VA Acquisition Regulation: Bonds and Insurance

[Federal Register Volume 64, Number 143 (Tuesday, July 27, 1999)]
[Rules and Regulations]
[Pages 40518-40519]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19107]


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DEPARTMENT OF VETERANS AFFAIRS

48 CFR Parts 828 and 852

RIN 2900-AJ47


VA Acquisition Regulation: Bonds and Insurance

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: This document amends the Department of Veterans Affairs 
Acquisition Regulation to revise and update section numbers and titles 
to correspond with the Federal Acquisition Regulation, to make minor 
grammatical corrections and revisions, to allow return of bid 
guarantees, other than bid bonds, to bidders by any method that will 
provide evidence of receipt, and to designate the Deputy Assistant 
Secretary for Acquisition and Materiel Management as the Department's 
designee for excluding individuals from acting as sureties on bonds and 
for making determinations to accept bonds from individuals named on the 
List of Parties Excluded from Federal Procurement and Nonprocurement 
Programs.

DATES: Effective Date: July 27, 1999.

FOR FURTHER INFORMATION CONTACT: Don Kaliher, Acquisition Policy Team 
(95A), Office of Acquisition and Materiel Management, Department of 
Veterans Affairs, 810 Vermont Ave., NW, Washington DC 20420, (202) 273-
8819.

SUPPLEMENTARY INFORMATION: The requirement at 828.101-70 to return bid 
guarantees, other than bid bonds, by certified mail has been modified 
to allow any method of delivery that will provide evidence of receipt. 
This will

[[Page 40519]]

allow the use of express delivery services, may simplify the return and 
tracking process, and is consistent with similar coverage in the 
Federal Acquisition Regulation (FAR) at 11.403(d) and 33.211(b).
    This final rule provides that the Deputy Assistant Secretary for 
Acquisition and Materiel Management (DAS for A&MM) is delegated 
authority to act as the Secretary's designee under section 28.203-7 of 
the FAR. Accordingly, the DAS for A&MM may make determinations to 
exclude individuals from acting as sureties on bonds and to accept 
bonds from individuals whose names appear on the List of Parties 
Excluded from Federal Procurement and Nonprocurement Programs. We think 
the DAS for A&MM is the appropriate official to make these 
determinations.
    This final rule concerns contracts and would not have a significant 
effect on individuals or entities. Accordingly, we are dispensing with 
prior notice and comment and a delayed effective date.
    The Secretary hereby certifies that 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 (RFA), 5 U.S.C. 
601-612. This rule would not cause a significant effect on any 
entities. Therefore, pursuant to 5 U.S.C. 605(b), this rule is exempt 
from the initial and final regulatory flexibility analysis requirements 
of Secs. 603 and 604.

OMB Review

    This document has been reviewed by OMB pursuant to Executive Order 
12866.

List of Subjects

48 CFR Part 828

    Government procurement, Insurance, Surety bonds.

48 CFR Part 852

    Government procurement, Reporting and recordkeeping requirements.

    Approved: April 14, 1999
Togo D. West, Jr.,
Secretary of Veterans Affairs.

    For the reasons set forth in the preamble, 48 CFR Chapter 8 is 
amended as follows:

PART 828--BONDS AND INSURANCE

    1. The authority citation for part 828 continues to read as 
follows:

    Authority: 38 U.S.C. 501 and 40 U.S.C. 486(c).

    2. The heading for subpart 828.1 is revised to read as follows:

Subpart 828.1--Bonds and Other Financial Protections


828.101-3  [Redesignated as 828.101-2]

    3. Section 828.101-3 is redesignated as 828.101-2.


828.101-70  [Amended]

    4. Section 828.101-70, paragraph (a) is amended by removing 
``certified mail or in person upon presentation of proper receipt after 
contract and bonds'' and adding, in its place, ``any method that will 
provide evidence of receipt, or in person upon presentation of proper 
receipt, after the contract and contract bonds''; paragraph (b) is 
amended by removing ``certified mail, or'' and adding, in its place, 
``by any method that will provide evidence of receipt or''; and 
paragraph (c) is amended by removing ``until contract and bonds'' and 
adding, in its place, ``until the contract and contract bonds''.
    5. Section 828.106 heading is added immediately preceding 828.106-6 
to read as follows:


828.106  Administration.

    6. Section 828.106-6 is revised to read as follows:


828.106-6  Furnishing information.

    For all contracts except contracts awarded by the Office of 
Facilities Management, the head of the contracting activity, as defined 
in 802.100, shall be the Department designee referenced in FAR 28.106-
6(c) to furnish copies of payment bonds to requestors. For contracts 
awarded by the Office of Facilities Management, the Office of 
Facilities Management contracting officer shall be the Department 
designee.
    7. Subpart 828.2 is added to read as follows:

Subpart 828.2--Sureties and Other Security for Bonds


828.203-7  Exclusion of individual sureties.

    The Deputy Assistant Secretary for Acquisition and Materiel 
Management is delegated authority to make the determinations referenced 
in FAR 28.203-7 to exclude individuals from acting as surety on bonds 
and to accept bonds from individuals named on the List of Parties 
Excluded from Federal Procurement and Nonprocurement Programs.


828.306  [Amended]

    8. Section 828.306, paragraph (b) is amended by removing ``this 
828.306'' and adding, in its place, ``paragraph (a) of this section''.
    9. The heading of Subpart 828.70 is removed.


828.7000  [Redesignated as 828.106-70]

    10. Section 828.7000 is redesignated as 828.106-70.


828.7100  [Amended]

    11. Section 828.7100, paragraph (a) is amended by removing 
``contracts which involve a risk of an unusually hazardous nature, 
covering medical research or development as'' and adding, in its place, 
``contracts covering medical research or development which involve 
risks of an unusually hazardous nature, as''.


828.7103  [Amended]

    12. Section 828.7103, paragraph (a) is amended by removing ``The 
financial protection to cover'' and adding, in its place, ``The amount 
of financial protection that the contractor is required to have and 
maintain to cover'' and by removing ``which the contractor is required 
to have and maintain''.

PART 852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    13. The authority citation for part 852 continues to read as 
follows:

    Authority: 38 U.S.C. 501 and 40 U.S.C. 486(c).


852.228-70  [Amended]

    14. Section 852.228-70, introductory text is amended by removing 
``828.7000'' and adding, in its place, ``828.106-70''.

[FR Doc. 99-19107 Filed 7-26-99; 8:45 am]
BILLING CODE 8320-01-P