83_FR_48442 83 FR 48257 - VA Acquisition Regulation: Taxes; Quality Assurance; Transportation; Solicitation Provisions and Contract Clauses; and Special Procurement Controls

83 FR 48257 - VA Acquisition Regulation: Taxes; Quality Assurance; Transportation; Solicitation Provisions and Contract Clauses; and Special Procurement Controls

DEPARTMENT OF VETERANS AFFAIRS

Federal Register Volume 83, Issue 185 (September 24, 2018)

Page Range48257-48263
FR Document2018-20323

The Department of Veterans Affairs (VA) is amending and updating its VA Acquisition Regulation (VAAR) in phased increments to revise or remove any policy superseded by changes in the Federal Acquisition Regulation (FAR), to remove procedural guidance internal to VA into the VA Acquisition Manual (VAAM), and to incorporate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 These changes seek to streamline and align the VAAR with the FAR and remove outdated and duplicative requirements and reduce burden on contractors.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, we will publish them in the Federal Register. In particular, this rulemaking revises VAAR concerning Taxes; Quality Assurance; Transportation; Solicitation Provisions and Contract Clauses; and Special Procurement Controls.

Federal Register, Volume 83 Issue 185 (Monday, September 24, 2018)
[Federal Register Volume 83, Number 185 (Monday, September 24, 2018)]
[Rules and Regulations]
[Pages 48257-48263]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-20323]


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DEPARTMENT OF VETERANS AFFAIRS

48 CFR Parts 829, 846, 847, 852, and 870

RIN 2900-AQ04


VA Acquisition Regulation: Taxes; Quality Assurance; 
Transportation; Solicitation Provisions and Contract Clauses; and 
Special Procurement Controls

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: The Department of Veterans Affairs (VA) is amending and 
updating 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revise or remove any policy superseded by changes in the Federal 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 VA Acquisition Manual (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, we will publish them in the 
Federal Register. In particular, this rulemaking revises VAAR 
concerning Taxes; Quality Assurance; Transportation; Solicitation 
Provisions and Contract Clauses; and Special Procurement Controls.

DATES: This rule is effective on October 24, 2018.

FOR FURTHER INFORMATION CONTACT: Mr. Rafael N. Taylor, Senior 
Procurement Analyst, Procurement Policy and Warrant Management 
Services, 003A2A, 425 I Street NW, Washington, DC 20001, (202) 382-
2787. (This is not a toll-free number.)

SUPPLEMENTARY INFORMATION: On April 25, 2018, VA published a proposed 
rule in the Federal Register (83 FR 17979) which announced VA's intent 
to amend regulations for VAAR Case RIN 2900-AQ04 (parts 829, 846, and 
847). In particular, this final rule revises the 829 authorities to 
include the applicable U.S. code citations where the Secretary of the 
Treasury has exempted spirits and alcohol purchases by the Federal 
government, pursuant to 26 U.S.C. 5214(a)(2), 26 U.S.C. 5271, and 26 
U.S.C. 7510; removes section 829.202-70, Tax exemptions for alcohol 
products, updates and moves it to the VAAM; adds a new section to 
provide the legislative authorities for withdrawal of distilled spirits 
from bonded premises free of tax or without payment of tax by, and for 
the use of, the VA; removes section 829.302, Application of State and 
local taxes to the Government, to the VAAM; removes 829.302-70, 
Purchases made from patients' funds, and the clause it prescribes, 
852.229-70, Sales or Use Taxes.
    In part 846, Quality Assurance, this rule adds a definition of 
``rejected goods'' as used in a revised clause; revises subpart 846.3 
to prescribe clauses 852.236-74, Inspection of Construction, 852.246-
71, Rejected Goods, 852.246-72, Frozen Processed Foods, 852.246-73, 
Noncompliance with Packaging, Packing, and/or Marking Requirements, and 
852.246-76, Purchase of Shellfish; it reduces subpart 846.4 to three 
sections, 846.408-70, Inspection of subsistence, 846.470, Use of 
commercial organizations for inspections and grading services, and 
846.471, Food service equipment; it removes a warranty clause because 
there are sufficient FAR warranty clauses that could be used; removes 
policy requiring USDA inspections for subsistence since the Department 
of Agriculture no longer requires this type of inspection; removes 
coverage requiring inspection of repairs for properties under the Loan 
Guaranty Program and Direct Loan Programs, as such sections are 
unnecessary given that a private contractor performs such inspection 
and repair functions on VA's behalf; and provides coverage to state 
VA's policy regarding guarantee period services.
    This rule adds guidance in part 847 to contracting officers for VA 
transportation contracts and transportation-related services and 
subsequent payments on those contracts; provides guidance on 
contractual requirements for insurance provisions and contractor 
personnel performing on VA transportation contracts; provides 
consignment instructions; and adds a clause providing packing 
instructions to ensure acceptance by common carriers and safe delivery 
at destination.
    This rule also removes all remaining sections of part 870 as the 
guidance included therein was either moved to other parts, out of date, 
or duplicative of the FAR.
    VA provided a 60-day comment period for the public to respond to 
the proposed rule. The comment period for the proposed rule ended on 
June 25, 2018 and VA received no comments. This document adopts as a 
final rule the proposed rule published in the Federal

[[Page 48258]]

Register on April 25, 2018, with minor formatting and/or grammatical 
edits. This final rule has Federal Register administrative format 
changes in the amendatory text which make no substantive text changes 
at the affected sections.

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 final rule will have no such effect on 
State, local, and tribal Governments or on the private sector.

Paperwork Reduction Act

    This final rule contains no provisions constituting a collection of 
information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3521).

Regulatory Flexibility Act

    This final rule will 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 final rule will 
generally be small business neutral. The overall impact of the rule 
will 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 is merely adding existing and current regulatory 
requirements to the VAAR and removing any guidance that is applicable 
only to VA's internal operation processes or procedures. VA estimates 
no cost impact to individual businesses will result from these rule 
updates. This rulemaking does not change VA's policy regarding small 
businesses, does not have an economic impact to individual businesses, 
and there are no increased or decreased costs to small business 
entities. On this basis, the final rule will not have an 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.

Executive Orders 12866, 13563 and 13771

    Executive Orders (E.O.) 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 not be a significant regulatory action under E.O. 12866 
because it does not 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'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 final rule is 
not subject to the requirements of E.O. 13771 because this final rule 
is expected to result in no more than de minimis costs.

List of Subjects

48 CFR Part 829

    Government procurement, Taxes.

48 CFR Part 846

    Government procurement.

48 CFR Part 847

    Government procurement, Transportation.

48 CFR Part 852

    Government procurement, Reporting and recordkeeping requirements.

48 CFR Part 870

    Asbestos, Frozen foods, Government procurement, Telecommunications.

Signing Authority

    The Secretary of Veterans Affairs 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. Robert L. 
Wilkie, Secretary, Department of Veterans Affairs, approved this 
document on August 24, 2018, for publication.

    Dated: September 14, 2018.
Consuela Benjamin,
Regulations Development Coordinator, Office of Regulation Policy & 
Management, Office of the Secretary, Department of Veterans Affairs.

    For the reasons set out in the preamble, VA amends 48 CFR parts 
829, 846, 847, 852, and 870 as follows:

PART 829--TAXES

0
1. The authority citation for part 829 is revised to read as follows:

    Authority: 26 U.S.C. 5214(a)(2), 5271, 7510; 40 U.S.C. 121(c); 
41 U.S.C. 1303(a)(2); 41 U.S.C. 1702 and 48 CFR 1.301-1.304.


0
2. Subpart 829.2 is revised to read as follows:

Subpart 829.2--Federal Excise Taxes


829.203  Other Federal tax exemptions.


829.203-70  Tax exemptions for alcohol products.

    (a) General. (1) Pursuant to 26 U.S.C. 5214(a)(2) and 26 U.S.C. 
5271, VA may purchase spirits using a tax exemption as provided by 
Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau 
(TTB) regulations (see 27 CFR parts 1 through 39). As stated in 27 CFR 
19.426, agencies of the United States Government that wish to obtain 
either specially denatured spirits or spirits free of tax for 
nonbeverage purposes must apply for and receive a permit on form TTB F 
5150.33 or must have a previously issued permit on ATF Form 1444.
    (2) When purchasing spirits under a tax exemption, the contracting 
officer

[[Page 48259]]

shall indicate in the contract document the basis for the exemption and 
make a copy of the permit available to the contractor. Upon receipt of 
the spirits, the contractor shall return the permit to the contracting 
officer unless future orders are anticipated or as directed by the 
contracting officer.
    (3) Department of Veterans Affairs activities that require spirits 
free of tax for beverage purposes under 26 U.S.C. 7510 must provide a 
proper purchase order signed by the head of the agency or an authorized 
designee.
    (b) Specially denatured spirits or spirits free of tax for 
nonbeverage purposes. Contracting officers may make purchases of excise 
tax-free spirits, including denatured alcohol and specially denatured 
alcohol only from qualified distillery plants or bonded dealers.
    (1) Permits previously issued on Alcohol, Tobacco, and Firearms 
(ATF) Form 1444, Tax-Free Spirits for Use of United States, remain 
valid until surrendered or cancelled.
    (2) A copy of the current ATF Form 1444 or TTB Form 5150.33 shall 
be made available to the supplier with the initial order. The permit 
number only needs to be referenced on any future orders with the same 
supplier.
    (c) Wine. No tax exemption form or ATF/TTB permit is required for 
the tax-free procurement of wine from bonded wine premises. The 
purchase order must show the kind, quantity, and alcohol content of the 
wine and must state the purpose for which wine is to be used (see 27 
CFR 24.293). An extra copy of a properly executed purchase order may be 
furnished to the bonded wine premises from which wine is purchased to 
facilitate record keeping. The order must be signed by the head of the 
contracting activity or their designee.

0
3. Subpart 829.3 is revised to read as follows:

Subpart 829.3--State and Local Taxes


829.303  Application of State and local taxes to Government contractors 
and subcontractors.

    (a) The authority to make the determination prescribed in FAR 
29.303(a) is delegated, without power of redelegation, to the head of 
the contracting activity (HCA).

PART 846--QUALITY ASSURANCE

0
4. The authority citation for part 846 is revised to read as follows:

    Authority: 40 U.S.C. 121(c); 41 U.S.C. 1303; 41 U.S.C. 1702; and 
48 CFR 1.301-1.304.


0
5. Subpart 846.1 is added to read as follows:

Subpart 846.1--General


846.101  Definition.

    As used in this part--
    Rejected goods means supplies and/or equipment failing to meet 
contractual terms and conditions and/or generally accepted quality 
standards that may be returned by the Government at the contractor's 
risk and expense.

0
6. Subpart 846.3 is revised to read as follows:
Subpart 846.3--Contract Clauses
Sec.
846.312 Construction contracts.
846.370 Clauses for supplies, equipment or perishable goods.
846.370-1 Rejected goods.
846.370-2 Frozen processed foods.
846.370-3 Noncompliance with packaging, packing, and/or marking 
requirements.
846.370-4 Purchase of shellfish.

Subpart 846.3--Contract Clauses


846.312  Construction contracts.

    The contracting officer shall insert the clause at 852.236-74, 
Inspection of Construction, in solicitations and contracts for 
construction that include the FAR clause at 52.246-12, Inspection of 
Construction.


846.370  Clauses for supplies, equipment or perishable goods.


846.370-1  Rejected goods.

    The contracting officer shall insert the clause at 852.246-71, 
Rejected Goods, in solicitations and contracts for the acquisition of 
supplies, equipment or perishable goods. Perishable goods include such 
items as packing house and dairy products, bread and bakery products, 
fresh and frozen fruits, and vegetables.


846.370-2  Frozen processed foods.

    (a) The contracting officer shall insert the clause at 852.246-72, 
Frozen Processed Foods, in solicitations and contracts for frozen 
processed foods.
    (b) The following frozen processed food products must contain a 
label that complies with the Federal Food, Drug and Cosmetic Act (21 
U.S.C. 301), which requires all ingredients be listed in accordance 
with their predominance order:
    (1) Frozen processed food products that contain meat, poultry, or a 
significant proportion of eggs.
    (2) Frozen processed food products that contain fish or fish 
products.
    (3) Frozen bakery products.
    (c) All procured frozen processed food products that contain meat, 
poultry or a significant proportion of eggs must meet the following 
requirements:
    (1) The products must be processed or prepared in plants operating 
under the supervision of the Department of Agriculture (USDA).
    (2) The product must be inspected and approved in accordance with 
USDA regulations governing meat, poultry, or egg inspection. A label or 
seal that indicates compliance with USDA regulations, affixed to the 
container, will be accepted as evidence of compliance.
    (d) All procured frozen processed food products that contain fish 
or fish products must meet the following requirements:
    (1) The product must be processed or prepared in plants or vessels, 
sanitarily inspected, approved, and certified by the United States 
Department of Commerce (USDC). The products are listed in USDC's 
publication ``USDC Approved Establishments'' under U.S. Establishments 
Approved for Sanitation and for Producing USDC Inspected Fishery 
Products. The inspected products packed under various labels bearing 
the brand names are produced in accordance with current U.S. Grade 
Standards or official product specifications, packed under optimum 
hygienic conditions, and must meet Federal, State, and city sanitation 
and health regulations. Such brand label or USDC seal indicating 
compliance with USDC regulations, affixed to a container, will be 
accepted as evidence of compliance.
    (2) If the conditions in paragraph (d)(1) of this section were not 
met (e.g., no seal), the shipment may be lot-inspected by the USDC and 
containers stamped to indicate acceptance or a Certification of 
Inspection issued to accompany the shipment.
    (e) Producers of frozen bakery products that ship products in 
interstate commerce are required to comply with the Federal Food, Drug 
and Cosmetic Act. Therefore, the product must be verified as shipped 
interstate or that the producer ships products to other purchasers 
interstate.


846.370-3   Noncompliance with packaging, packing, and/or marking 
requirements.

    The contracting officer shall insert the clause at 852.246-73, 
Noncompliance with Packaging, Packing, and/or Marking Requirements, in 
non-commercial item solicitations and contracts for supplies or 
equipment where there are special packaging, packing and/or marking 
requirements. The clause may be used in commercial item acquisitions if 
a waiver is approved in accordance with FAR 12.302(c).

[[Page 48260]]

846.370-4  Purchase of shellfish.

    (a) The U.S. Food and Drug Administration (FDA) at http://www.fda.gov provides quality assurance seafood safety guidelines.
    (b) The contracting officer shall insert the clause at 852.246-76, 
Purchase of Shellfish, in solicitations and contracts for shellfish.

0
7. Subpart 846.4 is revised to read as follows:
Subpart 846.4--Government Contract Quality Assurance
Sec.
846.408-70 Inspection of subsistence.
846.470 Use of commercial organizations for inspections and grading 
services.
846.471 Food service equipment.

Subpart 846.4--Government Contract Quality Assurance


846.408-70   Inspection of subsistence.

    (a) The contracting officer shall indicate the time and place of 
inspection in the solicitation.
    (b) The contracting officer shall also provide in the solicitation 
that the contractor is responsible for all of the following:
    (1) Arranging and paying for inspection services.
    (2) Obtaining from the inspectors a certificate indicating that the 
product complies with specifications.
    (3) Assuring that the certificate, or copy, accompanies the 
shipment.
    (4) Furnishing samples for inspection at the contractor's expense.
    (5) Indicating the address where inspection will occur.
    (c) The contracting officer must furnish a copy of the purchase 
document to the inspecting activity.


846.470   Use of commercial organizations for inspections and grading 
services.

    The contracting officer may use a commercial organization for 
inspection and grading services when the contracting officer determines 
that all of the following exist:
    (a) The results of a technical inspection or grading are dependent 
upon the application of scientific principles or specialized 
techniques.
    (b) VA is unable to employ the personnel qualified to properly 
perform the services and is unable to locate another Federal agency 
capable of providing the service.
    (c) The inspection or grading results issued by a private 
organization are essential to verify the acceptance or rejection of a 
special commodity.
    (d) The services may be performed without direct Government 
supervision.


846.471   Food service equipment.

    (a) All new food service equipment purchased for Dietetic Service 
through other than the Defense General Supply Center sources must meet 
requirements set forth by NSF International (NSF) at http://www.nsf.org.
    (b) The contracting officer will ensure that the following language 
is placed in the solicitation to assert that the equipment meets NSF 
standards:
    The Government will accept an affixed NSF label and/or 
documentation of the NSF Certification from the contractor as evidence 
that the subject equipment meets NSF Sanitation standards.

0
8. Subpart 846.7 is revised to read as follows:

Subpart 846.7--Warranties


846.702-70  Guarantee period services and specifications.

    (a) Guarantee period of services are associated with preserving and 
protecting a specified piece of contractor-installed equipment that is 
guaranteed under a construction contract. Specifications for certain 
high-dollar or traditionally troublesome equipment are designed to 
allow for the original installer of the equipment to service the 
equipment throughout the guaranty period.
    (b) Guarantee period services are not the same as the 1-year 
general construction guaranty clause found at FAR clause 52.246-21, 
Warranty of Construction.
    (c) The contracting officer may determine, when in the best 
interest of VA that guarantee period services, not to exceed a period 
of 5 years, are appropriate to protect the integrity of the installed 
equipment and ensure that the equipment performs as guaranteed.
    (d) When the determination is made under paragraph (c) of this 
section, the contracting officer shall include the guarantee period of 
services as a separately priced contract line item number (CLIN) in 
solicitations and contracts.
    (e) The contracting officer shall insert the clause at 852.246-75, 
Warranty of Construction--Guarantee Period Services, in solicitations 
and contracts for construction that include the FAR clause 52.246-21, 
Warranty of Construction, and that also include guarantee period 
services.
    (f) In accordance with the approved VA specifications, the 
following types of equipment contain the guarantee period services 
specifications. The following represents a sampling of these 
specifications.
    (1) Division 14--Conveying Equipment. (i) Electric Dumbwaiters 
Geared Traction and Winding Drum (VA 14 12 11).
    (ii) Electric Traction Elevators (VA 14 21 00).
    (iii) Traction Cartlift (VA 14 21 11).
    (iv) Hydraulic Elevators (VA 14 24 00).
    (v) Hydraulic Cartlift (VA 14 24 11).
    (2) Division 27--Communications. (i) Public Address and Mass 
Notification Systems (VA 27 51 16).
    (ii) Intercommunication and Program Systems (VA 27 51 23).
    (g) The construction contractor shall require the original 
installer of the equipment, which is normally a subcontractor, to 
provide the guarantee period services.

PART 847--TRANSPORTATION

0
9. The authority citation for part 847 is revised to read as follows:

    Authority:  38 U.S.C. 513; 40 U.S.C. 121(c); 41 U.S.C. 1303; 41 
U.S.C. 1702; 41 CFR part 102-117; and 48 CFR 1.301-1.304.


0
10. Subpart 847.2 is added to read as follows:
Subpart 847.2--Contracts for Transportation or for Transportation-
Related Services
Sec.
847.207 Solicitation provisions, contract clauses, and special 
requirements.
847.207-8 Government responsibilities.
847.207-70 VA solicitation provisions, contract clauses, and special 
requirements.

Subpart 847.2--Contracts for Transportation or for Transportation-
Related Services


847.207   Solicitation provisions, contract clauses, and special 
requirements.


847.207-8  Government responsibilities.

    Transportation payments are audited by the Traffic Manager, to 
ensure that payment and payment mechanisms for agency transportation 
are uniform and appropriate in accordance with 41 CFR part 102-118.


847.207-70   VA solicitation provisions, contract clauses, and special 
requirements.

    (a) Insurance under patient transportation contracts. The 
contracting officer shall ensure that all the proper certificates of 
insurance are submitted to perform on the contract, as outlined in the 
solicitation, and subsequently included in the contract file. In 
accordance with 828.306, the contracting officer shall insert the 
provision at 852.228-71, Indemnification and Insurance, in 
solicitations when utilizing term

[[Page 48261]]

contracts or contracts of a continuing nature for ambulance, automobile 
and aircraft service. When contracting for these services, consider 
using requirements language such as the following:
    (1) Written proof of insurance coverage as required and outlined in 
the solicitation is required prior to award of any contract. Coverage 
must be maintained continually through the life of the contract.
    (2) Within 10 days of notification of acceptance and pending award 
of contract, the contractor shall furnish to the contracting officer a 
certificate of insurance which shall contain an endorsement to the 
effect that cancellation of, or any material change in, the policies 
which adversely affect the interests of the Government in such 
insurance shall not be effective unless a 30-day advance written notice 
of cancellation or change is furnished to the contracting officer.
    (3) Within 10 days of notification of acceptance and pending award 
of contract, and prior to award of a contract, the contractor shall 
furnish to the contracting officer a copy of the contractor's current 
and valid Worker's Compensation certificate.
    (b) Contractor personnel. The contracting officer shall ensure that 
contractor personnel have the appropriate level of training, 
experience, licensure, and pertinent qualifications to ensure patient 
safety. When contracting for these services, consider using 
requirements language such as the following:
    (1) All contractor personnel performing contract services shall 
meet the qualifications as specified in the contract, as well as any 
qualifications required by Federal, State, County, and local Government 
entities from the place in which they operate. Contractor personnel 
shall meet these qualifications at all times while performing contract 
services.
    (2) During the contract period of performance, if the contractor 
proposes to add-on, or replace personnel to perform contract services, 
the contractor shall submit required evidence of training, 
certifications, licensing, background, and security clearances, and any 
other applicable qualifications to the designated contracting officer's 
representative (COR). At no time shall the contractor utilize add-on or 
replacement personnel to perform contract services who do not meet the 
qualifications under the terms and conditions of the contract.
    (3) Records of contractor personnel qualifications and eligibility 
to perform on the contract must be current and maintained throughout 
the life of the contract, and be made available for inspection upon 
request. The contractor shall forward to the contracting officer, on an 
annual basis, a list of contractor employees listing the employees 
name, position(s), and licenses and/or certifications and their current 
certification number. This annual statement of driver competency must 
include any advanced certifications, such as Advanced Cardiac Life 
Support or specialized training to assist and secure patients by 
stretcher or wheelchair, as applicable.
    (4) Within seven (7) days after receipt of award notification, the 
contractor shall provide evidence of required training, certifications, 
licensing and any other qualifications of any personnel who will be 
performing services under the contract. The initial documentation shall 
be provided to the contracting officer and COR.
    (c) Contracts must include requirements to report vehicle accidents 
and incidents to the contracting officer with a formal accident report.
    (d) Contracts for ambulance services must require that the 
contractor meet the current specifications of Federal Specification 
KKK-A-1822E, ``Star of Life Ambulance'' standard.
    (e) Contracts must include requirements to ensure patient safety is 
maintained through the consistent practice of securing patient care 
equipment, other cargo, and vehicles, and ensure that security of 
patients in vehicles is established and observed when transportation 
needs are either primary or secondary in the actual performance of the 
contract. When contracting for these services, consider using 
requirements language to ensure that patient transportation meets 
industry standards for transporting patients based on the patient's 
condition/needs (e.g., wheelchair, ambulatory, on stretcher, etc.).

0
11. Subpart 847.3 is revised to read as follows:
Subpart 847.3--Transportation in Supply Contracts
847.302 Place of delivery--f.o.b. point.
847.305 Solicitation provisions, contract clauses, and 
transportation factors.
847.305-10 Packing, marking, and consignment instructions.
847.305-70 Potential destinations known but quantities unknown.
847.305-71 VA contract clauses.
847.306 Transportation factors in the evaluation of offers.
847.306-70 Records of claims.

Subpart 847.3--Transportation in Supply Contracts


847.302   Place of delivery--f.o.b. point.

    The contracting officer shall insert clause 852.247-71, Delivery 
Location, or a clause substantially the same as the clause at 852.247-
71, Delivery Location, in supply contracts when it is necessary to 
specify delivery locations. If appropriate, the clause may reference an 
attachment which lists various delivery locations and other delivery 
details (e.g., quantities to be delivered to each location, etc.).


847.305   Solicitation provisions, contract clauses, and transportation 
factors.


847.305-10   Packing, marking, and consignment instructions.

    (a) The contracting officer shall insert clause 852.247-72, Marking 
Deliverables, or a clause substantially the same as 852.247-72 in 
solicitations and contracts if special marking on deliverables are 
required.
    (b) The contracting officer shall insert the clause at 852.247-73, 
Packing for Domestic Shipment, in contracts when item(s) will be 
delivered for immediate use to a destination in the continental United 
States; when the material specification or purchase description does 
not provide preservation, packaging, packing, and/or marking 
requirements; and/or when the requiring activity has not cited a 
specific specification for packaging.


847.305-70   Potential destinations known but quantities unknown.

    When the contracting officer contracts with multiple bidders to 
provide items directly to VA field installations, on an f.o.b. origin 
basis, the evaluation of bids must follow specific procedures. In these 
instances, the contracting officer shall insert clause 852.247-70, 
Determining Transportation Costs for Evaluation of Offers, or a clause 
substantially the same as clause 852.247-70. By inserting this clause, 
each bid is placed on an equal basis, even though specific quantities 
required by each facility cannot be predetermined. The contracting 
officer must use an anticipated demand factor in proportion to the 
number of hospital beds or patient workload.


847.305-71   VA contract clauses.

    (a) The contracting officer shall insert clause 852.247-74, Advance 
Notice of Shipment, or a clause substantially the same as 852.247-74, 
in solicitations and contracts when the f.o.b. point is destination, 
and special Government assistance is required in the delivery or 
receipt of the items.

[[Page 48262]]

    (b) The contracting officer shall insert clause 852.247-75, Bills 
of Lading, or a clause substantially the same as clause at 852.247-75, 
in f.o.b. origin solicitations and contracts.


847.306   Transportation factors in the evaluation of offers.


847.306-70   Records of claims.

    When contracting for transportation, and consistent with FAR 
15.304, contracting officers should consider using offerors' record of 
claims involving loss or damage as an evaluation factor or subfactor.

PART 852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
12. The authority citation for part 852 continues 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); 41 U.S.C. 1303; 41 U.S.C. 1702; and 48 CFR 
1.301-1.304.


852.229-70   [Removed and Reserved]

0
13. Section 852.229-70 is removed and reserved.


852.246-70  [Removed and Reserved]

0
14. Section 852.246-70 is removed and reserved.

0
15. Section 852.246-71 is revised to read as follows:


852.246-71   Rejected Goods.

    As prescribed in 846.370-1, insert the following clause:

Rejected Goods (Oct 2018)

    (a) Supplies and equipment. Rejected goods will be held subject 
to Contractor's order for not more than 15 days, after which the 
rejected merchandise will be returned to the Contractor's address at 
the Contractor's risk and expense. Expenses incident to the 
examination and testing of materials or supplies that have been 
rejected will be charged to the Contractor.
    (b) Perishable supplies. The Contractor shall remove rejected 
perishable supplies within 48 hours after notice of rejection. 
Supplies determined to be unfit for human consumption will not be 
removed without permission of the local health authorities. Supplies 
not removed within the allowed time may be destroyed. The Department 
of Veterans Affairs will not be responsible for, nor pay for, 
products rejected. The Contractor will be liable for costs incident 
to examination of rejected products.

(End of Clause)

0
 16. Section 852.246-72 is revised to read as follows:


852.246-72   Frozen Processed Foods.

    As prescribed in 846.370-2, insert the following clause:

Frozen Processed Foods (Oct 2018)

    The products delivered under this contract shall be in excellent 
condition, shall not show evidence of defrosting, refreezing, or 
freezer burn and shall be transported and delivered to the consignee 
at a temperature of 0 degrees Fahrenheit or lower.

(End of Clause)

0
17. Section 852.246-73 is revised to read as follows:


852.246-73   Noncompliance with Packaging, Packing, and/or Marking 
Requirements.

    As prescribed in 846.370-3, insert the following clause:

Noncompliance With Packaging, Packing and/or Marking Requirements (Oct 
2018)

    Failure to comply with the packaging, packing and/or marking 
requirements indicated herein, or incorporated herein by reference, 
may result in rejection of the merchandise and request for 
replacement or repackaging, repacking, and/or marking. The 
Government reserves the right, without obtaining authority from the 
Contractor, to perform the required repackaging, repacking, and/or 
marking services and charge the Contractor at the actual cost to the 
Government for the same or have the required repackaging, repacking, 
and/or marking services performed commercially under Government 
order and charge the Contractor at the invoice rate. In connection 
with any discount offered, time will be computed from the date of 
completion of such repackaging, repacking and/or marking services.

(End of Clause)


852.246-74   [Removed and Reserved]

0
18. Section 852.246-74 is removed and reserved.

0
19. Section 852.246-75 is revised to read as follows:


852.246-75   Warranty of Construction--Guarantee Period Services.

    As prescribed in 846.702-70(e), insert the following clause:

Warranty of Construction--Guarantee Period Services (Oct 2018)

    The clause 52.246-21, Warranty of Construction, is supplemented 
as follows:
    Should the Contractor fail to complete the work or fail to 
proceed promptly to provide guarantee period services after 
notification by the Contracting Officer, the Government may, subject 
to the default clause contained at FAR 52.249-10, Default (Fixed-
Price Construction), and after allowing the Contractor 10 days to 
correct and comply with the contract, terminate the right to proceed 
with the work (or the separable part of the work) that has been 
delayed or unsatisfactorily performed. In this event, the Government 
may take over the work and complete it by contract or otherwise, and 
may take possession of and use any materials, appliances, and plant 
on the work site necessary for completing the work. The Contractor 
and its sureties shall be liable for any damages to the Government 
resulting from the Contractor's refusal or failure to complete the 
work within this specified time, whether or not the Contractor's 
right to proceed with the work is terminated. This liability 
includes any increased costs incurred by the Government in 
completing the work.

(End of Clause)

0
20. Section 852.246-76 is added to read as follows:


852.246-76   Purchase of Shellfish.

    As prescribed in 846.370-4 insert the following clause:

Purchase of Shellfish (OCT 2018)

    The supplier certifies that oysters, clams, and mussels will be 
furnished only from plants approved by and operated under the 
supervision of shellfish authorities of States whose certifications 
are endorsed currently by the U.S. Public Health Service, and the 
names and certificate numbers of those shellfish dealers must appear 
on current lists published by the U.S. Public Health Service. These 
items shall be packed and delivered in approved containers, sealed 
in such manner that tampering is easily discernible, and marked with 
packer's certificate number impressed or embossed on the side of 
such containers and preceded by the State abbreviation. Containers 
shall be tagged or labeled to show the name and address of the 
approved producer or shipper, the name of the State of origin, and 
the certificate number of the approved producer or shipper.

(End of Clause)

0
21. Section 852.247-70 is revised to read as follows:


852.247-70   Determining Transportation Costs for Evaluation of Offers.

    As prescribed in 847.305-70, insert the following provision:

Determining Transportation Costs for Evaluation of Offers (Oct 2018)

    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

[[Page 48263]]

 
Fort Wayne, Indiana..........................................          4
Atlanta, Georgia.............................................          3
New York, New York...........................................          5
                                                              ----------
    Total of factors.........................................         20
------------------------------------------------------------------------

(End of Provision)

0
22. Section 852.247-71 is added to read as follows:


852.247-71  Delivery Location.

    As prescribed in 847.302, insert a clause substantially as follows:

Delivery Location (Oct 2018)

    Shipment of deliverable items, other than reports, shall be to: 
__ [Contracting Officer shall insert appropriate identifying data].

(End of Clause)

0
23. Section 852.247-72 is added to read as follows:


852.247-72   Marking Deliverables.

    As prescribed in 847.305-10(a) insert a clause substantially the 
same as:

Marking Deliverables (Oct 2018)

    (a) The contract number shall be placed on or adjacent to all 
exterior mailing or shipping labels of deliverable items called for 
by the contract.
    (b) Mark deliverables, except reports, for: __[Contracting 
Officer shall insert appropriate identifying data].

(End of Clause)

0
24. Section 852.247-73 is added to read as follows:


852.247-73   Packing for Domestic Shipment.

    As prescribed in 847.305-10(b), insert the following clause:

Packing for Domestic Shipment (Oct 2018)

    Material shall be packed for shipment in such a manner that will 
insure acceptance by common carriers and safe delivery at 
destination. Containers and closures shall comply with regulations 
of carriers as applicable to the mode of transportation.

(End of Clause)

0
25. Section 852.247-74 is added to read as follows:


852.247-74   Advance Notice of Shipment.

    As prescribed in 847.305-71(a), insert the following clause:

Advance Notice of Shipment (Oct 2018)

    __ [Insert number of work days] work days prior to shipping 
item(s)
    __ [Insert items to be shipped], the Contractor shall furnish 
the anticipated shipment date, bill of lading number (if 
applicable), and carrier identity to __ [Insert individual(s) to 
receive notification] and to the Contracting Officer.

(End of Clause)

0
26. Section 852.247-75 is added to read as follows:


852.247-75   Bills of Lading.

    As prescribed in 847.305-71(b), insert the following clause:

Bills of Lading (Oct 2018)

    The purpose of this clause is to define when a commercial bill 
of lading or a Government bill of lading is to be used when 
shipments of deliverable items under this contract are f.o.b. 
origin.
    (a) Commercial bills of lading. All domestic shipments shall be 
made via commercial bills of lading (CBLs). The Contractor shall 
prepay domestic transportation charges. The Government shall 
reimburse the Contractor for these charges if they are added to the 
invoice as a separate line item supported by the paid freight 
receipts. If paid receipts in support of the invoice are not 
obtainable, a statement as described below must be completed, signed 
by an authorized company representative, and attached to the 
invoice.
    ``I certify that the shipments identified below have been made, 
transportation charges have been paid by __ [company name], and paid 
freight or comparable receipts are not obtainable.
    Contract or Order Number: __
    Destination: __ .''
    (b) Government bills of lading. (1) International (export) and 
domestic overseas shipments of items deliverable under this contract 
shall be made by Government bills of lading (GBLs). As used in this 
clause, ``domestic overseas'' means non-continental United States, 
i.e., Hawaii, Commonwealth of Puerto Rico, and possessions of the 
United States.
    (2) At least 15 days before shipment, the Contractor shall 
request in writing GBLs from: __ [Insert name, title, and mailing 
address of designated transportation officer or other official 
delegated responsibility for GBLs]. If time is limited, requests may 
be by telephone: __ [Insert appropriate telephone number]. Requests 
for GBLs shall include the following information.
    (i) Item identification/description.
    (ii) Origin and destination.
    (iii) Individual and total weights.
    (iv) Dimensional weight.
    (v) Dimensions and total cubic footage.
    (vi) Total number of pieces.
    (vii) Total dollar value.
    (viii) Other pertinent data.

(End of Clause)


852.270-2  [Removed]

0
27. Section 852.270-2 is removed.


852.270-3  [Removed]

0
28. Section 852.270-3 is removed.

PART 870--[REMOVED AND RESERVED]

0
29. Under the authority of 48 CFR 1.301 through 1.304, part 870 is 
removed and reserved.

[FR Doc. 2018-20323 Filed 9-21-18; 8:45 am]
 BILLING CODE 8320-01-P



                                                              Federal Register / Vol. 83, No. 185 / Monday, September 24, 2018 / Rules and Regulations                                      48257

                                             Intent to Delete for this Site was                      DEPARTMENT OF VETERANS                                VAAM; adds a new section to provide
                                             published in the Federal Register (83                   AFFAIRS                                               the legislative authorities for
                                             FR 33177) on July 17, 2018.                                                                                   withdrawal of distilled spirits from
                                                                                                     48 CFR Parts 829, 846, 847, 852, and                  bonded premises free of tax or without
                                                The closing date for comments on the
                                                                                                     870                                                   payment of tax by, and for the use of,
                                             Notice of Intent to Delete was August
                                                                                                     RIN 2900–AQ04                                         the VA; removes section 829.302,
                                             16, 2018. No adverse or Site related
                                                                                                                                                           Application of State and local taxes to
                                             public comments were received during                                                                          the Government, to the VAAM; removes
                                             the comment period. Therefore, no                       VA Acquisition Regulation: Taxes;
                                                                                                     Quality Assurance; Transportation;                    829.302–70, Purchases made from
                                             responsiveness summary was prepared.                                                                          patients’ funds, and the clause it
                                                                                                     Solicitation Provisions and Contract
                                                EPA maintains the NPL as the list of                 Clauses; and Special Procurement                      prescribes, 852.229–70, Sales or Use
                                             sites that appear to present a significant              Controls                                              Taxes.
                                             risk to public health, welfare, or the                                                                           In part 846, Quality Assurance, this
                                             environment. Deletion from the NPL                      AGENCY:    Department of Veterans Affairs.            rule adds a definition of ‘‘rejected
                                             does not preclude further remedial                      ACTION:   Final rule.                                 goods’’ as used in a revised clause;
                                             action. Whenever there is a significant                                                                       revises subpart 846.3 to prescribe
                                                                                                     SUMMARY:   The Department of Veterans                 clauses 852.236–74, Inspection of
                                             release from a site deleted from the NPL,               Affairs (VA) is amending and updating
                                             the deleted site may be restored to the                                                                       Construction, 852.246–71, Rejected
                                                                                                     its VA Acquisition Regulation (VAAR)                  Goods, 852.246–72, Frozen Processed
                                             NPL without application of the hazard                   in phased increments to revise or                     Foods, 852.246–73, Noncompliance
                                             ranking system. Deletion of a site from                 remove any policy superseded by                       with Packaging, Packing, and/or
                                             the NPL does not affect responsible                     changes in the Federal Acquisition                    Marking Requirements, and 852.246–76,
                                             party liability in the unlikely event that              Regulation (FAR), to remove procedural                Purchase of Shellfish; it reduces subpart
                                             future conditions warrant further                       guidance internal to VA into the VA                   846.4 to three sections, 846.408–70,
                                             actions.                                                Acquisition Manual (VAAM), and to                     Inspection of subsistence, 846.470, Use
                                                                                                     incorporate any new agency specific                   of commercial organizations for
                                             List of Subjects in 40 CFR Part 300
                                                                                                     regulations or policies. These changes                inspections and grading services, and
                                               Environmental protection, Air                         seek to streamline and align the VAAR                 846.471, Food service equipment; it
                                             pollution control, Chemicals, Hazardous                 with the FAR and remove outdated and                  removes a warranty clause because there
                                             substances, Hazardous waste,                            duplicative requirements and reduce                   are sufficient FAR warranty clauses that
                                             Intergovernmental relations, Penalties,                 burden on contractors. The VAAM                       could be used; removes policy requiring
                                             Reporting and recordkeeping                             incorporates portions of the removed                  USDA inspections for subsistence since
                                             requirements, Superfund, Water                          VAAR as well as other internal agency                 the Department of Agriculture no longer
                                                                                                     acquisition policy. VA will rewrite                   requires this type of inspection; removes
                                             pollution control, Water supply.
                                                                                                     certain parts of the VAAR and VAAM,                   coverage requiring inspection of repairs
                                               Dated: August 31, 2018.                               and as VAAR parts are rewritten, we                   for properties under the Loan Guaranty
                                             Cosmo Servidio,                                         will publish them in the Federal                      Program and Direct Loan Programs, as
                                             Regional Administrator, Region III.                     Register. In particular, this rulemaking              such sections are unnecessary given that
                                                                                                     revises VAAR concerning Taxes;                        a private contractor performs such
                                               For reasons set out in the preamble,                  Quality Assurance; Transportation;                    inspection and repair functions on VA’s
                                             40 CFR part 300 is amended as follows:                  Solicitation Provisions and Contract                  behalf; and provides coverage to state
                                                                                                     Clauses; and Special Procurement                      VA’s policy regarding guarantee period
                                             PART 300—NATIONAL OIL AND                               Controls.                                             services.
                                             HAZARDOUS SUBSTANCES                                                                                             This rule adds guidance in part 847 to
                                                                                                     DATES:  This rule is effective on October
                                             POLLUTION CONTINGENCY PLAN                                                                                    contracting officers for VA
                                                                                                     24, 2018.
                                                                                                                                                           transportation contracts and
                                                                                                     FOR FURTHER INFORMATION CONTACT: Mr.                  transportation-related services and
                                             ■ 1. The authority citation for part 300
                                                                                                     Rafael N. Taylor, Senior Procurement                  subsequent payments on those
                                             continues to read as follows:                           Analyst, Procurement Policy and                       contracts; provides guidance on
                                               Authority: 33 U.S.C. 1321(d); 42 U.S.C.               Warrant Management Services, 003A2A,                  contractual requirements for insurance
                                             9601–9657; E.O. 13626, 77 FR 56749, 3 CFR,              425 I Street NW, Washington, DC 20001,                provisions and contractor personnel
                                             2013 Comp., p. 306; E.O. 12777, 56 FR 54757,            (202) 382–2787. (This is not a toll-free              performing on VA transportation
                                             3 CFR, 1991 Comp., p. 351; E.O. 12580, 52               number.)                                              contracts; provides consignment
                                             FR 2923, 3 CFR, 1987 Comp., p. 193.                     SUPPLEMENTARY INFORMATION: On April                   instructions; and adds a clause
                                             Appendix B to Part 300—[Amended]                        25, 2018, VA published a proposed rule                providing packing instructions to ensure
                                                                                                     in the Federal Register (83 FR 17979)                 acceptance by common carriers and safe
                                             ■  2. Table 1 of appendix B to part 300                 which announced VA’s intent to amend                  delivery at destination.
                                             is amended by removing the listing                      regulations for VAAR Case RIN 2900–                      This rule also removes all remaining
                                             under Pennsylvania for ‘‘Dorney Road                    AQ04 (parts 829, 846, and 847). In                    sections of part 870 as the guidance
                                             Landfill’’.                                             particular, this final rule revises the 829           included therein was either moved to
                                                                                                     authorities to include the applicable                 other parts, out of date, or duplicative
                                             [FR Doc. 2018–20745 Filed 9–21–18; 8:45 am]
                                                                                                     U.S. code citations where the Secretary               of the FAR.
                                             BILLING CODE 6560–50–P                                  of the Treasury has exempted spirits                     VA provided a 60-day comment
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                                                                                                     and alcohol purchases by the Federal                  period for the public to respond to the
                                                                                                     government, pursuant to 26 U.S.C.                     proposed rule. The comment period for
                                                                                                     5214(a)(2), 26 U.S.C. 5271, and 26                    the proposed rule ended on June 25,
                                                                                                     U.S.C. 7510; removes section 829.202–                 2018 and VA received no comments.
                                                                                                     70, Tax exemptions for alcohol                        This document adopts as a final rule the
                                                                                                     products, updates and moves it to the                 proposed rule published in the Federal


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                                             48258            Federal Register / Vol. 83, No. 185 / Monday, September 24, 2018 / Rules and Regulations

                                             Register on April 25, 2018, with minor                  Executive Orders 12866, 13563 and                     48 CFR Part 846
                                             formatting and/or grammatical edits.                    13771                                                   Government procurement.
                                             This final rule has Federal Register
                                             administrative format changes in the                       Executive Orders (E.O.) 12866 and                  48 CFR Part 847
                                             amendatory text which make no                           13563 direct agencies to assess all costs
                                                                                                                                                             Government procurement,
                                                                                                     and benefits of available regulatory
                                             substantive text changes at the affected                                                                      Transportation.
                                                                                                     alternatives and, if regulation is
                                             sections.
                                                                                                     necessary, to select regulatory                       48 CFR Part 852
                                             Unfunded Mandates                                       approaches that maximize net benefits                   Government procurement, Reporting
                                                                                                     (including potential economic,                        and recordkeeping requirements.
                                                The Unfunded Mandates Reform Act                     environmental, public health and safety
                                             of 1995 requires, at 2 U.S.C. 1532, that                effects, distributive impacts, and                    48 CFR Part 870
                                             agencies prepare an assessment of                       equity). E.O. 13563 emphasizes the                      Asbestos, Frozen foods, Government
                                             anticipated costs and benefits before                   importance of quantifying both costs                  procurement, Telecommunications.
                                             issuing any rule that may result in the                 and benefits of reducing costs, of
                                             expenditure by State, local, and tribal                 harmonizing rules, and of promoting                   Signing Authority
                                             Governments, in the aggregate, or by the                flexibility. E.O. 12866, Regulatory                     The Secretary of Veterans Affairs
                                             private sector, of $100 million or more                 Planning and Review defines                           approved this document and authorized
                                             (adjusted annually for inflation) in any                ‘‘significant regulatory action’’ to mean             the undersigned to sign and submit the
                                             one year. This final rule will have no                  any regulatory action that is likely to               document to the Office of the Federal
                                             such effect on State, local, and tribal                 result in a rule that may: ‘‘(1) Have an              Register for publication electronically as
                                             Governments or on the private sector.                   annual effect on the economy of $100                  an official document of the Department
                                                                                                     million or more or adversely affect in a              of Veterans Affairs. Robert L. Wilkie,
                                             Paperwork Reduction Act                                 material way the economy, a sector of                 Secretary, Department of Veterans
                                                                                                     the economy, productivity, competition,               Affairs, approved this document on
                                               This final rule contains no provisions                                                                      August 24, 2018, for publication.
                                                                                                     jobs, the environment, public health or
                                             constituting a collection of information                safety, or State, local, or tribal
                                             under the Paperwork Reduction Act of                                                                             Dated: September 14, 2018.
                                                                                                     governments or communities; (2) Create                Consuela Benjamin,
                                             1995 (44 U.S.C. 3501–3521).                             a serious inconsistency or otherwise
                                                                                                                                                           Regulations Development Coordinator, Office
                                             Regulatory Flexibility Act                              interfere with an action taken or                     of Regulation Policy & Management, Office
                                                                                                     planned by another agency; (3)                        of the Secretary, Department of Veterans
                                                This final rule will not have a                      Materially alter the budgetary impact of              Affairs.
                                             significant economic impact on a                        entitlements, grants, user fees, or loan
                                                                                                                                                             For the reasons set out in the
                                             substantial number of small entities as                 programs or the rights and obligations of
                                                                                                                                                           preamble, VA amends 48 CFR parts 829,
                                             they are defined in the Regulatory                      recipients thereof; or (4) Raise novel
                                                                                                                                                           846, 847, 852, and 870 as follows:
                                             Flexibility Act, 5 U.S.C. 601–612. This                 legal or policy issues arising out of legal
                                             final rule will generally be small                      mandates, the President’s priorities, or              PART 829—TAXES
                                             business neutral. The overall impact of                 the principles set forth in this Executive
                                             the rule will be of benefit to small                    order.’’                                              ■  1. The authority citation for part 829
                                             businesses owned by Veterans or                            VA has examined the economic,                      is revised to read as follows:
                                             service-disabled Veterans as the VAAR                   interagency, budgetary, legal, and policy               Authority: 26 U.S.C. 5214(a)(2), 5271,
                                             is being updated to remove extraneous                   implications of this regulatory action,               7510; 40 U.S.C. 121(c); 41 U.S.C. 1303(a)(2);
                                             procedural information that applies                     and it has been determined not be a                   41 U.S.C. 1702 and 48 CFR 1.301–1.304.
                                             only to VA’s internal operating                         significant regulatory action under E.O.              ■ 2. Subpart 829.2 is revised to read as
                                             procedures. VA is merely adding                         12866 because it does not raise novel                 follows:
                                             existing and current regulatory                         legal or policy issues arising out of legal
                                             requirements to the VAAR and                            mandates, the President’s priorities, or              Subpart 829.2—Federal Excise Taxes
                                             removing any guidance that is                           the principles set forth in this Executive
                                                                                                                                                           829.203    Other Federal tax exemptions.
                                             applicable only to VA’s internal                        Order.
                                             operation processes or procedures. VA                      VA’s impact analysis can be found as               829.203–70    Tax exemptions for alcohol
                                             estimates no cost impact to individual                  a supporting document at http://                      products.
                                             businesses will result from these rule                  www.regulations.gov, usually within 48                  (a) General. (1) Pursuant to 26 U.S.C.
                                             updates. This rulemaking does not                       hours after the rulemaking document is                5214(a)(2) and 26 U.S.C. 5271, VA may
                                             change VA’s policy regarding small                      published. Additionally, a copy of the                purchase spirits using a tax exemption
                                             businesses, does not have an economic                   rulemaking and its impact analysis are                as provided by Department of the
                                             impact to individual businesses, and                    available on VA’s website at http://                  Treasury, Alcohol and Tobacco Tax and
                                                                                                     www.va.gov/orpm by following the link                 Trade Bureau (TTB) regulations (see 27
                                             there are no increased or decreased
                                                                                                     for VA Regulations Published from FY                  CFR parts 1 through 39). As stated in 27
                                             costs to small business entities. On this
                                                                                                     2004 Through Fiscal Year to Date. This                CFR 19.426, agencies of the United
                                             basis, the final rule will not have an
                                                                                                     final rule is not subject to the                      States Government that wish to obtain
                                             economic impact on a substantial                                                                              either specially denatured spirits or
                                                                                                     requirements of E.O. 13771 because this
                                             number of small entities as they are
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                                                                                                     final rule is expected to result in no                spirits free of tax for nonbeverage
                                             defined in the Regulatory Flexibility                                                                         purposes must apply for and receive a
                                                                                                     more than de minimis costs.
                                             Act, 5 U.S.C. 601–612. Therefore, under                                                                       permit on form TTB F 5150.33 or must
                                             5 U.S.C. 605(b), this regulatory action is              List of Subjects                                      have a previously issued permit on ATF
                                             exempt from the initial and final                                                                             Form 1444.
                                                                                                     48 CFR Part 829
                                             regulatory flexibility analysis                                                                                  (2) When purchasing spirits under a
                                             requirements of sections 603 and 604.                     Government procurement, Taxes.                      tax exemption, the contracting officer


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                                                              Federal Register / Vol. 83, No. 185 / Monday, September 24, 2018 / Rules and Regulations                                        48259

                                             shall indicate in the contract document                 ■ 5. Subpart 846.1 is added to read as                significant proportion of eggs must meet
                                             the basis for the exemption and make a                  follows:                                              the following requirements:
                                             copy of the permit available to the                                                                              (1) The products must be processed or
                                             contractor. Upon receipt of the spirits,                Subpart 846.1—General                                 prepared in plants operating under the
                                             the contractor shall return the permit to                                                                     supervision of the Department of
                                                                                                     846.101    Definition.
                                             the contracting officer unless future                                                                         Agriculture (USDA).
                                             orders are anticipated or as directed by                  As used in this part—                                  (2) The product must be inspected
                                             the contracting officer.                                  Rejected goods means supplies and/or                and approved in accordance with USDA
                                                (3) Department of Veterans Affairs                   equipment failing to meet contractual                 regulations governing meat, poultry, or
                                             activities that require spirits free of tax             terms and conditions and/or generally                 egg inspection. A label or seal that
                                             for beverage purposes under 26 U.S.C.                   accepted quality standards that may be                indicates compliance with USDA
                                             7510 must provide a proper purchase                     returned by the Government at the                     regulations, affixed to the container,
                                             order signed by the head of the agency                  contractor’s risk and expense.                        will be accepted as evidence of
                                             or an authorized designee.                              ■ 6. Subpart 846.3 is revised to read as              compliance.
                                                (b) Specially denatured spirits or                   follows:                                                 (d) All procured frozen processed
                                             spirits free of tax for nonbeverage                     Subpart 846.3—Contract Clauses                        food products that contain fish or fish
                                             purposes. Contracting officers may make                                                                       products must meet the following
                                                                                                     Sec.
                                             purchases of excise tax-free spirits,                                                                         requirements:
                                                                                                     846.312 Construction contracts.
                                             including denatured alcohol and                                                                                  (1) The product must be processed or
                                                                                                     846.370 Clauses for supplies, equipment or
                                             specially denatured alcohol only from                        perishable goods.                                prepared in plants or vessels, sanitarily
                                             qualified distillery plants or bonded                   846.370–1 Rejected goods.                             inspected, approved, and certified by
                                             dealers.                                                846.370–2 Frozen processed foods.                     the United States Department of
                                                (1) Permits previously issued on                     846.370–3 Noncompliance with packaging,               Commerce (USDC). The products are
                                             Alcohol, Tobacco, and Firearms (ATF)                         packing, and/or marking requirements.            listed in USDC’s publication ‘‘USDC
                                             Form 1444, Tax-Free Spirits for Use of                  846.370–4 Purchase of shellfish.                      Approved Establishments’’ under U.S.
                                             United States, remain valid until                                                                             Establishments Approved for Sanitation
                                                                                                     Subpart 846.3—Contract Clauses                        and for Producing USDC Inspected
                                             surrendered or cancelled.
                                                (2) A copy of the current ATF Form                   846.312    Construction contracts.                    Fishery Products. The inspected
                                             1444 or TTB Form 5150.33 shall be                                                                             products packed under various labels
                                                                                                       The contracting officer shall insert the
                                             made available to the supplier with the                                                                       bearing the brand names are produced
                                                                                                     clause at 852.236–74, Inspection of
                                             initial order. The permit number only                                                                         in accordance with current U.S. Grade
                                                                                                     Construction, in solicitations and
                                             needs to be referenced on any future                                                                          Standards or official product
                                                                                                     contracts for construction that include
                                             orders with the same supplier.                                                                                specifications, packed under optimum
                                                                                                     the FAR clause at 52.246–12, Inspection
                                                (c) Wine. No tax exemption form or                                                                         hygienic conditions, and must meet
                                                                                                     of Construction.
                                             ATF/TTB permit is required for the tax-                                                                       Federal, State, and city sanitation and
                                             free procurement of wine from bonded                    846.370 Clauses for supplies, equipment               health regulations. Such brand label or
                                             wine premises. The purchase order                       or perishable goods.                                  USDC seal indicating compliance with
                                             must show the kind, quantity, and                                                                             USDC regulations, affixed to a
                                                                                                     846.370–1     Rejected goods.
                                             alcohol content of the wine and must                                                                          container, will be accepted as evidence
                                                                                                       The contracting officer shall insert the            of compliance.
                                             state the purpose for which wine is to
                                                                                                     clause at 852.246–71, Rejected Goods, in                 (2) If the conditions in paragraph
                                             be used (see 27 CFR 24.293). An extra
                                                                                                     solicitations and contracts for the                   (d)(1) of this section were not met (e.g.,
                                             copy of a properly executed purchase
                                                                                                     acquisition of supplies, equipment or                 no seal), the shipment may be lot-
                                             order may be furnished to the bonded
                                                                                                     perishable goods. Perishable goods                    inspected by the USDC and containers
                                             wine premises from which wine is
                                                                                                     include such items as packing house                   stamped to indicate acceptance or a
                                             purchased to facilitate record keeping.
                                                                                                     and dairy products, bread and bakery                  Certification of Inspection issued to
                                             The order must be signed by the head
                                                                                                     products, fresh and frozen fruits, and                accompany the shipment.
                                             of the contracting activity or their
                                                                                                     vegetables.                                              (e) Producers of frozen bakery
                                             designee.
                                                                                                                                                           products that ship products in interstate
                                             ■ 3. Subpart 829.3 is revised to read as                846.370–2     Frozen processed foods.
                                                                                                                                                           commerce are required to comply with
                                             follows:                                                  (a) The contracting officer shall insert            the Federal Food, Drug and Cosmetic
                                                                                                     the clause at 852.246–72, Frozen                      Act. Therefore, the product must be
                                             Subpart 829.3—State and Local Taxes                     Processed Foods, in solicitations and                 verified as shipped interstate or that the
                                             829.303 Application of State and local                  contracts for frozen processed foods.                 producer ships products to other
                                             taxes to Government contractors and                       (b) The following frozen processed                  purchasers interstate.
                                             subcontractors.                                         food products must contain a label that
                                               (a) The authority to make the                         complies with the Federal Food, Drug                  846.370–3 Noncompliance with packaging,
                                                                                                     and Cosmetic Act (21 U.S.C. 301),                     packing, and/or marking requirements.
                                             determination prescribed in FAR
                                             29.303(a) is delegated, without power of                which requires all ingredients be listed                 The contracting officer shall insert the
                                             redelegation, to the head of the                        in accordance with their predominance                 clause at 852.246–73, Noncompliance
                                             contracting activity (HCA).                             order:                                                with Packaging, Packing, and/or
                                                                                                       (1) Frozen processed food products                  Marking Requirements, in non-
                                                                                                     that contain meat, poultry, or a                      commercial item solicitations and
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                                             PART 846—QUALITY ASSURANCE
                                                                                                     significant proportion of eggs.                       contracts for supplies or equipment
                                             ■  4. The authority citation for part 846                 (2) Frozen processed food products                  where there are special packaging,
                                             is revised to read as follows:                          that contain fish or fish products.                   packing and/or marking requirements.
                                               Authority: 40 U.S.C. 121(c); 41 U.S.C.                  (3) Frozen bakery products.                         The clause may be used in commercial
                                             1303; 41 U.S.C. 1702; and 48 CFR 1.301–                   (c) All procured frozen processed food              item acquisitions if a waiver is approved
                                             1.304.                                                  products that contain meat, poultry or a              in accordance with FAR 12.302(c).


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                                             48260            Federal Register / Vol. 83, No. 185 / Monday, September 24, 2018 / Rules and Regulations

                                             846.370–4    Purchase of shellfish.                      846.471    Food service equipment.                      (1) Division 14—Conveying
                                               (a) The U.S. Food and Drug                                (a) All new food service equipment                 Equipment. (i) Electric Dumbwaiters
                                             Administration (FDA) at http://                          purchased for Dietetic Service through                Geared Traction and Winding Drum (VA
                                             www.fda.gov provides quality assurance                   other than the Defense General Supply                 14 12 11).
                                             seafood safety guidelines.                               Center sources must meet requirements                   (ii) Electric Traction Elevators (VA 14
                                               (b) The contracting officer shall insert               set forth by NSF International (NSF) at               21 00).
                                             the clause at 852.246–76, Purchase of                    http://www.nsf.org.                                     (iii) Traction Cartlift (VA 14 21 11).
                                                                                                         (b) The contracting officer will ensure              (iv) Hydraulic Elevators (VA 14 24
                                             Shellfish, in solicitations and contracts
                                                                                                      that the following language is placed in              00).
                                             for shellfish.
                                                                                                      the solicitation to assert that the                     (v) Hydraulic Cartlift (VA 14 24 11).
                                             ■ 7. Subpart 846.4 is revised to read as                                                                         (2) Division 27—Communications. (i)
                                             follows:                                                 equipment meets NSF standards:
                                                                                                                                                            Public Address and Mass Notification
                                                                                                         The Government will accept an
                                             Subpart 846.4—Government Contract                                                                              Systems (VA 27 51 16).
                                                                                                      affixed NSF label and/or documentation
                                             Quality Assurance                                                                                                (ii) Intercommunication and Program
                                                                                                      of the NSF Certification from the
                                             Sec.
                                                                                                                                                            Systems (VA 27 51 23).
                                                                                                      contractor as evidence that the subject                 (g) The construction contractor shall
                                             846.408–70 Inspection of subsistence.                    equipment meets NSF Sanitation
                                             846.470 Use of commercial organizations                                                                        require the original installer of the
                                                                                                      standards.                                            equipment, which is normally a
                                                  for inspections and grading services.
                                             846.471 Food service equipment.                          ■ 8. Subpart 846.7 is revised to read as              subcontractor, to provide the guarantee
                                                                                                      follows:                                              period services.
                                             Subpart 846.4—Government Contract
                                             Quality Assurance                                        Subpart 846.7—Warranties                              PART 847—TRANSPORTATION
                                             846.408–70       Inspection of subsistence.              846.702–70 Guarantee period services and              ■  9. The authority citation for part 847
                                                                                                      specifications.
                                                (a) The contracting officer shall                                                                           is revised to read as follows:
                                             indicate the time and place of                             (a) Guarantee period of services are
                                                                                                                                                              Authority: 38 U.S.C. 513; 40 U.S.C. 121(c);
                                             inspection in the solicitation.                          associated with preserving and                        41 U.S.C. 1303; 41 U.S.C. 1702; 41 CFR part
                                                                                                      protecting a specified piece of                       102–117; and 48 CFR 1.301–1.304.
                                                (b) The contracting officer shall also
                                                                                                      contractor-installed equipment that is
                                             provide in the solicitation that the                                                                           ■ 10. Subpart 847.2 is added to read as
                                                                                                      guaranteed under a construction
                                             contractor is responsible for all of the                                                                       follows:
                                                                                                      contract. Specifications for certain high-
                                             following:
                                                                                                      dollar or traditionally troublesome                   Subpart 847.2—Contracts for
                                                (1) Arranging and paying for                          equipment are designed to allow for the               Transportation or for Transportation-
                                             inspection services.                                     original installer of the equipment to                Related Services
                                                (2) Obtaining from the inspectors a                   service the equipment throughout the                  Sec.
                                             certificate indicating that the product                  guaranty period.                                      847.207 Solicitation provisions, contract
                                             complies with specifications.                              (b) Guarantee period services are not                    clauses, and special requirements.
                                                (3) Assuring that the certificate, or                 the same as the 1-year general                        847.207–8 Government responsibilities.
                                             copy, accompanies the shipment.                          construction guaranty clause found at                 847.207–70 VA solicitation provisions,
                                                (4) Furnishing samples for inspection                                                                            contract clauses, and special
                                                                                                      FAR clause 52.246–21, Warranty of                          requirements.
                                             at the contractor’s expense.                             Construction.
                                                (5) Indicating the address where                        (c) The contracting officer may                     Subpart 847.2—Contracts for
                                             inspection will occur.                                   determine, when in the best interest of               Transportation or for Transportation-
                                                (c) The contracting officer must                      VA that guarantee period services, not                Related Services
                                             furnish a copy of the purchase                           to exceed a period of 5 years, are
                                             document to the inspecting activity.                     appropriate to protect the integrity of               847.207 Solicitation provisions, contract
                                                                                                      the installed equipment and ensure that               clauses, and special requirements.
                                             846.470 Use of commercial organizations
                                                                                                      the equipment performs as guaranteed.                 847.207–8    Government responsibilities.
                                             for inspections and grading services.
                                                                                                        (d) When the determination is made                    Transportation payments are audited
                                                The contracting officer may use a                     under paragraph (c) of this section, the
                                             commercial organization for inspection                                                                         by the Traffic Manager, to ensure that
                                                                                                      contracting officer shall include the                 payment and payment mechanisms for
                                             and grading services when the                            guarantee period of services as a
                                             contracting officer determines that all of                                                                     agency transportation are uniform and
                                                                                                      separately priced contract line item                  appropriate in accordance with 41 CFR
                                             the following exist:                                     number (CLIN) in solicitations and
                                                (a) The results of a technical                                                                              part 102–118.
                                                                                                      contracts.
                                             inspection or grading are dependent                        (e) The contracting officer shall insert            847.207–70 VA solicitation provisions,
                                             upon the application of scientific                       the clause at 852.246–75, Warranty of                 contract clauses, and special requirements.
                                             principles or specialized techniques.                    Construction—Guarantee Period                            (a) Insurance under patient
                                                (b) VA is unable to employ the                        Services, in solicitations and contracts              transportation contracts. The
                                             personnel qualified to properly perform                  for construction that include the FAR                 contracting officer shall ensure that all
                                             the services and is unable to locate                     clause 52.246–21, Warranty of                         the proper certificates of insurance are
                                             another Federal agency capable of                        Construction, and that also include                   submitted to perform on the contract, as
                                             providing the service.                                   guarantee period services.                            outlined in the solicitation, and
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                                                (c) The inspection or grading results                   (f) In accordance with the approved                 subsequently included in the contract
                                             issued by a private organization are                     VA specifications, the following types of             file. In accordance with 828.306, the
                                             essential to verify the acceptance or                    equipment contain the guarantee period                contracting officer shall insert the
                                             rejection of a special commodity.                        services specifications. The following                provision at 852.228–71,
                                                (d) The services may be performed                     represents a sampling of these                        Indemnification and Insurance, in
                                             without direct Government supervision.                   specifications.                                       solicitations when utilizing term


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                                                              Federal Register / Vol. 83, No. 185 / Monday, September 24, 2018 / Rules and Regulations                                           48261

                                             contracts or contracts of a continuing                  maintained throughout the life of the                 Subpart 847.3—Transportation in
                                             nature for ambulance, automobile and                    contract, and be made available for                   Supply Contracts
                                             aircraft service. When contracting for                  inspection upon request. The contractor
                                             these services, consider using                          shall forward to the contracting officer,             847.302    Place of delivery—f.o.b. point.
                                             requirements language such as the                       on an annual basis, a list of contractor                 The contracting officer shall insert
                                             following:                                              employees listing the employees name,                 clause 852.247–71, Delivery Location, or
                                                (1) Written proof of insurance                       position(s), and licenses and/or                      a clause substantially the same as the
                                             coverage as required and outlined in the                certifications and their current                      clause at 852.247–71, Delivery Location,
                                             solicitation is required prior to award of              certification number. This annual                     in supply contracts when it is necessary
                                             any contract. Coverage must be                          statement of driver competency must                   to specify delivery locations. If
                                             maintained continually through the life                 include any advanced certifications,                  appropriate, the clause may reference an
                                             of the contract.                                        such as Advanced Cardiac Life Support                 attachment which lists various delivery
                                                (2) Within 10 days of notification of                                                                      locations and other delivery details (e.g.,
                                                                                                     or specialized training to assist and
                                             acceptance and pending award of                                                                               quantities to be delivered to each
                                                                                                     secure patients by stretcher or
                                             contract, the contractor shall furnish to                                                                     location, etc.).
                                             the contracting officer a certificate of                wheelchair, as applicable.
                                             insurance which shall contain an                           (4) Within seven (7) days after receipt            847.305 Solicitation provisions, contract
                                             endorsement to the effect that                          of award notification, the contractor                 clauses, and transportation factors.
                                             cancellation of, or any material change                 shall provide evidence of required                    847.305–10 Packing, marking, and
                                             in, the policies which adversely affect                 training, certifications, licensing and               consignment instructions.
                                             the interests of the Government in such                 any other qualifications of any                          (a) The contracting officer shall insert
                                             insurance shall not be effective unless a               personnel who will be performing                      clause 852.247–72, Marking
                                             30-day advance written notice of                        services under the contract. The initial              Deliverables, or a clause substantially
                                             cancellation or change is furnished to                  documentation shall be provided to the                the same as 852.247–72 in solicitations
                                             the contracting officer.                                contracting officer and COR.                          and contracts if special marking on
                                                (3) Within 10 days of notification of                                                                      deliverables are required.
                                                                                                        (c) Contracts must include
                                             acceptance and pending award of                                                                                  (b) The contracting officer shall insert
                                             contract, and prior to award of a                       requirements to report vehicle accidents
                                                                                                     and incidents to the contracting officer              the clause at 852.247–73, Packing for
                                             contract, the contractor shall furnish to                                                                     Domestic Shipment, in contracts when
                                             the contracting officer a copy of the                   with a formal accident report.
                                                                                                                                                           item(s) will be delivered for immediate
                                             contractor’s current and valid Worker’s                    (d) Contracts for ambulance services               use to a destination in the continental
                                             Compensation certificate.                               must require that the contractor meet                 United States; when the material
                                                (b) Contractor personnel. The                        the current specifications of Federal                 specification or purchase description
                                             contracting officer shall ensure that                   Specification KKK–A–1822E, ‘‘Star of                  does not provide preservation,
                                             contractor personnel have the                           Life Ambulance’’ standard.                            packaging, packing, and/or marking
                                             appropriate level of training,                             (e) Contracts must include                         requirements; and/or when the
                                             experience, licensure, and pertinent                    requirements to ensure patient safety is              requiring activity has not cited a
                                             qualifications to ensure patient safety.                maintained through the consistent                     specific specification for packaging.
                                             When contracting for these services,
                                                                                                     practice of securing patient care
                                             consider using requirements language                                                                          847.305–70 Potential destinations known
                                                                                                     equipment, other cargo, and vehicles,
                                             such as the following:                                                                                        but quantities unknown.
                                                (1) All contractor personnel                         and ensure that security of patients in
                                                                                                                                                              When the contracting officer contracts
                                             performing contract services shall meet                 vehicles is established and observed
                                                                                                                                                           with multiple bidders to provide items
                                             the qualifications as specified in the                  when transportation needs are either
                                                                                                                                                           directly to VA field installations, on an
                                             contract, as well as any qualifications                 primary or secondary in the actual
                                                                                                                                                           f.o.b. origin basis, the evaluation of bids
                                             required by Federal, State, County, and                 performance of the contract. When
                                                                                                                                                           must follow specific procedures. In
                                             local Government entities from the                      contracting for these services, consider              these instances, the contracting officer
                                             place in which they operate. Contractor                 using requirements language to ensure                 shall insert clause 852.247–70,
                                             personnel shall meet these                              that patient transportation meets                     Determining Transportation Costs for
                                             qualifications at all times while                       industry standards for transporting                   Evaluation of Offers, or a clause
                                             performing contract services.                           patients based on the patient’s                       substantially the same as clause
                                                (2) During the contract period of                    condition/needs (e.g., wheelchair,                    852.247–70. By inserting this clause,
                                             performance, if the contractor proposes                 ambulatory, on stretcher, etc.).                      each bid is placed on an equal basis,
                                             to add-on, or replace personnel to                      ■ 11. Subpart 847.3 is revised to read as             even though specific quantities required
                                             perform contract services, the contractor               follows:                                              by each facility cannot be
                                             shall submit required evidence of                                                                             predetermined. The contracting officer
                                             training, certifications, licensing,                    Subpart 847.3—Transportation in Supply                must use an anticipated demand factor
                                             background, and security clearances,                    Contracts                                             in proportion to the number of hospital
                                             and any other applicable qualifications                 847.302 Place of delivery—f.o.b. point.               beds or patient workload.
                                             to the designated contracting officer’s                 847.305 Solicitation provisions, contract
                                             representative (COR). At no time shall                      clauses, and transportation factors.              847.305–71    VA contract clauses.
                                             the contractor utilize add-on or                        847.305–10 Packing, marking, and                        (a) The contracting officer shall insert
                                                                                                                                                           clause 852.247–74, Advance Notice of
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                                             replacement personnel to perform                            consignment instructions.
                                             contract services who do not meet the                   847.305–70 Potential destinations known               Shipment, or a clause substantially the
                                             qualifications under the terms and                          but quantities unknown.                           same as 852.247–74, in solicitations and
                                             conditions of the contract.                             847.305–71 VA contract clauses.                       contracts when the f.o.b. point is
                                                (3) Records of contractor personnel                  847.306 Transportation factors in the                 destination, and special Government
                                             qualifications and eligibility to perform                   evaluation of offers.                             assistance is required in the delivery or
                                             on the contract must be current and                     847.306–70 Records of claims.                         receipt of the items.


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                                             48262            Federal Register / Vol. 83, No. 185 / Monday, September 24, 2018 / Rules and Regulations

                                                (b) The contracting officer shall insert              Frozen Processed Foods (Oct 2018)                      Contractor and its sureties shall be liable for
                                             clause 852.247–75, Bills of Lading, or a                    The products delivered under this contract          any damages to the Government resulting
                                             clause substantially the same as clause                  shall be in excellent condition, shall not             from the Contractor’s refusal or failure to
                                                                                                      show evidence of defrosting, refreezing, or            complete the work within this specified time,
                                             at 852.247–75, in f.o.b. origin
                                                                                                      freezer burn and shall be transported and              whether or not the Contractor’s right to
                                             solicitations and contracts.                                                                                    proceed with the work is terminated. This
                                                                                                      delivered to the consignee at a temperature
                                             847.306 Transportation factors in the                    of 0 degrees Fahrenheit or lower.                      liability includes any increased costs
                                             evaluation of offers.                                                                                           incurred by the Government in completing
                                                                                                      (End of Clause)                                        the work.
                                             847.306–70       Records of claims.                      ■ 17. Section 852.246–73 is revised to                 (End of Clause)
                                               When contracting for transportation,                   read as follows:                                       ■ 20. Section 852.246–76 is added to
                                             and consistent with FAR 15.304,                                                                                 read as follows:
                                                                                                      852.246–73 Noncompliance with
                                             contracting officers should consider                     Packaging, Packing, and/or Marking
                                             using offerors’ record of claims                                                                                852.246–76        Purchase of Shellfish.
                                                                                                      Requirements.
                                             involving loss or damage as an                                                                                    As prescribed in 846.370–4 insert the
                                                                                                        As prescribed in 846.370–3, insert the               following clause:
                                             evaluation factor or subfactor.
                                                                                                      following clause:
                                                                                                                                                             Purchase of Shellfish (OCT 2018)
                                             PART 852—SOLICITATION                                    Noncompliance With Packaging, Packing
                                             PROVISIONS AND CONTRACT                                  and/or Marking Requirements (Oct 2018)                   The supplier certifies that oysters, clams,
                                                                                                                                                             and mussels will be furnished only from
                                             CLAUSES                                                    Failure to comply with the packaging,                plants approved by and operated under the
                                                                                                      packing and/or marking requirements                    supervision of shellfish authorities of States
                                             ■ 12. The authority citation for part 852                indicated herein, or incorporated herein by            whose certifications are endorsed currently
                                             continues to read as follows:                            reference, may result in rejection of the              by the U.S. Public Health Service, and the
                                               Authority: 38 U.S.C. 8127–8128, and 8151–              merchandise and request for replacement or             names and certificate numbers of those
                                             8153; 40 U.S.C. 121(c); 41 U.S.C. 1121(c)(3);            repackaging, repacking, and/or marking. The            shellfish dealers must appear on current lists
                                             41 U.S.C. 1303; 41 U.S.C. 1702; and 48 CFR               Government reserves the right, without                 published by the U.S. Public Health Service.
                                             1.301–1.304.                                             obtaining authority from the Contractor, to            These items shall be packed and delivered in
                                                                                                      perform the required repackaging, repacking,           approved containers, sealed in such manner
                                             852.229–70       [Removed and Reserved]                  and/or marking services and charge the                 that tampering is easily discernible, and
                                                                                                      Contractor at the actual cost to the                   marked with packer’s certificate number
                                             ■ 13. Section 852.229–70 is removed                      Government for the same or have the                    impressed or embossed on the side of such
                                             and reserved.                                            required repackaging, repacking, and/or                containers and preceded by the State
                                                                                                      marking services performed commercially                abbreviation. Containers shall be tagged or
                                             852.246–70       [Removed and Reserved]                  under Government order and charge the                  labeled to show the name and address of the
                                             ■ 14. Section 852.246–70 is removed                      Contractor at the invoice rate. In connection          approved producer or shipper, the name of
                                             and reserved.                                            with any discount offered, time will be                the State of origin, and the certificate number
                                                                                                      computed from the date of completion of                of the approved producer or shipper.
                                             ■ 15. Section 852.246–71 is revised to                   such repackaging, repacking and/or marking
                                             read as follows:                                                                                                (End of Clause)
                                                                                                      services.
                                                                                                      (End of Clause)                                        ■ 21. Section 852.247–70 is revised to
                                             852.246–71       Rejected Goods.                                                                                read as follows:
                                               As prescribed in 846.370–1, insert the                 852.246–74        [Removed and Reserved]
                                             following clause:                                                                                               852.247–70 Determining Transportation
                                                                                                      ■ 18. Section 852.246–74 is removed                    Costs for Evaluation of Offers.
                                             Rejected Goods (Oct 2018)                                and reserved.                                            As prescribed in 847.305–70, insert
                                                (a) Supplies and equipment. Rejected                  ■ 19. Section 852.246–75 is revised to                 the following provision:
                                             goods will be held subject to Contractor’s               read as follows:
                                             order for not more than 15 days, after which                                                                    Determining Transportation Costs for
                                             the rejected merchandise will be returned to             852.246–75 Warranty of Construction—                   Evaluation of Offers (Oct 2018)
                                             the Contractor’s address at the Contractor’s             Guarantee Period Services.                                For the purpose of evaluating bids and for
                                             risk and expense. Expenses incident to the                 As prescribed in 846.702–70(e), insert               no other purpose, the delivered price per unit
                                             examination and testing of materials or                  the following clause:                                  will be determined by adding the nationwide
                                             supplies that have been rejected will be                                                                        average transportation charge to the f.o.b.
                                             charged to the Contractor.                               Warranty of Construction—Guarantee                     origin bid prices. The nationwide average
                                                (b) Perishable supplies. The Contractor               Period Services (Oct 2018)                             transportation charge will be determined by
                                             shall remove rejected perishable supplies                   The clause 52.246–21, Warranty of                   applying the following formula: Multiply the
                                             within 48 hours after notice of rejection.               Construction, is supplemented as follows:              guaranteed shipping weight by the freight,
                                             Supplies determined to be unfit for human                   Should the Contractor fail to complete the          parcel post, or express rate, whichever is
                                             consumption will not be removed without                  work or fail to proceed promptly to provide            proper, to each destination shown below and
                                             permission of the local health authorities.              guarantee period services after notification by        then multiply the resulting transportation
                                             Supplies not removed within the allowed                  the Contracting Officer, the Government may,           charges by the anticipated demand factor
                                             time may be destroyed. The Department of                 subject to the default clause contained at             shown for each destination. Total the
                                             Veterans Affairs will not be responsible for,            FAR 52.249–10, Default (Fixed-Price                    resulting weighted transportation charges for
                                             nor pay for, products rejected. The Contractor           Construction), and after allowing the                  all destinations and divide the total by 20 to
                                             will be liable for costs incident to                     Contractor 10 days to correct and comply               give the nationwide average transportation
                                             examination of rejected products.                        with the contract, terminate the right to              charge.
                                             (End of Clause)                                          proceed with the work (or the separable part
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                                                                                                      of the work) that has been delayed or                               ANTICIPATED DEMAND
                                             ■ 16. Section 852.246–72 is revised to                   unsatisfactorily performed. In this event, the
                                             read as follows:                                         Government may take over the work and                              Area destination                     Factor
                                                                                                      complete it by contract or otherwise, and
                                             852.246–72       Frozen Processed Foods.                                                                        Oakland, California .......................               3
                                                                                                      may take possession of and use any
                                               As prescribed in 846.370–2, insert the                 materials, appliances, and plant on the work           Dallas, Texas ................................            2
                                             following clause:                                        site necessary for completing the work. The            Omaha, Nebraska ........................                  3



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                                                               Federal Register / Vol. 83, No. 185 / Monday, September 24, 2018 / Rules and Regulations                                                   48263

                                                 ANTICIPATED DEMAND—Continued                              (End of Clause)                                        PART 870—[REMOVED AND
                                                                                                                                                                  RESERVED]
                                                        Area destination                      Factor       ■ 26. Section 852.247–75 is added to
                                                                                                           read as follows:                                       ■ 29. Under the authority of 48 CFR
                                             Fort Wayne, Indiana .....................                 4                                                          1.301 through 1.304, part 870 is
                                             Atlanta, Georgia ............................             3   852.247–75        Bills of Lading.
                                                                                                                                                                  removed and reserved.
                                             New York, New York ....................                   5     As prescribed in 847.305–71(b), insert               [FR Doc. 2018–20323 Filed 9–21–18; 8:45 am]
                                                  Total of factors ......................            20    the following clause:                                  BILLING CODE 8320–01–P
                                                                                                           Bills of Lading (Oct 2018)
                                             (End of Provision)
                                                                                                              The purpose of this clause is to define
                                             ■ 22. Section 852.247–71 is added to                          when a commercial bill of lading or a                  DEPARTMENT OF COMMERCE
                                             read as follows:                                              Government bill of lading is to be used when
                                                                                                           shipments of deliverable items under this
                                                                                                                                                                  National Oceanic and Atmospheric
                                             852.247–71        Delivery Location.                                                                                 Administration
                                                                                                           contract are f.o.b. origin.
                                               As prescribed in 847.302, insert a                             (a) Commercial bills of lading. All
                                             clause substantially as follows:                              domestic shipments shall be made via                   50 CFR Part 679
                                             Delivery Location (Oct 2018)                                  commercial bills of lading (CBLs). The                 [Docket No. 170817779–8161–02]
                                               Shipment of deliverable items, other than                   Contractor shall prepay domestic
                                                                                                           transportation charges. The Government shall           RIN 0648–XG398
                                             reports, shall be to: __ [Contracting Officer
                                             shall insert appropriate identifying data].                   reimburse the Contractor for these charges if
                                                                                                           they are added to the invoice as a separate            Fisheries of the Exclusive Economic
                                             (End of Clause)                                                                                                      Zone Off Alaska; Pacific Cod by Pot
                                                                                                           line item supported by the paid freight
                                             ■ 23. Section 852.247–72 is added to                          receipts. If paid receipts in support of the           Catcher/Processors in the Bering Sea
                                             read as follows:                                              invoice are not obtainable, a statement as             and Aleutian Islands Management Area
                                                                                                           described below must be completed, signed              AGENCY:  National Marine Fisheries
                                             852.247–72        Marking Deliverables.
                                                                                                           by an authorized company representative,               Service (NMFS), National Oceanic and
                                               As prescribed in 847.305–10(a) insert                       and attached to the invoice.
                                             a clause substantially the same as:                                                                                  Atmospheric Administration (NOAA),
                                                                                                              ‘‘I certify that the shipments identified           Commerce.
                                                                                                           below have been made, transportation
                                             Marking Deliverables (Oct 2018)                                                                                      ACTION: Temporary rule; closure.
                                                                                                           charges have been paid by __ [company
                                               (a) The contract number shall be placed on                  name], and paid freight or comparable
                                             or adjacent to all exterior mailing or shipping                                                                      SUMMARY:   NMFS is prohibiting directed
                                                                                                           receipts are not obtainable.                           fishing for Pacific cod by catcher/
                                             labels of deliverable items called for by the                    Contract or Order Number: __
                                             contract.                                                                                                            processors using pot gear in the Bering
                                                                                                              Destination: __ .’’
                                               (b) Mark deliverables, except reports, for:                                                                        Sea and Aleutian Islands management
                                                                                                              (b) Government bills of lading. (1)
                                             __[Contracting Officer shall insert                                                                                  area (BSAI). This action is necessary to
                                             appropriate identifying data].                                International (export) and domestic overseas
                                                                                                                                                                  prevent exceeding the annual
                                                                                                           shipments of items deliverable under this
                                             (End of Clause)                                                                                                      apportionment of the 2018 Pacific cod
                                                                                                           contract shall be made by Government bills
                                                                                                                                                                  total allowable catch allocated to
                                             ■ 24. Section 852.247–73 is added to                          of lading (GBLs). As used in this clause,
                                                                                                                                                                  catcher/processors using pot gear in the
                                             read as follows:                                              ‘‘domestic overseas’’ means non-continental
                                                                                                           United States, i.e., Hawaii, Commonwealth of
                                                                                                                                                                  BSAI.
                                             852.247–73        Packing for Domestic                        Puerto Rico, and possessions of the United             DATES: Effective September 20, 2018,
                                             Shipment.                                                                                                            through 2400 hours, A.l.t., December 31,
                                                                                                           States.
                                               As prescribed in 847.305–10(b), insert                         (2) At least 15 days before shipment, the           2018.
                                             the following clause:                                         Contractor shall request in writing GBLs               FOR FURTHER INFORMATION CONTACT: Josh
                                             Packing for Domestic Shipment (Oct 2018)                      from: __ [Insert name, title, and mailing              Keaton, 907–586–7228.
                                                                                                           address of designated transportation officer           SUPPLEMENTARY INFORMATION: NMFS
                                               Material shall be packed for shipment in
                                             such a manner that will insure acceptance by                  or other official delegated responsibility for         manages the groundfish fishery in the
                                             common carriers and safe delivery at                          GBLs]. If time is limited, requests may be by          BSAI exclusive economic zone
                                             destination. Containers and closures shall                    telephone: __ [Insert appropriate telephone            according to the Fishery Management
                                             comply with regulations of carriers as                        number]. Requests for GBLs shall include the           Plan for Groundfish of the Bering Sea
                                             applicable to the mode of transportation.                     following information.                                 and Aleutian Islands Management Area
                                             (End of Clause)                                                  (i) Item identification/description.                (FMP) prepared by the North Pacific
                                                                                                              (ii) Origin and destination.
                                             ■ 25. Section 852.247–74 is added to                                                                                 Fishery Management Council under
                                                                                                              (iii) Individual and total weights.
                                             read as follows:                                                                                                     authority of the Magnuson-Stevens
                                                                                                              (iv) Dimensional weight.
                                                                                                                                                                  Fishery Conservation and Management
                                             852.247–74        Advance Notice of Shipment.                    (v) Dimensions and total cubic footage.
                                                                                                                                                                  Act. Regulations governing fishing by
                                                                                                              (vi) Total number of pieces.
                                               As prescribed in 847.305–71(a), insert                                                                             U.S. vessels in accordance with the FMP
                                                                                                              (vii) Total dollar value.
                                             the following clause:                                                                                                appear at subpart H of 50 CFR part 600
                                                                                                              (viii) Other pertinent data.
                                                                                                                                                                  and 50 CFR part 679.
                                             Advance Notice of Shipment (Oct 2018)                         (End of Clause)                                           The annual apportionment of the
                                               __ [Insert number of work days] work days                                                                          2018 Pacific cod total allowable catch
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                                             prior to shipping item(s)                                     852.270–2     [Removed]
                                                                                                                                                                  (TAC) allocated to catcher/processors
                                               __ [Insert items to be shipped], the
                                             Contractor shall furnish the anticipated                      ■   27. Section 852.270–2 is removed.                  using pot gear in the BSAI is 2,720
                                             shipment date, bill of lading number (if                                                                             metric tons (mt) as established by the
                                             applicable), and carrier identity to __ [Insert               852.270–3     [Removed]                                final 2018 and 2019 harvest
                                             individual(s) to receive notification] and to                                                                        specifications for groundfish in the
                                                                                                           ■   28. Section 852.270–3 is removed.
                                             the Contracting Officer.                                                                                             BSAI (83 FR 8365, February 27, 2018).


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Document Created: 2018-09-22 00:33:17
Document Modified: 2018-09-22 00:33:17
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis rule is effective on October 24, 2018.
ContactMr. Rafael N. Taylor, Senior Procurement Analyst, Procurement Policy and Warrant Management Services, 003A2A, 425 I Street NW, Washington, DC 20001, (202) 382- 2787. (This is not a toll-free number.)
FR Citation83 FR 48257 
RIN Number2900-AQ04
CFR Citation48 CFR 829
48 CFR 846
48 CFR 847
48 CFR 852
48 CFR 870
CFR AssociatedGovernment Procurement; Taxes; Transportation; Reporting and Recordkeeping Requirements; Asbestos; Frozen Foods and Telecommunications

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