chief Acquisition Officer.
    In subpart 852.2, we propose to add the provision 852.212-70, 
Provisions Applicable to VA Acquisition of Commercial Items, to permit 
the contracting officer to check those that will be applicable to the 
individual commercial buy.
    In subpart 852.2, we propose to add the provision 852.212-71, 
Contract Terms and Conditions Applicable to VA Acquisition of 
Commercial Items, to permit the contracting officer to check those that 
will be applicable to the individual commercial buy.
    In subpart 852.2, we propose to add the provision 852.212-72, Gray 
Market Items, to ensure that new medical equipment for VA Medical 
Centers is purchased from authorized distributors and that all software 
licensing, warranty and service associated with the equipment/system 
shall be in accordance with the Original Equipment Manufacturer's terms 
and conditions.

Effect of Rulemaking

    Title 48, Federal Acquisition Regulations System, Chapter 8, 
Department of Veterans Affairs, of the Code of Federal Regulations, as 
proposed to be revised by this rulemaking, would represent VA's 
implementation of its legal authority and publication of the Department 
of Veterans Affairs Acquisition Regulation (VAAR) for the cited 
applicable parts. Other than future amendments to this rule or 
governing statutes for the cited applicable parts, or as otherwise 
authorized by approved deviations or waivers in accordance with Federal 
Acquisition Regulation (FAR) subpart 1.4, Deviations from the FAR, and 
as implemented by VAAR subpart 801.4, Deviations from the FAR or VAAR, 
no contrary guidance or procedures would be authorized. All existing or 
subsequent VA guidance would be read to conform with the rulemaking if 
possible or, if not possible, such guidance would be superseded by this 
rulemaking as pertains to the cited applicable VAAR parts.

Executive Orders 12866, 13563 and 13771

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
E.O. 12866, Regulatory Planning and Review, defines ``significant 
regulatory action'' to mean any regulatory action that is likely to 
result in a rule that may: ``(1) Have an annual effect on the economy 
of $100 million or more or adversely affect in a material way the 
economy, a sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
governments or communities; (2) Create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency; 
(3) Materially alter the budgetary impact of entitlements, grants, user 
fees, or loan programs or the rights and obligations of recipients 
thereof; or (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
this Executive order.''
    VA has examined the economic, interagency, budgetary, legal, and 
policy implications of this regulatory action, and it has been 
determined to be a significant regulatory action under E.O. 12866, 
because it raises novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
this Executive Order. VA's impact analysis can be found as a supporting 
document at http://www.regulations.gov, usually within 48 hours after 
the rulemaking document is published. Additionally, a copy of the 
rulemaking and its impact analysis are available on VA's website at 
http://www.va.gov/orpm by following the link for VA Regulations 
Published from FY 2004 Through Fiscal Year to Date. This proposed rule 
is not expected to be subject to the requirements of E.O. 13771 because 
this proposed rule is

[[Page 1324]]

expected to result in no more than de minimis costs.

Paperwork Reduction Act

    Although this action contains provisions constituting collections 
of information at 48 CFR 813, under the provisions of the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501-3521), no new or proposed revised 
collections of information are associated with this proposed rule. The 
information collection requirements for 48 CFR 813 are currently 
approved by the Office of Management and Budget (OMB) and have been 
assigned OMB control number 2900-0393.

Regulatory Flexibility Act

    This proposed rule would not have a significant economic impact on 
a substantial number of small entities as they are defined in the 
Regulatory Flexibility Act, 5 U.S.C. 601-612. This proposed rule would 
generally be small business neutral. The overall impact of the proposed 
rule would be of benefit to small businesses owned by Veterans or 
service-disabled Veterans as the VAAR is being updated to remove 
extraneous procedural information that applies only to VA's internal 
operating procedures. VA estimates no cost impact to individual 
business would result from these rule updates. On this basis, the 
adoption of this proposed rule would not have a significant economic 
impact on a substantial number of small entities as they are defined in 
the Regulatory Flexibility Act, 5 U.S.C. 601-612. Therefore, under 5 
U.S.C. 605(b), this regulatory action is exempt from the initial and 
final regulatory flexibility analysis requirements of sections 603 and 
604.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule that may result in the expenditure by 
State, local, and tribal Governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any one year. This proposed rule would have no such 
effect on State, local, and tribal Governments or on the private 
sector.

List of Subjects

48 CFR Part 812 and 813

    Government procurement.

48 CFR Part 852

    Government procurement, Reporting and recordkeeping requirements.

Signing Authority

    The Secretary of Veterans Affairs, or designee, approved this 
document and authorized the undersigned to sign and submit the document 
to the Office of the Federal Register for publication electronically as 
an official document of the Department of Veterans Affairs. Gina S. 
Farrisee, Deputy Chief of Staff, Department of Veterans Affairs 
approved this document on April 21, 2017, for publication.

    Dated: January 3, 2018.
Michael Shores,
Director, Regulation Policy & Management, Office of the Secretary, 
Department of Veterans Affairs.

    For the reasons set out in the preamble, VA proposes to amend 48 
CFR parts 812, 813, and 852 as follows:

PART 812--ACQUISITION OF COMMERCIAL ITEMS

0
1. The authority citation for part 812 is revised to read as follows:

    Authority: 38 U.S.C. 8127-8128; 40 U.S.C. 121(c); 41 U.S.C. 1702 
and 48 CFR 1.301-1.304.

Subpart 812.1--Acquisition of Commercial Items--General

0
2. Section 812.102 is removed.
0
3. Section 812.102-70 is added to subpart 812.1 to read as follows:


812.102-70  Applicability of veterans preferences.

    Based on the authority under 38 U.S.C. 8127 and 8128, the Veterans 
First Contracting Program in subpart 819.70 applies to VA contracts 
under this part, and the provisions and clauses prescribed reflect 
agency unique statutes applicable to the acquisition of commercial 
items.

Subpart 812.3--Solicitation Provisions and Contract Clauses for the 
Acquisition of Commercial Items

0
4. In Sec.  812.301:
0
a. Remove paragraphs (a)-(e).
0
b. Revise paragraph (f) to read as follows:


812.301  Solicitation provisions and contract clauses for the 
acquisition of commercial items.

    (f)(1) Contracting officers shall insert the provision 852.212-70, 
Provisions Applicable to VA Acquisition of Commercial Items, in all 
solicitations for commercial acquisitions and check only those 
provisions that apply to the individual solicitation.
    (2) Contracting officers shall insert the clause 852.212-71, 
Contract Terms and Conditions Applicable to VA Acquisition of 
Commercial Items, in all solicitations and contracts for commercial 
acquisitions and check only those clauses that apply to the individual 
contract.
    (3) Contracting officers shall insert the clause 852.212-72, Gray 
Market Items, in all solicitations and contracts for commercial 
acquisitions of new medical equipment for VA Medical Centers and that 
include FAR provisions 52.212-1, Instruction to Offerors--Commercial 
Items, and 52.212-2, Evaluation--Commercial Items.


812.302  [Removed]

0
5. Section 812.302 is removed.
* * * * *

PART 813--SIMPLIFIED ACQUISITION PROCEDURES

0
6. The authority citation for part 813 is revised to read as follows:

    Authority: 38 U.S.C. 8127-8128; 40 U.S.C. 121(c); 41 U.S.C. 1702 
and 48 CFR 1.301-1.304.


813.003-70  [Added]

0
7. Section 813.003-70 is added to read as follows:


813.003-70  Policy.

    (a) The Veterans First Contracting Program in subpart 819.70 
applies to VA contracts (see FAR 2.101, Definitions) under this part 
and has precedence over other small business programs referenced in FAR 
part 19.
    (b) Notwithstanding FAR 13.003(b)(2), the contracting officer shall 
make an award utilizing the priorities for veteran-owned small 
businesses as implemented within the VA hierarchy of small business 
program preferences, the Veterans First Contracting Program in subpart 
819.70. Specifically, the contracting officer shall consider 
preferences for verified service-disabled veteran-owned small 
businesses (SDVOSBs) first, then preferences for verified veteran-owned 
small businesses (VOSBs). These priorities will be followed by 
preferences for other small businesses in accordance with FAR 19.203, 
and 819.7004.
    (c) When using competitive procedures, the preference for 
restricting competition to verified SDVOSBs or VOSBs is mandatory 
whenever market research provides a reasonable expectation of receiving 
two or more offers/quotes from eligible, capable and verified SDVOSBs 
or VOSBs at fair and reasonable prices that offer best value to the 
Government.
    (1) Pursuant to 38 U.S.C. 8127, contracts under this part shall be 
set-aside for SDVOSBs or VOSBs, when supported by market research.

[[Page 1325]]

Contracting officers shall use the applicable set-aside clause 
prescribed at 819.7009.
    (2) Pursuant to 38 U.S.C. 8128 and to the extent that market 
research does not support an SDVOSB or VOSB set-aside, the contracting 
officer shall include evaluation factors as prescribed at 815.304 and 
the evaluation criteria clause prescribed at 815.304-71(a).
    (d) The SDVOSB and VOSB eligibility requirements in part 819.7003 
apply, including verification of the SDVOSB and VOSB status of an 
offeror or awardee at the time of submission of offer/quote and prior 
to award. The offeror must also represent that it meets the small 
business size standard for the assigned North American Industry 
Classification Code System (NAICS) code and other small business 
requirements in FAR part 19 (e.g. subcontracting limitations and non-
manufacturer rule).

Subpart 813.1--Procedures


813.102  [Added]

0
8. Section 813.102 is added to subpart 813.1 to read as follows:


813.102  Source list.

    Pursuant to 819.7003, contracting officers shall use the Vendor 
Information Pages (VIP) database to verify SDVOSB/VOSB status.


813.106  [Amended]

0
9. In Sec.  813.106 remove paragraphs (a) and (b) and to retain the 
section heading.
0
10. Section 813.106-3 is removed.
0
11. Section 813.106-70 is revised to read as follows:


813.106-70  Soliciting competition, evaluation of quotations or offers, 
award and documentation--the Veterans First Contracting Program.

    (a) General. When using competitive procedures under this part, the 
contracting officer shall use the Veterans First Contracting Program in 
subpart 819.70 and the guidance set forth in 813.003-70.
    (b) Pursuant to 38 U.S.C 8127(b), contracting officers may use 
other than competitive procedures to enter into a contract with a 
verified SDVOSB or VOSB for procurements under the simplified 
acquisition threshold.
    (c) For procurements above the simplified acquisition threshold, 
pursuant to 38 U.S.C. 8127(c), contracting officers may also award a 
contract under this part to a firm verified under the Veterans First 
Contracting Program at subpart 819.70, using procedures other than 
competitive procedures if--
    (1) Such concern is determined to be a responsible source with 
respect to performance of such contract opportunity;
    (2) The anticipated award price of the contract (including options) 
will exceed the simplified acquisition threshold, but will not exceed 
$5,000,000; and
    (3) In the estimation of the contracting officer, the contract 
award can be made at a fair and reasonable price that offers overall 
best value to the government.

Subpart 813.2--Actions at or Below the Micro-Purchase Threshold


813.202  [Removed]

0
12. Section 813.202 is removed.
0
13. Section 813.203 is added to subpart 813.2 to read as follows:


813.203  Purchase guidelines.

    Micro-purchases shall be equitably distributed among all qualified 
Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) or Veteran-
Owned Small Businesses (VOSBs), respectively, to the maximum extent 
practicable.

Subpart 813.3--Simplified Acquisition Methods


813.302  [Removed]

0
14. Section 813.302 is removed.


813.302-5  [Removed]

0
15. Section 813.302-5 is removed.
0
16. Section 813.305-70 is added to subpart 813.3 to read as follows:


813.305-70  VA's imprest funds and third party drafts policy.

    VA's Government-wide commercial purchase card and/or convenience 
checks shall be used in lieu of imprest funds and third party drafts.


813.307  [Removed]

0
17. Section 813.307 is removed.

PART 852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
18. The authority citation for part 852 is revised to read as follows:

    Authority: 38 U.S.C. 8127-8128, and 8151-8153; 40 U.S.C. 121(c); 
41 U.S.C. 1121(c)(3), and 1702; and 48 CFR 1.301-1.304.

Subpart 852.2--Texts of Provisions and Clauses

0
19. Section 852.212-70 is added to subpart 852.2 to read as follows:


852.212-70  Provisions applicable to VA acquisition of commercial 
items.

    As prescribed in 812.301(f)(1), insert the following provision:

Provisions Applicable to VA Acquisition of Commercial Items (Date)

    The Contractor agrees to comply with any provision that is 
incorporated herein by reference or full text to implement agency 
policy applicable to acquisition of commercial items or components. 
The following provisions that have been checked by the contracting 
officer are incorporated by reference or in full text; text 
requiring fill-ins is shown under the provision's title:

__ 852.209-70, Organizational Conflicts of Interest.
__ 852.214-71, Restrictions on Alternate Item(s).
__ 852.214-72, Alternate Item(s).
    Bids on ___[Contracting officer will insert an alternate item 
that is considered acceptable.] will be given equal consideration 
along with bids on ___[Contracting officer will insert the required 
item and item number.] and any such bids received may be accepted if 
to the advantage of the Government. Tie bids will be decided in 
favor of ___. [Contracting officer will insert the required item and 
item number.]
(End of provision)
__ 852.214-73, Alternate Packaging and Packing.
__ 852.214-74, Bid Samples.
__ 852.215-70, Service-Disabled Veteran-Owned and Veteran-Owned 
Small Business Evaluation Factors.
__ 852.233-70, Protest Content/Alternative Dispute Resolution.
__ 852.233-71, Alternate Protest Procedure.
__ 852.247-70, Determining Transportation Costs for Bid Evaluation.

    For the purpose of evaluating bids and for no other purpose, the 
delivered price per unit will be determined by adding the nationwide 
average transportation charge to the f.o.b. origin bid prices. The 
nationwide average transportation charge will be determined by 
applying the following formula: Multiply the guaranteed shipping 
weight by the freight, parcel post, or express rate, whichever is 
proper, to each destination shown below and then multiply the 
resulting transportation charges by the anticipated demand factor 
shown for each destination. Total the resulting weighted 
transportation charges for all destinations and divide the total by 
20 to give the nationwide average transportation charge.

Anticipated Demand

------------------------------------------------------------------------
                      Area destination                          Factor
------------------------------------------------------------------------
Oakland, California.........................................           3
Dallas, Texas...............................................           2
Omaha, Nebraska.............................................           3
Fort Wayne, Indiana.........................................           4
Atlanta, Georgia............................................           3
New York, New York..........................................           5
                                                             -----------
  Total of Factors..........................................          20
------------------------------------------------------------------------

(End of provision)
__ 852.270-1, Representatives of Contracting Officers.
__ 852.273-70, Late Offers.

[[Page 1326]]

__ 852.273-71, Alternative Negotiation Techniques.
__ 852.273-72, Alternative Evaluation.
__ 852.273-73, Evaluation--Health-Care Resources.
__ 852.273-74, Award Without Exchanges.
0
20. Section 852.212-71 is added to read as follows:


852.212-71  Contract terms and conditions applicable to VA acquisition 
of commercial items.

    As prescribed in 812.301(f)(2), insert the following clause:

Contract Terms and Conditions Applicable to VA Acquisition of 
Commercial Items (Date)

    (a) The Contractor agrees to comply with any clause that is 
incorporated herein by reference to implement agency policy 
applicable to acquisition of commercial items or components. The 
following clauses that have been checked by the contracting officer 
are incorporated by reference; text requiring fill-ins is shown 
under the clause's title:

__ 852.203-70, Commercial Advertising.
__ 852.215-70, Service-Disabled Veteran-Owned and Veteran-Owned 
Small Business Evaluation Factors.
__ 852.215-71, Evaluation Factor Commitments.
__ 852.219-9, VA Small Business Subcontracting Plan Minimum 
Requirements.
__ 852.219-10, VA Notice of Total Service-Disabled Veteran-Owned 
Small Business Set-Aside.
__ 852.219-11, VA Notice of Total Veteran-Owned Small Business Set-
Aside.
__ 852.222-70, Contract Work Hours and Safety Standards Act--Nursing 
Home Care Contract Supplement.
__ 852.229-70, Sales and Use Taxes.
__ 852.232-72, Electronic Submission of Payment Requests.
__ 852.237-7, Indemnification and Medical Liability Insurance.
__ 852.237-70, Contractor Responsibilities.

    The contractor shall obtain all necessary licenses and/or 
permits required to perform this work. He/she shall take all 
reasonable precautions necessary to protect persons and property 
from injury or damage during the performance of this contract. He/
she shall be responsible for any injury to himself/herself, his/her 
employees, as well as for any damage to personal or public property 
that occurs during the performance of this contract that is caused 
by his/her employees fault or negligence, and shall maintain 
personal liability and property damage insurance having coverage for 
a limit as required by the laws of the State of __[Insert name of 
State]. Further, it is agreed that any negligence of the Government, 
its officers, agents, servants and employees, shall not be the 
responsibility of the contractor hereunder with the regard to any 
claims, loss, damage, injury, and liability resulting therefrom.
(End of clause)
__ 852.246-70, Guarantee.
    The contractor guarantees the equipment against defective 
material, workmanship and performance for a period of __[Normally, 
insert one year. If industry policy covers a shorter or longer 
period, i.e., 90 days or for the life of the equipment, insert such 
period.], said guarantee to run from date of acceptance of the 
equipment by the Government. The contractor agrees to furnish, 
without cost to the Government, replacement of all parts and 
material that are found to be defective during the guarantee period. 
Replacement of material and parts will be furnished to the 
Government at the point of installation, if installation is within 
the continental United States, or f.o.b. the continental U.S. port 
to be designated by the contracting officer if installation is 
outside of the continental United States. Cost of installation of 
replacement material and parts shall be borne by the contractor. 
[The above clause will be modified to conform to standards of the 
industry involved.]
(End of clause)
__ 852.246-71, Inspection.
__ 852.246-72, Frozen Processed Foods.
__ 852.246-73, Noncompliance with Packaging, Packing, and/or Marking 
Requirements.
__ 852.270-2, Bread and Bakery Products--Quantities.
__ 852.270-3, Purchase of Shellfish.
__ 852.271-72, Time Spent by Counselee in Counseling Process.
__ 852.271-73, Use and Publication of Counseling Results.
__ 852.271-74, Inspection.
__ 852.271-75, Extension of Contract Period.
    (b) All requests for quotations, solicitations, and contracts 
for commercial item services to be provided to beneficiaries must 
include the following clause at
__ 852.271-70, Nondiscrimination in Services Provided to 
Beneficiaries.
(End of clause)
0
21. Section 852.212-72 is added to subpart 852.2 to read as follows:


852.212-72  Gray Market Items.

    As prescribed in 812.301(f)(3), insert the following provision in 
solicitations and contracts for new medical equipment for VA Medical 
Centers and that include FAR provisions 52.212-1, Instruction to 
Offerors--Commercial Items, and 52.212-2, Evaluation--Commercial Items:

Gray Market Items (Date)

    (a) Gray market items are Original Equipment Manufacturers' 
(OEM) goods sold through unauthorized channels in direct competition 
with authorized distributors. This procurement is for new OEM 
medical equipment only for VA Medical Centers. No remanufactures or 
gray market items will be acceptable.
    (b) Vendor shall be an OEM, authorized dealer, authorized 
distributor or authorized reseller for the proposed equipment/
system, verified by an authorization letter or other documents from 
the OEM, such that the OEM's warranty and service are provided and 
maintained by the OEM. All software licensing, warranty and service 
associated with the equipment/system shall be in accordance with the 
OEM terms and conditions.
(End of clause)
[FR Doc. 2018-00169 Filed 1-10-18; 8:45 am]
BILLING CODE 8320-01-P



                                                                           Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Proposed Rules                                                  1321

                                                  I. Introduction                                           requests that the Commission revise the                interests of the general public in the
                                                    On December 27, 2017, the Postal                        periodic reporting rules so that the Trial             above-captioned docket.
                                                  Service filed a request for the                           Balance reports and the Monthly
                                                                                                                                                                   IV. Ordering Paragraphs
                                                  Commission to consider revisions to the                   Summary Financial reports have the
                                                                                                            same deadline. Id. at 5–6.                               It is ordered:
                                                  periodic reporting requirements                                                                                    1. The Commission establishes Docket
                                                                                                               Second, the Postal Service requests
                                                  codified in 39 CFR part 3050.1 The                                                                               No. RM2018–2 to consider revisions to
                                                                                                            that the Commission modify the format
                                                  Commission initiates this rulemaking to                                                                          the periodic reporting requirements.
                                                                                                            of the Monthly Summary Financial
                                                  seek comments and facilitate the                          Report to make the report more                           2. Comments are due no later than
                                                  Commission’s examination of these                         consistent with the Postal Service’s                   March 7, 2018. Reply comments are due
                                                  periodic reporting requirements.                          quarterly and annual financial reports.                no later than April 6, 2018.
                                                  II. Background                                            Id. at 1. The Postal Service states that                 3. Pursuant to 39 U.S.C. 505, the
                                                                                                            the term ‘‘Operating Revenue’’ as it is                Commission appoints Lauren A.
                                                     The Postal Accountability and                                                                                 D’Agostino to serve as an officer of the
                                                                                                            used in Tables 1 and 2 of the Monthly
                                                  Enhancement Act (PAEA) granted the                                                                               Commission (Public Representative) to
                                                                                                            Summary Financial Report does not
                                                  Commission enhanced information                                                                                  represent the interests of the general
                                                                                                            correspond with its usage in its Form
                                                  gathering and reporting responsibilities.                                                                        public in this docket.
                                                                                                            10–K statements. Id. at 7. The Postal
                                                  See 39 U.S.C. 3652(e)(1). The PAEA                                                                                 4. The Secretary shall arrange for
                                                                                                            Service requests revisions to Tables 1
                                                  provides that the Commission shall                        and 2 of the Monthly Summary                           publication of this notice in the Federal
                                                  prescribe the content and form of the                     Financial Report so that the items and                 Register.
                                                  public reports the Postal Service files                   amounts reported for total operating                     By the Commission.
                                                  with the Commission under section                         revenue reconcile on both tables and the               Stacy L. Ruble,
                                                  3652. In Docket No. RM2008–4, the                         breakdown for revenue more closely                     Secretary.
                                                  Commission approved its current                           aligns with the format in its other                    [FR Doc. 2018–00320 Filed 1–10–18; 8:45 am]
                                                  periodic reporting requirements.2                         financial reports.4                                    BILLING CODE 7710–FW–P
                                                     On December 27, 2017, the Postal                          Third, the Postal Service requests that
                                                  Service filed a request for the                           the Commission consider eliminating or
                                                  Commission to consider revisions to the                   modifying any reporting requirements
                                                  periodic reporting requirements. First,                                                                          DEPARTMENT OF VETERANS
                                                                                                            that have become unnecessary or
                                                  the Postal Service requests that the                                                                             AFFAIRS
                                                                                                            irrelevant since the current periodic
                                                  Commission adjust the deadlines for the                   reporting rules were first implemented                 48 CFR Parts 812, 813, and 852
                                                  quarterly Revenue, Pieces, and Weight                     in 2009. Petition at 1. The Postal Service
                                                  (RPW) report; the Quarterly Statistics                    requests that the Commission consider                  RIN 2900–AP58
                                                  Report (QSR); the quarterly Billing                       eliminating or modifying these
                                                  Determinants report, and the monthly                                                                             Revise and Streamline VA Acquisition
                                                                                                            requirements to avoid imposing
                                                  National Consolidated Trial Balance and                                                                          Regulation To Adhere to Federal
                                                                                                            ‘‘unnecessary or unwarranted
                                                  the Revenue and Expense Summary                                                                                  Acquisition Regulation Principles
                                                                                                            administrative effort and expense’’ on
                                                  (Trial Balance) report, to align the                                                                             (VAAR Case 2014–V005—Parts 812,
                                                                                                            the Postal Service. Id. (citing 39 U.S.C.
                                                  deadlines with other financial reporting                                                                         813)
                                                                                                            3652(e)(1)).
                                                  deadlines. Petition at 1. The Postal                                                                             AGENCY:    Department of Veterans Affairs.
                                                  Service states that revising the                          III. Invitation To Comment
                                                                                                                                                                   ACTION:   Proposed rule.
                                                  regulations so these deadlines align                         Interested persons are invited to
                                                  with other financial reporting deadlines                  provide written comments to facilitate                 SUMMARY:    The Department of Veterans
                                                  will avoid potential restatements of the                  the Commission’s examination of the                    Affairs (VA) is proposing to amend and
                                                  earlier filed reports once the data for the               periodic reporting requirements. In                    update its VA Acquisition Regulation
                                                  later filed reports are finalized. Id. at 3.              addition to the specific revisions                     (VAAR) in phased increments to revise
                                                     Specifically, the Postal Service wants                 requested in the Postal Service’s                      or remove any policy superseded by
                                                  to move the deadline for the RPW and                      petition, the Commission also invites                  changes in the Federal Acquisition
                                                  QSR reports so that the quarterly and                     comments on whether specific periodic                  Regulation (FAR), to remove procedural
                                                  year-end report deadlines are the same                    reporting requirements should be                       guidance internal to VA into the VAAM,
                                                  as the Form 10–Q and Form 10–K report                     eliminated or modified or whether                      and to incorporate any new agency
                                                  due dates. Id. at 2–3. In addition, the                   updates or enhancements to the                         specific regulations or policies. These
                                                  Postal Service requests that the                          requirements should be made.                           changes seek to streamline and align the
                                                  deadlines for the quarterly Billing                          Comments are due no later than                      VAAR with the FAR and remove
                                                  Determinants reports be extended to 60                    March 7, 2018. Reply comments are due                  outdated and duplicative requirements
                                                  days after the end of Quarters 1, 2, and                  no later than April 6, 2018. All                       and reduce burden on contractors. The
                                                  3, and 90 days after the year-end for                     comments and suggestions received will                 VAAM incorporates portions of the
                                                  Quarter 4.3 The Postal Service also                       be available for review on the                         removed VAAR as well as other internal
                                                                                                            Commission’s website, http://                          agency acquisition policy. VA will
                                                    1 United States Postal Service Petition for             www.prc.gov.                                           rewrite certain parts of the VAAR and
                                                  Rulemaking on Periodic Reporting, December 27,               Pursuant to 39 U.S.C. 505, Lauren A.                VAAM, and as VAAR parts are
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                                                  2017 (Petition).                                          D’Agostino is appointed to serve as an                 rewritten, will publish them in the
                                                    2 Docket No. RM2008–4, Order No. 203, Notice of
                                                                                                            officer of the Commission (Public                      Federal Register. To minimize the
                                                  Final Rule Prescribing Form and Content of
                                                  Periodic Reports, April 16, 2009.                         Representative) to represent the                       number of rules published, VA will
                                                    3 Id. at 4. The Postal Service also requests that the                                                          combine related topics.
                                                  Quarter 4 Billing Determinants report be                  more effectively allocate scarce time and resources.   DATES: Comments must be received on
                                                  incorporated into the annual Billing Determinants         Id.
                                                  report rather than submitted as a standalone filing.        4 Id. The Postal Service also requests updating      or before March 12, 2018 to be
                                                  Id. The Postal Service states that eliminating the        Table 2 to reflect the name change of Standard Mail    considered in the formulation of the
                                                  standalone filing would help the Postal Service           to USPS Marketing Mail. Id. Attachment 1 at 2.         final rule.


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                                                  1322                   Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Proposed Rules

                                                  ADDRESSES:   Written comments may be                    broken up consistent with the FAR                      commercial items, to delete the existing
                                                  submitted through                                       content. The VAAR is divided into                      text and replace paragraph (f) with new
                                                  www.Regulations.gov; by mail or hand-                   subchapters, parts (each of which covers               text prescribing insertion into
                                                  delivery to Director, Regulation Policy                 a separate aspect of acquisition),                     solicitations and contracts for
                                                  and Management (00REG), Department                      subparts, sections, and subsections.                   commercial acquisitions the provision
                                                  of Veterans Affairs, 810 Vermont                           The Office of Federal Procurement                   852.212–70, Provisions Applicable to
                                                  Avenue NW, Room 1063B, Washington,                      Policy Act, as codified in 41 U.S.C.                   VA Acquisition of Commercial Items,
                                                  DC 20420; or by fax to (202) 273–9026.                  1707, provides the authority for the                   and the clause 852.212–71, Contract
                                                  Comments should indicate that they are                  Federal Acquisition Regulation and for                 Terms and Conditions Applicable to VA
                                                  submitted in response to ‘‘RIN 2900–                    the issuance of agency acquisition                     Acquisition of Commercial Items, which
                                                  AP58—Revise and Streamline VA                           regulations consistent with the FAR.                   will list all VAAR provisions and
                                                  Acquisition Regulation to Adhere to                        When Federal agencies acquire                       clauses from other parts that are
                                                  Federal Acquisition Regulation                          supplies and services using                            available for use in commercial
                                                  Principles (VAAR Case 2014–V005—                        appropriated funds, the purchase is                    acquisitions. We propose to allow a
                                                  Parts 812, 813).’’ Copies of comments                   governed by the FAR, set forth at Title                contracting officer to indicate with a
                                                  received will be available for public                   48 Code of Federal Regulations (CFR),                  checkmark the specific provisions and
                                                  inspection in the Office of Regulation                  chapter 1, parts 1 through 53, and the                 clauses that apply to the acquisition. We
                                                  Policy and Management, Room 1063B,                      agency regulations that implement and                  propose to add a new provision
                                                  between the hours of 8:00 a.m. and 4:30                 supplement the FAR. The VAAR is set                    852.212–72, Gray Market Items, to
                                                  p.m., Monday through Friday (except                     forth at Title 48 CFR, chapter 8, parts                require vendors of medical equipment
                                                  holidays). Please call (202) 461–4902 for               801 to 873.                                            to be an Original Equipment
                                                  an appointment. This is not a toll-free                    VA is proposing to revise the VAAR                  Manufacturer (OEM), authorized dealer,
                                                  number. In addition, during the                         to add new policy or regulatory                        authorized distributor or authorized
                                                  comment period, comments may be                         requirements and to remove any                         reseller of such equipment.
                                                  viewed online through the Federal                       guidance that is applicable only to VA’s                 We propose to revise the list of
                                                  Docket Management System (FDMS) at                      internal operating processes or                        provisions and clauses and to
                                                  www.Regulations.gov.                                    procedures. Codified acquisition                       incorporate them into the new provision
                                                                                                          regulations may be amended and                         and clause being prescribed. The
                                                  FOR FURTHER INFORMATION CONTACT: Mr.
                                                                                                          revised only through rulemaking.                       following provisions and clauses are not
                                                  Ricky Clark, Senior Procurement
                                                                                                                                                                 included in revised section 812.301(f)
                                                  Analyst, Procurement Policy and                         Discussion and Analysis                                and further action on them will be
                                                  Warrant Management Services, 003A2A,                      The VA proposes to make the                          addressed in future proposed rules—
                                                  425 I Street NW, Washington DC 20001,                   following changes to the VAAR in this                    852.203–71, Display of Department of
                                                  (202) 632–5276. This is not a toll-free                 phase of its revision and streamlining                 Veterans Affairs Hotline Poster.
                                                  telephone number.                                       initiative. For procedural guidance cited                852.207–70, Report of Employment
                                                  SUPPLEMENTARY INFORMATION:                              below that is proposed to be deleted                   Under Commercial Activities.
                                                                                                          from the VAAR, each section cited for                    852.211–71, Special Notice.
                                                  Background                                                                                                       852.211–72, Technical Industry
                                                                                                          removal has been considered for
                                                     This action is being taken under the                 inclusion in VA’s internal agency                      Standards.
                                                  authority of the Office of Federal                      operating procedures in accordance                       852.211–73, Brand Name or Equal.
                                                  Procurement Policy (OFPP) Act which                                                                              852.211–74, Liquidated Damages.
                                                                                                          with FAR 1.301(a)(2). Similarly,                         852.211–75, Product Specifications.
                                                  provides the authority for an agency                    delegations of authority that are
                                                  head to issue agency acquisition                                                                                 852.214–70, Caution to Bidders—Bid
                                                                                                          removed from the VAAR will be                          Envelopes.
                                                  regulations that implement or                           included in the VA Acquisition Manual
                                                  supplement the FAR. This authority                                                                               852.216–70, Estimated Quantities.
                                                                                                          (VAAM) as internal agency guidance.                      We propose to add the following
                                                  ensures that Government procurements
                                                                                                          VAAR Part 812—Acquisition of                           provisions and clauses to those
                                                  are handled fairly and consistently, that
                                                                                                          Commercial Items                                       available for use in commercial
                                                  the Government receives overall best
                                                                                                                                                                 acquisitions based on their potential
                                                  value, and that the Government and                        In VAAR part 812, we propose to                      applicability for commercial item
                                                  contractors both operate under a known                  replace the 38 U.S.C. 501 citation with                purchases—
                                                  set of rules.                                           41 U.S.C. 1702 which addresses the                       852.215–70, Service-Disabled
                                                     The proposed rule would update the                   acquisition planning and management                    Veteran-Owned and Veteran-Owned
                                                  VAAR to current FAR titles,                             responsibilities of VA’s Chief                         Small Business Evaluation Factors.
                                                  requirements, and definitions; it would                 Acquisition Officer, and add the citation                852.215–71, Evaluation Factor
                                                  correct inconsistencies and removes                     for 38 U.S.C. 8127–8128 which                          Commitments.
                                                  redundancies and duplicate material                     addresses small business concerns                        852.219–9, VA Small Business
                                                  already covered by the FAR; it would                    owned and controlled by Veterans.                      Subcontracting Plan Minimum
                                                  also delete outdated material or                          In subpart 812.1, Acquisition of                     Requirements.
                                                  information and appropriately renumber                  Commercial Items—General, we                             852.219–10, VA Notice of Total
                                                  VAAR text, clauses, and provisions                      propose to delete 812.102,                             Service-Disabled Veteran-Owned Small
                                                  where required to comport with FAR                      Applicability, as unnecessary
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                                                                                                                                                                 Business Set-Aside.
                                                  format, numbering and arrangement. All                  duplication of language in the FAR.                      852.219–11, VA Notice of Total
                                                  amendments, revisions, and removals                       We propose to add 812.102–70,                        Veteran-Owned Small Business Set-
                                                  have been reviewed and concurred with                   Applicability of Veterans preferences, to              Aside.
                                                  by an Integrated Product Team of                        state that the preferences in subpart                    852.222–70, Contract Work Hours and
                                                  agency stakeholders.                                    819.70 apply to part 812.                              Safety Standards Act—Nursing Home
                                                     The VAAR uses the regulatory                           We propose to revise 812.301,                        Care Contract Supplement.
                                                  structure and arrangement of the FAR                    Solicitation provisions and contract                     852.232–72, Electronic Submission of
                                                  and headings and subject areas are                      clauses for the acquisition of                         Payment Requests.


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                                                                         Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Proposed Rules                                             1323

                                                     852.246–73, Noncompliance with                          We propose to remove 813.302,                       be authorized. All existing or
                                                  Packaging, Packing, and/or Marking                      Purchase orders and 813.302–5, Clauses,                subsequent VA guidance would be read
                                                  Requirements.                                           because they incorrectly prescribe a                   to conform with the rulemaking if
                                                     852.247–70, Determining                              clause in part 837.                                    possible or, if not possible, such
                                                  Transportation Costs for Bid Evaluation.                   We propose to add 813.305–70, VA’s                  guidance would be superseded by this
                                                     We propose to remove 812.302,                        imprest funds and third party drafts                   rulemaking as pertains to the cited
                                                  Tailoring of provisions and clauses for                 policy, to state that the Government-                  applicable VAAR parts.
                                                  the acquisition of commercial items, in                 wide commercial purchase card and/or
                                                                                                          convenience checks shall be used in                    Executive Orders 12866, 13563 and
                                                  its entirety since it deals with internal                                                                      13771
                                                  procedures for obtaining a waiver to                    lieu of imprest funds and third party
                                                  allow tailoring of provisions and clauses               drafts.                                                   Executive Orders (E.O.s) 12866 and
                                                  to be inconsistent with customary                          We propose to remove 813.307,                       13563 direct agencies to assess all costs
                                                  commercial practice.                                    Forms, and include it in VA’s internal                 and benefits of available regulatory
                                                                                                          procedural guidance.                                   alternatives and, if regulation is
                                                  VAAR Part 813—Simplified
                                                                                                          VAAR Part 852—Solicitation                             necessary, to select regulatory
                                                  Acquisition Procedures
                                                                                                          Provisions and Contract Clauses                        approaches that maximize net benefits
                                                    In VAAR part 813, we propose to add                                                                          (including potential economic,
                                                  the citation for 41 U.S.C. 1702 which                      In VAAR part 852, we propose to                     environmental, public health and safety
                                                  addresses the acquisition planning and                  replace the 38 U.S.C. 501 citation with                effects, distributive impacts, and
                                                  management responsibilities of VA’s                     41 U.S.C. 1702 which addresses the                     equity). E.O. 13563 emphasizes the
                                                  Chief Acquisition Officer.                              acquisition planning and management                    importance of quantifying both costs
                                                    We propose to add 813.003–70,                         responsibilities of VA’s Chief                         and benefits of reducing costs, of
                                                  Policy, which would explain that the                    Acquisition Officer.                                   harmonizing rules, and of promoting
                                                                                                             In subpart 852.2, we propose to add
                                                  Veterans First Contracting Program has                                                                         flexibility. E.O. 12866, Regulatory
                                                                                                          the provision 852.212–70, Provisions
                                                  broad applicability in contracts using                                                                         Planning and Review, defines
                                                                                                          Applicable to VA Acquisition of
                                                  Simplified Acquisition Procedures, and                                                                         ‘‘significant regulatory action’’ to mean
                                                                                                          Commercial Items, to permit the
                                                  813.102, Source list, to require that                                                                          any regulatory action that is likely to
                                                                                                          contracting officer to check those that
                                                  contracting officers use the Vendor                                                                            result in a rule that may: ‘‘(1) Have an
                                                                                                          will be applicable to the individual
                                                  Information Pages (VIP) database to                                                                            annual effect on the economy of $100
                                                                                                          commercial buy.
                                                  verify Service-Disabled Veteran-Owned                      In subpart 852.2, we propose to add                 million or more or adversely affect in a
                                                  Small Business and Veteran-Owned                        the provision 852.212–71, Contract                     material way the economy, a sector of
                                                  Small Business status.                                  Terms and Conditions Applicable to VA                  the economy, productivity, competition,
                                                    We propose to remove 813.106,                         Acquisition of Commercial Items, to                    jobs, the environment, public health or
                                                  Soliciting competition, evaluation of                   permit the contracting officer to check                safety, or State, local, or tribal
                                                  quotations or offers, award and                         those that will be applicable to the                   governments or communities; (2) Create
                                                  documentation, since paragraph (a)                      individual commercial buy.                             a serious inconsistency or otherwise
                                                  addresses internal procedures and                          In subpart 852.2, we propose to add                 interfere with an action taken or
                                                  paragraph (b) contains material that is                 the provision 852.212–72, Gray Market                  planned by another agency; (3)
                                                  adequately addressed in FAR. We will                    Items, to ensure that new medical                      Materially alter the budgetary impact of
                                                  retain the title since 813.106–70 is being              equipment for VA Medical Centers is                    entitlements, grants, user fees, or loan
                                                  added.                                                  purchased from authorized distributors                 programs or the rights and obligations of
                                                    We propose to remove 813.106–3,                       and that all software licensing, warranty              recipients thereof; or (4) Raise novel
                                                  Award and documentation, since it is                    and service associated with the                        legal or policy issues arising out of legal
                                                  material adequately addressed in FAR.                   equipment/system shall be in                           mandates, the President’s priorities, or
                                                    We propose to remove 813.106–70,                      accordance with the Original Equipment                 the principles set forth in this Executive
                                                  Oral purchase orders, because the FAR                   Manufacturer’s terms and conditions.                   order.’’
                                                  contains no authority to issue oral                                                                               VA has examined the economic,
                                                  purchase orders.                                        Effect of Rulemaking                                   interagency, budgetary, legal, and policy
                                                    We propose to add 813.106–70,                           Title 48, Federal Acquisition                        implications of this regulatory action,
                                                  Soliciting competition, evaluation of                   Regulations System, Chapter 8,                         and it has been determined to be a
                                                  quotations or offers, award and                         Department of Veterans Affairs, of the                 significant regulatory action under E.O.
                                                  documentation—the Veterans First                        Code of Federal Regulations, as                        12866, because it raises novel legal or
                                                  Contracting Program, which emphasizes                   proposed to be revised by this                         policy issues arising out of legal
                                                  that contracting officers can use other                 rulemaking, would represent VA’s                       mandates, the President’s priorities, or
                                                  than competitive procedures under                       implementation of its legal authority                  the principles set forth in this Executive
                                                  specified circumstances when awarding                   and publication of the Department of                   Order. VA’s impact analysis can be
                                                  to Service-Disabled Veteran-Owned                       Veterans Affairs Acquisition Regulation                found as a supporting document at
                                                  Businesses (SDVOSBs) or Veteran-                        (VAAR) for the cited applicable parts.                 http://www.regulations.gov, usually
                                                  Owned Small Businesses (VOSBs).                         Other than future amendments to this                   within 48 hours after the rulemaking
                                                    We propose to revise 813.202,                         rule or governing statutes for the cited               document is published. Additionally, a
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                                                  Purchase guidelines, to renumber it as                  applicable parts, or as otherwise                      copy of the rulemaking and its impact
                                                  813.203 to correspond to the FAR                        authorized by approved deviations or                   analysis are available on VA’s website at
                                                  coverage; to delete the words ‘‘open                    waivers in accordance with Federal                     http://www.va.gov/orpm by following
                                                  market’’ as unnecessary; and to spell out               Acquisition Regulation (FAR) subpart                   the link for VA Regulations Published
                                                  Service-Disabled Veteran-Owned Small                    1.4, Deviations from the FAR, and as                   from FY 2004 Through Fiscal Year to
                                                  Businesses and Veteran-Owned Small                      implemented by VAAR subpart 801.4,                     Date. This proposed rule is not expected
                                                  Businesses the first times the acronyms                 Deviations from the FAR or VAAR, no                    to be subject to the requirements of E.O.
                                                  are used.                                               contrary guidance or procedures would                  13771 because this proposed rule is


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                                                  1324                   Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Proposed Rules

                                                  expected to result in no more than de                   Signing Authority                                      Acquisition of Commercial Items, in all
                                                  minimis costs.                                            The Secretary of Veterans Affairs, or                solicitations and contracts for
                                                                                                          designee, approved this document and                   commercial acquisitions and check only
                                                  Paperwork Reduction Act
                                                                                                          authorized the undersigned to sign and                 those clauses that apply to the
                                                    Although this action contains                         submit the document to the Office of the               individual contract.
                                                  provisions constituting collections of                  Federal Register for publication                          (3) Contracting officers shall insert the
                                                  information at 48 CFR 813, under the                                                                           clause 852.212–72, Gray Market Items,
                                                                                                          electronically as an official document of
                                                  provisions of the Paperwork Reduction                                                                          in all solicitations and contracts for
                                                                                                          the Department of Veterans Affairs. Gina
                                                  Act of 1995 (44 U.S.C. 3501–3521), no                                                                          commercial acquisitions of new medical
                                                                                                          S. Farrisee, Deputy Chief of Staff,
                                                  new or proposed revised collections of                                                                         equipment for VA Medical Centers and
                                                                                                          Department of Veterans Affairs
                                                  information are associated with this                                                                           that include FAR provisions 52.212–1,
                                                                                                          approved this document on April 21,
                                                  proposed rule. The information                                                                                 Instruction to Offerors—Commercial
                                                                                                          2017, for publication.
                                                  collection requirements for 48 CFR 813                                                                         Items, and 52.212–2, Evaluation—
                                                  are currently approved by the Office of                   Dated: January 3, 2018.                              Commercial Items.
                                                  Management and Budget (OMB) and                         Michael Shores,
                                                                                                                                                                 812.302    [Removed]
                                                  have been assigned OMB control                          Director, Regulation Policy & Management,
                                                  number 2900–0393.                                       Office of the Secretary, Department of                 ■ 5. Section 812.302 is removed.
                                                                                                          Veterans Affairs.                                      *     *    *     *     *
                                                  Regulatory Flexibility Act
                                                                                                            For the reasons set out in the
                                                     This proposed rule would not have a                                                                         PART 813—SIMPLIFIED ACQUISITION
                                                                                                          preamble, VA proposes to amend 48
                                                  significant economic impact on a                                                                               PROCEDURES
                                                                                                          CFR parts 812, 813, and 852 as follows:
                                                  substantial number of small entities as                                                                        ■  6. The authority citation for part 813
                                                  they are defined in the Regulatory                      PART 812—ACQUISITION OF                                is revised to read as follows:
                                                  Flexibility Act, 5 U.S.C. 601–612. This                 COMMERCIAL ITEMS
                                                                                                                                                                   Authority: 38 U.S.C. 8127–8128; 40 U.S.C.
                                                  proposed rule would generally be small                                                                         121(c); 41 U.S.C. 1702 and 48 CFR 1.301–
                                                  business neutral. The overall impact of                 ■  1. The authority citation for part 812
                                                                                                                                                                 1.304.
                                                  the proposed rule would be of benefit to                is revised to read as follows:
                                                  small businesses owned by Veterans or                     Authority: 38 U.S.C. 8127–8128; 40 U.S.C.            813.003–70       [Added]
                                                  service-disabled Veterans as the VAAR                   121(c); 41 U.S.C. 1702 and 48 CFR 1.301–               ■ 7. Section 813.003–70 is added to read
                                                  is being updated to remove extraneous                   1.304.                                                 as follows:
                                                  procedural information that applies
                                                                                                          Subpart 812.1—Acquisition of                           813.003–70       Policy.
                                                  only to VA’s internal operating
                                                                                                          Commercial Items—General                                 (a) The Veterans First Contracting
                                                  procedures. VA estimates no cost
                                                  impact to individual business would                                                                            Program in subpart 819.70 applies to VA
                                                                                                          ■ 2. Section 812.102 is removed.
                                                  result from these rule updates. On this                 ■ 3. Section 812.102–70 is added to                    contracts (see FAR 2.101, Definitions)
                                                  basis, the adoption of this proposed rule               subpart 812.1 to read as follows:                      under this part and has precedence over
                                                  would not have a significant economic                                                                          other small business programs
                                                  impact on a substantial number of small                 812.102–70 Applicability of veterans                   referenced in FAR part 19.
                                                                                                          preferences.                                             (b) Notwithstanding FAR 13.003(b)(2),
                                                  entities as they are defined in the
                                                                                                            Based on the authority under 38                      the contracting officer shall make an
                                                  Regulatory Flexibility Act, 5 U.S.C. 601–
                                                                                                          U.S.C. 8127 and 8128, the Veterans First               award utilizing the priorities for
                                                  612. Therefore, under 5 U.S.C. 605(b),
                                                                                                          Contracting Program in subpart 819.70                  veteran-owned small businesses as
                                                  this regulatory action is exempt from the
                                                                                                          applies to VA contracts under this part,               implemented within the VA hierarchy
                                                  initial and final regulatory flexibility
                                                                                                          and the provisions and clauses                         of small business program preferences,
                                                  analysis requirements of sections 603
                                                                                                          prescribed reflect agency unique                       the Veterans First Contracting Program
                                                  and 604.
                                                                                                          statutes applicable to the acquisition of              in subpart 819.70. Specifically, the
                                                  Unfunded Mandates                                       commercial items.                                      contracting officer shall consider
                                                                                                                                                                 preferences for verified service-disabled
                                                     The Unfunded Mandates Reform Act
                                                                                                          Subpart 812.3—Solicitation Provisions                  veteran-owned small businesses
                                                  of 1995 requires, at 2 U.S.C. 1532, that
                                                                                                          and Contract Clauses for the                           (SDVOSBs) first, then preferences for
                                                  agencies prepare an assessment of
                                                                                                          Acquisition of Commercial Items                        verified veteran-owned small businesses
                                                  anticipated costs and benefits before
                                                                                                                                                                 (VOSBs). These priorities will be
                                                  issuing any rule that may result in the                 ■ 4. In § 812.301:
                                                                                                            a. Remove paragraphs (a)–(e).                        followed by preferences for other small
                                                  expenditure by State, local, and tribal                 ■
                                                                                                            b. Revise paragraph (f) to read as                   businesses in accordance with FAR
                                                  Governments, in the aggregate, or by the                ■
                                                                                                          follows:                                               19.203, and 819.7004.
                                                  private sector, of $100 million or more
                                                                                                                                                                   (c) When using competitive
                                                  (adjusted annually for inflation) in any
                                                                                                          812.301 Solicitation provisions and                    procedures, the preference for
                                                  one year. This proposed rule would                      contract clauses for the acquisition of                restricting competition to verified
                                                  have no such effect on State, local, and                commercial items.                                      SDVOSBs or VOSBs is mandatory
                                                  tribal Governments or on the private                      (f)(1) Contracting officers shall insert             whenever market research provides a
                                                  sector.                                                 the provision 852.212–70, Provisions                   reasonable expectation of receiving two
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                                                  List of Subjects                                        Applicable to VA Acquisition of                        or more offers/quotes from eligible,
                                                                                                          Commercial Items, in all solicitations                 capable and verified SDVOSBs or
                                                  48 CFR Part 812 and 813                                 for commercial acquisitions and check                  VOSBs at fair and reasonable prices that
                                                     Government procurement.                              only those provisions that apply to the                offer best value to the Government.
                                                                                                          individual solicitation.                                 (1) Pursuant to 38 U.S.C. 8127,
                                                  48 CFR Part 852                                           (2) Contracting officers shall insert the            contracts under this part shall be set-
                                                    Government procurement, Reporting                     clause 852.212–71, Contract Terms and                  aside for SDVOSBs or VOSBs, when
                                                  and recordkeeping requirements.                         Conditions Applicable to VA                            supported by market research.


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                                                                         Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Proposed Rules                                                         1325

                                                  Contracting officers shall use the                         (1) Such concern is determined to be                Provisions Applicable to VA Acquisition of
                                                  applicable set-aside clause prescribed at               a responsible source with respect to                   Commercial Items (Date)
                                                  819.7009.                                               performance of such contract                              The Contractor agrees to comply with any
                                                    (2) Pursuant to 38 U.S.C. 8128 and to                 opportunity;                                           provision that is incorporated herein by
                                                  the extent that market research does not                   (2) The anticipated award price of the              reference or full text to implement agency
                                                  support an SDVOSB or VOSB set-aside,                    contract (including options) will exceed               policy applicable to acquisition of
                                                                                                                                                                 commercial items or components. The
                                                  the contracting officer shall include                   the simplified acquisition threshold, but              following provisions that have been checked
                                                  evaluation factors as prescribed at                     will not exceed $5,000,000; and                        by the contracting officer are incorporated by
                                                  815.304 and the evaluation criteria                        (3) In the estimation of the contracting            reference or in full text; text requiring fill-ins
                                                  clause prescribed at 815.304–71(a).                     officer, the contract award can be made                is shown under the provision’s title:
                                                    (d) The SDVOSB and VOSB eligibility                   at a fair and reasonable price that offers             ll8 852.209–70, Organizational Conflicts of
                                                  requirements in part 819.7003 apply,                    overall best value to the government.                       Interest.
                                                  including verification of the SDVOSB                                                                           ll8 852.214–71, Restrictions on Alternate
                                                  and VOSB status of an offeror or                        Subpart 813.2—Actions at or Below the                       Item(s).
                                                  awardee at the time of submission of                    Micro-Purchase Threshold                               ll8 852.214–72, Alternate Item(s).
                                                  offer/quote and prior to award. The                                                                               Bids on lll[Contracting officer will
                                                                                                          813.202    [Removed]                                   insert an alternate item that is considered
                                                  offeror must also represent that it meets
                                                                                                          ■ 12. Section 813.202 is removed.                      acceptable.] will be given equal
                                                  the small business size standard for the                                                                       consideration along with bids on lll
                                                  assigned North American Industry                        ■ 13. Section 813.203 is added to
                                                                                                                                                                 [Contracting officer will insert the required
                                                  Classification Code System (NAICS)                      subpart 813.2 to read as follows:                      item and item number.] and any such bids
                                                  code and other small business                           813.203    Purchase guidelines.                        received may be accepted if to the advantage
                                                  requirements in FAR part 19 (e.g.                                                                              of the Government. Tie bids will be decided
                                                  subcontracting limitations and non-                       Micro-purchases shall be equitably                   in favor of lll. [Contracting officer will
                                                  manufacturer rule).                                     distributed among all qualified Service-               insert the required item and item number.]
                                                                                                          Disabled Veteran-Owned Small
                                                                                                          Businesses (SDVOSBs) or Veteran-                       (End of provision)
                                                  Subpart 813.1—Procedures
                                                                                                          Owned Small Businesses (VOSBs),                        ll8 852.214–73, Alternate Packaging and
                                                  813.102    [Added]                                      respectively, to the maximum extent                         Packing.
                                                  ■ 8. Section 813.102 is added to subpart                practicable.                                           ll8 852.214–74, Bid Samples.
                                                  813.1 to read as follows:                                                                                      ll8 852.215–70, Service-Disabled Veteran-
                                                                                                          Subpart 813.3—Simplified Acquisition                        Owned and Veteran-Owned Small
                                                  813.102    Source list.                                 Methods                                                     Business Evaluation Factors.
                                                    Pursuant to 819.7003, contracting                                                                            ll8 852.233–70, Protest Content/Alternative
                                                                                                          813.302    [Removed]                                        Dispute Resolution.
                                                  officers shall use the Vendor
                                                                                                                                                                 ll8 852.233–71, Alternate Protest
                                                  Information Pages (VIP) database to                     ■   14. Section 813.302 is removed.                         Procedure.
                                                  verify SDVOSB/VOSB status.                                                                                     ll8 852.247–70, Determining Transportation
                                                                                                          813.302–5     [Removed]
                                                                                                                                                                      Costs for Bid Evaluation.
                                                  813.106    [Amended]                                    ■ 15. Section 813.302–5 is removed.                       For the purpose of evaluating bids and for
                                                  ■ 9. In § 813.106 remove paragraphs (a)                 ■ 16. Section 813.305–70 is added to                   no other purpose, the delivered price per unit
                                                  and (b) and to retain the section                       subpart 813.3 to read as follows:                      will be determined by adding the nationwide
                                                  heading.                                                                                                       average transportation charge to the f.o.b.
                                                  ■ 10. Section 813.106–3 is removed.                     813.305–70 VA’s imprest funds and third                origin bid prices. The nationwide average
                                                  ■ 11. Section 813.106–70 is revised to
                                                                                                          party drafts policy.                                   transportation charge will be determined by
                                                  read as follows:                                          VA’s Government-wide commercial                      applying the following formula: Multiply the
                                                                                                          purchase card and/or convenience                       guaranteed shipping weight by the freight,
                                                  813.106–70 Soliciting competition,                      checks shall be used in lieu of imprest                parcel post, or express rate, whichever is
                                                  evaluation of quotations or offers, award               funds and third party drafts.                          proper, to each destination shown below and
                                                  and documentation—the Veterans First                                                                           then multiply the resulting transportation
                                                  Contracting Program.                                    813.307    [Removed]                                   charges by the anticipated demand factor
                                                    (a) General. When using competitive                                                                          shown for each destination. Total the
                                                                                                          ■   17. Section 813.307 is removed.                    resulting weighted transportation charges for
                                                  procedures under this part, the
                                                                                                                                                                 all destinations and divide the total by 20 to
                                                  contracting officer shall use the                       PART 852—SOLICITATION                                  give the nationwide average transportation
                                                  Veterans First Contracting Program in                   PROVISIONS AND CONTRACT                                charge.
                                                  subpart 819.70 and the guidance set                     CLAUSES
                                                  forth in 813.003–70.                                                                                           Anticipated Demand
                                                    (b) Pursuant to 38 U.S.C 8127(b),                     ■  18. The authority citation for part 852
                                                  contracting officers may use other than                 is revised to read as follows:                                    Area destination                    Factor
                                                  competitive procedures to enter into a                    Authority: 38 U.S.C. 8127–8128, and 8151–            Oakland, California .....................               3
                                                  contract with a verified SDVOSB or                      8153; 40 U.S.C. 121(c); 41 U.S.C. 1121(c)(3),          Dallas, Texas ..............................            2
                                                  VOSB for procurements under the                         and 1702; and 48 CFR 1.301–1.304.                      Omaha, Nebraska ......................                  3
                                                  simplified acquisition threshold.                                                                              Fort Wayne, Indiana ...................                 4
                                                    (c) For procurements above the                        Subpart 852.2—Texts of Provisions                      Atlanta, Georgia ..........................             3
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                                                  simplified acquisition threshold,                       and Clauses                                            New York, New York ..................                   5
                                                  pursuant to 38 U.S.C. 8127(c),                          ■ 19. Section 852.212–70 is added to
                                                  contracting officers may also award a                                                                            Total of Factors .......................              20
                                                                                                          subpart 852.2 to read as follows:
                                                  contract under this part to a firm
                                                  verified under the Veterans First                       852.212–70 Provisions applicable to VA                 (End of provision)
                                                  Contracting Program at subpart 819.70,                  acquisition of commercial items.                       ll8 852.270–1, Representatives of
                                                  using procedures other than competitive                   As prescribed in 812.301(f)(1), insert                   Contracting Officers.
                                                  procedures if—                                          the following provision:                               ll8 852.273–70, Late Offers.


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                                                  1326                   Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Proposed Rules

                                                  ll8 852.273–71, Alternative                             this work. He/she shall take all reasonable            ll8 852.271–72, Time Spent by Counselee
                                                      Negotiation Techniques.                             precautions necessary to protect persons and                in Counseling Process.
                                                  ll8 852.273–72, Alternative                             property from injury or damage during the              ll8 852.271–73, Use and Publication of
                                                                                                          performance of this contract. He/she shall be               Counseling Results.
                                                      Evaluation.                                         responsible for any injury to himself/herself,         ll8 852.271–74, Inspection.
                                                  ll8 852.273–73, Evaluation—Health-                      his/her employees, as well as for any damage           ll8 852.271–75, Extension of Contract
                                                      Care Resources.                                     to personal or public property that occurs                  Period.
                                                  ll8 852.273–74, Award Without                           during the performance of this contract that              (b) All requests for quotations,
                                                      Exchanges.                                          is caused by his/her employees fault or                solicitations, and contracts for commercial
                                                  ■ 20. Section 852.212–71 is added to                    negligence, and shall maintain personal                item services to be provided to beneficiaries
                                                  read as follows:                                        liability and property damage insurance                must include the following clause at
                                                                                                          having coverage for a limit as required by the         ll8 852.271–70, Nondiscrimination in
                                                  852.212–71 Contract terms and conditions                laws of the State of ll[Insert name of                      Services Provided to Beneficiaries.
                                                  applicable to VA acquisition of commercial              State]. Further, it is agreed that any
                                                  items.                                                  negligence of the Government, its officers,            (End of clause)
                                                                                                          agents, servants and employees, shall not be
                                                    As prescribed in 812.301(f)(2), insert
                                                  the following clause:
                                                                                                          the responsibility of the contractor hereunder         ■ 21. Section 852.212–72 is added to
                                                                                                          with the regard to any claims, loss, damage,           subpart 852.2 to read as follows:
                                                  Contract Terms and Conditions Applicable                injury, and liability resulting therefrom.
                                                  to VA Acquisition of Commercial Items                                                                          852.212–72       Gray Market Items.
                                                                                                          (End of clause)
                                                  (Date)
                                                                                                          ll8 852.246–70, Guarantee.
                                                                                                                                                                    As prescribed in 812.301(f)(3), insert
                                                     (a) The Contractor agrees to comply with                                                                    the following provision in solicitations
                                                  any clause that is incorporated herein by                 The contractor guarantees the equipment
                                                                                                          against defective material, workmanship and            and contracts for new medical
                                                  reference to implement agency policy
                                                  applicable to acquisition of commercial items           performance for a period of ll[Normally,               equipment for VA Medical Centers and
                                                  or components. The following clauses that               insert one year. If industry policy covers a           that include FAR provisions 52.212–1,
                                                                                                          shorter or longer period, i.e., 90 days or for         Instruction to Offerors—Commercial
                                                  have been checked by the contracting officer
                                                                                                          the life of the equipment, insert such period.],       Items, and 52.212–2, Evaluation—
                                                  are incorporated by reference; text requiring
                                                                                                          said guarantee to run from date of acceptance
                                                  fill-ins is shown under the clause’s title:                                                                    Commercial Items:
                                                                                                          of the equipment by the Government. The
                                                  ll8 852.203–70, Commercial Advertising.                 contractor agrees to furnish, without cost to          Gray Market Items (Date)
                                                  ll8 852.215–70, Service-Disabled Veteran-               the Government, replacement of all parts and
                                                        Owned and Veteran-Owned Small                                                                               (a) Gray market items are Original
                                                                                                          material that are found to be defective during
                                                        Business Evaluation Factors.                                                                             Equipment Manufacturers’ (OEM) goods sold
                                                                                                          the guarantee period. Replacement of
                                                  ll8 852.215–71, Evaluation Factor                                                                              through unauthorized channels in direct
                                                                                                          material and parts will be furnished to the
                                                        Commitments.                                                                                             competition with authorized distributors.
                                                                                                          Government at the point of installation, if
                                                  ll8 852.219–9, VA Small Business                                                                               This procurement is for new OEM medical
                                                                                                          installation is within the continental United
                                                        Subcontracting Plan Minimum                                                                              equipment only for VA Medical Centers. No
                                                                                                          States, or f.o.b. the continental U.S. port to
                                                        Requirements.                                     be designated by the contracting officer if            remanufactures or gray market items will be
                                                  ll8 852.219–10, VA Notice of Total Service-             installation is outside of the continental             acceptable.
                                                        Disabled Veteran-Owned Small Business             United States. Cost of installation of                    (b) Vendor shall be an OEM, authorized
                                                        Set-Aside.                                        replacement material and parts shall be borne          dealer, authorized distributor or authorized
                                                  ll8 852.219–11, VA Notice of Total Veteran-             by the contractor. [The above clause will be           reseller for the proposed equipment/system,
                                                        Owned Small Business Set-Aside.                   modified to conform to standards of the                verified by an authorization letter or other
                                                  ll8 852.222–70, Contract Work Hours and                 industry involved.]                                    documents from the OEM, such that the
                                                        Safety Standards Act—Nursing Home                                                                        OEM’s warranty and service are provided
                                                        Care Contract Supplement.                         (End of clause)                                        and maintained by the OEM. All software
                                                  ll8 852.229–70, Sales and Use Taxes.                                                                           licensing, warranty and service associated
                                                                                                          ll8 852.246–71, Inspection.
                                                  ll8 852.232–72, Electronic Submission of                                                                       with the equipment/system shall be in
                                                                                                          ll8 852.246–72, Frozen Processed Foods.
                                                        Payment Requests.                                                                                        accordance with the OEM terms and
                                                                                                          ll8 852.246–73, Noncompliance with
                                                  ll8 852.237–7, Indemnification and Medical                                                                     conditions.
                                                                                                            Packaging, Packing, and/or Marking
                                                        Liability Insurance.                                Requirements.                           (End of clause)
                                                  ll8 852.237–70, Contractor Responsibilities.            ll8 852.270–2, Bread and Bakery Products—
                                                     The contractor shall obtain all necessary              Quantities.                             [FR Doc. 2018–00169 Filed 1–10–18; 8:45 am]
                                                  licenses and/or permits required to perform             ll8 852.270–3, Purchase of Shellfish.     BILLING CODE 8320–01–P
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Document Created: 2018-01-11 04:54:06
Document Modified: 2018-01-11 04:54:06
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received on or before March 12, 2018 to be considered in the formulation of the final rule.
ContactMr. Ricky Clark, Senior Procurement Analyst, Procurement Policy and Warrant Management Services, 003A2A, 425 I Street NW, Washington DC 20001, (202) 632-5276. This is not a toll-free telephone number.
FR Citation83 FR 1321 
RIN Number2900-AP58
CFR Citation48 CFR 812
48 CFR 813
48 CFR 852
CFR AssociatedGovernment Procurement and Reporting and Recordkeeping Requirements

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