VA Acquisition Regulation: Describing Agency Needs; Contract Financing
Final rule.
CFR Part: "48 CFR Parts 801, 811, 832, 852, and 870"
RIN Number: "RIN 2900-AP81"
Citation: "83 FR 49302"
Page Number: "49302"
"Rules and Regulations"
Agency: "
SUMMARY: The
DATES: This rule is effective on
FOR FURTHER INFORMATION CONTACT: Mr.
SUPPLEMENTARY INFORMATION: On
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
Paperwork Reduction Act
This final rule imposes the following amended information collection requirements to two of the six existing information collection approval numbers associated with this rule. Although this action contains provisions constituting collections of information at 48 CFR 852.236-82 and 852.236-83, under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501-3521), no new proposed collections of information are associated with these clauses. The information collection requirements for 48 CFR 852.236-82 and 852.236-83 are currently approved by the
This final rule imposes the following amended information collection requirements to one of the six existing information collection approval numbers associated with this rule. Although this action contains provisions constituting collections of information at 48 CFR 852.211-70, Service Data Manuals, under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501-3521), no new proposed information collection is associated with this clause. The information collection requirement for 48 CFR 852.211-70 is currently approved by OMB and has been assigned OMB control number 2900-0587. However, this information collection has been submitted to OMB to revise the title from "Service Data Manuals," to read, "Equipment Operation and Maintenance Manuals." The information collection request reflects the revised title for this clause to read: 852.211-70, Equipment Operation and Maintenance Manuals, under the associated OMB control number 2900-0587. By revising the clause and removing the requirement to develop Government-specified service manuals,
This final rule removes two of the six existing information collection requirements associated with this action at 48 CFR 852.211-71, Special Notice, and 48 CFR 852.211-73, Brand Name or Equal. Under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501-3521), it discontinues the associated corresponding approved OMB control numbers, 2900-0588 and 2900-0585, respectively. For 48 CFR 852.211-71, Special Notice, and its corresponding OMB control number 2900-0588, this results in a removal of 875 estimated annual burden hours. For 48 CFR 852.211-73, Brand Name or Equal, and its corresponding OMB control number 2900-0585, this results in a removal of 1,125 estimated annual burden hours. Notice of OMB approval for the information collection requests will be published in a future
This final rule also contains two other provisions constituting a collection of information at 48 CFR 852.211-72, Technical Industry Standards, and 48 CFR 832.202-4, Security for Government financing, which remain unchanged. Under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521), no new or proposed revised collection of information is associated with these provisions as a part of this rule. The information collection requests for 48 CFR 852.211-72 and 48 CFR 832.202-4 are currently approved by OMB and have been assigned OMB control numbers 2900-0586 and 2900-0688, respectively. The burden of these information collections remains unchanged. In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521), OMB has approved the reporting or recordkeeping provisions that are included in the clause and the text under section 832.202-4 cited above and has given the
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 rule text does not change
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
List of Subjects
48 CFR Part 801
Administrative practice and procedure, Government procurement, Reporting and recordkeeping requirements.
48 CFR Parts 811 and 832
Government procurement.
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
Dated:
Regulations Development Coordinator,
For the reasons set out in the preamble,
PART 801--DEPARTMENT OF VETERANS AFFAIRS ACQUISITION REGULATION SYSTEM
1. The authority citation for part 801 is revised to read as follows:
Authority:40 U.S.C. 121(c); 41 U.S.C. 1121; 41 U.S.C. 1303; 41 U.S.C. 1702; and 48 CFR 1.301-1.304.
2. In section 801.106, table columns titled "48 CFR part or section where identified and described" and "Current OMB control number" are amended by--
a. Removing the reference to section 832.006-4 and OMB Control Number 2900-0668.
b. Removing the reference to section 852.211-71 and OMB Control Number 2900-0588.
c. Removing the reference to section 852.211-73 and OMB Control Number 2900-0585.
d. Removing "852.236-82 through."
e. Adding an entry for sections 852.232-70 and 852.232-71 in numerical order.
The addition reads as follows:
801.106OMB approval under the Paperwork Reduction Act.
*****
48 CFR part or section Current OMB where identified and control No. described * * * * * * * 852.232-70 and 852.232-71 2900-0422 * * * * * * *
3. Under the authority of 48 CFR 1.301 through 1.304, the heading of subchapter B is revised to read as follows:
SUBCHAPTER B--ACQUISITION PLANNING
PART 811--DESCRIBING AGENCY NEEDS
4. The authority citation for part 811 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.
811.001[Removed]
5. Section 811.001 is removed.
6. Revise subpart 811.1 to read as follows:
Subpart 811.1--Selecting and Developing Requirements Documents
811.107-70Contract clause.
The contracting officer shall insert the clause at 852.211-70, Equipment Operation and Maintenance Manuals, in solicitations and contracts for technical medical equipment, and other technical and mechanical equipment and devices where the requiring activity determines manuals are a necessary requirement for operation and maintenance of the equipment.
7. Revise subpart 811.2 to read as follows:
Subpart 811.2--Using and Maintaining Requirements Documents
811.204-70Contract clause.
The contracting officer shall insert the clause at 852.211-72, Technical Industry Standards, in solicitations and contracts requiring conformance to technical industry standards, federal specifications, standards and commercial item descriptions unless comparable coverage is included in the item specification.
Subpart 811.4--[Removed and Reserved]
8. Subpart 811.4 is removed and reserved.
Subpart 811.5--[Removed and Reserved]
9. Subpart 811.5 is removed and reserved.
Subpart 811.6--[Removed and Reserved]
10. Subpart 811.6 is removed and reserved.
PART 832--CONTRACT FINANCING
11. The authority citation for part 832 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.
12. Section 832.001 is added to read as follows:
832.001Definitions.
As used in this part:
(a) Designated agency office means the office designated by the purchase order, agreement, or contract to first receive and review invoices. This office can be contractually designated as the receiving entity. This office may be different from the office issuing the payment.
(b) Electronic form means an automated system transmitting information electronically according to the accepted electronic data transmission methods identified in 832.7002-1. Facsimile, email, and scanned documents are not acceptable electronic forms for submission of payment requests.
(c) Payment request means any request for contract financing payment or invoice payment submitted by a contractor under a contract.
13. Revise section 832.006-1 to read as follows:
832.006-1General.
(b) The Senior Procurement Executive (SPE) is authorized to make determinations that there is substantial evidence that contractors' requests for advance, partial, or progress payments are based on fraud and may direct that further payments to the contractors be reduced or suspended, as provided in FAR 32.006.
832.006-2 and 832.006-3[Removed]
14. Remove sections 832.006-2 and 832.006-3.
15. Section 832.006-4 is revised to read as follows:
832.006-4Procedures.
(b) The Remedy Coordination Official (RCO) for
(e) The RCO shall carry out the responsibilities of the agency head in FAR 32.006-4(e) to notify the contractor of the reasons for the recommended action and of its right to submit information within a reasonable period of time in response to the proposed action under FAR 32.006.
(1) The notice of proposed action will be sent to the last known address of the contractor, the contractor's counsel, or agent for service of process, by certified mail, return receipt requested, or any other method that provides signed evidence of receipt. In the case of a business, the notice of proposed action may be sent to any partner, principal, officer, director, owner or co-owner, or joint venture. The contractor will be afforded an opportunity to appear before the RCO to present information or argument in person or through a representative and may supplement the oral presentation with written information and argument.
(2) The contractor may supplement the oral presentation with written information and argument. The proceedings will be conducted in an informal manner and without the requirement for a transcript. If the RCO does not receive a reply from the contractor within 30 calendar days, the RCO will base his or her recommendations on the information available. Any recommendation of the RCO under FAR 31.006-4(a) and paragraph (b) of this section, must address the results of this notification and the information, if any, provided by the contractor. After reviewing all the information, the RCO shall make a recommendation to the SPE whether or not substantial evidence of fraud exists.
(g) In addition to following the procedures in FAR 32.006-4, the SPE shall provide a copy of each final determination and the supporting documentation to the contractor, the RCO, the contracting officer, and the
Subpart 832.1--Non-Commercial Item Purchase Financing
16. Section 832.111 is revised to read as follows:
832.111Contract clauses for non-commercial purchases.
17. Section 832.111-70 is added to read as follows:
832.111-70VA contract clauses for non-commercial purchases.
(a)(1) Insert the clause at 852.232-70, Payments Under Fixed-Price Construction Contracts (Without NAS-CPM) in solicitations and contracts that contain the FAR clause at 52.232-5, Payments Under Fixed-Price Construction Contracts, and if the solicitation or contract does not require use of the "Network Analysis System--Critical Path Method (NAS-CPM)."
(2) If the solicitation or contract includes guarantee period services, the contracting officer shall use the clause with its Alternate I.
(b)(1) Insert the clause at 852.232-71, Payments Under Fixed-Price Construction Contracts (Including NAS-CPM), in solicitations and contracts that contain the FAR clause at 52.232-5, Payments Under Fixed-Price Construction Contracts, and if the solicitation or contract requires use of the "Network Analysis System--Critical Path Method (NAS-CPM)."
(2) If the solicitation or contract includes guarantee period services, the contracting officer shall use the clause with its Alternate I.
Subpart 832.2--Commercial Item Purchase Financing
832.201[Removed]
18. Section 832.201 is removed.
19. Section 832.202-1 is revised to read as follows:
832.202-1Policy.
(d) HCAs shall report, no later than
20. Section 832.202-4 is revised to read as follows:
832.202-4Security for Government financing.
(a)(2) An offeror's financial condition may be considered adequate security to protect the Government's interest when the Government provides contract financing. In assessing the offeror's financial condition, the contracting officer may obtain, to the extent required, the following information--
(i) A current year interim balance sheet and income statement and balance sheets and income statements for the two preceding fiscal years. The statements should be prepared in accordance with generally accepted accounting principles and must be audited and certified by an independent public accountant or an appropriate officer of the firm;
(ii) A cash flow forecast for the remainder of the contract term showing the planned origin and use of cash within the firm or branch performing the contract;
(iii) Information on financing arrangements disclosing the availability of cash to finance contract performance, the contractor's exposure to financial risk, and credit arrangements;
(iv) A statement of the status of all State, local, and Federal tax accounts, including any special mandatory contributions;
(v) A description and explanation of the financial effects of any leases, deferred purchase arrangements, patent or royalty arrangements, insurance, planned capital expenditures, pending claims, contingent liabilities, and other financial aspects of the business; and
(vi) Any other financial information deemed necessary.
Subpart 832.4--Advance Payments for Non-Commercial Items
21. Section 832.402 is revised to read as follows:
832.402General.
(c)(1)(iii) The authority to make the determination required by FAR 32.402(c)(1)(iii) and to approve contract terms is delegated to the head of the contracting activity (HCA). The request for approval shall include the information required by FAR 32.409-1 and shall address the standards for advance payment in FAR 32.402(c)(2). HCAs shall report, no later than
22. Section 832.404 is revised to read as follows:
832.404Exclusions.
(b)(1) As permitted by 31 U.S.C. 3324(d)(2),
(2) As permitted by 31 U.S.C. 1535,
(3) As permitted by 5 U.S.C. 4109,
Subpart 832.5 [Removed and Reserved]
23. Subpart 832.5 is removed and reserved.
Subpart 832.8 [Removed and Reserved]
24. Subpart 832.8 is removed and reserved.
Subpart 832.9--Prompt Payment
832.904 [Redesignated as 832.904-70 and Amended]
25. Redesignate section 832.904 as 832.904-70 and revise newly redesignated section 832.904-70 to read as follows:
832.904-70Determining payment due dates for small businesses.
Pursuant to
Subpart 832.11 [Removed and Reserved]
26. Subpart 832.11 is removed and reserved.
27. Revise subpart 832.70 to read as follows:
Subpart 832.70--Electronic Invoicing Requirements
Sec.
832.7000General.
832.7001Electronic payment requests.
832.7001-1Data transmission.
832.7001-2Contract clause.
832.7000General.
This subpart prescribes policy requirements for submitting and processing payment requests in electronic form.
832.7001Electronic payment requests.
(a) The contractor shall submit payment requests in electronic form unless directed by the contracting officer to submit payment requests by mail. Purchases paid with a Government-wide commercial purchase card are considered to be an electronic transaction for purposes of this rule, and therefore no additional electronic invoice submission is required.
(b) The contracting officer may direct the contractor to submit payment requests by mail, through the
(1) Awards made to foreign vendors for work performed outside
(2) Classified contracts or purchases when electronic submission and processing of payment requests could compromise the safeguarding of classified or privacy information;
(3) Contracts awarded by contracting officers in the conduct of emergency operations, such as responses to national emergencies;
(4) Solicitations or contracts in which the designated agency office is a
(5) Solicitations or contracts in which the
832.7001-1Data transmission.
The contractor shall submit electronic payment requests through--
(a)
(b) A system that conforms to the X12 electronic data interchange (EDI) formats established by the Accredited Standards Center (ASC) chartered by the
832.7001-2Contract clause.
The contracting officer shall insert the clause at 852.232-72, Electronic Submission of Payment Requests, in solicitations and contracts exceeding the micro-purchase threshold, except those for which the contracting officer has directed otherwise under 832.7001, and those paid with a Governmentwide commercial purchase card.
PART 852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
28. The authority citation for part 852 is revised to read as follows:
Authority:38 U.S.C. 8127-8128, and 8151-8153; 40 U.S.C. 121(c); 41 U.S.C. 1121(c)(3); 41 U.S.C. 1303; 41 U.S.C. 1702; and 48 CFR 1.301-1.304.
Subpart 852.2--Text of Provisions and Clauses
29. Section 852.211-70 is revised to read as follows:
852.211-70Equipment Operation and Maintenance Manuals.
As prescribed in 811.107-70, insert the following clause:
Equipment Operation and Maintenance Manuals (
(End of clause)
852.211-71[Removed and Reserved]
30. Section 852.211-71 is removed and reserved.
31. Section 852.211-72 is revised to read as follows:
852.211-72Technical Industry Standards.
As prescribed in 811.204-70, insert the following clause:
Technical Industry Standards (
(a) The Contractor shall conform to the standards established by:___ [Contracting Officer: Insert name of organization establishing the requirement, reference title, cite and date, e.g.,
(b) The Contractor shall submit proof of conformance to the standard. This proof may be a label or seal affixed to the equipment or supplies, warranting that the item(s) have been tested in accordance with the standards and meet the contract requirement. Proof may also be furnished by the organization listed above certifying that the item(s) furnished have been tested in accordance with and conform to the specified standards.
(c) Offerors may obtain the standards cited in this provision by submitting a request, including the solicitation number, title and number of the publication to: [Organization]_____ [Mail or email address] _____.
(d) The offeror shall contact the Contracting Officer if response is not received within two weeks of the request.
(End of clause)
852.211-73, 852.211-74, and 852.211-75[Removed and Reserved]
32. Remove and reserve sections 852.211-73 through 852.211-75.
33. Add section 852.232-70 to read as follows:
852.232-70Payments Under Fixed-Price Construction Contracts (Without NAS-CPM).
As prescribed in 832.111-70, insert the following clause in contracts that do not contain a section entitled "Network Analysis System--Critical Path"
Payments Under Fixed-Price Construction Contracts(Without NAS-CPM) (
The clause FAR 52.232-5, Payments Under Fixed-Price Construction Contracts, is implemented as follows:
(a) Retainage. (1) The Contracting Officer may retain funds--
(i) Where performance under the contract has been determined to be deficient or the Contractor has performed in an unsatisfactory manner in the past; or
(ii) As the contract nears completion, to ensure that deficiencies will be corrected and that completion is timely.
(2) Examples of deficient performance justifying a retention of funds include, but are not restricted to, the following--
(i) Unsatisfactory progress as determined by the Contracting Officer;
(ii) Failure to meet schedule in Schedule of Work Progress;
(iii) Failure to present submittals in a timely manner; or
(iv) Failure to comply in good faith with approved subcontracting plans, certifications, or contract requirements.
(3) Any level of retention shall not exceed 10 percent either where there is determined to be unsatisfactory performance, or when the retainage is to ensure satisfactory completion. Retained amounts shall be paid promptly upon completion of all contract requirements, but nothing contained in this paragraph (a)(3) shall be construed as limiting the Contracting Officer's right to withhold funds under other provisions of the contract or in accordance with the general law and regulations regarding the administration of Government contracts.
(b) The Contractor shall submit a schedule of cost to the Contracting Officer for approval within 30 calendar days after date of receipt of notice to proceed. Such schedule will be signed and submitted in triplicate. The approved cost schedule will be one of the bases for determining progress payments to the Contractor for work completed. This schedule shall show cost by the work activity/event for each building or unit of the contract, as instructed by the resident engineer.
(1) The work activities/events shall be subdivided into as many sub-activities/events as are necessary to cover all component parts of the contract work.
(2) Costs as shown on this schedule must be true costs and the resident engineer may require the Contractor to submit the original estimate sheets or other information to substantiate the detailed makeup of the schedule.
(3) The sums of the sub-activities/events, as applied to each work activity/event, shall equal the total cost of such work activity/event. The total cost of all work activities/events shall equal the contract price.
(4) Insurance and similar items shall be prorated and included in the cost of each branch of the work.
(5) The cost schedule shall include separate cost information for the systems listed in the table in this paragraph (b)(5). The percentages listed in the following table are proportions of the cost listed in the Contractor's cost schedule and identify, for payment purposes, the value of the work to adjust, correct and test systems after the material has been installed. Payment of the listed percentages will be made only after the Contractor has demonstrated that each of the systems is substantially complete and operates as required by the contract.
Value of Adjusting, Correcting, and Testing System System Percent Pneumatic tube system 10 Incinerators (medical waste and trash) 5 Sewage treatment plant equipment 5 Water treatment plant equipment 5 Washers (dish, cage, glass, etc.) 5 Sterilizing equipment 5 Water distilling equipment 5 Prefab temperature rooms (cold, constant temperature) 5 Entire air-conditioning system (Specified under 600 Sections) 5 Entire boiler plant system (Specified under 700 Sections) 5 General supply conveyors 10 Food service conveyors 10 Pneumatic soiled linen and trash system 10 Elevators and dumbwaiters 10 Materials transport system 10 Engine-generator system 5 Primary switchgear 5 Secondary switchgear 5 Fire alarm system 5 Nurse call system 5 Intercom system 5 Radio system 5 TV (entertainment) system 5
(c) In addition to this cost schedule, the Contractor shall submit such unit costs as may be specifically requested. The unit costs shall be those used by the Contractor in preparing its bid and will not be binding as pertaining to any contract changes.
(d) The Contracting Officer will consider for monthly progress payments material and/or equipment procured by the Contractor and stored on the construction site, as space is available, or at a local approved location off the site, under such terms and conditions as the Contracting Officer approves, including but not limited to the following--
(1) The materials or equipment are in accordance with the contract requirements and/or approved samples and shop drawings;
(2) The materials and/or equipment are approved by the resident engineer;
(3) The materials and/or equipment are stored separately and are readily available for inspection and inventory by the resident engineer;
(4) The materials and/or equipment are protected against weather, theft and other hazards and are not subjected to deterioration; and
(5) The Contractor obtains the concurrence of its surety for off-site storage.
(e) The Government reserves the right to withhold payment until samples, shop drawings, engineer's certificates, additional bonds, payrolls, weekly statements of compliance, proof of title, nondiscrimination compliance reports, or any other requirements of this contract, have been submitted to the satisfaction of the Contracting Officer.
(f) The Contracting Officer will notify the Contractor in writing within 10 calendar-days of exercising retainage against any payment in accordance with FAR clause 52.232-5(e). The notice shall disclose the amount of the retainage in value and percent retained from the payment, and provide explanation for the retainage.
(End of clause)
Alternate I (
(6)(i) The Contractor shall at the time of contract award furnish the total cost of the guarantee period services in accordance with specification section(s) covering guarantee period services. The Contractor shall submit, within 15 calendar days of receipt of the notice to proceed, a guarantee period performance program that shall include an itemized accounting of the number of work-hours required to perform the guarantee period service on each piece of equipment. The Contractor shall also submit the established salary costs, including employee fringe benefits, and what the Contractor reasonably expects to pay over the guarantee period, all of which will be subject to the Contracting Officer's approval.
(ii) The cost of the guarantee period service shall be prorated on an annual basis and paid in equal monthly payments by
34. Add section 852.232-71 to read as follows:
852.232-71Payments Under Fixed-Price Construction Contracts (Including NAS-CPM).
As prescribed in 832.111-70, insert the following clause in contracts that contain a section entitled "Network Analysis System--Critical Path Method (NAS-CPM)."
Payments Under Fixed-Price Construction Contracts (Including NAS-CPM) (
The clause FAR 52.232-5, Payments Under Fixed-Price Construction Contracts, is implemented as follows:
(a) Retainage. (1) The Contracting Officer may retain funds--
(i) Where performance under the contract has been determined to be deficient or the Contractor has performed in an unsatisfactory manner in the past; or
(ii) As the contract nears completion, to ensure that deficiencies will be corrected and that completion is timely.
(2) Examples of deficient performance justifying a retention of funds include, but are not restricted to, the following--
(i) Unsatisfactory progress as determined by the Contracting Officer;
(ii) Failure to meet schedule in Schedule of Work Progress;
(iii) Failure to present submittals in a timely manner; or
(iv) Failure to comply in good faith with approved subcontracting plans, certifications, or contract requirements.
(3) Any level of retention shall not exceed 10 percent either where there is determined to be unsatisfactory performance, or when the retainage is to ensure satisfactory completion. Retained amounts shall be paid promptly upon completion of all contract requirements, but nothing contained in this paragraph (a)(3) shall be construed as limiting the Contracting Officer's right to withhold funds under other provisions of the contract or in accordance with the general law and regulations regarding the administration of Government contracts.
(b) The Contractor shall submit a schedule of costs in accordance with the requirements of section "Network Analysis System--Critical Path Method (NAS-CPM)" to the Contracting Officer for approval within 90 calendar days after date of receipt of notice to proceed. The approved cost schedule will be one of the bases for determining progress payments to the Contractor for work completed.
(1) Costs as shown on this schedule must be true costs and the resident engineer may require the Contractor to submit its original estimate sheets or other information to substantiate the detailed makeup of the cost schedule.
(2) The total costs of all work activities/events shall equal the contract price.
(3) Insurance and similar items shall be prorated and included in each work activity/event cost of the critical path method (CPM).
(4) The CPM shall include a separate cost loaded activity for adjusting and testing of the systems listed in the table in paragraph (b)(5) of this clause. The percentages listed in paragraph (b)(5) will be used to determine the cost of adjust and test work activities/events and identify, for payment purposes, the value of the work to adjust, correct and test systems after the material has been installed.
(5) Payment for adjust and test activities will be made only after the Contractor has demonstrated that each of the systems is substantially complete and operates as required by the contract.
Value of Adjusting, Correcting, and Testing System System Percent Pneumatic tube system 10 Incinerators (medical waste and trash) 5 Sewage treatment plant equipment 5 Water treatment plant equipment 5 Washers (dish, cage, glass, etc.) 5 Sterilizing equipment 5 Water distilling equipment 5 Prefab temperature rooms (cold, constant temperature) 5 Entire air-conditioning system (Specified under 600 Sections) 5 Entire boiler plant system (Specified under 700 Sections) 5 General supply conveyors 10 Food service conveyors 10 Pneumatic soiled linen and trash system 10 Elevators and dumbwaiters 10 Materials transport system 10 Engine-generator system 5 Primary switchgear 5 Secondary switchgear 5 Fire alarm system 5 Nurse call system 5 Intercom system 5 Radio system 5 TV (entertainment) system 5
(c) In addition to this cost schedule, the Contractor shall submit such unit costs as may be specifically requested. The unit costs shall be those used by the Contractor in preparing its bid and will not be binding as pertaining to any contract changes.
(d) The Contracting Officer will consider for monthly progress payments material and/or equipment procured by the Contractor and stored on the construction site, as space is available, or at a local approved location off the site, under such terms and conditions as the Contracting Officer approves, including but not limited to the following--
(1) The materials or equipment are in accordance with the contract requirements and/or approved samples and shop drawings;
(2) The materials and/or equipment are approved by the resident engineer;
(3) The materials and/or equipment are stored separately and are readily available for inspection and inventory by the resident engineer;
(4) The materials and/or equipment are protected against weather, theft and other hazards and are not subjected to deterioration; and
(5) The Contractor obtains the concurrence of its surety for off-site storage.
(e) The Government reserves the right to withhold payment until samples, shop drawings, engineer's certificates, additional bonds, payrolls, weekly statements of compliance, proof of title, nondiscrimination compliance reports, or any other requirements of this contract, have been submitted to the satisfaction of the Contracting Officer.
(f) The Contracting Officer will notify the Contractor in writing within 10 calendar-days of exercising retainage against any payment in accordance with FAR clause 52.232-5(e). The notice shall disclose the amount of the retainage in value and percent retained from the payment, and provide explanation for the retainage.
(End of clause)
Alternate I (
(6)(i) The Contractor shall show on the critical path method (CPM) the total cost of the guarantee period services in accordance with the guarantee period service section(s) of the specifications. This cost shall be priced out when submitting the CPM cost loaded network. The cost submitted shall be subject to the approval of the Contracting Officer. The activity on the CPM shall have money only and not activity time.
(ii) The Contractor shall submit with the CPM a guarantee period performance program which shall include an itemized accounting of the number of work-hours required to perform the guarantee period service on each piece of equipment. The Contractor shall also submit the established salary costs, including employee fringe benefits, and what the Contractor reasonably expects to pay over the guarantee period, all of which will be subject to the Contracting Officer's approval.
(iii) The cost of the guarantee period service shall be prorated on an annual basis and paid in equal monthly payments by
35. Section 852.232-72 is revised to read as follows:
852.232-72Electronic Submission of Payment Requests.
As prescribed in 832.7001-2, insert the following clause:
Electronic Submission of Payment Requests (
(a) Definitions. As used in this clause--
(1) Contract financing payment has the meaning given in FAR 32.001;
(2) Designated agency office means the office designated by the purchase order, agreement, or contract to first receive and review invoices. This office can be contractually designated as the receiving entity. This office may be different from the office issuing the payment;
(3) Electronic form means an automated system transmitting information electronically according to the accepted electronic data transmission methods and formats identified in paragraph (c) of this clause. Facsimile, email, and scanned documents are not acceptable electronic forms for submission of payment requests;
(4) Invoice payment has the meaning given in FAR 32.001; and
(5) Payment request means any request for contract financing payment or invoice payment submitted by the Contractor under this contract.
(b) Electronic payment requests. Except as provided in paragraph (e) of this clause, the Contractor shall submit payment requests in electronic form. Purchases paid with a Government-wide commercial purchase card are considered to be an electronic transaction for purposes of this rule, and therefore no additional electronic invoice submission is required.
(c) Data transmission. A Contractor must ensure that the data transmission method and format are through one of the following:
(1)
(2) Any system that conforms to the X12 electronic data interchange (EDI) formats established by the Accredited Standards Center (ASC) and chartered by the
(d) Invoice requirements. Invoices shall comply with FAR 32.905.
(e) Exceptions. If, based on one of the circumstances in this paragraph (e), the Contracting Officer directs that payment requests be made by mail, the Contractor shall submit payment requests by mail through the
(1) Awards made to foreign vendors for work performed outside
(2) Classified contracts or purchases when electronic submission and processing of payment requests could compromise the safeguarding of classified or privacy information;
(3) Contracts awarded by Contracting Officers in the conduct of emergency operations, such as responses to national emergencies;
(4) Solicitations or contracts in which the designated agency office is a
(5) Solicitations or contracts in which the
(End of clause)
852.236-82 and 852.236-83[Removed and Reserved]
36. Remove and reserve sections 852.236-82 and 852.236-83.
PART 870--SPECIAL PROCUREMENT CONTROLS
37. The authority citation for part 870 is revised to read as follows:
Authority:40 U.S.C. 121(c); 41 U.S.C. 1702; and 48 CFR 1.301-1.304.
870.112 and 870.113[Removed]
38. Remove sections 870.112 and 870.113.
[FR Doc. 2018-18984 Filed 9-28-18;
BILLING CODE 8320-01-P
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