Proposed Rule: Acquistion Regulation: Plain Language Rewrite

Friday,
January 13, 2006
Part III
Department of
Veterans Affairs
48 CFR Chapter 8
VA Acquisition Regulation: Plain Language
Rewrite; Proposed Rule
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2342 Federal Register / Vol. 71, No. 9 / Friday, January 13, 2006 / Proposed Rules
DEPARTMENT OF VETERANS possible violations of the Gratuities rule would require the use of the clause
AFFAIRS clause, establishing qualified products on Assignment of Claims in purchase
lists, suspending or debarring a orders, would provide guidance to
48 CFR Chapter 8 contractor, for expediting payments to contracting officers on the criteria for
small businesses, and for reducing or revising the payment due dates for
RIN 2900–AK78
suspending payments upon a finding of invoices, and would require the use of
VA Acquisition Regulation: Plain contract fraud. We propose to expand Alternate I to the clause on Disputes.
Language Rewrite the coverage of the VAAR clause on DATES: Comments on the proposed rule
Organizational Conflicts of Interest to should be submitted on or before March
AGENCY: Department of Veterans Affairs. cover a broader range of services that 14, 2006 to be considered in the
ACTION: Proposed rule. may be subject to organizational formulation of the final rule.
conflicts of interest. We propose to
SUMMARY: We propose to revise the clarify the scope of certain regulations ADDRESSES: Written comments may be
Department of Veterans Affairs (VA) and to allow use of additional VAAR submitted by: mail or hand-delivery to
Acquisition Regulation (VAAR). We clauses in commercial item solicitations the Director, Regulations Management
have rewritten much of the VAAR to and contracts, to remove requirements (00REG1), Department of Veterans
conform to plain language principles. for setting aside construction and Affairs, 810 Vermont Ave., NW., Room
We are changing many delegations of architect-engineer solicitations for small 1068, Washington, DC 20420; fax to
authority for the purpose of becoming businesses that are in conflict with (202) 273–9026; e-mail to
more efficient. We are removing non- current statute, to remove a requirement VARegulations@va.gov; or, through
regulatory material. We are making to conduct an audit of section 8(a) price http://www.regulations.gov. Comments
changes in format, arrangement, and proposals that is contrary to current should indicate that they are submitted
numbering to make the VAAR parallel FAR requirements, and to remove a in response to ‘‘RIN 2900–AK78.’’ All
to the Federal Acquisition Regulation VAAR provision that requested data comments received will be available for
(FAR) as required by the FAR. We are from offerors on veteran-owned small public inspection in the Office of
removing provisions that simply restate businesses that has been replaced by a Regulation Policy and Management,
FAR provisions that are already FAR provision. The rule would provide Room 1063B, between the hours of 8
applicable. This document also guidance to contracting officers on the a.m. and 4:30 p.m. Monday through
proposes to set forth or revise types of data that should be requested Friday (except holidays). Please call
procedures for providing notice and from a contractor when evaluating the (202) 273–9515 for an appointment.
hearing to resolve issues regarding contractor’s financial condition. The FOR FURTHER INFORMATION CONTACT:
VAAR part Name Telephone No. and e-mail address
808, 813, 852 .................................................................... Cathy Dailey ....................... (202) 273–8774; cathy.dailey@mail.va.gov.
803 through 806, 809, 811, 817, 819, 822, 825, 828, Don Kaliher ........................ (202) 273–8819; donald.kaliher@mail.va.gov.
829, 831 through 833, 836, 837, 842, 846, 852, and
873.
801, 802, 807, 812, 814 through 816, 824, 841, 847, Barbara Latvanas ............... (202) 273–7808; barbara.latvanas@mail.va.gov.
849, 852, 853, 870, and 871.
The mailing address for the contact activities that VA carries out makes it Part 801, Department of Veterans
persons is as follows: Acquisition Policy necessary for VA to implement and Affairs Acquisition Regulations System
Division (049A5A), Office of supplement the FAR. The VAAR covers
Acquisition and Material Management, VA special acquisition needs. We are We propose to amend the ‘‘Authority’’
Department of Veterans Affairs, 810 proposing a number of changes to the cites at the beginning of each
Vermont Ave., NW, Washington, 20420. VAAR. We have rewritten much of the Department of Veterans Affairs
SUPPLEMENTARY INFORMATION: When VAAR to conform to plain language Acquisition Regulation (VAAR) part to
Federal agencies acquire supplies and principles and plain language changes correspond to current authority.
services using appropriated funds, the have been made to most parts of the We propose to amend the VAAR to
purchase is governed by the Federal VAAR. We propose to change many use acronyms, such as ‘‘VAAR,’’ in part
Acquisition Regulation (FAR), set forth delegations of authority for the purpose 801 and throughout the document for
at 48 Code of Federal Regulations (CFR) of becoming more efficient. We are many of the common terms used. The
chapter 1, parts 1 through 53, and the removing non-regulatory material. We new acronyms are referenced in part
agency regulations that implement and propose to make changes in format, 802 or, if used only in one part or
supplement the FAR. These authorities subpart of the VAAR, in that part or
arrangement, and numbering to make
are designed to ensure that Government subpart.
the VAAR parallel to the Federal
procurements are handled fairly and
consistently, that the Government Acquisition Regulation (FAR) as We proposed to add new VAAR
receives the best value for its money, required by subpart 1.3 of the FAR. We sections 801.105, Issuance, and
and that all Government contractors propose to remove provisions that 801.105–2, Arrangement of regulations,
operate under a known set of rules. simply restate FAR provisions that are to explain how the VAAR is structured.
The Department of Veterans Affairs already applicable. We are also The information follows the structure
(VA) regulations that implement and proposing to make other changes established for the Federal Acquisition
supplement the FAR are named the VA discussed below. Regulation (FAR) at 1.105 and 1.105–2.
Acquisition Regulation (VAAR) and are
set forth at 48 CFR chapter 8, parts 801
through 873. The wide variety of
Federal Register / Vol. 71, No. 9 / Friday, January 13, 2006 / Proposed Rules 2343
The VAAR is intended to supplement rescind a contract based on final consequence since the terms of a
the FAR and must follow a similar conviction for bribery or other offenses, contract for a product are negotiated
structural arrangement. as specified in FAR 3.700. The proposed after the listing of the product on a QPL.
Throughout the document, sections of procedures are modeled after the A contractor will sell its product to VA
the VAAR have been renumbered and/ proposed VAAR provisions at 809.406– if the parties can agree on price and
or renamed to correspond to the FAR 3, which set out procedures for other terms and conditions.
with no significant changes to the debarment. We propose to make these Under current VAAR 809.206(b)(2),
material contained therein. For instance, changes to comply with FAR 3.705. when we are establishing a VA QPL, VA
section 801.301–70, Paperwork gives ‘‘known suppliers’’ of an item the
Reduction Act requirements, has been Sections 806.401 and 814.103–1 chance to submit a sample item.
renumbered and renamed as 801.106, We propose to remove provisions However, under FAR 8.404, VA may
OMB approval under the Paperwork currently in sections 806.401 and issue a delivery order against a Federal
Reduction Act, to correspond to the 814.103–1 requiring VA contracting Supply Schedule (FSS) contract without
FAR. officers to use sealed bidding seeking further competition from firms
We proposed to add designations for procedures for any solicitation over the who do not hold FSS contracts and may
the Department’s Chief Acquisition small purchase limitation and for any seek price reductions from FSS
Officer, Senior Procurement Executive acquisition expected to exceed $1,000 contractors. We propose to revise the
(SPE), and Procurement Executive for repairs of property under 38 United text currently in 809.206(b)(2) to state
(which is being renamed as the Deputy States Code (U.S.C.) Chapter 37. The that VA may limit ‘‘known suppliers’’ to
Senior Procurement Executive (DSPE)), FAR requires the use of sealed bidding those contractors whose products are
at 802.100, Definitions, to new section if the acquisition is subject to FAR Part already covered under an FSS contract
801.304, Agency control and 6 and: (1) Time permits the solicitation, and to redesignate the provision as
compliance procedures, to delineate submission, and evaluation of sealed 809.204(c)(2). This proposed change
responsibilities for compliance with bids; (2) the award will be made on the would preclude requiring VA to
FAR requirements. basis of price and other price-related duplicate a full and open competition
We propose to amend VAAR section factors; (3) it is not necessary to conduct that has already been conducted to
801.670–5 by removing previously discussions with the responding offerors establish the FSS schedule. Our
delegated authority for all officials about their bids; and (4) there is a proposed action is consistent with FAR
except the Inspector General to enter reasonable expectation of receiving 8.404.
into or issue Letters of Agreement. As a more than one sealed bid. We see no Subpart 809.4, Debarment, Suspension,
result of this proposed change, future reason for a special VAAR rule on these and Ineligibility
acquisitions of the types of services matters. By proposing to remove these
previously acquired under this section VAAR provisions, VA contracting Subpart 809.4 supplements provisions
(e.g., advisory and assistance services, officers would be governed by the FAR. of the FAR concerning the debarment or
peer review of research, acquisition of We believe the FAR provisions provide suspension of contractors. We propose
instructor services and training) will be sufficient guidance on when to use to amend the procedures for debarring
acquired using normal acquisition sealed bidding procedures. or suspending contractors. The
methods (e.g., purchase orders, micro- proposed procedures include the
purchases using the purchase card). The Subpart 807.3, Contractor Versus following:
Office of Inspector General may Government Performance, and 852.207– Under the proposed procedures, when
continue to issue contracts using a letter 70, Report of Employment Under the Debarment and Suspension (D&S)
format due to the sensitive nature of the Commercial Activities Committee finds evidence of a cause for
acquisitions of that office. We believe We propose to amend Subpart 807.3 debarment or suspension, it would
this proposed amendment will simplify to remove the term ‘‘employee(s)’’ to conduct an investigation on whether or
the acquisition process and consolidate add in its place ‘‘personnel’’ to generally not to prepare a Notice of Proposal to
acquisition functions within VA. correspond with how the term is used Debar or Notice of Suspension and make
in FAR Subpart 7.3 and in Office of a recommendation to the Deputy Senior
Subpart 803.2, Contractor Gratuities to Management and Budget Circular A–76. Procurement Executive (DSPE).
Government Personnel If the DSPE finds a basis for
We propose to add VAAR section Part 809, Contractor Qualifications debarment or suspension, the D&S
803.204 to specify the notification and We propose to add new section Committee would send the contractor
hearing procedures we would follow 809.204, Responsibilities for the Notice of Proposal to Debar or
before taking an action to terminate a establishment of a qualification Notice of Suspension. Pursuant to the
contractor’s right to proceed and/or requirement, to provide guidance to FAR, a contractor given a Notice of
initiate debarment or suspension contracting officers on establishing VA Proposal to Debar or Notice of
measures, based on violation of the qualified product lists (QPL). Suspension is excluded from
Gratuities clause. The proposed Contracting officers may develop a QPL participating in Federal procurement
procedures are modeled after the either for local use, for use in VA’s and non-procurement programs.
proposed VAAR provisions at 809.406– Veterans Integrated Service Networks The contractor proposed for
3, which set out procedures for (VISN), or for some other geographical debarment or suspended may submit
debarment. We would make these or administrative area. This is consistent information in person or in writing at an
changes to comply with FAR 3.204. with the FAR at Subpart 9.2. informal proceeding or otherwise. If the
Under current VAAR 809.206(b)(2), a contractor’s objections to the proposed
Subpart 803.7, Voiding and Rescinding contractor must guarantee that he or she debarment or suspension are based on a
Contracts will deliver a product to VA if we agree genuine dispute over facts material to
We propose to add VAAR section to accept and test the product for listing the action, the dispute would be
803.705 to specify the notification and on a QPL. We propose to remove this resolved in a separate preceding before
hearing procedures we would follow requirement because a guarantee in a member of the VA Board of Contract
before taking an action to void or these circumstances is of no Appeals (an informal trial type hearing
under the procedures in proposed than mandatory in acquisitions of request an audit only when the
section 809.470). commercial items and to add the information available is inadequate to
If there is no such dispute or if all following clauses to the list of clauses determine fair and reasonable price. We
disputes have been resolved, the in 812.301(b) that may be used in think that the FAR provision is adequate
debarring or suspending official will solicitations and contracts for the to protect the Government.
make a decision based on all available acquisition of commercial items: We propose to remove paragraph (b)
information. 852.209–70, Organizational Conflicts of at section 819.7003 that currently
These proposed procedures are Interest. requires the inclusion of the VAAR
designed to ensure that the contractor is 852.211–73, Brand Name or Equal. clause at 852.219–70, Veteran-Owned
provided with an efficient and fair 852.211–75, Product Specifications. Small Business, in all solicitations
process before a decision is made on 852.214–71, Restrictions on Alternate because this requirement has been
whether or not to take a debarment Item(s). superseded by a similar FAR
action or to continue with a suspension 852.214–72, Alternate Item(s). requirement at 52.212–3.
action. 852.214–73, Alternate Packaging and Part 832, Contract Financing
Subpart 809.5, Organizational and Packing.
Consultant Conflicts of Interest 852.214–74, Bid Samples. We propose to add section 832.006–
852.252–70, Solicitation Provisions or 4 to specify the notification and hearing
The VAAR currently requires that the procedures we would follow before
Clauses Incorporated by Reference.
clause at 852.209–70, Organizational taking an action to reduce or suspend
Conflicts of Interest, be inserted in We believe the use of these clauses
would not be inconsistent with payment to a contractor under FAR
solicitations for consulting services. We 32.006, Reduction or suspension of
propose to require that this clause also commercial practices. Further, we
propose to add the clause at 852.211–74, contract payment upon finding of fraud.
be used in solicitations for management We propose to make these changes to
support services, other professional Liquidated Damages, to proposed
paragraph (c), thereby allowing the use comply with FAR 32.006–3, which
services, contractor performance of, or requires agencies to establish
assistance in, conducting technical of this clause if the contracting officer
determines that its use is consistent appropriate procedures to implement
evaluations; or system engineering and the policies and procedures of FAR
technical direction work. These are the with commercial practices. We believe
that there may be situations where use 32.006.
types of services that may be subject to
of a liquidated damages clause would FAR 32.202–1(d) requires an agency
potential organizational and consultant
not be inconsistent with commercial to establish procedures for approving
conflicts of interest issues as
practices, such as when failure to the use of unusual contract financing in
contemplated by FAR 9.502.
deliver supplies or perform services on commercial item acquisitions. We
Part 811, Describing Agency Needs a timely basis would result in financial propose to establish those agency
We propose to relocate material from harm to the Government. procedures in 832.202–1 for approving
section 811.204 to a new proposed the use of unusual contract financing
Part 819, Small Business Programs because we think they are necessary for
clause at 852.211–75, Product
Specifications, without change for We propose to add new section ensuring that VA’s use of unusual
purposes of clarity. 819.202–1 to allow a contracting officer contract financing or commercial
to prescribe a period less than the advance payment is in the
Part 812, Acquisition of Commercial standard 30 days for paying a Government’s best interest.
Items contractor, but not less than 7 days. This FAR 32.202–4(a)(2) states that, subject
We propose to add section 812.102, proposal is designed to assist small to agency regulations, the contracting
Applicability, to state that contracts for businesses in meeting their financial officer may determine that a contractor’s
the acquisition of commercial items are obligations and is consistent with the financial condition constitutes adequate
subject to the policies in other parts of FAR requirement at 32.908(c)(2), which security for Government financing. The
the VAAR. However, proposed section does not allow the payment period to be VAAR does not currently say what
812.102 notes that when a policy in less than 7 days. information a contracting officer should
another part of the VAAR differs from We propose to remove provisions review to assist in making this
a policy in Part 812, Part 812 shall take currently in section 819.502–2 that determination. We propose to add
precedence for the acquisition of require contracting officers to treat section 832.202–4 setting forth the
commercial items. This proposed certain construction and architect- information a contracting officer should
section is to make the VAAR consistent engineering solicitations as though the evaluate and consider in determining
with the principles of the FAR at Small Business Administration had whether a contractor’s financial
12.102(c). initiated a set-aside request. These condition constitutes adequate security.
We propose to remove the provisions are contrary to the provisions Under this proposal, the contracting
requirement currently at 812.301, of FAR Subpart 19.10 and underlying officer should obtain any of the
Solicitation provisions and contract statutory authority that provide for following: interim balance sheets or
clauses for the acquisition of unrestricted competition for these income statements; a cash flow forecast
commercial items, which requires a services under the Small Business for the contract term; information on
contracting officer to include the clause Competitiveness Demonstration contractor financing arrangements
at 852.219–70, Veteran-Owned Small Program. disclosing available cash, credit
Business, in acquisitions of commercial We propose to remove provisions arrangements, and financial exposure;
items because this requirement has been currently in 819.800(d) that require tax account information; descriptions or
superseded by a similar FAR audits to be performed on price explanations of documents bearing on
requirement at 52.212–3. In addition, proposals under the 8(a) program in the financial vitality of the business; a
we propose to make the use of clauses excess of $500,000. This matter is Dun and Bradstreet report on the
listed in proposed section 812.301, covered under FAR 15.404–2, which company; or any other necessary
paragraphs (b) and (c), optional rather requires the contracting officer to financial information.
FAR Subpart 32.9 sets forth policies, awarded contract within 10 days after deleted, there would be no requirement
procedures, and clauses an agency must award or within 5 days after a debriefing for this section.
follow for implementing the ‘‘prompt date offered to a protester for any
Part 852, Solicitation Provisions and
payment’’ provisions of 5 CFR 1315. debriefing required by FAR 15.505 or
Contract Clauses
FAR 32.904 sets forth the number of 15.506, whichever is later.
days following receipt of goods or In general, prior to passage of the We propose to remove section
services after which Government Contract Disputes Act of 1978, as 852.219–70, Veteran-Owned Small
acceptance is deemed to have occurred amended (41 U.S.C. 601–613), the Business, because this provision has
unless certain exceptions apply. obligation to continue contract been superseded by a similar FAR
Paragraphs (b)(1)(ii), (c)(2), (d)(1), and performance of a contract pending a provision in FAR 52.212–3.
(d)(2) of FAR 32.904 permit a decision on a claim applied only to We propose to revise clause 852.222–
contracting officer to specify a period of claims arising under a contract. 70, Contract Work-Hours and Safety
more than 7 days for accepting goods or However, that Act authorizes agencies Standards Act—Nursing Home Care
services or more than 14 days to process to require a contractor to continue Contract Supplement, to correspond to
progress payments or more than 7 days contract performance in accordance plain language principles, with no
to process the final payment under a with the contracting officer’s direction substantive change to the intent or
construction contract. We propose to pending final decision on a claim meaning of the clause.
add section 832.904 setting forth the relating to the contract. The FAR allows We propose to update Alternates I and
following factors a contracting officer use of this authority only if authorized II of clause 852.236–89, Buy American
should consider when making a by an agency. We propose to add Act, to correspond to changes made to
decision whether or not to change the sections 833.213 and 833.215 to require FAR Part 25. Alternate I would apply to
payment period: (1) Recent interest the use of this authority in all contracts
construction contracts valued at
payment history; (2) the complexity of because we believe this is in the best
$7,611,532 or more, while Alternate II
the project; (3) workload; (4) work site interest of the Government.
In addition, we propose to remove a would apply to construction contracts
location. We believe these proposed valued between $6,725,000 and
statement currently at 833.214(c) that
changes will assist contracting officers $7,611,531.
everything discussed at an alternative
in making determinations that are in the We propose to revise section 852.270–
dispute resolution meeting is
best interest of the Government. 1 by deleting the term ‘‘supervise’’ and
confidential. This statement is
Part 833, Protests, Disputes, and unwarranted since the agreement adding, in its place, ‘‘monitor.’’ This is
Appeals between the parties governs to clarify that VA officials do not
confidentiality and the agreement may supervise the work of contractors.
The VAAR currently requires the provide otherwise. A number of clauses have been
contracting officer to suspend contract renumbered and/or renamed, as follows
performance if notified by GAO of a Section 837.270, Special Controls for (if no name appears in the second
protest within 10 days of award. We Letters of Agreement column, the clause name remains
propose to remove this provision. This We propose to remove this section. unchanged). Only those clauses that
provision has been superseded by FAR This section applies to letters of have been renumbered or renamed are
changes at 33.104(c) which state that the agreement and the section addressing included in this chart. Other clauses
contracting officer must suspend letters of agreement at 801.670–5 is may have been changed without being
contract performance or terminate the proposed for deletion. If 801.670–5 is renumbered or renamed.
Proposed
Current VAAR clause and title renumbered/
renamed as
852.211–71, Guarantee ............................................................................ 852.246–70.

852.211–72, Rejected Goods ................................................................... 852.246–71, Inspection.
852.211–73, Frozen Processed Foods .................................................... 852.246–72.
852.211–74, Special Notice ..................................................................... 852.211–71.
852.211–75, Technical Industry Standards .............................................. 852.211–72.
852.211–76, Noncompliance with Packaging, Packing, and/or Marking 852.246–73.
852.211–77, Brand Name or Equal ......................................................... 852.211–73.
852.211–78, Liquidated Damages ........................................................... 852.211–74.
852.214–71, Alternate Item(s) .................................................................. 852.214–71, Restrictions on Alternate Item(s); 852.214–72, Alternate
Item(s); and 852.214–73, Alternate Packaging and Packing.
852.214–73, Bid Samples ........................................................................ 852.214–74.
852.233–70 Protest Content .................................................................... 852.233–70, Protest Content/Alternative Dispute Resolution.
852.237–71, Indemnification and Insurance ............................................ 852.228–71.
852.246–1, Special Warranties ................................................................ 852.246–74.
852.246–2, Warranty for Construction-Guarantee Period Services ........ 852.246–75.
852.252–1, Provisions or Clauses that Require Completion by the Of- 852.252–70, Solicitation Provisions or Clauses Incorporated by Ref-
feror or Prospective Contractor. erence.
852.270–4, Commercial Advertising ........................................................ 852.203–70.
852.271–71, Inspection ............................................................................ 852.271–74.
The proposed clause content of these where paragraph (c) is proposed to be 33.103(c), and clauses 852.271–71,
clauses remain unchanged with the added to encourage the use of Inspection, and 852.271–74, Inspection,
exception of 852.233–70, Protest alternative dispute resolution which are proposed to be combined into
Content/Alternative Dispute Resolution, procedures, as provided in FAR one clause for simplicity.
Part 873, Simplified Acquisition displays a currently valid OMB control Government financing. However, FAR
Procedures for Health-Care Resources number. 32.202–4(a)(2) provides that, subject to
No substantive changes have been Comments on the collection of agency regulations, the contracting
made to VAAR Part 873. information should be submitted to the officer may determine that an offeror’s
Office of Management and Budget, financial condition is adequate security.
Executive Order 12866 Attention: Desk Officer for the VA is proposing to issue agency
The Office of Management and Budget Department of Veterans Affairs, Office regulations specifying the type of
has reviewed this document under of Information and Regulatory Affairs, information that the contracting officer
Executive Order 12866. Office of Management and Budget, should gather to assist the contracting
Washington, DC 20503, with copies to officer in making a determination
Unfunded Mandates the Director, Regulations Management whether or not an offeror’s financial
The Unfunded Mandates Reform Act (00REG1), Department of Veterans condition constitutes adequate security.
of 1995 requires, at 2 U.S.C. 1532, that Affairs, 810 Vermont Ave., NW., Description of need for information
agencies prepare an assessment of Washington, DC 20420. Comments and proposed use of information: The
anticipated costs and benefits before should indicate that they are submitted information will be used by the
issuing any rule that may result in an in response to ‘‘RIN 2900–AK78.’’ contracting officer to assist in making a
expenditure by State, local, or tribal Title and section number: 832.006–4, determination whether or not the
governments, in the aggregate, or by the Procedures. offeror’s financial condition is adequate
private sector, of $100 million or more Summary of collection of information: security to permit Government
(adjusted annually for inflation) in any FAR 32.006 authorizes agencies to financing of the commercial purchase.
given year. This proposed rule would reduce or suspend contract payments Submission of this information is
have no such effect on State, local, or upon finding of fraud. FAR 32.006–3(a) voluntary and collection of this
tribal governments, or the private sector. requires agencies to establish information is intended to give
appropriate procedures to implement contractors an opportunity to show that
Paperwork Reduction Act
the policies and procedures of section their financial condition is adequate
Under the Paperwork Reduction Act 32.006. VA is proposing to establish security for Government financing.
(PRA) of 1995 (44 U.S.C. 3501–3521), such procedures under section 832.006– Description of likely respondents:
proposed collections of information are 4. In order to provide contractors due Offerors that request or require
contained in Part 832 at sections process when there has been a finding commercial item purchase financing
832.006–4 and 832.202–4, as set forth in of fraud and when, as a result, VA is (e.g., commercial interim payments,
the SUPPLEMENTARY INFORMATION portion proposing to reduce or suspend contract commercial advance payment) on
of this proposed rule. These are payments, VA must give the contractor commercial item acquisitions where the
proposed new sections that were not notice of that intent and allow the value of the acquisition exceeds
previously contained in the VAAR. This contractor to submit information or $100,000.
notice is to obtain an Office of argument in opposition to the proposed Estimated number of respondents: 10.
Management and Budget (OMB) control action. Estimated frequency of responses: 1
number for these sections. As required Description of need for information per offer.
under section 3507(d) of the Act, VA and proposed use of information: The Estimated average burden per
has submitted a copy of this proposed information will be used by the VA collection: 1 hour.
rulemaking action to OMB for its review Senior Procurement Executive (the Estimated total annual reporting and
of the collection of information. Assistant Secretary for Management) in recordkeeping burden: 10 hours.
There are two other proposed new making a final determination whether or The Department considers comments
sections in this proposed rule that could not to reduce or suspend payment under by the public on proposed collections of
potentially require the collection of the contract. Submission of this information in—
information from contractors, section information is voluntary and the • Evaluating whether the proposed
803.204, Treatment of violations, and collection of the information is intended collections of information are necessary
section 832.705, Procedures. These to give contractors the opportunity to for the proper performance of the
sections provide agency procedures for rebut a proposed decision to suspend functions of the Department, including
taking action against a contractor for contract payments. whether the information will have
violation of the Gratuities clause (see Description of likely respondents: practical utility;
proposed 803.204) or action to void or Entities who have contracts with VA • Evaluating the accuracy of the
rescind a contract for violation of 18 where there has been a finding of fraud Department’s estimate of the burden of
U.S.C. 201–224, all as required by the on the part of the contractor. the proposed collections of information,
FAR. VA has not taken any action under Estimated number of respondents: 10. including the validity of the
the two corresponding sections of the Estimated frequency of responses: 1 methodology and assumptions used;
FAR in the past several years and there response for each contract under which • Enhancing the quality, usefulness,
is no likelihood that VA will annually there has been a finding of fraud. and clarity of the information to be
require the collection of information Estimated average burden per collected; and
from 10 or more contractors under these collection: 5 hours. • Minimizing the burden of the
provisions in the future. Therefore, Estimated total annual reporting and collections of information on those who
these provisions are exempt from the recordkeeping burden: 50 hours. are to respond, including through the
PRA and VA is not requesting PRA Title and section number: 832.202–4, use of appropriate automated,
approval from OMB for these Security for Government financing. electronic, mechanical, or other
provisions. Summary of collection of information: technological collection techniques or

OMB assigns control numbers to FAR Subpart 32.2 authorizes the use of other forms of information technology,
collections of information it approves. certain types of Government financing e.g., permitting electronic submission of
VA may not conduct or sponsor, and a on commercial item purchases. 41 responses.
person is not required to respond to, a U.S.C. 255(f) requires the Government to OMB is required to make a decision
collection of information unless it obtain adequate security for concerning the proposed collection of
information contained in this proposed guidance on how to exercise this List of Subjects
rule between 30 and 60 days after authority. Title 5 CFR 1315.5 already
48 CFR Parts 801, 809, 811, 836, and
publication of this document in the authorizes agencies to pay small 852
Federal Register. Therefore, a comment businesses as quickly as possible. This
to OMB is best assured of having its full change may encourage VA contracting Government procurement,
effect if OMB receives it within 30 days officers to use this authority more often, Recordkeeping and reporting
of publication. This does not affect the but the impact of this provision on requirements.
deadline for the public to comment on small business would be both minimal 48 CFR Parts 802, 804, 805, 806, 807,
the proposed regulation. and entirely beneficial. With the advent 808, 812, 813, 814, 815, 816, 817, 824,
Regulatory Flexibility Act of purchase cards, small businesses that 832, 837, 846, 849, 853, and 873
When an agency issues a rulemaking accept the cards already receive
Government procurement.
proposal, the Regulatory Flexibility Act payment within a matter of a few days
(RFA) requires the agency to ‘‘prepare following their submission of a request 48 CFR Part 803
and make available for public comment for payment to VISA. This proposed Antitrust, Conflicts of interest,
an initial regulatory flexibility analysis’’ rule provision would have no impact on Government procurement.
which will ‘‘describe the impact of the small businesses that accept the
proposed rule on small entities.’’ (5 purchase card. 48 CFR Part 819
U.S.C. 603(a)). Section 605 of the RFA The proposed rule would remove a Administrative practice and
allows an agency to certify a rule, in lieu current provision in section 819.502–2 procedure, Government procurement,
of preparing an analysis, if the proposed mandating that certain solicitations be Recordkeeping and reporting
rulemaking is not expected to have a requirements, Small business, Veterans.
treated as though SBA initiated a set-
significant economic impact on a
aside request. This provision is 48 CFR Part 822
substantial number of small entities.
The Secretary certifies that the inconsistent with the requirements in
FAR subpart 19.10 implementing the Government procurement, Labor.
adoption of this proposed rule would
not have a significant economic impact Small Business Competitiveness 48 CFR Part 825
on a substantial number of small entities Demonstration Program of 1988, Public
Foreign currencies, Foreign trade,
as they are defined in the RFA. The Law 100–656 (codified as amended at Government procurement.
primary purpose of this document is to 15 U.S.C. 644 note). Those authorities
update the existing VAAR to correspond require that competition for 48 CFR Part 828
to FAR requirements and internal VA procurement contracts relating to Government procurement, Insurance,
policy and to conform to plain language construction and A/E services be Surety bonds.
principles. Many of the changes are unrestricted. Because Public Law 100–
internal to VA and do not impact the 656 and FAR subpart 19.10 already 48 CFR Part 829
public, do not impose any requirements prohibit VA from inferring a set-aside Government procurement, Taxes.
on the public, and thus do not have an request in the circumstances specified
economic impact on small entities. The 48 CFR Parts 831 and 842
in VAAR 819.502–2, the removal of that
changes that do impact the public are of superseded provision will not have any Accounting, Government
minimal impact. effect on small entities. procurement.
The addition of procedures for
contractor hearings relative to: (1) Adoption of the proposed rule 48 CFR Part 833
Violation of the Gratuities clause changes in sections 803.204, 803.705,
Administrative practice and
(section 803.204); (2) voiding or and 832.006–4 would not impose more procedure, Government procurement.
rescinding a contract (section 803.705); than minimal costs on any small
and (3) reducing or suspending payment entities, as VA has not taken action 48 CFR Part 841
due to fraud (section 832.006–4) only under the corresponding FAR Government procurement, Utilities.
supplement authorities that are already provisions over the past several years
in the FAR and that are rarely used by and we do not expect to take many, if 48 CFR Part 847
VA. They do not add any new any, actions in future years. The Government procurement,
authorities that VA could not have positive financial benefit to small Transportation.
exercised under the FAR before entities of the proposed change to
issuance of this proposed rule and VA 48 CFR Part 870
819.202–1 is also considered to be
has not taken any action under these minimal. The authority to expedite Asbestos, Frozen foods, Government
authorities against small entities over payments already exists under the FAR procurement, Telecommunications.
the past several years. Few, if any, and we expect few additional cases
actions are expected to be taken in the 48 CFR Part 871
where this authority will be used as a
future. Thus, there is no impact on a result of the proposed addition of these Government procurement, Loan
substantial number of small entities. provisions to the VAAR. Even where programs-social programs, Loan
The changes to Subpart 809.4 relative programs-veterans, Recordkeeping and
there are additional uses of this
to suspension and debarment are reporting requirements, Vocational
changes to form and not to substance. authority, the financial benefit to small
rehabilitation.
The basic procedures remain unchanged entities of expedited payment is
expected to be minimal. Therefore, Approved: May 10, 2005.

and there is no change on the impact to
under 5 U.S.C. 605(b), this amendment R. James Nicholson,
small businesses.
The change to 819.202–1 relative to is exempt from the initial and final Secretary of Veterans Affairs.
granting small businesses improved regulatory flexibility analysis Editorial Note: This document was
payment terms on contracts is not a new requirements of sections 603 and 604. received at the Office of the Federal Register
authority, but the VAAR lacked on December 21, 2005.
For the reasons set out in the 849 Termination of contracts. National Acquisition Center, and the
preamble, 48 CFR Chapter 8 is proposed Denver Distribution Center.
SUBCHAPTER H—CLAUSES AND FORMS 801.602–79 Processing solicitations and
to be revised to read as follows:
852 Solicitation provisions and contract contract documents for legal or technical
CHAPTER 8—DEPARTMENT OF VETERANS clauses. review—Veterans Benefits
AFFAIRS 853 Forms. Administration.
SUBCHAPTER A—GENERAL 801.602–80 Processing solicitations and
SUBCHAPTER I—DEPARTMENT
contract documents for legal or technical
Part SUPPLEMENTARY REGULATIONS
review—Office of Facilities Management.
801 Department of Veterans Affairs 870 Special procurement controls. 801.602–81 Documents required for
Acquisition Regulations Systems. 871 Loan guaranty and vocational business clearance reviews.
802 Definitions of words and terms. rehabilitation and employment 801.602–82 Documents to submit for legal
803 Improper business practices and programs. or technical review—general.
personal conflicts of interest. 872 [Reserved]. 801.602–83 Documents to submit for legal
804 Administrative matters. 873 Simplified acquisition procedures for or technical review—contract
SUBCHAPTER B—COMPETITION AND health-care resources. modifications.
ACQUISITION PLANNING 801.602–84 Documents to submit for
Subchapter A—General business clearance reviews.
805 Publicizing contract actions.
801.602–85 Results of OGC’s review.
806 Competition requirements. PART 801—DEPARTMENT OF 801.603 Selection, appointment, and
807 Acquisition planning.
808 Required sources of supplies and
VETERANS AFFAIRS ACQUISITION termination of appointment.
REGULATIONS SYSTEM 801.603–1 General.
services.
801.603–70 Representatives of contracting
809 Contractor qualifications.
Sec. officers.
811 Describing agency needs.
801.000 Scope of part. 801.603–71 Representatives of contracting
812 Acquisition of commercial items.
officers; receipt of equipment, supplies,
Subpart 801.1—Purpose, Authority,
SUBCHAPTER C—CONTRACTING and nonpersonal services.
Issuance
METHODS AND CONTRACT TYPES 801.670 Special and limited delegation.
801.101 Purpose. 801.670–1 Issuing bills of lading.
813 Simplified acquisition procedures.
801.103 Authority. 801.670–3 Medical, dental, and ancillary
814 Sealed bidding.
815 Contracting by negotiation. 801.104 Applicability. service.
816 Types of contracts. 801.104–70 Exclusions. 801.670–4 National Cemetery
817 Special contracting methods. 801.105 Issuance. Administration.
801.105–2 Arrangement of regulations. 801.670–5 Letters of agreement.
SUBCHAPTER D—SOCIOECONOMIC 801.106 OMB approval under the 801.680 Contracting authority of the
PROGRAMS Paperwork Reduction Act. Inspector General.
819 Small business programs. 801.690 VA’s COCP.
Subpart 801.2— Administration
822 Application of labor laws to 801.690–1 Definitions.
Government acquisitions. 801.201 Maintenance of the FAR. 801.690–2 General.
823 Environment, energy and water 801.201–1 The two councils. 801.690–3 Responsibility under the COCP.
efficiency, renewable energy Subpart 801.3—Department Acquisition 801.690–4 Selection.
technologies, occupational safety, and Regulations 801.690–5 Requirements for contracting
drug-free workplace. authority.
824 Protection of privacy and freedom of 801.304 Department control and 801.690–6 Appointment.
information. compliance procedures. 801.690–7 Termination.
825 Foreign acquisition. Subpart 801.4—Deviations From the FAR or 801.690–8 Interim appointment provisions.
826 Other socioeconomic programs. VAAR 801.690–9 Distribution of Certificates of
Appointment.
SUBCHAPTER E—GENERAL 801.403 Individual deviations. 801.695 VA’s Appointment of HCAs
CONTRACTING REQUIREMENTS 801.404 Class deviations. program.
828 Bonds and insurance. Subpart 801.6—Career Development, 801.695–1 Policy.
829 Taxes. Contracting Authority, and Responsibilities 801.695–2 Procedures for appointment of
830 Cost accounting standards HCAs.
administration. 801.601 General. 801.695–3 Authority of the HCA.
831 Contract cost principles and 801.602 Contracting officers.
801.602–3 Ratification of unauthorized Authority: 38 U.S.C. 501; 40 U.S.C. 121(c);
procedures.
commitments. and 48 CFR 1.301–1.304.
832 Contract financing.
833 Protests, disputes, and appeals. 801.602–70 General review requirements.
801.000 Scope of part.
801.602–71 Basic review requirements.
SUBCHAPTER F—SPECIAL CATEGORIES 801.602–72 Exceptions and additional This part sets out general Department
OF CONTRACTING review requirements. of Veterans Affairs (VA) Acquisition
836 Construction and architect-engineer 801.602–73 Review requirements for scarce Regulation (VAAR) policies, including
contracts. medical specialist contracts and information regarding the maintenance
837 Service contracting. contracts for health-care resources. and administration of the VAAR,
839 Acquisition of information technology. 801.602–74 Review requirements for an acquisition policies and practices, and
841 Acquisition of utility services. interagency agreement.
procedures for deviation from the VAAR
801.602–75 Review requirements—OGC.
SUBCHAPTER G—CONTRACT 801.602–76 Business clearance review.
and the Federal Acquisition Regulation
MANAGEMENT 801.602–77 Processing solicitations and (FAR).
842 Contract administration and audit contract documents for legal or technical
services. review—general. Subpart 801.1—Purpose, Authority,
843 Contract modifications. 801.602–78 Processing solicitations and Issuance
844 Subcontracting policies and contract documents for legal or technical
procedures. review—Veterans Health Administration 801.101 Purpose.
846 Quality assurance. field facilities, Central Office (except (a) VA established the VAAR to codify
847 Transportation. Office of Facilities Management), the and publish uniform policies and
procedures for VA’s acquisition of (2) This chapter may be referred to as action of two councils, the Defense
supplies and services, including the Department of Veterans Affairs Acquisition Regulations Council and the
construction. Acquisition Regulation or the VAAR. Civilian Agency Acquisition Council. A
(b) The VAAR implements and (3) Using the VAAR coverage at designee of the Office of Management
supplements the FAR. 809.106–4(c) as a typical illustration, will represent VA on the Civilian
reference to the— Agency Acquisition Council.
801.103 Authority. (i) Part would be ‘‘VAAR Part 809’’
The Secretary issues the VAAR under outside the VAAR and ‘‘Part 809’’ Subpart 801.3—Department
the authority of 40 U.S.C. 121(c), Title within the VAAR. Acquisition Regulations
48 of the Code of Federal Regulations (ii) Subpart would be ‘‘VAAR Subpart
(CFR) 1.301 through 1.304, and other 809.1’’ outside the VAAR and ‘‘Subpart 801.304 Department control and
authorities as cited. 809.1’’ within the VAAR. compliance procedures.
(iii) Section would be ‘‘VAAR The Assistant Secretary for
801.104 Applicability. 809.106’’ outside the VAAR and
(a) Unless otherwise specified in this Management is designated as the
‘‘809.106’’ within the VAAR.
chapter or excepted by statute (i.e., Department’s Chief Acquisition Officer
(iv) Subsection would be ‘‘VAAR
expenditures of the VA Canteen Service) and Senior Procurement Executive
809.106–4’’ outside the VAAR and
or other VA regulations, the FAR and ‘‘809.106–4’’ within the VAAR. (SPE). The Deputy Assistant Secretary
VAAR apply to all VA acquisitions (v) Paragraph would be ‘‘VAAR for Acquisition and Materiel
(including construction) made with 809.106–4(c)’’ outside the VAAR and Management is designated as the
appropriated funds. Supply Fund ‘‘809.106–4(c)’’ within the VAAR Department’s Deputy Senior
monies (38 U.S.C. 8121) and General (4) Citations of authority (e.g., statutes Procurement Executive (DSPE). The
Post Funds (38 U.S.C. 8302) are or Executive orders) in the VAAR shall DSPE is responsible for review of the
appropriated funds. follow the Federal Register form guides. VAAR and amendments to the VAAR
(b) Use the VAAR and the FAR for compliance with FAR 1.304.
together. The FAR applies to VA 801.106 OMB approval under the
Paperwork Reduction Act. Subpart 801.4—Deviations From the
acquisitions except as provided in the
VAAR. In accordance with the Paperwork FAR or VAAR
Reduction Act of 1995 (44 U.S.C. 3501–
801.104–70 Exclusions. 3521), the Office of Management and 801.403 Individual deviations.
The FAR and VAAR do not apply to Budget (OMB) has approved the (a) Authority to authorize individual
purchases and contracts that use reporting and recordkeeping provisions deviations from the FAR and VAAR is
General Post Funds if using the FAR that are included in the VAAR and has delegated to the SPE and is further
and the VAAR would infringe upon a given VA the following approval delegated to the DSPE.
donor’s right to specify the exact item to numbers:
be purchased and/or the source of (b) When a contracting officer
supply (38 U.S.C. 8303). Current considers it necessary to deviate from
48 CFR part or section where OMB control the policies in the FAR or VAAR, the
identified and described
801.105 Issuance. No.
contracting officer must submit a
801.105–2 Arrangement of regulations. 809.106–1 ................................. 2900–0418 request to the DSPE for authority to
809.504(d) ................................ 2900–0418 deviate.
(a) General. The VAAR is divided into 813 ............................................ 2900–0393
subchapters, parts (each of which covers (c) The request to deviate must clearly
832.006–4 ................................. 2900–xxxx
a separate aspect of acquisition), state the circumstances warranting the
832.202–4 ................................. 2900–xxxx
subparts, sections, and subsections. 836.606–71 ............................... 2900–0208 deviation and the nature of the
(b) Numbering. (1) The numbering 852.207–70 ............................... 2900–0590 deviation. The head of the contracting
system permits the discrete 852.209–70 ............................... 2900–0418 activity (HCA) must sign the request.
identification of every VAAR paragraph. 852.211–70 ............................... 2900–0587 (d) The DSPE may authorize
The digits to the left of the decimal 852.211–71 ............................... 2900–0588
852.211–72 ............................... 2900–0586
individual deviations from the FAR and
point represent the part number. The
852.211–73 ............................... 2900–0585 VAAR when an individual deviation is
numbers to the right of the decimal 852.214–70 ............................... 2900–0593 in the best interest of the Government.
point and to the left of the dash 852.228–71 ............................... 2900–0590 When the DSPE authorizes a deviation,
represent, in order, the subpart (one or 852.236–72 ............................... 2900–0422 the contracting officer must file the
two digits), and the section (two digits). 852.236–79 ............................... 2900–0208 authorization in the purchase order or
The number to the right of the dash 852.236–80 (Alt. I) .................... 2900–0422
contract file.
represents the subsection. Subdivisions 852.236–82 through 852.236–
may be used at the section and 84 .......................................... 2900–0422 801.404 Class deviations.
subsection level to identify individual 852.236–88 ............................... 2900–0422
paragraphs. 852.236–89 ............................... 2900–0622 Authority to authorize class
852.236–91 ............................... 2900–0623 deviations from the FAR and VAAR is
(2) Subdivisions below the section or 852.237–7 ................................. 2900–0590
subsection level consist of parenthetical delegated to the SPE and is further
852.270–3 ................................. 2900–0589
alphanumerics using the following delegated to the DSPE. The DSPE may
sequence: (a)(1)(i)(A)(1)(i) authorize class deviations from the FAR
(c) References and citations. (1) Subpart 801.2—Administration and VAAR when a class deviation is in
Unless otherwise stated, cross- 801.201 Maintenance of the FAR. the best interest of the Government. The
references indicate parts, subparts, DSPE must comply with the provisions
sections, subsections, paragraphs, 801.201–1 The two councils. of FAR 1.404 through the SPE.
subparagraphs, or subdivisions of this Revisions to the FAR are prepared
chapter. and issued through the coordinated
Subpart 801.6—Career Development, officer that exceeds that contracting (v) The estimated or agreed contract
Contracting Authority, and officer’s contracting authority and price.
Responsibilities unauthorized commitments made by (vi) A citation of the appropriation
individuals who lack contracting available.
801.601 General. authority. (vii) A statement of whether the
(a) A designating official may appoint (b) A contracting officer must not contractor has commenced performance.
a contracting officer under FAR 1.603 ratify unauthorized commitments made (viii) The name of the individual
and VA’s Contracting Officer by other VA personnel or by another responsible for the unauthorized
Certification Program (COCP). contracting officer who lacks authority commitment.
(b) The HCA may delegate micro- without prior approval as specified in (2) The contracting officer will review
purchase authority to VA employees paragraphs (b)(1) through (b)(3) of this the file and forward it to the approving
under the VA’s purchase card program. section. The specified approval authority specified in paragraph (b) of
(c) An individual may not commit the authorities may not be re-delegated. this section with any comments or
Government for purchases of supplies, (1) At field facilities, for supplies, information that the approving authority
equipment, or services unless the services (except leases of real property), should consider in evaluating the
individual has received delegated and construction, the approving request for ratification. If the approving
contracting authority. Individuals authority for unauthorized authority determines that a legal review
making such commitments or acting commitments made by staff assigned to would be desirable, the approving
beyond the scope of their authority may a field facility is the Director of the field authority will coordinate the request for
be held financially liable. facility concerned. ratification with the Office of the
(2) For VA Central Office (VACO) General Counsel (OGC) or the Regional
801.602 Contracting officers. organizations, for supplies, services Counsel, as appropriate.
(a) Except as otherwise provided by (except leases of real property), and (3) If the approving authority
statute, VA regulations, the VAAR, or construction, the approving authorities authorizes the ratification, the
the FAR, the authority vested in the for unauthorized commitments made by approving authority will return the file
Secretary to do the following is staff assigned to the Administrations are to the contracting officer for issuance of
delegated to the SPE and is further the respective chief financial officers of a purchase order or contract, as
delegated from the SPE to the DSPE: the Administrations concerned. The appropriate.
(1) Execute, award, and administer approving authority for unauthorized (d) If an otherwise proper contract
contracts, purchase orders, and other commitments made by staff assigned to award exceeds the limits of the
agreements (including interagency any other organization within VACO is contracting officer’s delegated authority,
agreements) for the expenditure of funds the Deputy Assistant Secretary for the ratifying contracting officer must
for construction and the acquisition of Acquisition and Materiel Management. comply with the above requirements
personal property and services (3) For unauthorized commitments for and the approving authority must
(including architect-engineer services). leasehold interest in real property, the inform the HCA. The HCA will take
(2) Issue bills of lading. approving authority is: action to preclude future instances of
(3) Sell personal property. (i) The Chief Facilities Management such awards.
(4) Enter into leases, sales agreements, Officer, Office of Facilities Management,
and other transactions. 801.602–70 General review requirements.
for unauthorized commitments for 1–
(5) Prescribe and publish acquisition 5,000 square feet of space or for 1–100 (a) Contracting officers shall ensure
policies and procedures. parking spaces costing less than $50,000 that any document listed under
(6) Establish clear lines of contracting per annum. 801.602–71 through 801.602–76 that is
authority. (ii) The Under Secretary for Health for submitted for technical or legal review
(7) Manage and enhance career unauthorized commitments for 5,001– is submitted through or by an official at
development of the procurement work 20,000 square feet of space or for more least one level above the contracting
force. than 100 parking spaces costing less officer.
(8) Examine, in coordination with the than $100,000 per annum. (b) Before opening a bid, awarding a
Office of Federal Procurement Policy, (iii) The Deputy Secretary for 20,001 contract, or signing a contract-related
the procurement system to determine square feet of space and above or for document as specified in 801.602–71
specific areas where VA should more than 100 parking spaces costing through 801.602–76, the contracting
establish and apply Government-wide more than $100,000 per annum. officer shall ensure that the appropriate
performance standards, and to (c) The process for contracting officer VA official, including appropriate staff
participate in developing Government- requests for ratification will be as of the Acquisition Resources Service
wide procurement policies, regulations, follows: regional or central office, has reviewed
and standards. (1) The individual who made the and concurred with the document.
(9) Oversee the competition advocate unauthorized commitment will furnish (c) Before signing a contract for a
program. the contracting officer with all records Veterans Benefits Administration field
(b) The DSPE may further delegate and documents concerning the facility for any guidance center or
authority to execute, award, and commitment and a complete written vocational rehabilitation service with an
administer contracts, purchase orders, statement of facts that includes the anticipated expenditure of $100,000 or
and other agreements to other VA following: more, the contracting officer shall
officials, such as HCAs and contracting (i) Why the procurement office was ensure that the Director, Vocational
not used. Rehabilitation and Employment Service,
officers, in accordance with the COCP.

(ii) Why the proposed contractor was has reviewed and approved the
801.602–3 Ratification of unauthorized selected. solicitation or proposed contract.
commitments. (iii) Other sources that were (d) When the following items are for
(a) This section applies to considered. the management, sale, or lease of
unauthorized commitments, including (iv) A description of work to be properties acquired by VA after
any commitment made by a contracting performed or products to be furnished. liquidation of a guaranteed, direct,
acquired, or vendee loan, the review (1) The contracting officer may not (i) The requirements of this section or
requirements specified in 801.602–71 consider the positive and negative status sections 801.602–71 through 801.602–
through 801.602–76 do not apply: of the figures in determining the total 76 do not apply to contracts awarded by
(1) Agreements. dollar values involved. or on behalf of the VA Office of
(2) Licenses. (2) An acquisition of $550,000 with a Inspector General.
(3) Easements. trade-in credit of $70,000 would be
(4) Deeds. (j) Contracting officers and purchase
valued at $620,000 for legal or technical cardholders must ensure compliance
(e) If there is insufficient time for the
review purposes rather than the net with separate guidance on information
legal review required in 801.602–
amount of $480,000. An Energy Savings technology (IT) tracking and approval
75(a)(3), the contracting officer (except
Performance Contract requiring prior to processing requests for
contracting officers in the Office of
payment from savings of $10,000,000 to acquisitions of IT and
Facilities Management) must at least
the contractor over the life of the telecommunications software,
obtain verbal concurrence from
contract would be valued at equipment, and/or services, regardless
Acquisition Resources Service staff
$10,000,000, despite the fact that there of dollar value.
before issuing a change order where:
(1) The change order (unilateral is no immediate cost to VA and no
payment if there are no savings. 801.602–71 Basic review requirements.
agreement) has an anticipated value of
$100,000 or more; or (g) The DSPE may require technical Contracting officers must obtain
(2) The change order is for a time review of any contract-related materials, technical review from Acquisition
extension of 60 days or more. regardless of dollar value. Resources Service staff of the
(f) Unless otherwise stated, all dollar (h) Except as set forth in 801.602–73 documents set forth in column one of
values in 801.602–71 through 801.602– and 801.602–75, at its discretion, the Table 801.602–71 that have anticipated
76 are expressed in total dollars Office of Acquisition and Materiel award values equal to or greater than the
involved in the acquisition action. Management may request OGC review. value in column two.
TABLE 801.602–71
Anticipated contract
Document award value
(a) Supply or service solicitations or quotations (except as provided in 801.602–72 through 801.602–75) (includes in- $500,000 or more.
definite quantity, option year, and multi-year solicitations or quotations where the contracting officer reasonably ex-
pects expenditures of $500,000 or more, inclusive of options).
(b) Supply or service solicitations or quotations where a consolidated acquisition activity is performing acquisitions for $750,000 or more.
three or more physically separated VA medical centers (excluding outpatient clinics).
(c) Fixed price, sealed bid construction solicitations, other than 8(a) construction solicitations ........................................ $1 million or more.
(d) 8(a) construction solicitations and task orders .............................................................................................................. $500,000 or more.
(e) Request for Proposal (negotiated) construction solicitations and task orders .............................................................. $500,000 or more.
(f) Proposed task/delivery orders and blanket purchase agreements (includes orders under Federal Supply Schedule $500,000 or more.
contracts).
(g) Proposed cost-reimbursement, incentive, time-and-materials, and labor-hour contracts (see 816.102(b) .................. $100,000 or more.
(h) Utility service agreements ............................................................................................................................................. $50,000 or more.
(i) Solicitations for advisory and assistance services (see 837.2) ...................................................................................... $100,000 or more.
(j) Proposed letter contracts and ensuing formal contracts ................................................................................................ $25,000.
801.602–72 Exceptions and additional solicitation or proposed contract (g) Contracting officers must obtain
review requirements. containing an economic price technical review from Acquisition
(a) In addition to the general review adjustment clause based on a cost index Resources Service staff of a proposed
requirements in 801.602–71, contracting of material or labor (e.g., the urban membership agreement in a group
officers must obtain technical reviews consumer price index (CPI–U) (see FAR purchasing organization.
from Acquisition Resources Service staff 16.203–4(d)) or where one of the (h) Contracting officers must obtain
of any proposed agreement that is economic price adjustment clauses technical review from Acquisition
unique, novel, or unusual. specified in FAR 16.203–4 are used. Resources Service staff of proposed
(b) Contracting officers must obtain (e) Contracting officers must obtain termination settlements or
technical reviews from Acquisition technical review from Acquisition determinations of amounts due the
Resources Service staff of the following Resources Service staff of any proposed contractor under a terminated contract
documents relating to contracts multi-year contract where the that involve the expenditure of $100,000
requiring bonds (see FAR 28.102–1 and cancellation ceiling exceeds 20 percent or more of Government funds.
28.203 through 28.203–5): of the contract amount, regardless of the Acquisition Resources Service staff shall
(1) An irrevocable letter of credit.
dollar value of the proposed contract obtain legal review. (See 849.111–70).
(2) A tripartite escrow agreement.
(3) An individual surety bond. (see 817.105–1(b)). (i) Contracting officers must obtain
(c) Contracting officers must obtain (f) Contracting officers must obtain technical review from Acquisition
technical review from Acquisition technical review from Acquisition Resources Service staff of each
Resources Service staff of each proposed Resources Service staff of any proposed consignment agreement with an
novation and change-of-name agreement solicitation where the contract term anticipated expenditure of $250,000 or
(see FAR Subpart 42.12). total of the basic and option periods will more per year (except for a consignment
(d) Contracting officers must obtain exceed 5 years, regardless of the dollar agreement established under, and
technical review from Acquisition value of the proposed acquisition (see provided for in, a Federal Supply
Resources Service staff of any 817.204). Schedule contract).
(j) Contracting officers, including interagency agreement if the dollar (11) Each proposed novation and
purchase cardholders, must obtain threshold is within the contracting change-of-name agreement (see
technical and legal review of all officer’s warrant limit. 842.1203).
proposed contracts for conferences (b) For an action specified in
where VA’s commitment, expenditure, 801.602–75 Review requirements—OGC. paragraph (a)(1) or (2) of this section,
and liability (combined) exceed (a) Contracting officers must obtain OGC may comment or concur in writing
$25,000. This dollar figure is based on legal review or concurrence from OGC or by telephone.
the combination of all direct costs to VA for the following categories of proposed (c) When a Central Office contracting
under the contract (e.g., conference contractual actions. activity requests legal assistance, the
rooms, audio-visual charges, (1) Each contract termination, final contracting officer will brief OGC on the
refreshments, catering, etc.) and all decision, cure letter, or ‘‘show cause’’ facts and points of issue to facilitate
potential liability (e.g., room guarantee notice proposed under any contract prompt resolution.
liability, cancellation costs). Even if where the total value of the contract is (d) For each solicitation or contract
there is no direct cost to VA, if the $100,000 or more. A contracting officer awarded and administered by a Central
proposed contract includes a guarantee may not sign or release a document Office contracting activity, that
on room usage or a cancellation fee that subject to this provision until OGC has contracting activity will ask OGC to
could potentially exceed $25,000, the concurred. participate in conferences where legal
proposed contract requires legal and (2) Each dispute or claim from a problems or modifications to contract
technical review. Signing a contract contractor involving a potential total provisions may be considered and in
committing VA to hold a conference at dollar value of $100,000 or more. A meetings attended by legal
a particular hotel is a procurement, and contracting officer may not sign or representatives of private parties or
procurement laws and regulations must release a document subject to this other Government agencies. The
be followed. provision until OGC has concurred. contracting activity will request
(3) Each proposed contract assigned procurement counsel
801.602–73 Review requirements for modification, including any proposed participation in drafting correspondence
scarce medical specialist contracts and
modification to a supply or service involving significant controversial or
contracts for health-care resources.
contract, where the total value of the sensitive contractual matters.
For contracts to be awarded under the modification is $100,000 or more (e.g., (e) OGC will prepare any response to
authority of either 38 U.S.C. 7409 or 38 a modification for a $60,000 increase the Government Accountability Office
U.S.C. 8153, contracting officers must and a $50,000 decrease equals (GAO) on GAO bid protests. (See
obtain technical and legal reviews from $110,000). 833.104).
the Medical Sharing Office, OGC, and (4) Each proposed contract
Acquisition Resources Service staff of 801.602–76 Business clearance review.
modification granting a time extension
the following documents: of more than 60 days. The Director, (a) A business clearance review is a
(a) Each competitive solicitation, Acquisition Resources Service, may technical review of all solicitation and
quotation, proposed contract, or waive the pre-approval requirement contract award or modification
agreement with an anticipated contract under this paragraph for an individual documents immediately prior to
award value of $1,500,000 or more, facility when the Director determines contract award or modification over the
inclusive of options. that the facility has obtained specified dollar threshold.
(b) Each noncompetitive solicitation, (b) All VA contracting officers must
appropriate ‘‘consideration’’ for past
quotation, proposed contract, or obtain a business clearance review prior
time extensions and the extensions were
agreement with an anticipated contract to award of any contract, task or
otherwise appropriately granted.
award value of $500,000 or more, delivery order, or blanket purchase
(5) Each proposed modification
inclusive of options. agreement or execution of any contract
increasing the value of a letter contract,
regardless of dollar value. modification with a value of $5 million
801.602–74 Review requirements for an
interagency agreement. (6) Each proposed contract or more, or prior to award of any lease
modification for which the contractor with a value of $300,000 or more per
Contracting officers or other staff must year.
obtain technical review from takes exception to the accord and
(c) The dollar threshold in this
Acquisitions, Operations, and Analysis satisfaction language specified by VA.
paragraph is based on the total dollar
Service staff of the following The contracting officer may not execute
value of all awards expected under a
documents: any proposed contract modification
single solicitation, not the value of each
(a) Each proposed VA Central Office under this requirement until the
individual award under a solicitation.
interagency agreement with another contracting officer receives OGC’s
For example, a solicitation for home
Federal agency to be awarded under concurrence in the proposed language.
oxygen for a VISN might result in
authority of the Economy Act, (7) An assignment of claims (see FAR
multiple awards, each of which has a
regardless of dollar value. For the VA Subpart 32.8).
value of less than $5 million. If the total
Central Office, only the DSPE or (8) Each change or revision to a FAR
of all awards under that solicitation will
designee may sign an interagency or VAAR provision or clause or an
exceed $5 million, the contracting
agreement. internal VA-approved clause (e.g.,
officer must obtain a business clearance
(b) Each proposed VA field facility architect/engineer ‘‘SP’’ clauses) not
review of the entire package, including
interagency agreement with another specifically authorized by the
all proposed individual awards.
Federal agency awarded under authority regulations.
of the Economy Act, involving an (9) Each change or revision to a 801.602–77 Processing solicitations and
anticipated expenditure of $250,000 or prescribed VA contract form. contract documents for legal or technical
more. A VA field facility contracting (10) A proposed utility construction review—general.
officer or a contracting officer at the VA or connection contract with an (a) Under 801.602–70 through
National Acquisition Center or the anticipated contract award value of 801.602–76, before taking contract
Denver Distribution Center may sign an $50,000 or more. action, a contracting officer must ensure
that any required legal or technical Materiel Management office. The sufficient time for evaluation before the
review or concurrence is complete. contracting officer must fully implement bid or proposal opens.
Contracting officers shall not award or any accepted review comments as
follows: 801.602–78 Processing solicitations and
sign contracts, task or delivery orders,
(1) Before opening the bid or proposal contract documents for legal or technical
blanket purchase agreements, or review—Veterans Health Administration
contract modifications prior to receipt of for a competitively awarded contract.
(2) Before executing contract field facilities, Central Office (except Offices
the final legal and technical review. of Facilities Management), the National
documents for a contract modification
Should the contracting officer disagree Acquisition Center, and the Denver
or noncompetitive contract award. Distribution Center.
with the advice provided, the (b) The contracting officer must
contracting officer shall document in advise potential bidders or offerors of (a) If legal or technical review is
the contract file the reasons therefore changes made to the solicitation by required, the documents listed in Table
and provide a copy of that document to issuing an amendment. The contracting 801.602–78 must be forwarded for
the reviewing Office of Acquisition and officer must give bidders and offerors review and approval as shown therein.
TABLE 801.602–78
Documents Person forwarding Forward to
(1) Proposed solicitations, quotations, contract- Contracting officer ............................................ Appropriate Acquisition Resources central or
related documents, and agreements speci- regional office.
fied in Table 801.602.71 and in 801.602–72.
(2) Scarce medical specialist and health-care Contracting officer ............................................ Medical Sharing and Purchase Office.
resource solicitations, quotations, and pro-
posed contracts (i.e., contracts to be award-
ed under the authority of 38 U.S.C. 7409 or
8153) specified in 801.602–73.
(3) Interagency agreements specified in Approving official, contracting officer ............... DSPE.
801.602–74.
(4) Proposed contract modifications, proposed Contracting officer ............................................ OGC.
contract modifications for which the con-
tractor takes exception to the accord and
satisfaction language VA specifies, assign-
ment of claims, changes to clauses, and pro-
posed utility connection agreements speci-
fied in 801.602–75(a)(3) through (a)(7) and
in 801.602–75(a)(9) and (a)(10).
(5) Proposed contract terminations, final deci- Contracting officer ............................................ Regional Office of the General Counsel.
sions, cure letters, show cause notices, dis-
putes, and claims specified in 801.602–
75(a)(1) and (a)(2).
(b) The director of the Acquisition VA Manual MP–1, Part II, Chapter 4 and 801.602–80 Processing solicitations and
Resources Service office conducting the any supplements to it (http:// contract documents for legal or technical
technical review has authority to www.va.gov/publ/direc/benefits/ review—Office of Facilities Management.
determine whether to forward mp1p2ch4.htm). An Office of Facilities Management
documents for legal review. contracting officer must submit items
(c) When the contractor takes 801.602–79 Processing solicitations and specified in 801.602–71, 801.602–72
exception to the accord and satisfaction contract documents for legal or technical and 801.602–75 directly to OGC for
language VA specifies in a proposed review—Veterans Benefits Administration. review.
contract modification, the contracting (a) A Veterans Benefits
officer must not sign the modification 801.602–81 Documents required for
Administration contracting officer must business clearance reviews.
until OGC concurs with the language ensure that proposed solicitations,
proposed by the contractor. When a bid or offer, proposed
quotations, contract-related documents,
(d) The contracting officer either must contract modification, or proposed lease
and agreements listed in Table 801.602–
fax or send via overnight mail all of the requires a business clearance review
71 are reviewed by the Office of
relevant documents on proposed under 801.602–76, the contracting
Resource Management prior to officer must forward the required
contract terminations, final decisions, document execution. The Office of
cure letters, show cause notices, documents (see 801.602–84) and the
Resource Management must request following information to the appropriate
disputes, and claims specified in
legal review of all these documents. Acquisition Resources Service central or
801.602–75(a)(1) and (a)(2). OGC will
provide concurrence or comments either (b) A Veterans Benefits regional office (Office of Facilities
in writing or by telephone. The Administration contracting officer must Management contracting officers shall
contracting officer must not sign or ensure that proposed solicitations or forward the documents to the Office of
release a document to the contractor agreements for guidance center and the General Counsel (025)):
until OGC concurs. vocational rehabilitation services are (a) The date on which award is
(e) For any VA contract form subject reviewed by the Director, Vocational anticipated.
to legal review under 801.602–75(a)(8), Rehabilitation and Employment Service, (b) Results or efforts made to
the contracting officer must process the if there is an anticipated expenditure of determine whether the contractor is
change or revision in accordance with $100,000 or more. responsible under FAR Subpart 9.4.
(c) A determination of price than the low responsible bidder or 801.602–82 Documents to submit for legal
reasonableness. offeror. or technical review—general.
(d) An explanation (e.g., the source Table 801.602–82 specifies the
selection decision as specified in FAR documents that must be submitted
15.308) if the contracting officer when a legal or technical review is
proposes an award to a contractor other required.
TABLE 801.602–82
Action or document subject to review Documents to submit
(a) Proposed construction contract .......................................................... One copy of each solicitation document, excluding drawings. Submit
not later than the date on which the contracting officer furnishes the
documents to prospective bidders.
(b) Proposed solicitation contract for scarce medical specialist services One copy of the solicitation or proposed or contract and documents re-
or health-care resources. quired under VA Manual M–1, Part 1, Chapter 34.
(c) All other proposed solicitations, contracts, and agreements .............. One copy of each document to be used in the contract solicitation or
award, and any other document that supports the proposed procure-
ment action. Submit not later than the date on which the contracting
officer furnishes the documents to prospective bidders.
801.602–83 Documents to submit for legal (7) The names and telephone numbers 801.602–84 Documents to submit for
or technical review—contract modifications. of the contracting officer and COTR. business clearance reviews.
(a) The documents specified in this (8) Costing information including the A contracting officer must submit to
section related to proposed contract following: Acquisition Resources Service (Office of
modifications must be submitted to (i) The contractor’s cost proposal in Facilities Management contracting
Acquisition Resources Service for the format required by the contract. officers shall forward the documents to
review under one or more of the (ii) The COTR’s independent cost the Office of the General Counsel (025))
following conditions: evaluation. for review copies of the following
(1) When the total modification value (iii) The architect/engineer’s documents when a business clearance
is $100,000 or more. independent cost evaluation, if review is required in accordance with
(2) When the modification is for a applicable and available. 801.602–76:
(iv) The contracting officer’s Price (a) The request for contract action,
time extension of 60 days or more.
Negotiation Memorandum under FAR including a justification of need (i.e., the
(3) Where the contractor takes
15.406–3. using service purchase request).
exception to VA’s accord and (v) Any other relevant costing
satisfaction language. (b) The solicitation.
information, such as independent (c) The abstract of the subject bid or
(b) The contracting officer must market research, that VA used or will
submit the following documents for offer.
use as negotiation criteria. (d) Any applicable Price Negotiation
review: (c) For a proposed modification to an
(1) A draft of the proposed Memorandum.
architect/engineer contract, the (e) A statement of the contracting
modification prepared on SF 30, contracting officer must submit for
Amendment of Solicitation/ officer’s rationale for award.
review each document specified in (f) Any applicable justification and
Modification of Contract, specifying the paragraph (b) of this section and the approval under FAR 6.303 and 6.304.
exact language proposed and describing following additional documents. (g) Documents relevant to determining
any change in work, time, or cost. (1) A listing of the fees awarded in the whether the contractor is responsible,
(2) A statement describing the need original contract and previous including:
for the changed work with any back-up modifications. (1) Verification that the vendor is not
documentation, including a copy of the (2) For a working drawing contract, a suspended, debarred, or on the
general statement of work in the original statement regarding the actual or Department of Health and Human
contract and any existing contract estimated cost of the original Services Exclusionary List;
language that will be modified. construction and any estimated change (2) Verification that the vendor has
(3) A statement addressing whether to the overall project cost as a result of filed any required VETS 100 report (not
the proposed modification is within the the proposed modification. required if the acquisition is for a
original scope of the contract and (d) For a modification to a commercial item); and
specifically addressing the facts construction contract or, where (3) For acquisitions exceeding $10
considered in reaching the conclusion. applicable, to an architect/engineer million, the Equal Employment
(4) A statement analyzing what contract, the contracting officer must Opportunity Clearance.
necessitated the modification (e.g., a submit for review a copy of the COTR’s (h) Any applicable approved
design error, technical changes, or mark-up of any drawing that delineates subcontracting plan.
medical center requirements). the proposed changed work, including a (i) Documents relevant to price
(5) The contracting officer’s technical copy of any pertinent technical reasonableness.
representative’s (COTR) technical specifications. When there is a proposed
evaluation of the proposed change. modification involving numerous 801.602–85 Results of OGC’s review.
(6) A memorandum from the changes to drawings and specifications (a) When its review is complete, OGC
appropriate office indicating that funds for a VA Central Office project, the will advise the appropriate Central
are available or a statement concerning drawings and specifications must be Office activity or contracting officer that
the actions that must be taken to secure available for review in the Office of the the proposal was approved as submitted
the required funds. Project Director in VA Central Office. or provide them with recommended
changes. If the Central Office activity is (i) Except for a contract for blood, the contract, purchase order, or other
notified, the Central Office activity will contracting officer may delegate this agreement for the expenditure of funds
forward the information to the authority only to other Government to acquire the specific services set forth
contracting officer. contracting officers under centralized in 801.670 through 801.670–4 is
(b) When changes are recommended indefinite delivery type contracts and delegated to the SPE. The SPE further
by OGC, if the contracting officer the contract will so state. delegates this authority to the DSPE and
concurs, the contracting officer must (ii) A centralized contract for blood to employees appointed or designated to
take immediate action to amend the must state that a contracting officer at an the positions specified in these sections.
document. If the contracting officer does ordering office may designate
representatives and alternate 801.670–1 Issuing bills of lading.
not concur, the contracting officer must
discuss the recommended changes with representatives to place a delivery order The authority to issue bills of lading
the attorney involved and document in subject to the same restrictions in previously contained in this section is
the contract file the reasons why the paragraph (b)(3) of this section. rescinded. Except for individual small
contracting officer is not following (3) Place an oral or other informal package shipments (e.g., United Parcel
OGC’s recommendations. delivery order for items such as, but not Service, Federal Express, or United
(c) OGC will complete its review as limited to, bread, milk, and blood States Postal Service small package
expeditiously as possible, with due against a local indefinite delivery type shipments), no VA employee may issue
regard for procurement actions that contract for which there is a blanket a bill of lading or otherwise procure
require an unusually short period for purchase arrangement and for which transportation services for goods unless
completing the procurement. funds have been obligated. the employee has been delegated
(c) In the administration of research authority to do so as a warranted
801.603 Selection, appointment, and and development contracts, any contracting officer under the VA
termination of appointment. representative appointed under this Contracting Officer Certification
801.603–1 General. section must be acceptable to the Program (ref. 801.690). All
contracting officer and the transportation services for goods, other
VAAR 801.690 through 801.690–9 than for small package shipments,
and 801.670 establish the policy and administration head or staff office
director concerned. require a bill of lading. Except for
procedures for selecting, appointing, individual small package shipments,
(d) When the contracting officer
and terminating a contracting officer. individuals with only micro-purchase
intends to designate a representative
801.603–70 Representatives of contracting under this section for a particular authority may not issue bills of lading
officers. solicitation or contract, the contracting or otherwise procure transportation
(a) In carrying out the responsibilities officer must include the clause in services. The dollar value of the bill of
of FAR 1.602–2, the contracting officer 852.270–1, Representatives of lading issued or transportation services
may designate another Government Contracting Officers, in the solicitation acquired must not exceed the delegated
employee or another contractor as COTR and contract. authority of the contracting officer.
to perform the functions in this section Candidates for appointment as
801.603–71 Representatives of contracting transportation contracting officers
and 801.603–71. officers; receipt of equipment, supplies, and
(1) Except as indicated in 801.603–71, whose delegated authority will be
nonpersonal services.
a designation under this section must be limited to the acquisition of
(a) Without prior notification to the transportation services for goods only
written, must define the scope and contractor or vendor, the contracting
limitation of the representative’s shall comply with the Education,
officer may designate other competent Experience, and Core Training
authority, and must be addressed to the personnel to represent him or her to
COTR with a copy forwarded to the requirements, if any, in Part 102–117 of
receive and inspect supplies, equipment title 41 Code of Federal Regulations, the
contractor. and services at a VA facility. The COTR
(2) The COTR may not re-delegate Federal Management Regulation, rather
may perform duties such as, but not than the requirements in 801.690.
authority received under this paragraph. limited to, the following:
(3) The contracting officer may not (1) Inspect and certify compliance 801.670–3 Medical, dental, and ancillary
authorize a representative to make any with the quality and quantity service.
commitment or change that will affect requirements of the purchase order or (a) When medical, dental, and
the price, quantity, quality, or delivery contract. ancillary services under $10,000 per
terms of a contract. (2) Inspect supplies and equipment authorization are not available from an
(4) A contracting officer acting within for condition and quantity and accept existing contract or agreement, the
his or her warranted contracting supplies, equipment, and services, following VA officials at VA medical
authority must authorize any change to based on quality inspection made by facilities may authorize these services:
a contract. another authorized representative. (1) The Chief of Staff and the
(b) A contracting officer may (b) The Director, Library Services, VA physician assigned the responsibility for
authorize his or her technical Central Office, and the Chief, Library the ambulatory care function.
representative to do the following: Service, at a field facility may act as (2) Chief, Medical Administration
(1) Furnish technical guidance and representatives of the contracting officer Service.
advice or generally supervise the work to receive, inspect and accept library (3) Person designated by the facility
performed under the contract. books, newspapers, and periodicals. director to perform medical
(2) Take any action authorized in the Purchase documents will specify that administration functions.
contract, such as issuing a delivery delivery will be made directly to the (b) Forms specified in Part 853 shall
order, rejecting an unsatisfactory item, library. be used for ordering services under this
ordering a replacement of an paragraph from existing contracts.
unsatisfactory item (materials or 801.670 Special and limited delegation. (c) The officials named in paragraph
services) or declaring a contractor in The authority vested in the Secretary (a) of this section may designate one or
default on specific delivery orders. to execute, award, and administer a more of their subordinates to exercise
the authority in paragraph (a) of this 801.690 VA’s COCP. Letter 05–01. One CLP is generally
section. The provisions of 801.690 through equivalent to one hour of classroom
(d) A designation under this section 801.690–9 establish the policy and training.
must be in writing and specifically set procedures for the VA-wide Contracting COCB means the Contracting Officers
forth the scope and limitations of the Officer Certification Program (COCP). Certification Board, a group of VA
designee’s authority. officials, listed at 801.690–3(b), who
801.690–1 Definitions. evaluate and recommend to the DSPE
801.670–4 National Cemetery Accredited college or university
Administration.
individuals for delegation of contracting
means a college or university that has authority as Level II or Level III (Senior
The Directors of Logistics been accredited by an accrediting Limited or Unlimited) contracting
Management Service, the Centralized agency recognized by the U.S. officers.
Contracting Division, and the Department of Education (see http:// COCP means the Contracting Officers
Construction Support Division are www.ed.gov/admins/finaid/accred/ Certification Program, VA’s program
authorized to procure supplies, index.html) or accredited by a foreign established for the selection,
equipment and non-personal services government. appointment, and termination of
(including construction) for National ACEP means the Acquisition appointment of contracting officers.
Cemetery Administration (NCA) field Continuing Education Program, a COQS means the Contracting Officer
facilities and other NCA offices when program to provide VA’s acquisition Qualification Statement, a document
there is an emergency during which the workforce with classroom knowledge to completed by a candidate for a position
servicing supply organization cannot be further develop their acquisition skills. as contracting officer that accompanies
used. The program supports VA personnel in the request for contracting authority.
801.670–5 Letters of agreement. the GS 1102 contracting series, other The certified statement includes
contracting officers (regardless of information on experience, education,
(a) Letters of agreement shall not be
General Schedule series), contracting training, and pertinent contracting
used. The authority previously
contained in this section is rescinded. officers’ technical representatives, and authority information. The COQS is
(b) The VA Office of Inspector General contracting officers’ representatives to accompanied by supporting
may issue contracts for commercial ensure that they meet the continuing documentation such as training
items, including services, using a letter education requirements mandated by certificates, copies of prior and current
format (see FAR 12.204(a)), provided OFPP Policy Letter No. 05–01, warrants, college transcripts, and other
billing information and required clauses Developing and Managing the relevant information.
are included in the contract. If the dollar Acquisition Workforce, dated April 15, Federal Acquisition Certification (see
value of the acquisition will exceed the 2005 (see http://www.whitehouse.gov/ OFPP Policy Letter 05–01, paragraph 8)
simplified acquisition threshold, this is omb/procurement/policy_letter_05– means a certification program
a deviation from the requirement to use 01.html) and other official guidance. developed by the Federal Acquisition
Standard Form 1449 at FAR 12.204(a). Acquisition Workforce means those Institute and OFPP that generally
VA employees who are classified as: GS reflects a Government-wide standard for
801.680 Contracting authority of the 1102 contract specialists; GS 1105 education, training, and experience
Inspector General. purchasing agents; contracting officers leading to the fulfillment of core
(a) Under section 6(a) of Public Law warranted above the micro-purchase competencies in acquisition-related
95–452 (October 12, 1978), the Inspector threshold; program and project disciplines.
General may do the following: managers and other significant Selection means the appointment of
(1) Contract or arrange for audits, acquisition-related positions as an employee as a contracting officer.
studies, analyses, and other services otherwise identified by the VA Chief The selection process shall consider the
with public agencies and with private Acquisition Officer; contracting officers’ complexity and dollar value of the
persons. technical representatives; and assigned work, the candidate’s
(2) Make payments necessary to carry contracting officers’ representatives. The experience, training, education,
out the provisions of the Act, to the acquisition workforce also includes a business acumen, judgment, character,
extent and in amounts provided in limited number of employees that reputation, and knowledge of
advance by appropriations acts. perform significant acquisition-related acquisition policies, rules and
(b) In exercising the special authority responsibilities, (e.g., employees in the regulations.
provided in paragraph (a) of this GS 345, GS 801, GS 1101, GS 1106, GS Skills Currency means the level of
section, the Inspector General may ask 1170, GS 2001, GS 2003, and GS 2005 knowledge and abilities that a GS 1102
the servicing head of the contracting job series and select program officials). contract specialist or a contracting
activity for assistance in developing Appointment means the delegation of officer attains as the result of
appropriate contract or agreement authority to any VA employee to enter participating in a minimum of 80 CLPs
documents. into, administer, or terminate contracts of continuing education or training
(c) The FAR applies to contracts made and to make related determinations and every two years. The training is
under paragraph (a) of this section. Such findings. intended to ensure that the employee
contracts also are subject to provisions ATCD means the Acquisition Training maintains current acquisition
of the VAAR that implement and and Career Development Division. knowledge and skills, as mandated by
supplement the FAR on matters other Certificate of Appointment as OFPP Policy Letter No. 05–01 and other
than those stemming from or related to Contracting Officer is a signed official guidance.
delegations of the Secretary’s certificate on Standard Form 1402 used
Termination means the revocation or

contracting authority. (For example, for the written appointment of rescission of an appointment as
management controls and approvals contracting officers that states the scope, contracting officer.
specified in Subpart 837.2 will not limitation, and term of the contracting
apply to contract actions under the officer’s authority. 801.690–2 General.
contract authority of the Inspector CLP means continuous learning (a) The VA COCP applies to all
General.) points, as provided in OFPP Policy programs of VA except for the
appointment of contracting officers any current Senior Unlimited Level (2) COCB membership consists of:
under the Inspector General Act (Public warrant need not be reissued solely to (i) The Chief, Acquisition Program
Law 95–452) and for contracting officers change the title. Management Division; and
designated in 801.670 through 801.670– (5) Multi-VISN. Authority at the Level (ii) The Director, ATCD.
5. The COCP also applies to VA officials II and Level III (Senior Limited) Levels, (d) HCAs. HCAs are responsible for
granted authority to enter into sales granted by the DSPE, that permits the following:
agreements (see separate guidance procurement consolidations among (1) Implementing and maintaining an
under VA’s Directives Management Veterans Health Administration VISNs, effective and efficient program for the
System) Veterans Benefits Administration Area procurement of personal property and
(b) A Certificate of Appointment is Offices, and other Government agencies nonpersonal services required by the
not required for a contracting officer that exist outside the contracting activity to which the HCA is assigned.
designated in 801.670 who exercises officer’s normally assigned geographical (2) Establishing adequate controls to
special and limited delegations of area of appointed authority. Multi-VISN ensure compliance with applicable laws
authority. authority is generally granted for and regulations;
(c) The COCP is based on the procurement-specific requirements or to (3) Appointing or terminating the
following levels and types of authority: groups or consortiums established for appointment of contracting officers at
(1) Level I. Authority for expenditures regional contracting initiatives. the Micro-purchase and Level I Levels
at or below the simplified acquisition (d) Micro-purchase Level. Micro- within their assigned activity;
threshold (see FAR 2.101) for open purchase Level authority, not to exceed (4) Establishing procedures and
market contracts, blanket purchase the micro-purchase threshold (currently maintaining records for the appointment
agreements, basic ordering agreements, $2,500 ($2,000 for construction), see and termination of appointment of Level
and delivery/task orders against FAR 2.101) is separately addressed I contracting officers and purchase
established contracts (except Federal under VA’s purchase card program. cardholders at the Micro-purchase
Supply Schedule (FSS) contracts), Under that program, the HCA may Level. Records maintained on
within the specified geographical limits delegate authority to a VA employee as contracting officers shall include the
of the contracting officer’s warrant. For a purchase cardholder through the contracting authority, certification and
FSS contracts, Level I authority includes issuance of VA Form 0242. qualification statements;
authority for expenditures up to the (5) Recommending to the DSPE the
maximum order threshold of the FSS 801.690–3 Responsibilities under the
appointment or termination of
COCP.
contract, within the specified appointment of contracting officers at
geographical limits of the contracting (a) DSPE. The DSPE is responsible for the Level II and Level III (Senior
officer’s warrant. This level was the following: Limited or Unlimited) Levels of
formally titled ‘‘Basic’’ and any current (1) Administering and overseeing the
authority, certifying the candidate’s
Basic Level warrant need not be COCP;
(2) Appointing and terminating Level qualifications, and justifying the
reissued solely to change the title. organizational need;
(2) Level II. Authority for II and Level III (Senior Limited and
Unlimited) contracting officers; (6) Ensuring that all GS 1102 contract
expenditures at or below $5,000,000 or specialists and other contracting officers
as stated on Standard Form 1402 for (3) Establishing and developing
additional agency-specific training and meet the minimum core training and
open market contracts, blanket purchase continuing education requirements; and
determining the levels of contracting
agreements, basic ordering agreements, (7) Certifying that the assigned
authority needed under the COCP; and
and delivery/task orders against (4) Developing and implementing acquisition workforce meets the
established contracts, within the policy, procedures, and guidance for minimum training, education, and skills
specified geographic limits of the VA’s acquisition program. currency requirements prescribed by
contracting officer’s warrant. This level (b) The Chief, Acquisition Program OFPP and the DSPE.
was formally titled ‘‘Intermediate’’ and Management Division. The Chief, (e) VA Acquisition Workforce. All
any current Intermediate Level warrant Acquisition Program Management employees identified as members of
need not be reissued solely to change Division, serves as the Executive VA’s acquisition workforce (see
the title. Secretary to the COCB and is 801.690–1) are responsible for
(3) Level III (Senior Limited). responsible for the following: maintaining records that include
Authority for expenditures at or below (1) Coordinating requests for certificates of acquisition training,
the dollar threshold and within the contracting authority with the COCB; continuing education, college
geographical limits specified on the (2) Proceeding accordingly with transcripts, work experience, and other
contracting officer’s warrant, Standard appropriate action to carry out the supporting documentation needed to
Form 1402. This level was formally decisions of the DSPE and the COCB; substantiate successful completion of all
titled ‘‘Senior Limited’’ and any current (3) Maintaining individual records on warrant requirements. These employees
Senior Limited Level warrant need not the appointment and termination of shall enroll in VA’s Center for
be reissued solely to change the title. appointment of contracting officers. Acquisition and Materiel Management
(4) Level III (Senior Unlimited). Records on contracting officers include Education Online (CAMEO) and in the
Authority granted to VA’s contracting HCA certifications and qualification Acquisition Career Management
officers in contracting activities (e.g., the statements, Certificates of Appointment, Information System (ACMIS), the data
VA National Acquisition Center, Hines, and other supporting documentation systems that serve as the repositories of
IL, and Acquisition Operations Service, used to grant authority; and required information on VA’s
VA Central Office, Washington, DC) that (4) Ensuring appropriate and timely acquisition workforce.
are charged with meeting Department- disposition of records through Office of

wide acquisition needs of VA and its Acquisition and Materiel Management’s 801.690–4 Selection.
customers. The authority is for Records Control Officer. (a) The HCA may appoint Level I
expenditures at any dollar level without (c) The COCB. (1) The Director, contracting officers or submit written
geographical restriction. This level was Acquisition Resources Service, will requests to the DSPE for appointment of
formally titled ‘‘Senior Unlimited’’ and chair the COCB. Level II or Level III (Senior Limited or
Unlimited) contracting officers. A VA FAR, VAAR, and other applicable laws, 801.690–5 Requirements for contracting
official one level above the HCA may regulations, policies and procedures. authority.
submit a written request to the DSPE for (d) The accompanied COQS shall (a) Effective January 1, 2007, no
the appointment of a HCA as a include the following information:
individual, regardless of job series, may
contracting officer. (1) Candidate’s name, position title,
series, grade, and location; be issued a new contracting officer
(b) Appointment can only be warrant above the micro-purchase
requested in those circumstances where (2) Candidate’s relevant acquisition or
business-related experience that reflects threshold unless the individual meets
it can be demonstrated that a valid the requirements for Federal
organizational need exists. In making the required number of years of
progressive work assignments leading to Acquisition Certification (Certification)
this assessment and justification, the
broader technical abilities; for the applicable warrant level as
HCA will consider the complexity of the
(3) Education background, including specified in OFPP Policy Letter 05–01
work, volume of actions, organizational
number of acquisition or business- and other official guidance. A new
structure, and human resource
related college credits; contracting officer warrant is defined in
management actions and forecasts, such
(4) List of core training requirements OFPP Policy Letter 05–01 as a warrant
as rates of retirement, reassignment, and
or equivalent courses that have been issued for the first time at a department
retention.
successfully completed; or agency. Certification will not be
(c) The request shall consist of the (5) List of continuing education required for current warranted
following: requirements successfully completed contracting officers at their current
(1) Justification for requesting within the last two years;
contracting authority to be granted; warrant level to retain their current
(6) List of current and prior warrant warrant, but will be required before a
(2) Certification that the candidate’s authorities, limitations, and information
experience and training meet the higher level warrant can be issued.
on termination and cause for Certification includes minimum
established minimum qualifications for termination;
the requested contracting authority; requirements for education, training,
(7) List of other acquisition related and experience. A candidate for a
(3) Certification that the candidate has activities or memberships;
a satisfactory-or-above performance warrant must have at least a satisfactory-
(8) Certification that the statement is
rating; or-above performance rating during the
accurate and complete to the best of the
(4) Certification that the candidate candidate’s knowledge; and most recent performance period.
maintains high standards of conduct (9) Attached copies of acquisition or (b) Until January 1, 2007, the
and avoids apparent or actual conflicts business-related training certificates, minimum requirements for qualifying as
of interest, and course certificates, and diplomas, a contracting officer specified in Tables
(5) Certification that the candidate has transcripts, or degrees from accredited 801.690–5(b)(1) and 801.690–5(b)(2)
appropriate working knowledge of the colleges or universities. shall apply.
TABLE 801.690–5(B)(1)
For level I For level II
(i) Experience .................................................... 6 months of progressive work assignments 2 years of progressive work assignments with-
and orientation within the last 3 years in an in the last 4 years in an acquisition-related
acquisition-related field. field leading to broader technical abilities.
(ii) Education ...................................................... High School Diploma or General Educational For Grades GS–12 and below, a Bachelor’s
Development (GED). Degree or 24 business’s related college
credits from an accredited college or univer-
sity; or
For GS 13 and above, a Bachelor’s Degree
that is supplemented by or includes 24 busi-
ness-related college credits from an accred-
ited college or university.
(iii) Skills Currency (Minimum number of CLPs 80 CLPs ............................................................ 80 CLPs.
every 2 years).
(iv) Performance ................................................ Satisfactory-or-above ....................................... Satisfactory-or-above.
(v) Core Training, as follows (or approved For Level III (Senior Limited) ........................... For Level III (Senior Unlimited)
equivalent courses):
Basic Acquisition Course or Simplified Acquisi- X ....................................................................... X.
tion Procedures Course.
Acquisition Planning I (2 week course) ............. ........................................................................... X.
Contract Formation I .......................................... ........................................................................... X.
Contract Administration I ................................... ........................................................................... X.
Negotiation Techniques ..................................... ........................................................................... X.
Cost Analysis ..................................................... ........................................................................... X.
Price Analysis .................................................... ........................................................................... X.
Acquisition Planning II ....................................... ........................................................................... X.
Contract Formation II ......................................... ........................................................................... X.
Contract Administration II .................................. ........................................................................... X.
TABLE 801.690–5(B)(2)
For level III
For level III (senior unlimited)
(senior limited) (national programs)
(i) Experience .................................................... 3 years of progressive work assignments in an 6 years of progressive work assignments in
acquisition-related field leading to broader acquisition, 3 years of which were in an ac-
technical abilities within the last 5 years. quisition-related field leading to broader
technical ability within the last 5 years.
(ii) Education ...................................................... Bachelor’s Degree that is supplemented by or Bachelor’s Degree that is supplemented by or
includes 24 business-related college credits includes 24 business-related college credits
from an accredited college or university. from an accredited college or university.
(iii) Skills Currency (Minimum number of CLPs 80 CLPS ........................................................... 80 CLPs.
every 2 years).
(iv) Performance ................................................ Satisfactory-or-above ....................................... Satisfactory-or-above.
(v) Core Training, as follows (or approved
equivalent courses):
All courses required of a Level II contracting X ....................................................................... X.
officer as specified in Table 801.690–5(b)(1).
Intermediate Contract Pricing (2 week course) X ....................................................................... X.
Government Contract Law (2 week course) ..... X ....................................................................... X.
(c) Effective January 1, 2007, before an minimum of 80 CLPs of continuing university: Accounting, business,
individual can be issued a Level I education or training every two fiscal finance, law, contracts, purchasing,
warrant for acquisitions above the years to stay abreast of current economics, industrial management,
micro-purchase threshold, an individual acquisition knowledge and skills as marketing, quantitative methods, or
will be required to meet the mandated by OFPP. The HCA (for Level organization and management.
Certification requirements in OFPP I contracting officers) and the Chief, (2) The Chief, ATCD, will make the
policy guidance. The minimum ATCD (for Level II and Level III final determination whether a course is
education and training requirements for contracting officers), shall make written accepted as business-related for the
a Level I warrant are expected to determinations each October 1st on purpose of granting contracting
include a baccalaureate degree or 24 whether or not the required CLPs, as authority.
semester hours of business-related specified in OFPP guidance, were (3) American Council on Education
college credits and approximately 240 completed during the two prior fiscal (ACE) credits are not considered as
CLPs (six weeks) of acquisition-related years. The HCA shall assign CLP values college credits until they are converted
classroom training. to training taken by Level I contracting and included on a transcript from an
(d) Multi-VISN. The HCA shall obtain officers for training that does not have accredited college or university.
written concurrence from other affected pre-assigned CLP or continuing (h) Grandfather Provision for the
VISNs or Area Offices when requesting education unit (CEU) values assigned to Education Requirement. (1) VA
Multi-VISN contracting authority. the training by the provider. The Chief, contracting officers, regardless of grade
(e) Core Training. (1) Contracting ATCD, shall assign CLP values to level, who currently hold Level I, Level
officers and non-warranted contract training taken by Level II and Level III II, or Level III (Senior Limited or
specialists shall complete the required contracting officers for training that Unlimited) warrants are considered as
coursework and on-the-job training does not have pre-assigned CLP or having met the Experience, Education,
needed to possess the established continuing education unit (CEU) values and Core Training requirements in
competencies listed in OFPP’s Federal assigned to the training by the provider. Tables 801.690–5(b)(1) and 801.690–
Acquisition Institute Contract Specialist Values shall be assigned based on 5(b)(2) for that warrant level. This
Training Blueprints (http://www.fai.gov/ guidance provided by OFPP and the includes transfers or laterals to other VA
prodev/contract.htm). combined efforts of the Federal contracting activities with similar
(2) The Chief, ATCD, oversees the Acquisition Institute and the Defense geographical restrictions. Contracting
ATP and the 11 core training courses Acquisition University. Disputes officers who are promoted up to a GS–
listed in Tables 801.690–5(b)(1) and regarding the CLP or CEU values 12 can maintain their current warrant
801.690–5(b)(2). assigned to training shall be resolved by level authority.
(3) Training course equivalency will the Associate Deputy Assistant (2) This Grandfather provision does
be determined and approved by Chief, Secretary for Acquisitions. not cover new VA employees, current
ATCD. Candidates should contact the (2) The Chief, ATCD, is responsible VA employees who are not warranted,
Chief, ATCD, for an equivalency for the management of the ACEP, the or former VA employees who held
determination and must furnish any program that assists contracting officers contracting authority at their previous
information or evidence necessary to and contract specialists to meet the Federal Government agencies or VA
support the request. Appeals of training requirements. positions. VA contracting officers who
decisions may be made to the VA Chief (3) An expiring warrant will not be re- are promoted to GS 13-and-above will
Acquisition Officer and the decisions of issued if the contracting officer has not no longer be covered by this
the Chief Acquisition Officer shall be met the continuing education or training Grandfather provision and, therefore,
final. requirement. must meet the current Experience,
(f) Skills Currency. (1) Contracting (g) Education. (1) The 24 business- Education, and Core Training
officers and non-warranted contract related college credits shall be in any requirements for the specific warrant
specialists who have completed the core combination of the following fields of authority that they currently hold or to
training requirements shall obtain a study at an accredited college or which they wish to be appointed.
Contracting officers requesting a higher (2) There has been a personnel action justification for the interim
level warrant (e.g., from Level I to Level such as a resignation, retirement, appointment.
II or from Level III (Senior Limited) to transfer; (2) The HCA must ensure that the
Level III (Senior Unlimited)) must also (3) Unsatisfactory performance; candidate with interim appointment
meet the current Experience, Education, (4) Alleged official misconduct meets the minimum Experience,
and Core Training requirement for the pending criminal or administrative Education, and Core Training
specific warrant authority requested. investigations; requirements within the time specified
(3) This Grandfather provision for (5) Failure to meet training or skills on the warrant.
retaining a contracting officer’s current currency requirements; (3) A contracting officer with interim
warrant authority is voided if the (6) A contracting officer taking an appointment should successfully
contracting officer does not fully meet action that exceeds his or her authority; complete all remaining required courses
the minimum Skills Currency (7) Blatant disregard for adhering to or equivalent courses within the time
requirement prior to warrant expiration acquisition regulations, policies and specified on the warrant.
or when the warrant authority is procedures; or
suspended or revoked. The contracting (8) Situations similar to those in (b) At the HCA’s written request, a
officer will then need to meet all of the paragraphs (a)(1) through (7) of this permanent warrant may be issued
current warrant prerequisites before a section that may require remedial during the interim appointment period
new warrant can be issued or before the action. when the contracting officer has
suspended or revoked warrant can be satisfactorily met the requirements. The
(b) The HCA should discuss a
reinstated. appropriate documentation (copies of
termination of contracting authority for
(i) The training requirements for course certificates) must be submitted
cause with the servicing Human
contracting officers whose delegated with the HCA’s request.
Resource Management Office to
authority is limited to the acquisition of determine the impact, if any, on the (c) An interim appointment may be
transportation services, as provided in contracting officer’s continued appropriate for instances such as
Part 102–117 of title 41 Code of Federal employment. organizational changes or sudden,
Regulations, the Federal Management (c) All changes in the status (e.g., extreme, and unexpected increases in
Regulation, shall be as specified therein. departure; name, position, or grade workload complexity and/or volume.
(ii) [Reserved] change) of a micro-purchase cardholder (d) Interim appointments will not be
or Level I warrant holder shall be granted under the following
801.690–6 Appointment.
reported in writing by the individual’s circumstances:
(a) Only the DSPE (for Level II and supervisor to the HCA within five (1) To a candidate who is warranted
Level III (Senior Limited or Unlimited)) workdays of occurrence. All changes in but does not meet the Education or Core
and the respective HCA (for Level I) the status of a Level II or Level III Training requirements for higher level
may sign the Certificate of Appointment (Senior Limited or Unlimited) warrant (e.g., from Level I to Level II) contracting
as Contracting Officer. HCAs are holder shall be reported in writing by authority (unless waived by the SPE);
authorized to grant Micro-purchase the HCA to the DSPE within five
Level and Level I contracting authority workdays of occurrence. Level II or (2) To a candidate who does not have
up to the thresholds specified for these Level III (Senior Limited or Unlimited) a current record of satisfactory-or-above
authorities at 801.690–2(c). The HCA warrants that are terminated, rescinded performance; or
may recommend a candidate to the or superseded should be returned to the (3) To a contracting officer whose
DSPE for appointment as a Level II or Director, Acquisition Resources Service authority has expired and who has not
Level III contracting officer. Only the (049A5), citing the exact reason for the met the continuing education
DSPE may grant Level II, Level III termination, rescission, or supersession. requirement during the two preceding
(Senior Limited or Unlimited), and years.
Multi-VISN authority. 801.690–8 Interim appointment provisions.
(e) Generally, an interim appointment
(b) All Certificates of Appointment as (a) To ensure availability of may not exceed one year.
Contracting Officers and other written procurement support, an interim
documents must clearly state any appointment may be granted for a 801.690–9 Distribution of Certificates of
limitations or restrictions on the limited period of time when a candidate Appointment.
authority. does not fully meet the minimum (a) The DSPE or HCA will issue an
(c) The Privacy Act of 1974 applies to qualifications for Experience, original Certificate of Appointment as
the information collected during Education, or successful completion of Contracting Officer to the appointed
contracting officer selection and all acquisition Core Training candidate, who must display the
appointment. requirements in Tables 801.690–5(b)(1) Certificate at his or her duty station.
or 801.690–5(b)(2), if applicable, or as
801.690–7 Termination. (b) The HCA shall file a copy of the
provided in OFPP guidance. All interim
warrant in the delegation of authority
(a) The DSPE (for all Levels) or HCA appointments made after January 1,
file.
(for Micro-purchase Level and Level I) 2007, for individuals who do not meet
may revoke or rescind the appointment the minimum Experience, Education, or (c) The contracting officer must
of a contracting officer at any time. Core Training requirements for Levels I furnish a copy to the respective fiscal
HCAs may submit a recommendation to through III shall be signed by the SPE, activity.
revoke or rescind the appointment of a without power to redelegate, as (d) Each Certificate will be serially
contracting officer’s Level II or Level III provided in OFPP guidance. numbered, reflecting the facility
(Senior Limited or Unlimited) warrant (1) In a request for an interim number, the year of issuance (e.g.,
to the DSPE. Revocation may be based appointment, the HCA must include the facility number—year of issuance (2
on the following circumstances: information required by 801.690–4 on digits)—sequential number, 560–04–10),
(1) There is no longer a need for the the candidate’s training, experience, and have an effective and expiration
appointment; performance, and education, and a date.
801.695 VA’s Appointment of HCAs Subpart 802.1—Definitions PART 803—IMPROPER BUSINESS

Program. PRACTICES AND PERSONAL
802.101 Definitions.
801.695–1 Policy. CONFLICTS OF INTEREST
A/E means architect/engineer.
(a) VA’s policy is to have a minimum Subpart 803.1—Safeguards
Chief Acquisition Officer means the
number of HCAs. Generally, there will Assistant Secretary for Management. Sec.
be one HCA per VISN, other major VA 803.101 Standards of conduct.
organizational element, or major COTR means Contracting Officer’s 803.101–3 Department regulations.
acquisition organization. The authority Technical Representative or Contracting 803.104 Procurement integrity.
vested in the Secretary to select, Officer’s Representative. 803.104–7 Violations or possible violations.
appoint, and terminate HCAs is D & S Committee means the VA Subpart 803.2—Contractor Gratuities to
delegated to the SPE and is further Debarment and Suspension Committee, Government Personnel
delegated from the SPE to the DSPE. a committee consisting of the Director, 803.203 Reporting suspected violations of
Acquisition Resources Service (chair), the Gratuities clause.
(b) Under the FAR at 1.601(a) and
and representatives of the Office of 803.204 Treatment of violations.
2.101, an HCA is a senior level position.
Management, Office of Inspector
The official who occupies this position Subpart 803.3—Reports of Suspected
General, and the program office to Antitrust Violations
should have the education, training, and
which the particular debarment or
experience necessary to make the 803.303 Reporting suspected antitrust
suspension case relates. A
decisions required of an HCA. violations.
representative from OGC will serve as
(c) Except as provided in the FAR, an legal counsel to the D & S Committee. Subpart 803.4—Contingent Fees
HCA may delegate his or her authority Debarring official means the DSPE, 803.405 Misrepresentations or violations of
to other individuals within the HCA’s who is also the Deputy Assistant the Covenant Against Contingent Fees.
acquisition activity. Such delegations Secretary for Acquisition and Materiel Subpart 803.5—Other Improper Business
must be in writing and must set forth Management. Authority to impose Practices
the specific limitations on the debarment is delegated to the SPE and
designee’s authority. The delegation 803.502 Subcontractor kickbacks.
is further delegated to the DSPE. 803.570 Commercial advertising.
may include authority to appoint a 803.570–1 Policy.
contracting officer at the Micro- DSPE means the Deputy Senior
Procurement Executive, who is also the 803.570–2 Contract clause.
purchase or the Level I Levels (see
801.690–2). Deputy Assistant Secretary for Subpart 803.6—Contracts with Government
Acquisition and Materiel Management. Employees or Organizations Owned or
801.695–2 Procedures for appointment of The DSPE must be career member of the Controlled by Them
HCAs. Senior Executive Service. 803.602 Exceptions.
An HCA must be appointed in writing FAR means the Federal Acquisition Subpart 803.7—Voiding and Rescinding
by the DSPE and in accordance with Regulation. Contracts
internal VA policy. The written GAO means the Government 803.703 Authority.
delegation must state any limitation on Accountability Office. 803.705 Procedures.
the HCA’s authority, other than a HCA means the Head of the Subpart 803.8—Limitation on the Payment
limitation contained in an applicable Contracting Activity, an individual of Funds to Influence Federal Transactions
law or regulation. appointed in writing by the DSPE under 803.804 Policy.
801.695–3 Authority of the HCA. VA’s Appointment of HCAs Program 803.806 Processing suspected violations.
(see 801.695).
(a) The HCA has overall responsibility Subpart 803.70—Contractor Responsibility
OGC means the Office of the General to Avoid Improper Business Practices
for managing the procurement program Counsel.
assigned to the activity. 803.7000 Display of the VA Hotline poster.
SPE means the Senior Procurement 803.7001 Contract clause.
(b) The HCA’s level of contracting Executive who is also the Assistant
authority, if any, shall be specified in Authority: 38 U.S.C. 501; 40 U.S.C. 121(c);
Secretary for Management. The SPE is and 48 CFR 1.301–1.304.
the HCA’s appointment letter. responsible for the management
(c) The HCA has the authority to direction of the VA acquisition system. Subpart 803.1—Safeguards
appoint and terminate contracting The SPE may further delegate authority
officers with authority to conduct to the DSPE. 803.101 Standards of conduct.
procurements of up to and including Suspending official means the DSPE. 803.101–3 Department regulations.
simplified acquisition threshold or the Authority to impose suspension is (a) Part O of 38 Code of Federal
maximum order threshold or limitation delegated to the SPE and is further Regulations (CFR) states the standards
for orders placed against Federal Supply delegated to the DSPE. of conduct for all VA employees,
Schedule contracts, and to terminate VA means the Department of Veterans including contracting officials.
such appointments (Micro-purchase and Affairs. (b) Subpart B of 38 CFR Part O states
Level I Levels).
VAAR means the Department of the employee financial disclosure
PART 802—DEFINITIONS OF WORDS Veterans Affairs Acquisition Regulation. requirements.
AND TERMS VISN means Veterans Integrated
803.104 Procurement integrity.

Service Network, an integrated network
Subpart 802.1—Definitions of VA facilities that are focused on 803.104–7 Violations or possible
Sec. pooling and aligning resources to best violations.
802.101 Definitions. meet local needs in the most cost- (a) Contracting officers must forward
Authority: 40 U.S.C. 121(c) and 48 CFR effective manner and provide greater the information required by FAR 3.104–
1.301–1.304. access to care. 7(a)(1) to the HCA. In consultation with
OGC, the HCA may make the debarment is also being considered, the consider any mitigating factors, such as
determination and concurrence D & S Committee shall also follow the those listed at FAR 9.406–1 and
specified in FAR 3.104–7(a)(1). procedures contained in 809.4. The 809.406–1, prior to making a final
(b) Upon receipt of information signed notice will be sent to the last decision.
describing a violation or possible known address of the contractor, the
violation of subsections 27(a), (b), (c), or contractor’s counsel, or agent for service Subpart 803.3—Reports of Suspected
(d) of the Office of Federal Procurement of process, by certified mail, return Antitrust Violations
Policy Act of 1974 (see FAR 3.104–3), receipt requested, or any other method
the HCA will take action in accordance the provides signed evidence of receipt. 803.303 Reporting suspected antitrust
In the case of a business, the D & S violations.
with FAR 3.104–7(b). The HCA must
also report violations or possible Committee may send the notice to any (a) Any VA employee who suspects or
violations to the VA Office of Inspector partner, principal, officer, director, has evidence of possible antitrust
General. owner or co-owner, or joint venture. violations must report the suspected
(c) The authority to make the (c) If VA does not receive a reply from violations, in accordance with FAR
determinations specified in FAR 3.104– the contractor within 45 calendar days 3.303, to the VA Office of Inspector
7(b)(5) and 3.104–7(d)(2)(ii)(B) is of sending the notice, the D & S General and to the Assistant Secretary
delegated to the SPE and is further Committee will prepare a for Management for review and
delegated to the DSPE. recommendation and refer the case to
submission to OGC.
(d) As provided in FAR 3.104–7(f), the the DSPE for a decision on whether or
HCA may authorize a contracting officer not to take further action under FAR (b) Either the General Counsel or the
to award a contract after notifying the 3.204. Inspector General will determine
DSPE of the circumstances warranting (d) If VA receives a reply from the whether to submit the case to the U.S.
such an award. contractor within 45 calendar days of Attorney General.
sending the notice, the D & S Committee
Subpart 803.2—Contractor Gratuities must consider the information in the Subpart 803.4—Contingent Fees
to Government Personnel reply before the D & S Committee makes
803.405 Misrepresentations or violations
its recommendation to the DSPE.
803.203 Reporting suspected violations of of the Covenant Against Contingent Fees.
(e) The D & S Committee, upon the
the Gratuities clause. request of the contractor, must, as soon (a) A VA employee who suspects or
(a) Any VA employee must report a as practicable, allow the contractor an has evidence of an attempted or actual
suspected violation of the Gratuities opportunity to appear before the D & S exercise of improper influence,
clause to the contracting officer or a Committee, in person or through a misrepresentation of a contingent fee
higher level VA official. representative, to present information or arrangement, or any other violation of
(b) The report must identify the argument. The contractor may the Covenant Against Contingent Fees
contractor and the personnel involved, supplement the oral presentation with must report the matter to the contracting
provide a summary of the pertinent written information and argument. The officer or to the VA Office of Inspector
evidence and circumstances that proceeding will be conducted in an General.
indicate a violation, and include any informal manner and without
other available supporting requirement for a transcript. The D & S (b) In addition to the requirement in
documentation. Committee shall prepare a report of the paragraph (a) of this section, a
(c) The contracting officer or higher presentation for submission to the DSPE contracting officer must report a
level official must supplement the file and must consider the information suspected or actual misrepresentation or
with appropriate information and presented when making its violation to the DSPE.
promptly forward the report to the recommendation to the DSPE. (c) Before taking any administrative
DSPE, with copies to the VA Office of (f) If the D & S Committee finds that action under FAR 3.405, a contracting
the Inspector General and the Assistant the contractor’s submission in officer must consult with his or her
Secretary for Management. opposition to further action under FAR Regional Counsel. A contracting officer
3.204 raises a genuine dispute over facts in the Central Office must consult with
803.204 Treatment of violations. material to the action, then the D & S OGC.
In providing the notice and hearing Committee shall submit to the DSPE the
required by FAR 3.204, the SPE may information establishing the dispute of (d) Contracting officers shall route any
make the determinations required by material facts. If the DSPE agrees that referrals of suspected fraudulent or
FAR 3.204. This authority is further there is a genuine dispute of material criminal matters to the Department of
delegated to the DSPE. The DSPE shall facts, the DSPE shall refer the dispute to Justice under FAR 3.405(b)(4) through
use the following procedures to the VA Board of Contract Appeals for OGC or the VA Office of Inspector
determine whether or not a violation of resolution under 809.470. The DSPE General, with a copy to the Assistant
the Gratuities clause has occurred: may reject the findings of the fact- Secretary for Management. The General
(a) Upon receipt of an allegation or finding official only if the findings are Counsel or the Inspector General will
evidence of a violation of the Gratuities clearly erroneous or arbitrary and determine whether to forward the
clause, the DSPE shall refer the matter capricious. referral to the Department of Justice.
to the D & S Committee to conduct a (g) If there are no disputes over
fact-finding. Upon completion of the material facts or if all disputes over Subpart 803.5—Other Improper
fact-finding, the D & S Committee shall material facts have been resolved under Business Practices
present the facts and recommendations 809.470, the DSPE will make a decision
803.502 Subcontractor kickbacks.
for further action to the DSPE. on the basis of all information available,
(b) If the DSPE finds a basis for further including findings of facts and oral or A VA employee who suspects a
action, the D & S Committee shall written arguments presented or violation of the Anti-kickback Act must
prepare a notice under FAR 3.204 for submitted to the D & S Committee by report the suspected violation to OGC
signature of the DSPE. If suspension or the contractor. The DSPE should for review.
803.570 Commercial advertising. principal, officer, director, owner or co- Service, for subsequent submission by
owner, or joint venture. the Secretary to Congress.
803.570–1 Policy.
(c) If VA does not receive a reply from
It is VA policy that contractors will the contractor within 30 calendar days 803.806 Processing suspected violations.
not advertise the award of contracts or of receipt of the notice by the addressee, A VA employee must report
refer to VA contracts in contractors’ the D & S Committee will prepare a suspected violations of 31 U.S.C. 1352,
commercial advertising in such a recommendation and refer the case to Limitation on Use of Appropriated
manner as to state or imply that VA the DSPE for a decision on whether or Funds to Influence Certain Federal
endorses a product, project, or not to take further action under FAR Contracting and Financial Transactions,
commercial line of endeavor. The intent 3.705. to the Assistant Secretary for
of this policy is to preclude the (d) If VA receives a reply from the Management and the VA Office of
appearance of bias toward any product contractor within 30 calendar days of Inspector General.
or service. receipt of the notice, the D & S
Committee must consider the Subpart 803.70—Contractor
803.570–2 Contract clause. Responsibility To Avoid Improper
information in the reply before the D &
The contracting officer must insert the S Committee makes its recommendation Business Practices
clause at 852.203–70, Commercial to the DSPE. 803.7000 Display of the VA Hotline poster.
advertising, in solicitations and (e) The D & S Committee, upon the
contracts expected to equal or exceed (a) Under the circumstances described
request of the contractor, must, as soon
the micro-purchase threshold. in paragraph (b) of this section, a
as practicable, allow the contractor an
contractor must display prominently a
opportunity to appear before the D & S
Subpart 803.6—Contracts with VA Hotline poster prepared by the VA
Committee, in person or through a
Government Employees or Office of Inspector General in a common
representative, to present information or
Organizations Owned or Controlled by work area within a business segment
argument. The contractor may
Them performing work under a VA contract.
supplement the oral presentation with
(b) A contractor must comply with
803.602 Exceptions. written information and argument. The
paragraph (a) of this section when all of
proceeding will be conducted in an
The authority to authorize an the following apply:
informal manner and without
exception to the policy in FAR 3.601 is (1) The contractor is awarded a VA
requirement for a transcript. The D & S
delegated to the SPE and is further contract for $500,000 or more for
Committee shall prepare a report of the
delegated to the DSPE. supplies or services, or $3 million or
presentation for submission to the
more for construction.
Subpart 803.7—Voiding and DSPE. (2) The contractor has not established
(f) If the D & S Committee finds that
Rescinding Contracts an internal reporting mechanism and
the contractor’s submission in
program, such as a hotline, by which
803.703 Authority. opposition to further action under FAR
employees may report suspected
The authority to make determinations 3.705 raises a genuine dispute over facts
instances of improper conduct, and
under FAR Subpart 3.7, Voiding and material to the action, then the D & S
instructions that encourage employees
Rescinding Contracts, is delegated to the Committee shall submit to the DSPE the
to make such reports.
SPE and is further delegated to the information establishing the dispute of
DSPE. material facts. If the DSPE agrees that 803.7001 Contract clause.
there is a genuine dispute of material The contracting officer must insert the
803.705 Procedures. facts, the DSPE shall refer the dispute to clause at 852.203–71, Display of
In making a determination to void or the VA Board of Contract Appeals for Department of Veterans Affairs Hotline
rescind a contract, the DSPE must resolution under 809.470. The DSPE Poster, in solicitations and contracts
follow the procedures of FAR 3.705 and may reject the findings of the fact- expected to equal or exceed the dollar
the following: finding official only if the findings are thresholds established in 803.7000.
(a) Upon receipt of an allegation or clearly erroneous or arbitrary and
evidence of situations meeting the capricious. PART 804—ADMINISTRATIVE
provisions of FAR 3.700, the DSPE shall (g) If there are no disputes over MATTERS
refer the matter to the D & S Committee material facts or if all disputes over
material facts have been resolved under Subpart 804.1—Contract Execution
to conduct a finding of facts. Upon
809.470, the DSPE will make a decision Sec.
completion of the fact-finding, the D & 804.101 Contracting officer’s signature.
S Committee shall present the facts and on the basis of all information available,
recommendations for further action to including findings of facts and oral or Authority: 40 U.S.C. 121(c) and 48 CFR
the DSPE. written arguments presented or 1.301–1.304.
submitted to the D & S Committee by
(b) If the DSPE finds a basis for further Subpart 804.1—Contract Execution
the contractor.
action, the D & S Committee shall
prepare a notice under FAR 3.705 for Subpart 803.8—Limitation on the 804.101 Contracting officer’s signature.
signature of the DSPE. If suspension or Payment of Funds To Influence Federal (a) If a contracting officer’s name and
debarment is being considered, the D & Transactions title has been typed, stamped, or printed
S Committee shall also follow the on the contract, and that contracting
procedures of 809.4. The signed notice 803.804 Policy. officer is not available to sign the
will be sent to the last known address A contracting officer must forward a contract, another contracting officer, as
of the contractor, the contractor’s copy of all contractor disclosures specified in 801.602, may sign the
counsel, or registered agent, by certified furnished under the clause at FAR contract.
mail, return receipt requested. In the 52.203–12, Limitations on Payments to (b) The contracting officer who signs
case of a business, the D & S Committee Influence Certain Federal Transactions, the contract must have contracting
may send the notice to any partner, to the Director, Acquisition Resources authority to cover the contract to be
signed and must annotate his or her 806.302–7 Public interest. supplies and services for the operation
name and title below his or her 806.304 Approval of the justification. of the Veterans Canteen Service, cite 38
signature. Subpart 806.5—Competition Advocates U.S.C. 7802. (38 U.S.C. 7802)
Subchapter B—Competition and 806.501 Requirement. (3) For contracts or leases for the
Acquisition Planning 806.570 Planning requirements. operation of parking facilities
established under authority of 38 U.S.C.
Authority: 38 U.S.C. 501; 40 U.S.C. 121(c);
PART 805—PUBLICIZING CONTRACT and 48 CFR 1.301–1.304. 8109(b), provided that the
ACTIONS establishment, operation, and
Subpart 806.3—Other Than Full and maintenance of such facilities have been
Subpart 805.2—Synopses of Proposed authorized by the Secretary or designee,
Contract Actions
Open Competition
cite 38 U.S.C. 8109(f). (38 U.S.C. 8109)
Sec. 806.302 Circumstances permitting other (4) For contracts for laundry and other
805.202 Exceptions. than full and open competition. common services, such as the purchase
805.205 Special situations.
805.207 Preparation and transmittal of 806.302–5 Authorized or required by of steam, negotiated with non-profit,
synopses. statute. tax-exempt, educational, medical, or
(a) Full and open competition need community institutions, when
Authority: 40 U.S.C. 121(c) and 48 CFR specifically approved by the Secretary
1.301–1.304. not be provided for when awarding:
(1) Scarce Medical Specialist or designee and when such services are
Subpart 805.2—Synopses of Proposed contracts negotiated under the authority not reasonably available from private
Contract Actions of 38 U.S.C. 7409, but only when such commercial sources, cite 38 U.S.C.
contracts are with institutions affiliated 8122(c). (38 U.S.C. 8122)
805.202 Exceptions. with VA under 38 U.S.C. 7302. (38 (5) For contracts or agreements with
In accordance with FAR 5.202, the U.S.C. 7409) public or private agencies for services of
contract actions in 806.302–5 do not (2) Contracts for health-care resources translators, cite 38 U.S.C. 513. (38
require synopsizing. negotiated under the authority of 38 U.S.C. 513)
U.S.C. 8153, but only when such (6) For contracts for nursing home
805.205 Special situations. contracts are with institutions affiliated care, cite 38 U.S.C. 1720. (38 U.S.C.
(a) A contracting officer may procure with VA under 38 U.S.C. 7302, 1720)
paid advertising in a daily newspaper including medical practice groups and (c) Except for an acquisition under
circulated in the local area to publicize other approved entities associated with paragraph (a)(2) of this section, the
a proposed procurement of A/E services affiliated institutions (entities will be contracting officer must provide a
not expected to exceed $10,000. See approved if determined legally to be justification under FAR 6.303 and
FAR 5.101(b)(4)(i) and 5.502(a). associated with affiliated institutions), obtain an approval under 806.304 for
(b) A contracting officer may procure or with blood banks, organ banks, or each acquisition described in this
paid advertising in a daily newspaper research centers. The justification and section.
circulated in the local area or in approval requirements of FAR 6.303 and
professional journals to publicize a 806.304 do not apply to such contracts 806.302–7 Public interest.
proposed procurement of professional or agreements. (38 U.S.C. 8153) (a) When the contracting officer uses
services (e.g., scarce medical specialist (3) Contracts for health-care resources, 41 U.S.C. 253(c)(7) to support a contract
services, health-care resources, advisory negotiated under the authority of 38 award using other than full and open
and assistance services). See FAR U.S.C. 8153, that are not acquired under competition, the contracting officer
5.101(b)(4)(i) and 5.502(a). the authority of paragraph (a)(2) of this must prepare a Determination and
section, but only when the procurement Finding (D&F) under FAR 1.7 and a
805.207 Preparation and transmittal of justification under FAR 6.303. The D&F
is conducted in accordance with Part
synopses.
873. The justification and approval must be signed by the Secretary.
(a) When an A/E evaluation board is requirements of FAR 6.303 and 806.304 (b) The contracting officer must
ready to advertise for A/E services, the shall apply to such contracts and submit the D&F and justification
board must establish the geographic area agreements conducted on a sole-source through the HCA to the Agency
within which it will consider A/E firms basis. (38 U.S.C. 8153) Competition Advocate for signature by
(including joint ventures). (b) Various sections of title 38 U.S.C. the Secretary. The submission must
(b) The geographic area must be large authorize the Secretary to enter into include the date the contracting officer
enough to assure selection of three to certain contracts and certain types of expects to award the contract.
five firms highly qualified for the contracts without regard to any other (c) VA must notify Congress 30 days
particular project involved, but not so provisions of law. When the contracting before the expected award date. The
large as to make the evaluation process officer enters into a contract without Agency Competition Advocate is
unduly burdensome. providing full and open competition for responsible for preparing this notice.
any of the following items or services, The contracting officer may not award
PART 806—COMPETITION
the contracting officer must cite 41 the contract until notified by the Agency
REQUIREMENTS
U.S.C. 253(c)(5) and the following Competition Advocate.
Subpart 806.3—Other Than Full and Open authorities:
(1) For, contracts for orthopedic and 806.304 Approval of the justification.
Competition
Sec. prosthetic appliances and related (a) For a justification other than a
806.302 Circumstances permitting other services including research, cite 38 class justification specified in FAR
than full and open competition. U.S.C. 8123. (38 U.S.C. 8123) 6.304(c), Table 806.304–1 provides the
806.302–5 Authorized or required by (2) For contracts to purchase or sell authorities who may approve a
statute. merchandise, equipment, fixtures, justification:
TABLE 806.304.1
Proposed contract amount Approving authority Alternate approving authority
(1) Not exceeding $500,000 .............................. The contracting officer, as provided in FAR Not applicable.
6.304(a)(1).
(2) Over $500,000 but not exceeding $10 mil- Contracting Activity Competition Advocate The Agency Competition Advocate (see
lion. (see 806.501(b) and (c)) unless that Advo- 806.501(a)).
cate is the contracting officer.
(3) Over $10 million but not exceeding $50 mil- Agency Competition Advocate ......................... Not applicable.
lion.
(4) Over $50 million ........................................... Senior Procurement Executive (see 802.100) Not applicable.
(b) For class justifications specified in (3) A description of how to integrate provide Federal workers who are
FAR 6.304(c), the contracting officer the Competition Plan into advance adversely affected by the contract award
must obtain the approval of the Agency procurement planning. and who are qualified for the jobs the
Competition Advocate for all proposed (4) A listing of obstacles to first opportunity for employment
justifications with an estimated value of competition and a proposal for openings created by the contract.
up to $50 million. The contracting overcoming them. (b) The Report of Employment Under
officer must obtain the approval of the (5) A method for increasing cost Commercial Activities clause is also
SPE for all proposed justifications with competition for contracts and prescribed to avoid inappropriate
an estimated value of more than $50 competition on other significant factors. severance payment. To implement the
million. clause, the contracting officer (or COTR)
PART 807—ACQUISITION PLANNING must first obtain a list of Federal
Subpart 806.5—Competition personnel who will be adversely
Subpart 807.1—Acquisition Plans
Advocates affected as a result of the anticipated
Sec.
contract from the servicing Human
806.501 Requirement. 807.103 Agency-head responsibilities.
Resources Service office. The list should
(a) The Associate Deputy Assistant Subpart 807.3—Contractor Versus be requested as soon as a preliminary
Secretary for Acquisitions is the Agency Government Performance determination is made to contract out a
Competition Advocate. The Agency 807.300 Scope of subpart. function subject to OMB Circular A–76.
Competition Advocate may further 807.304–77 Right of first refusal. (Contracting officers may designate a
delegate authority to other VA officials COTR to coordinate the information and
Authority: 40 U.S.C. 121(c) and 48 CFR
in VA Administrations and staff offices. 1.301–1.304. reporting requirements.)
(b) The Executive Director and Chief
Operating Officer, National Acquisition Subpart 807.1—Acquisition Plans PART 808—REQUIRED SOURCES OF
Center, is the Contracting Activity SUPPLIES AND SERVICES
Competition Advocate for the Center. 807.103 Agency-head responsibilities.
The authority to prescribe procedures Sec.
(c) Each HCA (see Subpart 802.1) will
in FAR 7.103 is delegated to the SPE 808.002 Priorities for use of Government
serve as the Contracting Activity supply sources.
Competition Advocate in all other cases. and is further delegated to the DSPE.
(d) The authority in paragraphs (b) Subpart 808.4—Federal Supply Schedules
and (c) of this section is not delegable. Subpart 807.3—Contractor Versus 808.402 General.
Government Performance
806.570 Planning requirements. Subpart 808.8—Acquisition of Printing and
807.300 Scope of subpart. Related Supplies
(a) Each Contracting Activity
This subpart prescribes the use of 808.802 Policy.
Competition Advocate must do the
VAAR clause at 852.207–70, Report of Authority: 40 U.S.C. 121(c) and (d); and 48
following:
Employment Under Commercial CFR 1.301–1.304.
(1) Develop a Competition Plan.
Activities, when contracting for
(2) Incorporate the Plan in the internal commercial services under Office of 808.002 Priorities for use of Government
operating procedures of the facility or Management and Budget (OMB) supply sources.
organization in which the contracting Circular A–76 or VA’s cost comparison (a) Supplies. (1) As used in FAR
activity is located. process. The cost comparison process is 8.002(a)(1)(i), the term ‘‘agency
(3) Obtain the endorsement and used by VA to determine whether to use inventories’’ includes Supply Fund
support of top level management. commercial or Government resources to Stock and VA Excess.
(4) Ensure that the services and offices provide commercial services. (2) A national committed use contract
that the contracting activity supports awarded by the VA National
understand the plan. 807.304–77 Right of first refusal. Acquisition Center has a priority
(b) At a minimum, the Competition (a) In addition to the Right of First between wholesale supply sources (FAR
Plan must include the following: Refusal of Employment clause specified 8.002(a)(1)(v)) and mandatory Federal
(1) Approval requirements for other in FAR 52.207–3, the contracting officer Supply Schedules (FAR 8.002(a)(1)(vi)).
than full and open competition must include the clause ‘‘Report of (3) Federal Supply Schedule contracts
specified in FAR 6.304. Employment Under Commercial awarded by the VA National

(2) A description of the synopsis Activities’’ at 852.207–70 in all cost Acquisition Center in Federal Supply
requirements in FAR Subpart 5.2 to comparison solicitations where VA Classification (FSC) Groups 65 and 66
ensure that responsible staff fully personnel may be displaced. This clause shall be mandatory for use by VA and
understand the advance procurement is primarily intended to verify that the shall have the same order of priority as
planning that is required. contractor is meeting its obligation to mandatory Federal Supply Schedules
(FAR 8.002(a)(1)(vi)). VA contracting document for any purchase from a 809.507–1 Solicitation provisions.
officers must place orders against commercial source of dress shoes Authority: 40 U.S.C. 121(c) and 48 CFR
Federal Supply Schedules contracts similar to Federal Prison Industries, 1.301–1.304.
awarded by the VA National Inc., Style No. 86–A.
Acquisition Center in FSC Groups 65 Subpart 809.1—Responsible
and 66 in the following descending Subpart 808.4—Federal Supply Prospective Contractors
order of priority: Schedules
809.104 Standards.
(i) Nationally awarded Blanket 808.402 General.
Purchase Agreements (BPAs), issued by 809.104–2 Special standards.
The Executive Director and Chief
the VA National Acquisition Center (a) For a pre-award survey prescribed
Operating Officer, VA National
against Federal Supply Schedules. by 809.106–1, a contracting officer must
(ii) Multi-VISN, single-VISN, or Acquisition Center, advertises,
negotiates, awards, administers, and develop special standards of sanitation
locally awarded BPAs, issued by VISN, applicable to the acquisition of
regional, or local VA contracting officers issues the Federal Supply Schedules for
Federal Supply Classification Groups 65 subsistence and services prescribed by
against Federal Supply Schedules. 809.106–1(a).
(iii) Federal Supply Schedules and 89 and for cost-per-test services
under Group 66. (b) An appropriate specialist will
without BPAs. assist the contracting officer in
(4) Indefinite delivery indefinite developing the special standards under
Subpart 808.8—Acquisition of Printing
quantity (IDIQ) contracts, awarded by paragraph (a) of this section.
and Related Supplies
VISN, regional, or local facility VA
contracting officers, for supplies not 808.802 Policy. 809.106 Pre-award surveys.
covered by national committed use The Director, Publications Staff, 809.106–1 Conditions for pre-award
contracts or Federal Supply Schedule Office of Acquisition and Materiel surveys.
contracts shall have an order of priority Management, VA Central Office, is the (a) Except as provided in paragraphs
between optional use Federal Supply Central Printing Authority for VA (see (b) through (e) of this section, a
Schedules (FAR 8.002(1)(a)(vii)) and FAR 8.802(b)). committee under the direction of the
commercial sources (including contracting officer and composed of
educational and nonprofit institutions) PART 809—CONTRACTOR representatives of the medical service or
(FAR 8.002(1)(a)(viii)). VA contracting QUALIFICATIONS using service chiefs or designees
officers must place delivery orders appointed by the facility or VISN
Subpart 809.1—Responsible Prospective
against IDIQ contracts, awarded by Contractors director will conduct a pre-award on-
VISN, regional, or a local facility site evaluation of the plant, personnel,
contracting officers, for supplies not Sec.
809.104 Standards. equipment and processes of the
covered by national committed use 809.104–2 Special standards. prospective contractor for contracts
contracts or Federal Supply Schedule 809.106 Preaward surveys. covering the products and services of
contracts in the following descending 809.106–1 Conditions for preaward surveys. the following:
order of priority: (1) Bakeries.
(i) VISN or regionally awarded Subpart 809.2—Qualifications
Requirements (2) Dairies.
contracts. (3) Ice cream plants.
(ii) Locally awarded contracts. 809.201 Definitions. (4) Laundry and dry cleaning
(5) Open market purchases (purchases 809.202 Policy.
809.204 Responsibilities for establishment activities.
not falling within any of the higher (b) Before any inspection, the
of a qualification requirement.
priorities in paragraphs (a)(2) through 809.206 Acquisitions subject to contracting officer will determine
(4) of this section) have the same qualification requirements. whether another VA facility or another
priority as commercial sources 809.206–1 General. Federal agency has recently inspected
(including educational and nonprofit 809.270 Qualified products for and approved the plant.
institutions) (FAR 8.002(1)(a)(viii)). convenience/labor-saving foods. (1) The contracting officer will accept
(b) Unusual or compelling urgency. Subpart 809.4—Debarment, Suspension, an approved inspection report of
The contracting officer may use a source and Ineligibility another VA facility.
lower in priority than as specified in 809.400 Scope of subpart.
(2) If another Federal agency made a
paragraph (a) when the need for 809.402 Policy. plant inspection not more than 6
supplies or services is of an unusual or 809.404 Excluded Parties List System. months before the proposed VA contract
compelling urgency (see FAR 6.302–2). 809.405 Effect of listing. period, the contracting officer may
The Contracting Officer must include a 809.405–1 Continuation of current accept an approved inspection report of
justification for each deviation in the contracts. that other Federal agency as satisfactory
procurement file. 809.405–2 Restrictions on subcontracting. evidence that the facilities of the bidder
(c) Eligible Beneficiaries. (1) A 809.406 Debarment.
meet the bid requirements.
809.406–1 General.
contracting 0fficer may authorize an 809.406.3 Procedures.
(c) VA will not conduct a pre-award
acquisition from the Veterans Canteen 809.406–4 Period of debarment. on-site evaluation of a dairy plant when
Service or a commercial source when a 809.407 Suspension. VA receives an acceptable bid from a
VA healthcare official (e.g., social 809.407–1 General. supplier of dairy products designated as
worker, physician) determines that 809.407–3 Procedures. No.1 in the Federal Specifications if the
personal selection of shoes, clothing, 809.470 Fact-finding procedures. following conditions are met:
and incidentals will result in a Subpart 809.5—Organizational and (1) The supplier has received a
therapeutic benefit to an eligible Consultant Conflicts of Interest pasteurized milk rating of 90 percent or
beneficiary. 809.503 Waiver. more for the type of product being
(2) The contracting officer must cite 809.504 Contracting officer responsibilities. supplied, on the basis of the U.S. Public
Federal Prison Industries, Inc., 809.507 Solicitation provisions and Health Service milk ordinance and
clearance No. 1206 in the purchase contract clause. code.
(2) The rating is current (not over 2 the product is satisfactory for its establish a common VISN QPL for
years old) and has been determined by intended use. convenience and labor-saving foods for
a certified State milk sanitation rating (5) Determining acceptability would use at medical facilities within the
officer in the State of origin or by the require providing product performance representative’s VISN.
Public Health Service. The contractor data to supplement technical (1) The VISN Nutrition and Food
must maintain the rating of 90 percent requirements in the specification. Service representative must notify the
or more during the period of the (6) Conducting a test would result in Director, Nutrition and Food Service,
contract. substantial or repetitive rejections. VA Central Office, of the establishment
(3) The solicitation specifications (7) VA cannot economically develop or amendment of any VISN QPL.
must include the requirements in clear, professional specifications for the
(2) To avoid unnecessary duplication
paragraphs (c)(1) and (2) of this section. product performance, balance, design,
within a VISN, for medical facilities
(d) A dairy plant that does not meet or construction, and professional
using an applicable VISN QPL under
paragraph (c) of this section may offer judgment is required to determine
paragraph (b) of this section, the VISN
only dairy products designated as No. 2 whether the product is acceptable under
Nutrition and Food Service
in the Federal Specifications. VA will VA requirements.
(c) If VA plans to establish a VA QPL representative must coordinate and
make an award to such a firm only after consolidate test results and
for any given product, the contracting
it completes a pre-award on-site recommendations.
officer may limit known suppliers to
evaluation conducted under paragraph (b) Each medical facility may:
suppliers whose products are covered
(a) of this section. (1) Use its VISN QPL; and
by a Federal Supply Schedule contract,
(e) Before it makes an open market (2) Test food of its choice, provided
as provided at FAR Subpart 8.4.
purchase of fresh bakery products (such (d) VA will pay the costs to inspect that the facility submits test results to
as pies, cakes, and cookies), VA will and test a product sample submitted the VISN Nutrition and Food Service
inspect and evaluate the plant where under this section. representative.
these products are produced or prepared (1) The product supplier must pay for (c) The VISN representative must
under paragraph (a) of this section. VA the sample and its transportation to the provide a copy of each approved VISN
will make an on-site evaluation at least place of inspecting and testing. QPL to the following:
annually and record the results on VA (2) After inspection and testing, VA (1) Each contracting office in the
Form 10–2079, Inspection Report of will return any product sample to the VISN.
Bakery. supplier ‘‘as is’’ unless: (2) The Director, Nutrition and Food
(i) The inspection or test destroys the Service, VA Central office.
Subpart 809.2—Qualifications sample; or
Requirements (ii) The supplier authorizes VA to (3) Upon request, the Office of
retain or dispose of the sample. Acquisition and Materiel Management,
809.201 Definitions. VA Central Office.
(e) Once VA accepts a product for the
For the purposes of this subpart: VA QPL, VA may review the product for
VA QPL means a VA Qualified Subpart 809.4—Debarment,
compliance with the applicable
Products List, a list of products Suspension, and Ineligibility
specification at any time.
qualified by the VA under VA (1) Where there is a variance between 809.400 Scope of subpart.
specifications, or purchase descriptions, a VA specification that was the basis for
or commercial item descriptions. This subpart supplements provisions
the VA QPL and the product furnished
VISN QPL means a VISN Qualified of the FAR concerning procedures and
by the supplier, the supplier must
Products List, a list of products related actions for the debarment and
furnish an item that conforms to the VA
qualified by a VISN under VA suspension of contractors.
specification.
specifications, or purchase descriptions, (2) If the supplier fails to or is unable 809.402 Policy.
or commercial item descriptions. to provide a product that conforms to
(a) When VA receives information
the applicable VA specification, the
809.202 Policy. that another agency is pursuing a
product will be removed from the VA
The HCA may sign a justification debarment or suspension identical to a
QPL.
required by FAR 9.202(a)(1). (f) VA’s acceptance of a product for VA action against the same contractor,
listing on the VA QPL does not: the Debarment and Suspension (D & S)
809.204 Responsibilities for establishment Committee will coordinate prospective
(1) Guarantee that VA will accept the
of a qualification requirement. action with the appropriate official of
product in any future purchase; or
(a) Under FAR Subpart 9.2, VA may (2) Constitute a waiver of the the other agency to establish a lead
create VA QPLs for use on individual specifications as to acceptance, agency.
solicitations or on multiple solicitations inspection, testing, or other provisions (b) The D&S Committee will provide
issued by one or more VA facilities. of any future contract involving the the designated lead agency with any
(b) An HCA or designee must support product. information relevant to the action for
the creation of a VA QPL using one or consideration in the decision-making
more of the following justifications: 809.206 Acquisitions subject to process.
(1) The time required for testing the qualification requirements.
(c) The D&S Committee will maintain
product after award would unduly delay 809.206–1 General. close coordination with the appropriate
product delivery. The HCA may determine that an official through the completion a final
(2) The cost of repetitive product debarment or suspension decision.
emergency exists, as provided in FAR

testing would be excessive. 9.206–1(b).
(3) Testing the product would require 809.404 Excluded Parties List System.
purchasing an expensive or complicated 809.270 Qualified products for Acquisition Resources Service, Office
apparatus not commonly available. convenience/labor-saving foods. of Acquisition and Materiel
(4) It is in the Government’s interest (a) Each VISN Nutrition and Food Management, is responsible for the
to be assured before contract award that Service representative is authorized to actions described in FAR 9.404(c).
809.405 Effect of listing. 809.406–3 Procedures. and argument. The proceeding will be
The authority under FAR 9.405(a), (a) Any individual may submit a conducted in an informal manner and
9.405(d)(2), and 9.405(d)(3) to determine recommendation to debar a contractor to without requirement for a transcript.
whether to solicit from, evaluate bids or the DSPE. The recommendation to debar The D & S Committee shall prepare a
proposals from, or award contracts to must be supported with evidence of a report of the proceeding for the
contractors whose names appear on the cause for debarment listed in FAR debarring official.
Excluded Parties List System is 9.406–2. When the DSPE receives a (g) If the D & S Committee finds that
delegated to the SPE and is further recommendation for debarment, he or the contractor’s submission in
delegated to the DSPE. she will refer the matter to the D & S opposition to the debarment raises a
Committee. If the reporting individual is genuine dispute over facts material to
809.405–1 Continuation of current a VA employee and the the proposed debarment and the
contracts. recommendation to debar is based on debarment action is not based on a
Authority to make the determinations possible criminal or fraudulent conviction or civil judgment, then the D
under FAR 9.405–1 is delegated to the activities, the VA employee must report & S Committee shall submit to the
SPE and is further delegated to the the circumstances to the VA Office of debarring official the information
DSPE. Inspector General before making a establishing the dispute of material
recommendation to the DSPE. facts. If the debarring official agrees that
809.405–2 Restrictions on subcontracting. (b) When the D & S Committee finds there is a genuine dispute of material
When a subcontract is subject to evidence of a cause for debarment, as facts, the debarring official shall refer
Government consent, authority to make listed in FAR 9.406–2, with or without the dispute to the VA Board of Contract
the written determination required a recommendation, it will conduct a Appeals for resolution pursuant to
under FAR 9.405–2 consenting to a fact-finding and present facts to the 809.470.
contractor’s use of a subcontractor who debarring official. (h) If there are no disputes over
is debarred, suspended, or proposed for (c) If the debarring official finds a material facts, the debarment action is
debarment is delegated to the SPE and basis for proposing a contractor for based on a conviction or civil judgment,
is further delegated to the DSPE. debarment, the D & S Committee will or all disputes over material facts have
prepare a notice of proposed debarment been resolved pursuant to 809.470, the
809.406 Debarment. under FAR 9.406–3(c) for the signature debarring official will make a decision
of the debarring official. The signed on the basis of all information available,
809.406–1 General.
notice of proposed debarment will be including findings of facts and oral or
(a) As provided in FAR 9.406–1(c), sent to the last known address of the written arguments presented or
authority to determine whether to contractor, the contractor’s counsel, or submitted to the D & S Committee by
continue business dealings between VA agent for service of process, by certified the contractor. The D & S Committee
and a contractor debarred or proposed mail, return receipt requested. In the must update the status of the action on
for debarment is delegated to the SPE case of a business, the D & S Committee the General Services Administration
and is further delegated to the DSPE. may send the notice of proposed
Excluded Parties List System.
(b) For the purposes of FAR 9.406–1, debarment to any partner, principal,
the DSPE is the debarring official under officer, director, owner or co-owner, or 809.406–4 Period of debarment.
the Federal Management Regulation at joint venture. The D & S Committee (a) Except in an unusual
41 CFR 102–117.295. concurrently must post notice of circumstance, the period of debarment
(c) Additional factors that a debarring proposed debarment to the General will not exceed three years. The
official should consider before arriving Services Administration Excluded debarring official will base the period of
at a debarment decision include the Parties List System pending a debarment on the circumstances
following: debarment decision. surrounding the cause for debarment.
(d) If VA does not receive a reply from (b) The DSPE may remove a
(1) Whether the contractor had a
the contractor within 45 calendar days debarment, amend its scope, or reduce
mechanism, such as a hotline, by which
of sending the notice of proposed the period of debarment based on a D
employees could have reported
debarment, the D & S Committee will & S Committee recommendation if:
suspected instances of improper
prepare a recommendation and refer the (1) VA has debarred the contractor;
conduct, and instructions in place that
case to the debarring official for a (2) The action is indicated after the
encouraged employees to make such
decision on whether or not to debar DSPE reviews documentary evidence
reports.
based on the information available. submitted by or on behalf of the
(2) Whether the contractor conducted (e) If VA receives a reply from the
periodic reviews of company business contractor setting forth the appropriate
contractor within 45 calendar days of
practices, procedures, policies, and grounds for granting relief. Appropriate
sending the notice of proposed
internal controls for compliance with grounds include newly discovered
debarment, the D & S Committee must
standards of conduct and the special material evidence, reversal of a
consider the information in the reply
requirements of Government conviction, bona fide change of
before the D & S Committee makes its
contracting. ownership or management, elimination
recommendation to the debarring
(3) Whether the contractor conducted of the cause for which debarment was
official.
internal and external audits as (f) The D & S Committee, upon the imposed, or any other appropriate
appropriate. request of the contractor proposed for grounds.
(4) Whether the contractor timely debarment, must, as soon as practicable,
809.407 Suspension.
reported to appropriate Government allow the contractor an opportunity to
officials any suspected or possible appear before the D & S Committee to 809.407–1 General.
violations of law in connection with present information or argument in (a) As provided in FAR 9.407–1(d),
Government contracts or any other person or through a representative. The authority to determine whether to
irregularities in connection with such contractor may supplement the oral continue business dealings between VA
contracts. presentation with written information and a suspended contractor is delegated
to the SPE and is further delegated to informal manner and without official nature of the proceedings and
the DSPE. requirement for a transcript. The D&S that any false testimony given is subject
(b) For the purposes of FAR 9.407–1, Committee shall prepare a report of the to criminal prosecution. Witnesses are
the DSPE is the suspending official proceeding for the suspending official. subject to cross-examination. Hearsay
under the Federal Management (e) In actions not based on an evidence may be presented and will be
Regulation at 41 CFR 102–117.295. indictment, if the D&S Committee finds given appropriate weight by the fact-
that the contractor’s submission in finder.
809.407–3 Procedures. opposition to the suspension raises a (c) The proceedings shall be
(a) Any individual may submit a genuine dispute over facts material to transcribed and a copy of the transcript
recommendation to suspend a the suspension, the D&S Committee shall be made available at cost to the
contractor to the DSPE. The shall submit to the suspending official contractor upon request, unless the
recommendation to suspend must be the information establishing the dispute contractor and the fact-finder, by mutual
supported with evidence of a cause for of material facts. However, the D&S agreement, waive the requirement for a
suspension listed in FAR 9.407–2. Committee must first coordinate any transcript.
When the DSPE receives a further proceeding regarding the facts in (d) The fact-finder shall determine the
recommendation for suspension, he or dispute with the Department of Justice disputed fact(s) by a preponderance of
she will refer the matter to the D&S or with a State prosecuting authority in the evidence. As required by FAR
Committee. If the reporting individual is a case involving a State jurisdiction. VA 9.406–3(d)(2)(i) and 9.407–3(d)(2)(i),
a VA employee and the will take no further action to determine written findings of fact shall be
recommendation to suspend is based on disputed material facts pursuant to this prepared by the fact-finder. A copy of
possible criminal or fraudulent section or 809.470 if the Department of the findings of fact shall be provided to
activities, the VA employee must report Justice or a State prosecuting authority the debarring or suspending official, the
the circumstances to the VA Office of advises VA that additional proceedings Government’s representative, and the
Inspector General before making a to make such a determination would contractor.
recommendation to the DSPE. prejudice Federal or State legal
(b) When the D&S Committee finds proceedings. Subpart 809.5—Organizational and
evidence of a cause for suspension, as (f) If the suspending official agrees Consultant Conflicts of Interest
listed in FAR 9.407–2, with or without that there is a genuine dispute of
a recommendation, it will conduct a 809.503 Waiver.
material facts, the suspending official The HCA is delegated authority to
fact-finding and present facts and shall refer the dispute to the VA Board
recommendations to the suspending waive any general rule or procedure of
of Contract Appeals for resolution FAR Subpart 9.5. As provided at FAR
official. pursuant to 809.470.
(c) If the suspending official finds a 9.503, this authority may not be
basis for suspending a contractor, the 809.470 Fact-finding procedures. redelegated.
D&S Committee will prepare a notice of The provisions of this section 809.504 Contracting officer
suspension under FAR 9.407–3(c) for constitute the procedures to be used to responsibilities.
the signature of the suspending official. resolve genuine disputes of fact (a) A contracting officer must
The signed notice of suspension will be pursuant to 809.406–3 and 809.407–3 of determine whether awarding a contract
sent to the last know address of the this chapter. The Chair of the VA Board will result in an actual or potential
contractor, the contractor’s counsel, or of Contract Appeals shall appoint a conflict of interest for the contractor.
agent for service of process, by certified member of the Board to conduct the (1) The contracting officer will make
mail, return receipt requested. In the fact-finding. OGC shall represent VA at a conflict of interest determination after
case of a business, the D&S Committee any fact-finding hearing and may reviewing information submitted by
may send the notice of suspension to present witnesses for VA and question offerors, evaluating information
any partner, principal, officer, director, any witnesses presented by the gathered under FAR 9.506, and
owner or co-owner, or joint venture. The contractor. The hearings shall be exercising his or her own judgment.
D&S Committee concurrently must post conducted in Washington, DC, unless (2) In evaluating possible organization
notice of suspension to the General the appointed member of the VA Board conflicts of interest, the contracting
Services Administration Excluded of Contract Appeals determines officer may obtain the advice of legal
Parties List System pending completion otherwise. The proceedings before the counsel and the assistance of technical
of investigation and any ensuing legal fact-finder will be limited to a finding specialists.
proceedings. of the facts in dispute, as determined by (b) If the contracting officer
(d) If VA receives a reply from the the debarring or suspending official. determines that there is no way to avoid
contractor within 45 calendar days of The fact-finder will establish the date or mitigate an organizational conflict of
sending the notice of suspension, the for the fact-finding hearing, normally to interest arising from a contract award,
D&S Committee must consider the be held within 45 working days of the the contracting officer may disqualify
information in the reply before the submission of the dispute to the Board. the offeror from award under FAR
Committee makes further (a) The Government’s representative 9.504(e).
recommendations to the suspending and the contractor will have an (c) Even if awarding a contract will
official. The D&S Committee, upon the opportunity to present evidence result in an organizational conflict of
request of a suspended contractor, must, relevant to the facts at issue. The interest, the contracting officer may
as soon as practicable, allow the contractor may appear in person or request a waiver from his or her HCA if
contractor an opportunity to appear through a representative at the fact- awarding the contract is in the best
before the D&S Committee to present finding hearing. The contractor may interests of the Government.
information or argument in person or submit documentary evidence, present (1) Before granting a waiver request
through a representative. The contractor witnesses, and confront any person the under this paragraph, the HCA must
may supplement the oral presentation agency presents. obtain the concurrence of OGC.
with written information and argument. (b) Witnesses may testify in person. (2) If the HCA grants a waiver request,
The proceeding will be conducted in an Witnesses will be reminded of the the contracting officer may set contract
terms and conditions to reduce any Subpart 811.5—Liquidated Damages products only in accordance with
organizational conflict of interest to the 811.501 Policy. 811.104–71 through 811.104–75.
greatest extent possible. 811.503 Contract clause. (b) Purchase descriptions that contain
(d) In any solicitation for the services Subpart 811.6—Priorities and Allocations
references to one or more brand name
addressed at FAR 9.502, the contracting products must be followed by the words
officer must require that each offeror 811.602 General. ‘‘or equal,’’ except when the acquisition
submits a statement with its offer Authority: 40 U.S.C. 121(c) and 48 CFR of a specific brand name is fully
disclosing all facts relevant to an 1.301–1.304. justified under FAR Subpart 6.3 and
existing or potential organizational 811.001 Definitions.
806.3. If more than one brand name is
conflict of interest involving the acceptable, the contracting officer
For the purposes of this part:
contractor or any subcontractor during should list the known acceptable brand
Brand name product means a
the life of the contract (see 809.507–1(b) name products in the solicitation.
commercial product described by brand
and 852.209–70). (c) Where a ‘‘brand name or equal’’
name and make or model number or
purchase description is used, the
809.507 Solicitation provisions and other appropriate nomenclature by
contracting officer must give bidders an
contract clause. which the product is offered for sale to
opportunity to offer products other than
the public by the particular
809.507–1 Solicitation provisions. those specifically referenced by brand
manufacturer, producer or distributor.
(a) While conflicts of interest may not Salient characteristics means those name. Following bid opening or receipt
presently exist, award of certain types of particular characteristics that of offers, the contracting officer must
contracts may create potential future specifically describe the essential determine if non ‘‘brand name’’
organizational conflicts of interest (see physical and functional features of the substitute products fully meet the
FAR 9.508 for examples). If a material or service required. They are salient characteristics listed in the
solicitation may create a potential future features that are identified in the solicitation.
organizational conflict of interest, the specifications as a mandatory (d) When using a ‘‘brand name or
contracting officer must insert a requirement that a proposed ‘‘equal’’ equal’’ purchase description, the
provision in the solicitation imposing product or material must possess for the specification writer must set forth those
an appropriate restraint on the bid to be considered responsive. salient physical, functional, or other
contractor’s eligibility for award of characteristics of the referenced
contracts in the future. Under FAR Subpart 811.1—Selecting and products that are essential to the
9.507–1, the restraint must be Developing Requirements Documents minimum needs of the Government. For
appropriate to the nature of the conflict example, when interchangeability of
811.103 Market acceptance. parts is required, the specification
and may exclude the contractor from
award of one or more contracts in the 811.103–70 Technical industry standards. writer must specify this requirement.
future. Where items are required to conform The purchase description must contain
(b) The clause at 852.209–70, to technical industry standards, such as the following information to the extent
Organizational Conflicts of Interest, those adopted by: Underwriters available:
must be included in any solicitation for (1) Complete common generic
Laboratories, Inc.; Factory Mutual
the services addressed in FAR 9.502. identification of the item required.
Laboratories; American Gas Association; (2) Applicable model, make, or
American Society of Mechanical catalog number for each brand name
PART 811—DESCRIBING AGENCY Engineers; National Electrical
NEEDS product referenced and identity of the
Manufacturers Association; American commercial catalog in which it appears.
Sec. Society of Heating, Refrigerating and (3) Name of manufacturer, producer,
811.001 Definitions. Air-Conditioning Engineers; or similar or distributor of each brand name
organizations, where such standards are product referenced (and address if not
Subpart 811.1—Selecting and Developing
generally recognized and accepted in well known).
Requirements Documents
the industry involved, the invitation for (4) Any other information necessary
811.103 Market acceptance. bids, request for proposals or request for
811.103–70 Technical industry standards. to describe the item required.
quotations will so state. In no instance, (e) When necessary to adequately
811.104 Use of brand name or equal
purchase descriptions. where there is a multiple choice of describe the item required, the
811.104–70 Brand name or equal purchase laboratories, shall the invitation for bid, contracting officer may use an
descriptions. request for proposal, or request for applicable commercial catalog
811.104–71 Purchase description clauses. quotation indicate that the label or description or pertinent extract if the
811.104–72 Brand name or equal certificate of only one such laboratory is description is identified in the
component parts. acceptable. The contracting officer shall solicitation as being that of the
811.104–73 Bid samples. include the provision at 852.211–72, particular named manufacturer,
811.104–74 Bid evaluation and award. Technical Industry Standards, in
811.104–75 Procedure for negotiated
producer, or distributor. The contracting
solicitations requiring conformance to officer must insure that a copy of any
procurements.
811.105 Items peculiar to one manufacturer. technical industry standards unless catalog referenced (except a parts
811.107 Contract clauses. comparable provisions are contained in catalog) is available on request for
the item specification. review by bidders at the purchasing
Subpart 811.2—Using and Maintaining
Requirements Documents 811.104 Use of brand name or equal
office.
(f) Except as noted in paragraph (d) of
811.202 Maintenance of standardization purchase descriptions.

this section, the specification writer
documents. 811.104–70 Brand name or equal purchase must not include in a purchase
811.204 Contract clause. descriptions. description either minimum or
Subpart 811.4—Delivery or Performance (a) The specification writer may use maximum restrictive dimensions,
Schedules purchase descriptions that contain weights, materials, or other salient
811.404 Contract clause. references to one or more brand name characteristics that are unique to a
brand name product or that would tend descriptions to furnish bid samples of products referenced. The contracting
to eliminate competition or other the referenced brand name products. officer must place decisions under this
products that are only marginally (b) A solicitation may require the paragraph in writing for the contract
outside the restrictions. However, the submission of bid samples in the case of file, as appropriate.
specification writer may include in a a bidder offering ‘‘or equal’’ products. If
bid samples are required, the 811.105 Items peculiar to one
purchase description restrictive manufacturer.
dimensions, weights, materials, or other contracting officer must include in the
salient characteristic if: solicitation the provision set forth at (a) Except as provided in paragraph
(1) The user determines in writing FAR 52.214–20, Bid Samples. (b) of this section, the specification
that the restrictions are essential to the (c) A bidder must furnish all writer must write specifications in
Government’s requirements; descriptive literature in accordance with accordance with FAR 11.002.
(2) The specification writer includes and for the purpose set forth in the (b)(1) When the specification writer
the brand name of the product in the determines that a particular physical or
‘‘Brand Name or Equal’’ clause,
purchase description; and, functional characteristic of only one
852.211–73(c)(1) and (c)(2), even though
(3) The contracting officer makes all product will meet the minimum
bid samples may not be required.
other determinations required by requirements of VA (see FAR 11.105) or
811.105. 811.104–74 Bid evaluation and award. that a ‘‘brand name or equal’’ purchase
(g) The contracting officer must (a) A bid offering products that differ description must be used (see FAR
include in the contract file, as from brand name products referenced in 11.104), the specification writer must
appropriate, written justifications for a ‘‘brand name or equal’’ purchase identify the item(s) for the contracting
using the ‘‘brand name or equal’’ description must be considered for officer and do one of the following:
description, the contracting officer’s award if the contracting officer (i) Provide a full written justification
determinations, and bidder determines in accordance with the of the reason the particular
submissions. terms of the clause at 852.211–73, Brand characteristic is essential to the
Name or Equal, that the offered products Government’s requirements.
811.104–71 Purchase description clauses. are clearly identified in the bid and are (ii) Explain why the ‘‘brand name or
(a) When a solicitation uses ‘‘brand equal in all material respects to the equal’’ purchase description is
name or equal’’ purchase descriptions, products specified. necessary.
the contracting officer must include in (b) In award documents, the (2) The contracting officer makes the
the solicitation the clause at 852.211– contracting officer must include, or final determination whether restrictive
73, Brand Name or Equal, and the incorporate by reference, an specifications or ‘‘brand name or equal’’
provision set forth at FAR 52.214–21, identification of the specific products purchase descriptions will be included
Descriptive Literature. The contracting that the contractor is to furnish. The in the solicitation.
officer must review the requirements at identification must include any brand 811.107 Contract clauses.
FAR 14.202–5 when using the name and make or model number, (a) Insert the clause at 852.211–70,
descriptive literature provision. descriptive material, and any
(b) When a ‘‘brand name or equal’’ Service Data Manuals, paragraph (a), in
modifications of brand name products solicitations and requests for proposals
purchase description is included in an specified in the bid. This requirement
invitation for bids, the contracting for technical medical and other
also applies when the descriptions of technical equipment and devices issued
officer must insert the following after the end items contain ‘‘brand name or
each item so described in the by a field facility unless the facility
equal’’ purchase descriptions of Chief, Engineering Service, indicates
solicitation, for completion by the component parts or of accessories
bidder: that the service data manuals are not
related to the end item, and the clause needed. The purpose of the clause is to
Bidding on: at 852.211–73, Brand Name or Equal, require the manufacturer to provide VA
Manufacturer name lllllllllll was applied to the component parts or a manual or groups of manuals that will
Brand lllllllllllllllll accessories (see 811.104–72). allow for the in-house repair of the
No. lllllllllllllllllll 811.104–75 Procedure for negotiated equipment purchased.
procurements. (b) Insert the clause at 852.211–70,
811.104–72 Limited application of brand
(a) The specification writer and Service Data Manuals, paragraph (b), in
name or equal.
contracting officer must use the policies solicitations and requests for proposals
If the contracting officer determines for mechanical equipment (other than
that the clause at 852.211–73, Brand and procedures prescribed in 811.104–
70 through 811.104–74 as a guide in technical medical and other technical
Name or Equal, applies to only certain equipment and devices) issued by a
line items of a solicitation, the developing adequate purchase
descriptions for negotiated field station.
requirements of 811.104–71(b) apply to
those line items and the contracting procurements. Subpart 811.2—Using and Maintaining
officer must include a statement in the (b) The contracting officer may adapt Requirements Documents
solicitation as follows: the clause at 852.211–73, Brand Name
or Equal, for use in negotiated 811.202 Maintenance of standardization
The clause entitled ‘‘Brand Name or Equal’’ documents.
applies only to the following line items: [List
procurements. When use of the clause is
the line items to which the clause applies] not practical (as may be the case in (a) Military and departmental
unusual and compelling urgency specifications. Contracting officers may,
811.104–73 Bid samples. purchases), the contracting officer must when it is advantageous to VA, use
(a) When a solicitation contains inform suppliers that proposals offering these specifications when procuring
‘‘brand name or equal’’ purchase products different from the products supplies and equipment costing less
descriptions, the contracting officer referenced by brand name will be than the simplified acquisition
must not require a bidder who offers considered if the contracting officer threshold. When purchasing items of
brand name products, including determines that the offered products are perishable subsistence, contracting
component parts, referenced in the equal in all material respects to the officers may take into account only
those exemptions set forth in paragraphs which specify the paper stocks to be (b) As a substitute for efficient
(b)(2) and (b)(3) of this section. used in buying printing, binding, or contract administration.
(b) Nutrition and Food Service duplicating, must require that the paper (c) As a penalty for failure to perform
specifications. (1) VA has adopted for stocks be in accordance with the on time.
use in the procurement of packinghouse Government Paper Specification
products the purchase descriptions and 811.503 Contract clause.
Standards issued by the Congressional
specifications set forth in the Joint Committee on Printing. When the contracting officer
Institutional Meat Purchase (2) All binding or rebinding of books, determines that the Liquidated Damages
Specifications (IMPS) and the IMPS magazines, pamphlets, newspapers, slip clause prescribed in FAR 52.211–11 or
General Requirements, which have been cases, and boxes must be procured in 52.211–12 must be used and where
developed by the U.S. Department of accordance with Government Printing partial performance by the contractor
Agriculture. Purchase descriptions and Office (GPO) specifications and must be may be to the advantage of the
specifications for dairy products, procured from the servicing GPO Government, the contracting officer
poultry, eggs, fresh and frozen fruits and Regional Printing Procurement Office must include the clause in 852.211–74,
vegetables, as well as certain or, when appropriate, from commercial Liquidated Damages, in the contract.
packinghouse products selected from sources.
the IMPS especially for VA use, are Subpart 811.6—Priorities and
(3) There are three types of binding/
contained in Part IV of the Federal Allocations
rebinding: Class A (hard cover); Perfect
Supply Catalog, Stock List, FSC Group (glued); and Lumbinding (sewn). The 811.602 General.
89, Subsistence, Publication No. C8900– most suitable type of binding must be
SL. (a) Priorities and allocations of critical
procured to satisfy the requirements, materials are controlled by the
(2) The military specifications for based upon the intended use of the
meat and meat products contained in Department of Commerce. Essentially,
bound material. priorities and allocations of critical
Part IV of the Federal Supply Catalog,
Stock List, FSC Group 89, Subsistence, 811.204 Contract clause. materials are restricted to projects
must be used by VA only when having a direct connection with
Insert the clause at 852.211–75, supporting current defense needs. VA is
purchasing such items of subsistence Product Specifications, when product
from the Defense Logistics Agency not authorized to assign a priority rating
specifications are cited in an invitation to its purchase orders or contracts
(DLA). Military specifications for for bids or a request for proposals.
poultry, eggs, and egg products involving the acquisition or use of
contained in Part IV of the Federal Subpart 811.4—Delivery or critical materials.
Supply Catalog, Stock List, FSC Group Performance Schedules (b) When it has been technically
89, Subsistence, may be used when established that it is not feasible to use
purchasing either from DLA or from 811.404 Contract clause. a substitute material, the Department of
local dealers. When delivery is required by or on a Commerce has agreed to assist the VA
(3) Except as authorized in Part 846, particular date for f.o.b. destination in obtaining critical materials for
a contracting officer must not deviate contracts, the contracting officer must maintenance and repair projects. The
from the specifications contained in Part add a statement following the Time of Department of Commerce will also,
IV of the Federal Supply Catalog, Stock Delivery clause in FAR 52.211–8 that when possible, render assistance in
List, FSC Group 89, Subsistence, and the delivery date specified is the date by connection with the purchase of new
the IMPS without prior approval from which the shipment is to be delivered, items, which may be in short supply
the DSPE. not the shipping date. In f.o.b. origin because of their use in connection with
(4) Items of meat, cured pork and contracts, the contracting officer must the defense effort.
poultry purchased under the add a statement following this clause (c) A contracting officer having
Subsistence Prime Vendor national that the date specified is the date problems acquiring critical materials
contract or other local procurement shipment is to be accepted by the must ascertain all the facts necessary to
sources should be purchased via carrier. enable the Department of Commerce to
Commercial Item Descriptions (CID) that render assistance to VA in acquiring
require all products meet USDA Grading Subpart 811.5—Liquidated Damages these materials. The contracting officer
standards and/or the IMPS as must submit a request for assistance to
811.501 Policy. the DSPE containing the following
applicable.
(c) Department of Veterans Affairs The contracting officer must not information:
specifications. (1) The Director, routinely include a liquidated damages (1) A description of the maintenance
Publications Staff, is responsible for provision in supply or construction and repair project or the new item.
developing, publishing, and distributing contracts, regardless of dollar amount. (2) The critical material and the
VA specifications covering printing and The decision to include liquidated amount required.
binding. damages provisions must conform to the (3) The contractor’s sources of supply,
(2) VA specifications, as they are criteria in FAR 11.501. In making this including any addresses. If the source is
revised, are placed in stock in the VA decision, the contracting officer must other than the manufacturer or
Forms and Publications Depot. The consider whether the necessity for producer, also list the name and address
contracting officer may requisition timely delivery or performance as of the manufacturer or producer.
facility requirements for these required in the contract schedule is so (4) The VA contract or purchase order
specifications from that source. critical that a probable increase in number.
(d) Government paper specification contract price is justified. The (5) The contractor’s purchase order
standards. (1) Invitations for bids, contracting officer must not use a number, if known, and the delivery time
requests for proposals, purchase orders, liquidated damages provision for any of requirement as stated in the solicitation
or other procurement instruments the following reasons: or offer.
covering the purchase of paper stocks to (a) As insurance against selection of a (6) The additional time the contractor
be used in duplicating or printing, or non-responsible bidder. claims is necessary to deliver the
materials if priority assistance is not Subpart 812.3—Solicitation Provisions (c) When appropriate, the contracting
provided. and Contract Clauses for the officer may use the clauses in the
(7) The nature and extent of the Acquisition of Commercial Items following VAAR sections in requests for
emergency that will be generated at the quotations, solicitations, and contracts
812.301 Solicitation provisions and for the acquisition of commercial items
station, such as any of the following: contract clauses for the acquisition of
if the contracting officer determines that
(i) Damage to the physical plant. commercial items.
the use is consistent with customary
(ii) Impairment of the patient care (a) Regardless of provisions in other commercial practices:
program. parts of the VAAR, contracting officers (1) 852.211–70, Service data manuals.
must use only those provisions and (2) 852.211–74, Liquidated damages.
(iii) Creation of safety hazards. clauses in this part when acquiring (d) All requests for quotations,
(iv) Any other pertinent condition commercial items. solicitations, and contracts for
that could result because of failure to (b) Contracting officers may use the
commercial item services to be provided
secure assistance in obtaining the provisions and clauses in the following
to beneficiaries must include by
critical materials. VAAR sections, as appropriate, in
reference the clause at 852.271–70,
requests for quotations, solicitations,
(8) If applicable, a statement that the Nondiscrimination in Services Provided
and contracts:
item required is for use in a to Beneficiaries.
(1) 852.203–70, Commercial
construction contract that was (e) Micro-purchases that use the
advertising.
authorized by the Chief Facilities (2) 852.203–71, Display of Department procedures of this part in conjunction
Management Officer, Office of Facilities of Veterans Affairs hotline poster. with Part 813 do not require clauses
Management, to be awarded and (3) 852.207–70, Report of employment unless the contracting officer
administered by the facility contracting under commercial activities. determines that the use of clauses serves
officer. (4) 852.209–70, Organizational the Government’s best interest.
conflicts of interest. (f) When soliciting for commercial
PART 812—ACQUISITION OF (5) 852.211–71, Special notice. services or the use of medical
COMMERCIAL ITEMS (6) 852.211–72, Technical industry equipment or space under the authority
standards. of part 873 and 38 U.S.C. 8151–8153,
Subpart 812.1—Acquisition of Commercial (7) 852.211–73, Brand name or equal. the provisions and clauses in the
Items—General (8) 852.211–75, Product following VAAR sections may be used
Sec. specifications. in accordance with the prescriptions
812.102 Applicability. (9) 852.214–70, Caution to bidders— contained therein or elsewhere in the
bid envelopes. VAAR:
Subpart 812.3—Solicitation Provisions and
Contract Clauses for the Acquisition of
(10) 852.214–71, Restrictions on (1) 852.273–70, Late offers.
Commercial Items alternate item(s). (2) 852.273–71, Alternative
(11) 852.214–72, Alternate item(s). negotiation techniques.
812.301 Solicitation provisions and (12) 852.214–73, Alternate packaging (3) 852.273–72, Alternative
contract clauses for the acquisition of and packing. evaluation.
commercial items. (13) 852.214–74, Bid samples. (4) 852.273–73, Evaluation—health-
812.302 Tailoring of provisions and clauses (14) 852.216–70, Estimated quantities. care resources.
for the acquisition of commercial items. (15) 852.228–71, Indemnification and (5) 852.273–74, Award without
Authority: 38 U.S.C. 501; 40 U.S.C. 121(c); insurance. exchanges.
and 48 CFR 1.301–1.304. (16) 852.229–70, Sales and use taxes.
(17) 852.233–70, Protest Content/ (38 U.S.C. 8151–8153)
Subpart 812.1—Acquisition of Alternative Disputes Resolution. 812.302 Tailoring of provisions and
Commercial Items—General (18) 852.233–71, Alternate Protest clauses for the acquisition of commercial
Procedure. items.
812.102 Applicability. (19) 852.237–7, Indemnification and
(a) Contracting officers may tailor
(a) This part shall be used for the Medical Liability Insurance.
solicitations to be inconsistent with
(20) 852.237–70, Contractor
acquisition of supplies and services that customary commercial practice if they
responsibilities.
meet the definition of commercial items prepare and obtain approval of a waiver
(21) 852.246–70, Guarantee.
at FAR 2.101. (22) 852.246–71, Inspection. under paragraph (c) of this section.
(b) Contracting officers shall use the (23) 852.246–72, Frozen processed (b) The contracting officer must
policies in this part in conjunction with foods. prepare the waiver in accordance with
the policies and procedures for the (24) 852.252–70, Solicitation FAR 12.302(c). The waiver is subject to
provisions or clauses incorporated by the tailoring prohibitions in FAR
solicitation, evaluation, and award
reference. 12.302(b)(1) through 12.302(b)(6).
prescribed in Parts 813, Simplified
(25) 852.270–1, Representatives of (c) The contracting officer must obtain
Acquisition Procedures, 814, Sealed
contracting officers. approval for waivers from the following:
Bidding, and 815, Contracting by
(26) 852.270–2, Bread and bakery (1) The Chief, Acquisition Assistance
Negotiation, as appropriate for the Division, for individual contracts.
particular acquisition. products—quantities.
(27) 852.270–3, Purchase of shellfish. (2) The Chief, Acquisition Program
(c) Contracts for the acquisition of (28) 852.271–72, Time spent by Management Division, for a class of
commercial items are subject to the counselee in counseling process. contracts.

policies of other parts of this chapter. (29) 852.271–73, Use and publication (d) Contracting officers must submit
When a policy in another part of this of counseling results. waiver requests no later than the
chapter differs from a policy in this part, (30) 852.271–74, Inspection. solicitation issue date.
this Part 812 applies to the acquisition (31) 852.271–75, Extension of contract (e) Contracting officers must retain
of commercial items. period. approved requests in the contract file.
SUBCHAPTER C—CONTRACTING 813.307 Forms. Subpart 814.3—Submission of Bids

METHODS AND CONTRACT TYPES (a) The following forms provide a 814.301 Responsiveness of bids.
purchase or delivery order, vendor’s 814.302 Bid submission.
PART 813—SIMPLIFIED ACQUISITION invoice, and receiving report: 814.304 Submission, modification, and
PROCEDURES (1) VA Form 90–2138, Order for withdrawal of bids.
Subpart 813.1—Procedures Supplies or Services. Subpart 814.4—Opening of Bids and Award

(2) VA Form 90–2139, Order for of Contract
Sec.
Supplies or Services (Continuation). 814.401 Receipt and safeguarding of bids.
813.106 Soliciting competition, evaluation
(3) VA Form 90–2138–ADP, Purchase 814.402 Opening of bids.
of quotations or offers, award and 814.403 Recording of bids.
Order for Supplies or Services.
documentation. 814.404 Rejection of bids.
(4) VA Form 2139–ADP, Order for
813.106–3 Award and documentation. 814.404–1 Cancellation of invitations after
Supplies and Services (Continuation).
813.106–70 Oral purchase orders. opening.
(b) The contracting officer may use 814.404–2 Rejection of individual bids.
Subpart 813.3—Simplified Acquisition the forms specified in paragraphs (a)(1) 814.404–70 Questions involving the
Methods through (a)(4) of this section instead of responsiveness of a bid.
813.302 Purchase orders. OF 347, Order for Supplies or Services, 814.407 Mistakes in bids.
813.302–5 Clauses. OF 348, Order for Supplies or Services 814.407–3 Other mistakes disclosed before
813.307 Forms. Schedule—Continuation, and SF 1449, award.
Solicitation/Contract/Order for 814.407–4 Mistakes after award.
Authority: 40 U.S.C. 121(c) and 48 CFR 814.408 Award.
Commercial Items.
1.301–1.304. 814.408–70 Award when only one bid is
(c) The contracting officer or other received.
Subpart 813.1—Procedures properly delegated official (see 801.670– 814.408–71 Recommendation for award
3) may use the following order forms (construction).
813.106 Soliciting competition, evaluation when ordering the indicated medical, 814.409 Information to bidders.
of quotations or offers, award and dental, and ancillary services totaling Authority: 40 U.S.C. 121(c) and 48 CFR
documentation. up to $10,000 per authorization when 1.301–1.304.
such services are not available under
813.106–3 Award and documentation. Subpart 814.1—Use of Sealed Bidding
existing contracts:
The contracting officer may record a (1) VA Form 10–7078, Authorization 814.104 Types of contracts.
and Invoice for Medical and Hospital 814.104–70 Fixed-price contracts with
quotation on an Abstract of Offers (SF escalation.
1409 or 1419), the purchase request if Services.
space permits, or other supplemental (2) VA Form 10–7079, Request for When fixed price contracts with
sheet or form, such as VA Form 10– Outpatient Medical Services. escalation are authorized under
2237b, Request for Dietetic Supplies. (3) VA Form 10–2570d, Dental Record 816.102(a), a contracting officer must
Authorization and Invoice for comply with FAR 16.203–1 through
813.106–70 Oral purchase orders. Outpatient Service. 16.203–4.
When advantageous to VA, the (d) In authorizing patient travel as set
forth in VA manual MP–1, Part II, Subpart 814.2—Solicitation of Bids
contracting officer may use an oral
purchase order for transactions not in Chapter 3, the contracting officer or 814.201 Preparation of invitations for bids.
excess of $2,500. This limitation does other properly delegated official (see (a) An invitation for bids for supplies,
not apply to delivery orders against 801.670–3) may use VA Form 10–2511, equipment, and services must be
existing contracts, e.g., delivery orders Authority and Invoice for Travel by serially numbered at the time of issue.
against Federal Supply Schedule Ambulance or Other Hired Vehicle, as Numbers assigned locally must consist
contracts. The contracting officer must provided by that manual. of the facility or VA National
assign a purchase order number to the (e) The contracting officer must use Acquisition Center division number, the
transaction. A copy of any electronically SF 182, Request, Authorization, serial number of the invitation, and the
generated purchase order may be used Agreement, and Certification of fiscal year in which the VA facility
as a property voucher and receiving Training, for procurement of training. issues the invitation, e.g., 533–24–05 for
report to document receipt. (f) The contracting officer must use the 24th invitation issued by VA facility
VA Form 10–2421, Prosthetics 533 in Fiscal Year 2005. A series
Subpart 813.3—Simplified Acquisition Authorization for Items or Services, for beginning with the number 1 must be
Methods indicated services not in excess of $300. started each fiscal year. Numbers
PART 814—SEALED BIDDING assigned from a national register may be
813.302 Purchase orders. sequential, without regard to year, and
813.302.5 Clauses. Subpart 814.1—Use of Sealed Bidding use whatever numbering system
Sec. assigned by the national system.
When using the VA Form 90–2138 or 814.104 Types of contracts. (1) An invitation for bid for supplies,
90–2138–ADP for maintenance 814.104–70 Fixed-price contracts with equipment, and services, that is
contracts involving services performed escalation. numbered locally, must be numbered in
on Government property that have the the series of the year in which it is
Subpart 814.2—Solicitation of Bids
potential for property damage and issued if it is issued, accepted, and
liability claims, the contracting officer 814.201 Preparation of invitations for bids. becomes a contract in the same fiscal
must insert in the purchase order the 814.201–6 Solicitation provisions.

814.203 Methods of soliciting bids.
year but, because of procurement lead
Contractor’s Responsibilities clause 814.203–1 Transmittal to prospective time, will not be performed until the
found at 852.237–70. Applicable bidders. next fiscal year.
maintenance contracts include, but are 814.204 Records of invitations for bids and (2) An invitation for bid, that is
not limited to, window washing, pest records of bids. numbered locally, must be numbered in
control, and elevator maintenance. 814.208 Amendment of invitation for bids. the next fiscal year series if it is issued
in one fiscal year but the contract will 814.201–6 Solicitation provisions. (5) Disposition (i.e., contract number
become effective and will be performed (a) The contracting officer must or purchase order number or, when
only in the next fiscal year. prominently place the provision entitled applicable, no award).
(b) An invitation for a construction ‘‘Caution to Bidders—Bid Envelopes,’’ (b) Maintenance of the contract file
contract must bear the applicable as set forth in 852.214–70, in all prescribed by Part 804 and retention of
invitation for bid number and the invitations for bids where bid canceled Invitation for Bid files will
project number, if assigned. submissions are by other than electronic fulfill the requirements set forth in FAR
(c) An invitation for bid containing a means. 14.204(b).
summary bid request must include the (b) In an invitation for bid for 814.208 Amendment of invitation for bids.
following statement: supplies, equipment, or services (other The contracting officer must send
‘The award will be made on either an than construction), the contracting amendments to holders of drawings and
individual item basis or summary bid basis, officer must define the extent to which
whichever results in the lowest cost to the
specifications by certified mail, return
VA will authorize and consider receipt requested, or any other method
Government. Therefore, to assure proper
alternate bids. VA will consider for that provides evidence of receipt. The
evaluation of all bids, a bidder quoting a
summary bid price must also quote a price acceptance an alternate specified on contracting officer may send
on each individual item included in the construction projects only as a part of amendments by telegram, facsimile, or
summary bid price.’ the basic item. other method of rapid delivery that
(d) When a contracting officer (1) When VA will consider an provides evidence of receipt, if time
determines that it will be to the alternate item only if no bids or does not permit mailing.
Government’s advantage to make an insufficient bids are received on an item
desired, the contracting officer must Subpart 814.3—Submission of Bids
award by group or groups of items, the
contracting officer must include a include the provision set forth in § 814.301 Responsiveness of bids.
provision for the award by group or 852.214–71, Restrictions on Alternate
Item(s), in the invitation. Where a contracting officer cannot
groups of items in the invitation for administratively determine, in
bids. This may apply when the items in (2) When VA will consider an
accordance with FAR 14.301, the
the group or groups are readily available alternate item on an equal basis with the timeliness of the submission of a bid,
from sources to be solicited; and one of item specified, the contracting officer modification, or withdrawal, the
the following apply: must include the provision set forth in contracting officer must submit the
(1) It is desirable to award a minimum 852.214–72, Alternate Item(s), in the matter through the DSPE to the
number of contracts. invitation. Comptroller General for a decision. The
(2) Furniture or fixtures are required (3) In addition to the provision submission must include copies of all
for a single project and uniformity of referenced in paragraph (b)(1) or (2) of pertinent papers.
design is desirable. this section, the contracting officer must
(3) The articles required will be include the provision set forth in 814.302 Bid submission.
assembled and used as a unit. 852.214–73, Alternate Packaging and A bid hand-carried by the bidder or
(e) A solicitation for a construction Packing, in the invitation when bids his agent will be considered late unless
contract must contain a statement on the will be allowed on different packaging, delivered to the addressee designated in
order of priority in which VA will unit designation, etc. the bid invitation before the time set for
award any alternative bid items, based (c) When the contracting officer opening.
on the relative importance of the items, determines that samples are necessary 814.304 Submission, modification, and
VA’s cost estimate, and the amount of to the proper awarding of a contract, the withdrawal of bids.
funds available, when the following contracting officer must include the
(a) A notification to late bidders must
apply: provision set forth in 852.214–74, Bid
(1) VA intends to make a single specify the final date by which VA must
Samples, in the solicitation, along with receive evidence. This date must be
aggregate award for all items in the the provision in FAR 52.214–20, Bid
solicitation within certain fiscal within the time allowed by the apparent
Samples. low bidder for acceptance of the low
limitations.
(2) The solicitation asks for prices on 814.203 Methods of soliciting bids. bidder’s bid.
an item and alternate item basis. (b) All bids received by mail or
814.203–1 Transmittal to prospective delivered in person by the bidder (or
(f) A bid item schedule in a bidders.
solicitation issued in compliance with telegram where authorized) must be
paragraph (e) of this section should be The contracting officer should include time and date stamped immediately
structured substantially as follows: either a bid envelope or OF 17, Sealed upon receipt at the VA facility mail
Bid Label, with each invitation for bids room and in the office of the addressee
A single award will be made on Item No. furnished by mail or hand delivered to designated in the invitation.
1, but in the event the offer exceeds the funds
prospective bidders.
available, a single award will be made on Subpart 814.4—Opening of Bids and
Item No. 2 or Item No. 3, in that order, based 814.204 Records of invitations for bids Award of Contract
on available funding. Offerors should quote and records of bids.
a price on each item listed. 814.401 Receipt and safeguarding of bids.
Item No. 1—Furnish all labor, material, (a) The issuing office must establish
and maintain a single register on a fiscal The contracting officer is designated
equipment, etc., to paint Buildings No. 1, 2,
and 3: $llll. year basis for all solicitations. For each as the official to open bids for
Alternate items in order of priority: invitation to bid or request for proposal, identification, as provided in FAR
Item No. 2—Furnish all labor, material, the register must include the following: 14.401.
equipment, etc., to paint Buildings No. 1 and (1) Bid or proposal number. 814.402 Opening of bids.
2: $llll.
Item No. 3—Furnish all labor, material, (2) Date of issue. (a) The contracting officer must serve
equipment, etc., to paint Building No. 1: (3) Date of opening. as, or designate, a bid opening officer,
$llll. (4) Commodity or service involved. and must also designate a recorder.
(b) If a bid bond is required, the bid determination may be based on the fact copy of the contract amendment or
opening officer must read aloud the that the bid as submitted includes supplemental agreement and a copy of
form and amount of bid security and the evidence that the offeror intends to be the contracting officer’s determination,
name of the surety. The recorder must bound by all the material terms and to the DSPE.
record this information. conditions of the invitation. (b) For mistakes in a bid alleged after
(2) Make a determination that the bid award, the contracting officer’s
814.403 Recording of bids. as submitted is in such form that proposed determination, prepared in
(a) The recorder must transcribe the acceptance would not create a valid and accordance with FAR 14.407–4, must be
information required for bid evaluation binding contract. forwarded to OGC through the DSPE,
on the appropriate Abstract of Offers (b) When VA receives a single bid in Acquisition Resources Service, for legal
form (SF 1409 or OF 1419). The response to a solicitation, the coordination. The DSPE shall transmit
evaluation data may be recorded on contracting officer must not reject the the results of this coordination to the
supplemental sheets or forms such as offer simply because it specifies a bid contracting officer, who will make the
VA Form 10–2237b, Request for Dietetic acceptance time that is shorter than that final determination on the alleged
Supplies, provided that any contained in the solicitation, unless a mistake in bid after award.
supplemental sheets or forms are compelling reason exists for rejecting (c) The DSPE, Acquisition Resources
covered by one of the forms authorized such a bid. Insufficient time to properly Service, must maintain the agency
for recording bid or price data. evaluate an offer is a compelling reason records of mistakes in bids after award
(b) The bid opening officer must for rejection; however, the contracting required by FAR 14.407–4.
comply with the instructions in FAR officer must first request the offeror to
14.403 and certify on the abstract the extend the acceptance date of the bid to 814.408 Award.
date and hour at which the bids were allow for proper evaluation. 814.408–70 Award when only one bid is
opened. Where erasures, strikeovers, or (c) In those cases where VA receives received.
changes in price are noted at the time more than one bid, the contracting (a) When VA receives only one bid in
of bid opening, a statement to that effect officer must reject as nonresponsive an response to an invitation for bids, the
must also be included on, or attached to, individual bid that is not in compliance contracting officer may consider and
the abstract or record of bids. with the Government’s bid acceptance accept the bid if all of the following
time, since consideration of such an apply:
814.404 Rejection of bids.
offer would unfairly disadvantage other (1) The specifications used in the
814.404–1 Cancellation of invitations after bidders. invitation were not restrictive.
opening. (2) VA solicited adequate
814.404–70 Questions involving the
(a) For each invitation to bid that VA responsiveness of a bid. competition.
cancels or for which it receives no bid, (3) The price is reasonable.
If a contracting officer cannot resolve
the contracting officer must do the (4) The bid is otherwise in accordance
a question involving the responsiveness
following: with the invitation for bids.
(1) File a copy of the invitation for of a bid, the contracting officer may
submit the question to the Comptroller (b) The contracting officer must make
bids, as provided for in FAR 14.404–1, the determination in writing, and
together with the abstract showing to General through the DSPE.
include it the contract file.
whom such bids were sent, in a separate 814.407 Mistakes in bids.
folder identified by the invitation 814.408–71 Recommendation for award
number. 814.407–3 Other mistakes disclosed (construction).
(2) Annotate the abstract to show why before award. (a) For Central Office contracts, the
an award was not made. (a) In accordance with FAR 14.407– Chief Facilities Management Officer,
(3) Retain the folders for the current 3(e), the authority of the Secretary to Office of Facilities Management, must
and two succeeding fiscal years. make the administrative determinations analyze all bids received and submit a
(b) The HCA may approve set forth in FAR 14.407–3(a), (b), (c), memorandum to the Secretary
cancellation of invitations for bid after and (d) is delegated to the SPE and is recommending award or other
opening and may approve completion of further delegated, without power of disposition of the project. A copy of
the acquisition after cancellation, as redelegation, to the DSPE. This each of the following must accompany
provided in FAR 14.404–1(e). The delegation in no way impairs the the memorandum:
contracting officer must submit a delegations contained in Unpublished (1) The invitation.
Determination and Finding to the HCA Decision of the Comptroller General B– (2) Each bid received.
for approval and signature. 122003 dated November 22, 1954. (3) The abstract.
(b) When a bidder alleges a mistake in (4) Any other pertinent data.
814.404–2 Rejection of individual bids. his or her bid before award, after (b) For facility-level contracts, the
(a) When a contracting officer finds a complying with the provisions of FAR Chief, Engineering Service, must
bid that is being considered for an 14.407–3, the contracting officer must analyze all bids received and submit a
award is incomplete, e.g., all pages of submit the complete file to the DSPE for memorandum recommending award or
the invitation have not been returned by an administrative determination. Based other disposition of the project to the
the bidder, the contracting officer will upon the evidence submitted, the DSPE contracting officer. The contracting
take whichever of the following actions shall determine the action the officer alone must make the final
that is appropriate: contracting officer is to take. The decision to accept or reject the lowest
(1) Make a determination that the bid responsive bid and the determination as
contracting officer may make no award

as submitted is in such a form that until the DSPE makes a determination. to the responsibility of a prospective
acceptance would create a valid and contractor.
binding contract, requiring the 814.407–4 Mistakes after award.
contractor to perform in accordance (a) When a contracting officer corrects 814.409 Information to bidders.
with all of the material terms and a mistake in bid under FAR 14.407–4(a), (a) An employee of VA may not
conditions of the invitation. The the contracting officer must forward a disclose information as to probable
acceptance or rejection of any offer to legal and technical reviews. (See (2) In consultation with such
any bidder or other person outside of 801.602–70.) technical/professional offices, the VA
VA. (b) Contracting officers determine the contact point will furnish the potential
(b) Except as provided in paragraphs level of technical analyses necessary for offeror the information specified in FAR
(c) and (d) of this section, information initial and revised pricing of all 15.604 and any other information that
about performance under a contract or negotiated prime contracts, including might be of assistance to the potential
an accepted bid is not public subcontract pricing under them, and offeror.
information and will be released to contract modifications. Contracting (b) The contact point will maintain a
persons outside of VA only upon the officers must request technical analyses record of advance guidance provided
authority of the immediate supervisor of of the proposals from the appropriate and the disposition/recommendation
the contracting officer. technical personnel. The technical regarding the potential offer.
(c) Except as provided in paragraph analyses must address, as a minimum, (c) The contact point will review the
(d) of this section, the contracting officer the items set forth in FAR 15.404– unsolicited proposal and ensure that it
may furnish information on 1(e)(2). is complete as prescribed in FAR
performance under a contract to those (c) The contracting officer must 15.605. If required information is not
having a legitimate interest, such as document the results of such analyses in submitted, the contact point will:
banks, other financial companies and the contract file and make the results (1) Determine if FAR 15.604 requires
Government departments and agencies. available to the auditor performing the advance guidance;
(d) When litigation is involved, all pre-award audit. (2) Determine whether a
information must be furnished through comprehensive evaluation prescribed by
815.404–2 Information to support proposal
OGC. analysis. FAR 15.606–2 is appropriate and, if so,
request that the offeror provide the
In evaluating start-up and other non-
PART 815—CONTRACTING BY necessary information; and,
recurring costs, the contracting officer
NEGOTIATION (3) Establish an estimated due date for
must determine the extent to which
completion of the review process.
Subpart 815.3—Source Selection these costs are included in the proposed
Sec. price and the intent to absorb or recover 815.606–1 Receipt and initial review.
815.303 Responsibilities. the costs in any future noncompetitive (a) When the VA contact point
procurement or other pricing action. determines a proposal warrants a
Subpart 815.4—Contract Pricing
The contracting officer must ensure, comprehensive evaluation (i.e., the
815.404 Proposal analysis. with the assistance of the Assistant
815.404–1 Proposal analysis techniques.
proposal complies with the
Inspector General for Policy, Planning, requirements in FAR 15.606–1(a) and is
815.404–2 Information to support proposal
and Resources, as required or related to VA’s mission), the contact
analysis.
considered necessary, that VA will not point must contact the offeror to ensure
Subpart 815.6—Unsolicited Proposals pay the costs twice. For example, the that all data that should be restricted in
815.604 Department points of contact. cost of equipment that the Government accordance with FAR 15.609 has been
815.606 Department procedures. pays for through a setup or connection identified.
815.606–1 Receipt and initial review. agreement must not be included in (b) The contact point must maintain a
Authority: 40 U.S.C. 121(c) and 48 CFR depreciation cost of a subsequently log of all unsolicited proposals to be
1.301–1.304. negotiated agreement. evaluated. The log must indicate the
following:
Subpart 815.3—Source Selection Subpart 815.6—Unsolicited Proposals (1) The date the proposal was
815.303 Responsibilities. 815.604 Department points of contact. received.
A VA employee who receives an (2) The date that the unsolicited
The authority of the Secretary to proposal was determined to warrant a
appoint an individual other than the unsolicited proposal or inquiries from a
potential offeror of an unsolicited comprehensive evaluation.
contracting officer to service as the (3) A description of the proposal.
source selection authority for a proposal must refer the proposals or
(4) The offices requested to evaluate
particular acquisition or group of inquiries to the following:
(a) Facility level unsolicited proposals the proposal and the date the offices are
acquisitions is delegated to the SPE and requested to return their evaluations.
is further delegated to the DSPE. If an must be referred to the HCA for the field
facility. (5) The date the reviewing offices
HCA wishes to designate an individual finalize their respective evaluations.
other than the delegated contracting (b) Proposals to the VA National
Acquisition Center must be referred to (6) The final disposition of the
officer as the source selection authority proposal.
for a particular acquisition or group of the Executive Director and Chief
Operating Officer, VA National (c) The contact point must advise
acquisitions, the HCA shall prepare a each office assigned responsibility for
request and justification and shall Acquisition Center.
(c) Proposals to VA Central Office reviewing an unsolicited proposal of the
submit the request through channels to need to evaluate the proposal against
the DSPE for approval. must be referred to the DSPE.
the criteria set forth in FAR 15.607(a)(1)
815.606 Department procedures. through (4). If the reviewers determine
Subpart 815.4—Contract Pricing that the proposal fails to meet any of the
(a) The VA contact point will do the
815.404 Proposal analysis. following: criteria, the contact point must be
(1) Determine the nature of the advised. The contact point must return
815.404–1 Proposal analysis techniques. potential proposal and which technical/ the proposal to the offeror, citing the
(a) Contracting officers are responsible professional disciplines within VA to reasons therefore.
for the technical and administrative consult to determine the need for the (d) The contact point must obtain
sufficiency of the contracts they enter proposal and the likelihood that a approval of the DSPE before negotiation
into. Contracting officers must ensure formal proposal would earn favorable on proposals processed at field offices.
that contracts undergo all applicable review. The contact point must provide the
DSPE all necessary documentation beginning of the contract period must letter of availability usually indicates
supporting the noncompetitive provide that: products or services being considered
negotiation, including any justification (1) The contract applies to the period for procurement. A supplier should not
and approval required by FAR Subpart stated in the contract, subject to construe a letter of availability as a
6.3 and results of any synopsis required availability of funds; and commitment. Prospective contractors
by FAR Subpart 5.2. The DSPE will (2) The contractor will not perform sometimes solicit letters of availability
consult the appropriate VA Central any service under the contract after or the letters may originate from
Office program official(s) and return the September 30 of each fiscal year (or Government personnel. A letter of
final decision to the contact point. beyond the period of the basic contract
availability differs from a letter contract,
(e) The contact point will number or any authorized option if the contract
which is specifically authorized in FAR
each copy of the unsolicited proposal. A crosses fiscal years as provided in FAR
32.703–3(b)) unless the contractor 16.603.
reviewing office must obtain approval of
the contact point before duplicating an obtains specific authorization from the (b) Policy. (1) For the following
unsolicited proposal and must number contracting officer. reasons, contracting officers may not use
copies as specified by the contact point. (d) A/E contracts, construction letters of availability unless the DSPE
All copies must be returned to the contracts, or professional engineer specifically authorizes them to do so:
contact point when the review is contracts, financed by ‘‘no year’’ (i) Letters of availability often cause
complete. appropriations, are not subject to the potential contractors to initiate costly
requirements of paragraph (c) of this
preparations in anticipation of contract
PART 816—TYPES OF CONTRACTS section.
award.
Subpart 816.1—Selecting Contract Types Subpart 816.5—Indefinite-Delivery (ii) Procurements announced in such
Sec. Contracts letters do not always materialize. The
816.102 Policies. result may be costly to the Government,
816.504 Indefinite-quantity contracts.
Subpart 816.5—Indefinite-Delivery the prospective contractor, or both. If
(a) Except as provided in paragraphs
Contracts the author of the letter of availability is
(b), (c), and (d) of this section, when the
816.504 Indefinite-quantity contracts. contracting officer cannot determine an authorized contracting officer of VA,
816.505 Ordering. definite quantities to be acquired under the Government may be bound by the
Subpart 816.70—Unauthorized Agreements a solicitation and intends to issue a action, even though the action is
solicitation for estimated quantities, the contrary to sound procurement practices
816.7001 Letters of availability.
contracting officer shall insert the clause and/or fiscal regulations. If the author of
Authority: 40 U.S.C. 121(c) and 48 CFR the letter of availability lacks
1.301–1.304.
at 852.216–70, Estimated Quantities.
(b) The contracting officer shall insert procurement authority, the prospective
Subpart 816.1—Selecting Contract the Alternate I clause at 852.216–70 in contractor may incur substantial
Types solicitations for bulk coal. expenditures that may not be recovered
(c) The contracting officer shall insert from the Government. In this instance,
816.102 Policies. the Alternate II clause at 852.216–70 in the prospective contractor may seek to
(a) Contracting officers must obtain solicitations for estimated quantities of hold the unauthorized author personally
technical review of solicitations that orthopedic, prosthetic, and optical liable.
include a clause that provides for supplies.
(d) The contracting officer shall insert (iii) The issuance of a letter of
economic price adjustment specified in availability may violate the ‘‘Anti-
FAR 16.203–4 or any locally developed the Alternate III clause at 852.216–70 in
solicitations for monuments and Deficiency Act’’ (31 U.S.C. 1341).
clause (see FAR 16.203–4(d)(2) and
801.602–72(d)). The request for headstones. (2) Contractors need access to
approval must include a clearly stated procurement information as soon as
816.505 Ordering
need for the clause. possible to make timely preparations.
The task order contract and delivery Therefore, procurement personnel
(b) The contracting officer must obtain
order ombudsman for VA is the
the approval of the Director, Acquisition should act as efficiently and
Associate Deputy Assistant Secretary for
Resources Service (049A5), VA Central expeditiously as possible on all
Acquisitions (see FAR 16.505(b)(5)).
Office, before issuing a solicitation or procurement actions.
Contracting officers may obtain the
awarding a contract that includes time-
name, telephone number, facsimile PART 817—SPECIAL CONTRACTING
and-material or labor-hour pricing
number, and e-mail address of the
provisions if the ceiling price or METHODS
current Associate Deputy Assistant
estimated value of the acquisition
Secretary for Acquisitions by contacting: Subpart 817.1—Multi-year Contracting
exceeds $100,000. See 801.602–71 for
The Office of Acquisitions (049A), VA Sec.
technical review requirements.
Central Office, 810 Vermont Ave., NW., 817.105 Policy.
Excluded from this requirement are
Washington, DC 20420. 817.105–1 Uses.
time-and-material or labor-hour
solicitations or proposed contracts Subpart 816.70—Unauthorized Subpart 817.2—Options
covering emergencies, such as repair of Agreements
a broken water, sewer, or 817.202 Use of options.
communication line, repair of storm 816.7001 Letters of availability. 817.204 Contracts.
damage, etc. (i.e., where FAR 6.302–2 (a) Description. A letter of availability Subpart 817.4—Leader Company
applies). (sometimes inappropriately called a Contracting
(c) Except as provided in FAR 32.703– letter of intent) is a letter to a supplier 817.402 Limitations.
3, a contract that involves a direct that primarily seeks to reserve a place
obligation of appropriations and lasts on the supplier’s production or delivery Authority: 38 U.S.C. 501; 40 U.S.C. 121(c);
for more than one year from the schedule for long lead-time items. A and 48 CFR 1.301–1.304.
Subpart 817.1—Multi-year Contracting contract against each of the criteria and finding, for legal review in
specified in paragraphs (a)(1) through accordance with 801.602–71.
817.105 Policy. (a)(6) of this section and forward to the
DSPE for approval. The justification SUBCHAPTER D—SOCIOECONOMIC
817.105–1 Uses.
must explain the cancellation ceiling PROGRAMS
(a) Under 38 U.S.C. 114, VA
and the method used to calculate that
contracting officers may enter into PART 819—SMALL BUSINESS
ceiling. The justification also must
multi-year contracts for supplies and PROGRAMS
explain the advantages of multi-year
services not to exceed 5 years (unless
contracts over other alternative Subpart 819.2—Policies
otherwise authorized by statute),
methods, e.g., option year contracts. Sec.
provided the Secretary or designee
(c) The contracting officer must 819.201 General policy.
makes the following determinations:
(1) Appropriations are available for develop the cancellation ceilings in 801.202 Specific policies.
obligation to pay for the total payments accordance with FAR 17.106–1. (38 819.202–1 Encouraging small business
for the fiscal year in which the contract U.S.C. 114) participation in acquisitions.
819.202–5 Data collection and reporting
is awarded plus the estimated amount of Subpart 817.2—Options requirements.
any cancellation charges. 819.202–70 HCA responsibilities.
(2) The contract serves the best 817.202 Use of options. 819.202–71 Additional contracting officer
interest of the Government by: All solicitations developed under responsibilities.
(i) Reducing cost; Office of Management and Budget 819.202–72 Order of precedence.
(ii) Achieving contract administration Circular A–76 (Revised) cost Subpart 819.5—Set-Asides for Small
and other efficiencies; comparisons will provide for four one- Business
(iii) Increasing quality contract year renewal options as prescribed in 819.502 Setting aside acquisitions.
performance; and FAR Subpart 17.2. The contracting 819.502–2 Total small business set-asides.
(iv) Encouraging effective officer must forward requests to use less 819.502–3 Partial set-asides.
competition. or more than the prescribed contract
(3) That, during the contract period: Subpart 819.6—Certificates of Competency
period for Circular A–76 (Revised) cost and Determinations of Responsibility
(i) Demand for the supplies or comparisons to the DSPE for approval.
services will continue; 819.602 Procedures.
(ii) Substantial changes in demand for 817.204 Contracts. 819.602–3 Resolving differences between
supplies and services in terms of VA and the Small Business
(a) The contracting officer must obtain Administration.
quantity or rate of delivery are unlikely; the approval of the DSPE before
and awarding a contract that includes Subpart 819.8—Contracting With the Small
(iii) Specifications for the supplies or options exceeding the 5-year limitation Business Administration (The 8(a) Program)
services will remain reasonably stable. specified in FAR 17.204(e). This 819.800 General.
(4) The risk of the contractor’s requirement does not apply to contracts Subpart 819.70—Veteran-Owned and
inability to perform under the terms and to be awarded by or on behalf of the VA Operated Small Businesses
conditions of the contract is low. Office of Inspector General. The request
(5) A multi-year contract will not for approval must include the following: § 819.7001 Policy.
inhibit competition from small (1) Supporting documentation,
businesses. Authority: 40 U.S.C. 121(c) and 48 CFR
rationale, and justifications for the use 1.301–1.304.
(6) For a pharmaceutical item for of options (see FAR 17.205) and for
which a patent has expired less than 4 exceeding the 5-year limitation. Subpart 819.2—Policies
years before the solicitation issue date, (2) Documentation that the
that there is no substantial likelihood contracting officer has considered and 819.201 General policy.
that increased competition among addressed the limitations specified in The Director, Office of Small and
potential contractors would occur FAR 17.202(b) and (c). Disadvantaged Business Utilization, is
during the term of the contract as the (b) Solicitations that require technical designated as the official responsible for
result of the availability of generic review in accordance with 801.602–71 making the determination required by
equivalents increasing during the term through 801.602–73 shall be submitted FAR 19.201(f).
of the contract. for review concurrently as provided
(b) The Secretary has delegated 801.202 Specific policies.
therein.
authority to make the determinations 819.202–1 Encouraging small business
specified in 817.105–1(a) as follows: Subpart 817.4—Leader Company participation in acquisitions.
(1) HCAs may make the above Contracting Contracting officers may negotiate
determinations and approve contracts payment terms of less than 30 calendar
that do not require legal/technical 817.402 Limitations.
days to encourage small business
reviews under 801.602–70 and that do (a) Except as provided in paragraph participation. A period of less than 7
not contain a first year cancellation (b) of this section, the Government shall days may not be prescribed (see FAR
ceiling exceeding 20 percent of the not initiate or execute leader company 32.908(c)(2)). The contracting officer
contract value over the full multi-year contracts. and the local fiscal officer must be in
term. (b) The DSPE may designate a agreement on the negotiated payment
(2) Authority to make the above contracting officer to enter into a leader
terms before awarding the contract.

determinations and to approval all other company contract for the benefit of VA
proposed multi-year contracts is and the Government. The DSPE must 819.202–5 Data collection and reporting
delegated to the SPE and is further designate a contracting officer by name requirements.
delegated to the DSPE. For approval for a specific contract. The named (a) Administration heads, staff office
purposes, the HCA will justify and contracting officer will submit the directors, and HCAs must, in addition to
document the use of a multi-year proposed contract, with a determination the responsibilities designated in FAR
19.202–5, cooperate with the Office of without the written approval of the Notice of partial set-aside, page llll,
Small and Disadvantaged Business Director, Office of Small and applies to item llll through item
Utilization in formulating specific small Disadvantaged Business Utilization. llll in this solicitation.
business program goals and providing
other data necessary for goal 819.202–71 Additional contracting officer Subpart 819.6—Certificates of
responsibilities. Competency and Determinations of
assessment.
(b) Office of Facilities Management In addition to the duties designated in Responsibility
and Office of Acquisition and Materiel FAR 19.202 through 19.202–6,
contracting officers must perform the 819.602 Procedures.
Management contracting offices must
report achievement of subcontracting following functions in support of the 819.602–3 Resolving differences between
goals on a semiannual basis. The Office small business program: VA and the Small Business Administration.
of Small and Disadvantaged Business (a) Make maximum use of small
Utilization must receive the reports not business source lists. The Director, OSDBU, is the VA
later than April 30 for the period ending (b) Assure that small business firms liaison with the Small Business
March 31, and November 1 for the are identified on solicitation mailing Administration. Information copies of
period ending September 30. lists and bid abstracts. correspondence sent to the Small
(c) Assure that specifications are not Business Administration seeking a
819.202–70 HCA responsibilities. certificate of competency determination
unduly restrictive, thereby enabling
A HCA must perform the following must be concurrently provided to the
small business participation to the
functions in support of the small Director, OSDBU. Before appealing a
maximum extent possible.
business program. These functions certificate of competency, the Head of
cannot be delegated without written (d) Assist and counsel small business
firms with individual problems. the Contracting Activity must seek
approval of the Director, Office of Small concurrence from the Director, OSDBU.
and Disadvantaged Business Utilization: (e) Provide for counseling non-
(a) Develop, on an annual basis, a responsive or non-responsible small Subpart 819.8—Contracting With the
plan of operation to increase the share business bidders to help qualify them
Small Business Administration (The
of contracts and purchase orders for future awards.
8(a) Program)
awarded to the small business programs (f) Submit informational copies of all
prescribed in FAR Part 19. This plan small business protests and appeals to 819.800 General.
must also include veteran-owned and the Director, Office of Small and
service-disabled veteran-owned Disadvantaged Business Utilization, at (a) No contract will be entered into
concerns. the same time they are submitted to the with SBA under section 8(a) of the
(b) Promote goals for the small Small Business Administration. Small Business Act (15 U.S.C. 637(a))
business programs set forth in FAR Part unless a certification is made by the
19. This must also include veteran- Subpart 819.5—Set-Asides For Small Administrator of that agency, or
owned and service-disabled veteran- Business designee, that SBA is competent to
owned concerns. perform the contract.
819.502 Setting aside acquisitions.
(c) Review the types and classes of (b) When it is determined that the
items and services to be purchased to 819.502–2 Total small business set-asides. requirements of VA are appropriate for
determine the applicability of (a) When a total small business set- inclusion in this program, the
individual small business set-asides. aside is made, one of the following contracting officer will make this fact
(d) Review class set-asides,
statements, as applicable, will be known to proper officials of the SBA
established in accordance with criteria
included in the solicitation for bids: regional office servicing his/her area.
in FAR 19.503, at least annually to
determine whether items or services (1) Notice of total small business set-aside, However, when projects funded from
procured under a unilateral or joint set- page llll, applies to all items in this minor construction appropriation
aside should be modified or withdrawn. solicitation. (between $400,000 and $2 million) are
(2) Notice of total small business set-aside, proposed for 8(a) acquisition, the
(e) Maintain updated lists of
page llll, applies to items llll Director, Office of Small and
acquisitions reserved for small business through llll in this solicitation.
on a class basis. Disadvantaged Business Utilization
(f) If the acquisition activity is (b) Contracting officers must ensure (OSDBU) (00SB), shall be contacted by
assigned to a Small Business that appropriate product or service telephone or notified in writing in order
Administration Procurement Center classification and the related size to afford the OSDBU an opportunity to
Representative, assure that the standard are included in each identify possible 8(a) sources prior to
representative is provided logistical solicitation. apprising SBA officials. If the
support, cooperation, and access to all certification required by paragraph (a) of
819.502–3 Partial set-asides.
reasonably obtainable contract this section is received, the VA
information directly pertinent to the When, in accordance with the contracting officer will secure from SBA
Small Business Administration provisions of FAR 19.502–3, it is the name(s) and location(s) of their
Procurement Center Representative’s determined that a particular subcontractor(s) and the unit price(s) to
official duties. procurement will be partially set aside be paid. Should these prices be within
(g) Encourage technical personnel and for exclusive small business
a range acceptable to VA, the
end-users to participate in discussions participation or small business
contracting officer will notify SBA of

with small businesses, veteran owned, participation, the solicitation for bids
and service-disabled veteran-owned will have appropriate product or service acceptance.
concerns. classification, appropriate size standard (c) The contract will be made between
(h) Attend conferences and meetings and whichever of the following VA and SBA and will be administered
publicizing small business programs. statement shall be placed on the face by VA.
This responsibility may be delegated page:
Subpart 819.70—Veteran-Owned and based on violations of the labor standard 825.902–70 Technical assistance.
Operated Small Businesses provisions of the contract to OGC for Subpart 825.10—Additional Foreign
review and comment prior to taking Acquisition Regulations
819.7001 Policy. final action. The submittal must include 825.1001 Waiver of right to examination of
(a) The Small Business Act directs the a detailed explanation of the facts and records.
Small Business Administration to give circumstances involved. Contracting
‘‘special consideration’’ to veterans of officers, except those in the Office of Subpart 825.11—Solicitation Provisions and
the Armed Forces in all Small Business Facilities Management, shall forward Contract Clauses
Administration programs. It is the the submittal to OGC through the DSPE. 825.1102 Acquisition of construction.
policy of VA to encourage participation Contracting officers in the Office of Authority: 40 U.S.C. 121(c) and 48 CFR
by all veteran-owned and operated Facilities Management shall forward the 1.301–1.304.
small businesses in VA acquisitions. submittal to OGC through the Chief
(b) All VA facilities having Facilities Management Officer, Office of Subpart 825.1—Buy American Act—
procurement requirements for which Facilities Management. Supplies
veteran-owned small businesses are (b) If the contract is to be terminated,
825.103 Exceptions.
known sources must take affirmative the DSPE or the Chief Facilities
action to solicit these firms and assist Management Officer, Office of Facilities (a) Public Interest. When a contracting
them in participating in VA acquisition Management, must submit the reports officer believes that a determination that
opportunities. required by 29 CFR 5.7(d) over the domestic preference would be
signature of the SPE. inconsistent with the public interest is
PART 822—APPLICATION OF LABOR necessary under FAR 25.103(a), the
LAWS TO GOVERNMENT PART 824—PROTECTION OF PRIVACY contracting officer must submit the
ACQUISITIONS AND FREEDOM OF INFORMATION request for determination to the DSPE
for submission to the SPE, who will
Subpart 822.3—Contract Work Hours and Subpart 824.1—Protection of Individual forward the request to the Secretary for
Safety Standards Act Privacy approval. The request for determination
Sec. Sec. must contain all the facts and other
822.304 Variations, tolerances, and 824.102 General. pertinent information upon which a
exemptions. determination may be made.
Subpart 824.2—Freedom of Information Act
822.305 Contract clause.
824.203 Policy. (b) Non-availability. (1) For each
Subpart 822.4—Labor Standards for determination of non-availability made
Contracts Involving Construction Authority: 38 CFR 1.550–1.559 and 1.575–
1.584; 40 U.S.C. 121(c), and 48 CFR 1.301–
in accordance with FAR 25.103(b)(2)(i),
822.406 Administration and enforcement. 1.304. the HCA must do the following:
822.406–11 Contract terminations. (i) Factually support the
Authority: 29 CFR 5.15(d); 40 U.S.C. Subpart 824.1—Protection of Individual determination and include the
121(c); 48 CFR 1.301–1.304. Privacy supporting facts in the contract file.
(ii) Forward a copy of the
Subpart 822.3—Contract Work Hours 824.102 General. determination, along with supporting
and Safety Standards Act VA rules implementing the Privacy documentation, to the DSPE.
Act of 1974 are in 38 CFR 1.575 through (2) If the contracting officer believes
822.304 Variations, tolerances, and 1.584.
exemptions.
that the non-availability of an article is
likely to affect future acquisitions, the
When issuing a contract for nursing Subpart 824.2—Freedom of contracting officer should include a
home care, a contracting officer may Information Act recommendation that a copy of the
exempt a contractor from certain determination and supporting
requirements of the Contract Work 824.203 Policy.
VA rules implementing the Freedom documentation be forwarded to the
Hours and Safety Standards Act (40 Civilian Agency Acquisition Council
U.S.C. 3701–3708) regarding the of Information Act are in 38 CFR 1.550
through 1.559. (CAAC) for possible addition to the list
payment of overtime (see 29 CFR of non-available articles in FAR 25.104.
5.15(d)(2) and 852.222–70). The DSPE will decide whether to
PART 825—FOREIGN ACQUISITION
822.305 Contract clause. submit the material to the CAAC.
Subpart 825.1—Buy American Act—
The contracting officer must insert the Supplies 825.104 Nonavailable articles.
clause at 852.222–70, Contract Work Sec. The following items are added to the
Hours and Safety Standards Act— 825.103 Exceptions. list of nonavailable articles contained in
Nursing Home Care Contract 825.104 Nonavailable articles. FAR 25.104:
Supplement, in solicitations and
contracts for nursing home care when Subpart 825.2—Buy American Act— Glass, Lead
Construction Materials Glass, Wire
the FAR clause at 52.222–4, Contract
Work Hours and Safety Standards Act— 825.202 Exceptions. Insulin, human
825.205 Postaward determinations.
Overtime Compensation, is included. Subpart 825.2—Buy American Act—
Subpart 825.6—Trade Sanctions
Subpart 822.4—Labor Standards for Construction Materials
825.602 Exceptions.
Contracts Involving Construction 825.202 Exceptions.

Subpart 825.8—Other International
822.406 Administration and enforcement. Agreements and Coordination (a) When a determination is required
825.870 Technical assistance.
under FAR 25.202(a)(1), the contracting
822.406–11 Contract terminations. officer must submit the request for
(a) Contracting officers must submit Subpart 825.9—Customs and Duties determination to the DSPE for
any proposed termination of a contract 825.902 Procedures. submission to the SPE, who will
forward the request to the Secretary. justified, containing all pertinent facts, (1) Alternate I of the FAR clause at
The submission must contain all the as provided in FAR 25.602(b). The SPE 52.212–5, Contract Terms and
facts and other pertinent information is responsible for notifying the U.S. Conditions Required to Implement
necessary for the Secretary to make a Trade Representative of approved Statutes or Executive Orders—
determination. requests, as required by FAR Commercial Items.
(b) For each determination of non- 25.602(b)(2). (2) Alternate III of the FAR clause at
availability that the HCA makes in
Subpart 825.8—Other International 52.215–2, Audit and Records—
accordance with FAR 25.202(a)(2), the
Agreements and Coordination Negotiation.
HCA must do the following:
(1) Factually support the (b) The contracting officer must
determination in writing and include 825.870 Technical assistance. submit the determinations and findings
the determination in the contract file. Contracting officers may obtain to the DSPE for submission to the SPE,
(2) Forward a copy of the technical information or guidance on who will forward the request to the
determination, along with supporting international agreements and treaties for Secretary for the signature, as provided
documentation, to the Chief Facilities procurements outside the United States in FAR 25.1001(a)(2)(iii). The
Management Officer, Office of Facilities by contacting the Executive Director and submission must include all appropriate
Management, through the DSPE. Chief Operating Officer, VA National documentation.
(3) If the contracting officer believes Acquisition Center. (c) The Secretary, upon concurring
that the non-availability of an article is
likely to affect future acquisitions, Subpart 825.9—Customs and Duties with the contracting officer’s proposed
include a recommendation that a copy determination and findings, will, if
of the determination and supporting 825.902 Procedures. required by FAR 25.1001(a)(2)(iii),
documentation be forwarded to the forward the document to the
825.902–70 Technical assistance.
Civilian Agency Acquisition Council Comptroller General for concurrence.
Should the regulations contained in
(CAAC) for possible addition to the list (d) The completed determination and
FAR Subpart 25.9 be inadequate to meet
of non-available articles in FAR 25.104. findings will be made part of the
the particular needs of the contracting
The DSPE will decide whether to contract file.
submit the material to the CAAC. officer in clearing items through
customs and/or obtaining Duty Free Subpart 825.11—Solicitation
825.205 Postaward determinations. Entry of goods, the contracting officer Provisions and Contract Clauses
A post-award determination that an should contact the nearest United States
exception to the Buy American Act Customs and Boarder Protection office 825.1102 Acquisition of construction.
applies, as provided in FAR 25.205(c), for technical assistance. The location of
the nearest office can be found at the The Buy American Act (41 U.S.C.
will be made in accordance with FAR
U.S. Customs and Boarder Protection 10a–d), except as modified by various
25.202 and 825.202.
Web site at http://www.customs.gov/xp/ trade agreements (see FAR Part 25),
Subpart 825.6—Trade Sanctions cgov/toolbox/contacts/cmcs/. requires that only domestic construction
material be used in the performance of
825.602 Exceptions. Subpart 825.10—Additional Foreign contracts for construction. For
When the contracting officer Acquisition Regulations solicitations and contracts for
determines it to be in the best interest construction that contain the FAR
of the Government, the contracting 825.1001 Waiver of right to examination of clauses related to the Buy American
officer may request an exception to the records. Act, the contracting officer must insert
requirements of FAR 25.601 from the (a) The contracting officer must the applicable VAAR clause, with or
Secretary through the DSPE and the prepare proposed determinations and without an alternate, as shown in Table
SPE. Each such request must be fully findings to use either of the following: 825.1102:
TABLE 825.1102
FAR clause VAAR clause to be used
FAR 52.225–9, Buy American Act—Construction Materials .................... 852.236–89, Buy American Act.
FAR clause 52.225–11, without its Alternate I (see FAR 25.1102(c)) .... 852.236–89, Buy American Act, with its Alternate I.
FAR clause 52.225–11, Buy American Act—Construction Materials 852.236–89, Buy American Act, with its Alternate II.
under Trade Agreements, with its Alternate I (see FAR
25.1102(c)(3)).
SUBCHAPTER E—GENERAL 828.106 Administration. Subpart 828.71—Indemnification of

CONTRACTING REQUIREMENTS 828.106–6 Furnishing information. Contractors, Medical Research or
828.106–70 Bond premium adjustment. Development Contracts
PART 828—BONDS AND INSURANCE 828.7100 Scope of subpart.
Subpart 828.2—Sureties and Other Security
Subpart 828.1—Bonds and Other Financial for Bonds 828.7101 Approval for indemnification.
Protections 828.7102 Extent of indemnification.
828.203 Acceptability of individual

828.7103 Financial protection.
Sec. sureties.
828.101 Bid guarantees. 828.203–7 Exclusion of individual sureties. Authority: 38 U.S.C. 501; 40 U.S.C. 121(c);
828.101–2 Solicitation provision or contract and 48 CFR 1.301–1.304.
clause. Subpart 828.3—Insurance
828.101–70 Safekeeping and return of bid 828.306 Insurance under fixed-price
guarantee. contracts.
Subpart 828.1—Bonds and Other Subpart 828.2—Sureties and Other forward the request to the Secretary for
Financial Protections Security for Bonds approval. (38 U.S.C. 7317)
828.101 Bid guarantees. 828.203 Acceptability of individual 828.7102 Extent of indemnification.
sureties. (a) A contract for medical research or
828.101–2 Solicitation provision or
contract clause. 828.203–7 Exclusion of individual sureties.
development authorized by 38 U.S.C.
7303, may provide that the Government
When a bid bond is required for The DSPE may make the will indemnify the contractor against
supplies or services, the phrase ‘‘any determinations referenced in FAR losses or liability specified in
cost of acquiring the work’’ in paragraph 28.203–7: paragraphs (b) and (c) of this section if
(e) of the Bid Guarantee clause in FAR (a) To exclude individuals from acting all of the following apply:
52.228–1 may be modified to refer to the as surety on bonds; and (1) The contract work involves a risk
cost of ‘‘supplies,’’ ‘‘services,’’ etc. (b) To accept bonds from individuals of an unusually hazardous nature.
named on the Excluded Parties List (2) The losses or liability arise out of
828.101–70 Safekeeping and return of bid System.
guarantee. the direct performance of the contract.
(3) The losses or liability are not
(a) The contracting officer must retain, Subpart 828.3—Insurance
covered by the financial protection
in a safe, certified checks or other 828.306 Insurance under fixed-price required under 828.7103.
negotiable security provided as bid contracts. (b) The Government may indemnify a
security for the three lowest acceptable (a) Term contracts, or contracts of a contractor for liability (including
bids. After the contract and contract continuing nature, for ambulance, reasonable expenses of litigation or
bonds have been signed and approved, automobile and aircraft service, must settlement) to third persons for death,
the contracting officer must return the contain the provision in 852.228–71, bodily injury, or loss of or damage to
certified checks or other negotiable Indemnification and Insurance. property from a risk that the contract
securities either: (b) Paragraph (a) of this section does defines as unusually hazardous. The
(1) In person to the bidder who not apply to emergency or sporadic indemnification will not cover liability
provides a proper receipt; or ambulance service authorized by VA under State or Federal worker’s injury
(2) By any method that will provide Manual MP–1, Part II, Chapter 3, or compensation laws to employees of the
evidence that the bidder received the other emergency or sporadic vehicle or contractor who are both:
security. aircraft services if both of the following (1) Employed at the site of the
(b) The contracting officer should conditions exist: contract work; and
(1) The service is not used solely for (2) Working on the contract for which
promptly return certified checks or
the purpose of avoiding entering into a indemnification is granted.
other negotiable security furnished in
continuing contract. (c) The Government may indemnify
support of bids, other than those
determined to be the three lowest (2) The services will be obtained from the contractor for loss of or damage to
acceptable bids, to the respective firms known to carry insurance coverage property of the contractor from a risk
in accordance with State or local that the contract defines as unusually
bidders either:
requirements. hazardous.
(1) In person to the bidder who (d) A contract that provides for
provides a proper receipt; or Subpart 828.71—Indemnification of indemnification in accordance with this
(2) By any method that will provide Contractors, Medical Research or subpart must also require that:
evidence that the bidder received the Development Contracts (1) The contractor must notify the
security. contracting officer of any claim or suit
(c) The contracting officer will not 828.7100 Scope of subpart. against the contractor for death, bodily
return commercial bid bonds unless (a) This subpart sets forth the policies injury, or loss of or damage to property;
specifically requested to do so by the and procedures concerning and
bidders. If any of the three low bidders indemnification of contractors (2) The Government may choose to
request the return of a commercial bid performing contracts covering medical control or assist in the defense of any
bond, the contracting officer will not research or development that involve suit or claim for which indemnification
return those bid bonds until the contract risks of an unusually hazardous nature, is provided in the contract. (38 U.S.C.
and contract bonds have been executed as authorized by 38 U.S.C. 7317. 7317)
by the successful bidder and approved (b) The authority to indemnify the
contractor under this subpart does not 828.7103 Financial protection.
by the contracting officer or all bids
have been rejected. create any rights to third parties that (a) A contractor must have and
would not otherwise exist by law. maintain an amount of financial
828.106 Administration. (c) As used in this subpart, the term protection to cover liability to third
‘‘contractor’’ includes subcontractors of persons and loss of or damage to the
828.106–6 Furnishing information.
any tier under a contract containing an contractor’s property that meets one of
The contracting officer for the indemnification provision under 38 the following:
applicable contract will furnish copies U.S.C. 7317. (38 U.S.C. 7317) (1) The maximum amount of
of payment bonds to a requestor under insurance available from private
the provisions of FAR 28.106–6(c). 828.7101 Approval for indemnification. sources.
(a) The Secretary of Veterans Affairs (2) A lesser amount that the Secretary
828.106–70 Bond premium adjustment. will make the approval determinations establishes after taking into
When performance and payment for the indemnification of contractors. consideration the cost and terms of
bonds or payment protection are (b) Contracting officers must submit private insurance.
required, the contract must contain the requests for approval, together with all (b) Financial protection may include
clause in 852.228–70, Bond Premium available information, to the DSPE for private insurance, private contractual
Adjustment. submission to the SPE, who will indemnities, self-insurance, other proof
of financial responsibility, or a Tobacco Tax and Trade Bureau, contracting officer must use Standard
combination that provides the Washington, DC 20226. Form (SF) 1094, U.S. Tax Exemption
maximum amount required. If a (2) Permits previously issued on Certificate, as a basis for billing taxing
contractor elects to self-insure, the Alcohol, Tobacco, and Firearms (ATF) authorities for a refund of taxes paid.
contractor must provide the contracting Form 1444, Tax-Free Spirits for Use of (b) A contracting officer may not
officer, before award, proof of financial United States, remain valid until furnish an SF 1094 to a vendor or use
responsibility up to the maximum surrendered or canceled. A copy of the SF 1094 to claim reimbursement from
amount required. (38 U.S.C. 7317) current ATF Form 1444 or TTB Form the taxing authority when the total
5150.33 must be made available to the amount of State and local tax on any
PART 829—TAXES supplier with the initial order. The one purchase is $10 or less.
permit number only needs to be
Sec. 829.302–70 Purchases made from
829.000 Scope of part. referenced on any future orders with the
patients’ funds.
same supplier.
Subpart 829.2—Federal Excise Taxes (3) Contracting officers may make The contracting officer shall insert the
829.202 General exemptions. purchases of excise tax-free whiskey clause at 852.229–70, Sales or Use
829.202–70 Tax exemptions for alcohol and alcohol only from qualified Taxes, in solicitations and contracts
products. distillery plants or bonded dealers. The when items are to be purchased solely
Subpart 829.3—State and Local Taxes accountable officer must ensure that from the personal funds of patients.
829.302 Application of State and local taxes accurate records of all receipts, usage,
and destruction of tax-free distilled PART 831—CONTRACT COST
to the Government. PRINCIPLES AND PROCEDURES
829.302–70 Purchases made from patients’ spirits are maintained at each medical
funds. center and must conduct a semi-annual Subpart 831.70—Contract Cost Principles
Authority: 40 U.S.C. 121(c) and 48 CFR physical inventory of the tax-free and Procedures
1.301–1.304. alcohol in the possession of the medical Sec.
center (see 27 CFR 22.161 and 22.162). 831.7000 Scope of subpart.
829.000 Scope of part. (c) Wine. No tax exemption form or 831.7001 Allowable costs under cost
This part states the policies and ATF/TTB permit is required for the tax- reimbursement vocational rehabilitation
procedures for the following: free procurement of wine from bonded and education contracts or agreements.
(a) Exemptions of alcohol products wine premises. The purchase order 831.7001–1 Tuition.
purchased for use by the VA medical must show the kind, quantity, and 831.7001–2 Special services or courses.
care program from Federal excise taxes. alcohol content of the wine and must 831.7001–3 Books, supplies, and equipment
(b) Specified refund procedures for state the purpose for which wine is to required to be personally owned.
831.7001–4 Medical services and hospital
State and local taxes. be used (see 27 CFR 24.293). An extra care.
copy of a properly executed purchase 831.7001–6 Consumable instructional
Subpart 829.2—Federal Excise Taxes order may be furnished to the bonded supplies.
829.202 General exemptions. wine premises from which wine is 831.7001–7 Reimbursement for other
purchased to facilitate record keeping. supplies and services.
829.202–70 Tax exemptions for alcohol (d) Beer. The contracting officer may Authority: 38 U.S.C. 501; 40 U.S.C. 121(c);
products. procure tax-free beer only from licensed and 48 CFR 1.301–1.304.
(a) General. (1) VA is permitted to breweries and only when such product
procure spirits to be used for non- is prescribed for patients’ therapeutic Subpart 831.70—Contract Cost
beverage purposes free of tax under the use. Principles and Procedures
Alcohol and Tobacco Tax and Trade (1) The contracting officer must
Bureau (TTB) regulations (see 27 CFR submit an application for a TTB permit 831.7000 Scope of subpart.
19.538 and 19.539, 20.241 through to purchase tax-free beer in letter form This subpart contains general cost
20.246, 22.161 and 22.162, 22.171 to the Director of the nearest TTB principles and procedures for the
through 22.176, 24.293, and 25.181 Regional Office or to the Director, determination and allowance of costs in
through 25.185). The use of tax-free Alcohol and Tobacco Tax and Trade connection with the negotiation and
alcohol, whiskey, beer, wine, and Bureau, Washington, DC 20226. The administration of cost reimbursement
denatured spirits for non-beverage following information must be included: type contracts for providing vocational
purposes shall include, but is not (i) Name and address of facility. rehabilitation, education, and training to
limited to, medicinal and scientific (ii) Specific purpose for which the eligible veterans under 38 U.S.C.
purposes. beer will be used. Chapter 31, (referred to as a ‘‘Chapter 31
(2) The Executive Director and Chief (iii) Quantity proposed to buy each program’’).
Operating Officer, National Acquisition month, year, etc.
(iv) Name and address of brewery. 831.7001 Allowable costs under cost
Center, and the Head of the Contracting reimbursement vocational rehabilitation
Activity may sign application permits (v) Copy of document authorizing the
and education contracts or agreements.
on Department of Treasury-TTB Form head of the contracting activity to sign
5150.33, Spirits for Use of The United the request (i.e., paragraph (a)(2) of this 831.7001–1 Tuition.
States. This authority may not be section). (a) Except as provided in this section,
(2) The contracting officer must obtain when the contractor has a customary
delegated.
(b) Whiskey, alcohol, and denatured a separate permit for each brewery from cost of tuition, the charge to VA may not
alcohol. (1) The contracting officer may which beer is to be purchased. exceed that charged to similarly
obtain application forms for tax-free Subpart 829.3—State and Local Taxes circumstanced nonveteran students. If
purchases from the TTB Distribution the contractor has more than one
Center, P.O. Box 5950, Springfield, VA 829.302 Application of State and local standard charge for the same service, the
22150–5950. The completed forms must taxes to the Government. charge to VA must be the lowest price
be submitted to the Associate Director (a) If a vendor refuses to sell at a price that is offered or published for the entire
(Compliance Operations), Alcohol and exclusive of the State and local tax, the course, semester, quarter, or term.
(b) VA will not normally pay tuition trainee. VA will negotiate the costs of pay or paid to the institutions,
or incidental fees to institutions or special services or courses before paying whichever is the lesser.
establishments furnishing apprentice or them. (h) Supplies that the institution
other on-the-job training. VA may elect purchases specifically for trainees will
to pay charges or expenses that fall into 831.7001–3 Books, supplies, and be reimbursed at the net cost to the
equipment required to be personally owned.
either of the following categories: institution.
(1) Charges customarily made by a (a) Reimbursement for supplies (i) When the institution does not
nonprofit workshop or similar (including books, equipment, or other provide or arrange for issuance of
establishment for providing work supplies) will be made as provided in generally required books, tools and
adjustment training to similarly this section. supplies for students attending the
circumstanced nonveterans even if the (b) VA will provide reimbursement facility, the institution, in cooperation
trainee receives an incentive wage as for those supplies that all students with VA, may designate certain stores
part of the training. taking the same course or courses are and establishments to provide generally
(2) Training expenses incurred by an customarily required to own personally. required books, tools and supplies for
employer who provides on-the-job In addition, VA may provide veterans pursuing a vocational
training following rehabilitation to the reimbursement for items that the school rehabilitation program. The vendor will
point of employability when VA does not specifically require for pursuit be reimbursed in the same manner as for
determines that the additional training of the course, but that VA determines supplies provided or arranged for by the
is necessary. are needed because of the demands of institutions.
(c) When Federal funds pay the total the course, general possession by other (j) When it is customary in a survey
cost of instruction or grants from the students, and the disadvantage imposed class to permit each student to rent
Federal Government pay a portion of the on a veteran by not having the item. In books for the subject (commonly
cost, (e.g. Smith-Hughes or other laws, no instance will VA provide referred to as a rental set), and the
excluding Federal Land Grant Funds), reimbursement for supplies in a greater student is not required to own the
that subsidy will be taken into variety, quality, or amount than books/materials, reimbursement is
consideration in determining the charge required of nonveteran students. In this authorized for the rental charge as long
to VA. The term ‘‘Federal Land Grant instance, an item is not considered to be as it does not exceed the charge made
Funds’’ refers to those funds received required if it is ‘‘requested’’ or to nonveteran students.
under the Morrill-Nelson Act (Morrill ‘‘desirable to have’’ or ‘‘necessary for a (k) Educational and training
Acts of 1862 and 1890 and the Nelson future profession or job but not required institutions that furnish supplies to
amendment of 1907) and section 22 of by the institution of all students in the trainees that all students pursuing the
the Bankhead-Jones Act of 1935. course’’. same or similar course are required to
(d) A veteran who is participating in (c) When supplies are available in own personally or obtain may be
a Chapter 31 program and receives an several prices, grades, or qualities, VA compensated for furnishing the supplies
award of a fellowship, scholarship, will provide reimbursement only for in an amount not exceeding 10 percent
grant-in-aid, assistantship, or similar that quality or grade that will meet the of the allowable charge for the supplies
award will have that award treated requirements. furnished or rented subject to the
according to the following requirements: (d) Partial payment agreements, in following conditions:
(1) If the award limits its use to which VA shares payment with the (1) When the tuition covers the
payment of tuition, fees, or any charge veterans, are not allowed. charges for supplies or rentals or a
that VA normally pays as part of a (e) The institution’s costs in stipulated fee is assessed to all students,
Chapter 31 program, VA will pay the connection with a veteran’s thesis are handling charges are not allowable.
portion of the charges remaining after considered supplies and are therefore (2) The handling charge is not
applying the award. authorized for reimbursement if the allowable for Government-owned books
(2) In all other cases, VA will pay the veteran’s committee chairman, major that the institution procures from the
full amount of the tuition, fees, or other professor, department head, or Library of Congress.
charges. appropriate dean certifies that the thesis
(e) If a State or other Government 831.7001–4 Medical services and hospital
is a course requirement and the care.
authority waives a veteran’s tuition and
expenses are required to complete the (a) VA may pay the customary student
fees, VA will reduce its payment of
thesis. These expenses may include health fee when payment of the fee is
those charges by the amount of the
research expenses, typing, printing, required for similarly circumstanced
waiver.
microfilming, or otherwise reproducing nonveterans. If payment of the fee is not
(f) VA will pay enrollment fees for
the required number of copies. required for similarly circumstanced
registration if both of the following
conditions exist: (f) When the institution operates a nonveterans, payment may be made if it
(1) The institution or training bookstore or supply store for all is determined by the Veterans Health
establishment usually makes this students, reimbursement to the Administration that payment is in the
charge. bookstore or supply store for supplies best interest of the veteran and the
(2) The charge is not more than other issued to trainees will be no greater than Government.
students or trainees pay. charges made to nonveteran students. (b) When the customary student’s
(g) When the institution, training health fee does not cover medical
831.7001–2 Special services or courses. establishment, or employer arranges for services or hospital care, but these
Special services or courses are those stores or other non-institutionally medical services are available in a
services or courses that VA requests that owned establishments to issue supplies school-operated facility or with doctors
are over and above those the institution to all students and a veteran is to pay and hospitals in the immediate area
customarily provides for similarly the store or establishment for supplies through a prior arrangement, the
circumstanced nonveterans and that the issued to trainees, VA will provide Veterans Benefits Administration may
contracting officer considers to be reimbursement for those charges if they provide reimbursement for these
necessary for the rehabilitation of the are no greater than those nonveterans services in a contract for the services if:
(1) An arrangement is necessary to (8) The cost of supplies is included in 832.006–2 Definitions.
provide timely medical services for the charge for tuition or as a fee The remedy coordination official for
veterans attending the facility under designated for such purpose. VA is the DSPE.
provisions of Chapter 31; and
(2) The general rates established for 831.7001–7 Reimbursement for other 832.006–3 Responsibilities.
medical services do not exceed the rates supplies and services.
VA personnel must report suspected
established by the Under Secretary for VA will provide reimbursement for fraud related to advance, partial, or
Health. other services and assistance that may progress payments to the DSPE and VA
(c) VA may reimburse a rehabilitation be authorized under provisions of Office of Inspector General. The report
facility for incidental medical services applicable Chapter 31 regulations, must include all available information
provided during a veteran’s program at including, but not limited to, supporting the suspicion.
the facility. employment and self-employment
services, initial and extended evaluation 832.006–4 Procedures.
831.7001–6 Consumable instructional services, and independent living (a) Any recommendation from a VA
supplies. services. employee through the DSPE to the SPE
(a) VA will provide reimbursement for to reduce or suspend payment to a
consumable instructional supplies that PART 832—CONTRACT FINANCING contractor under FAR 32.006 must
the institution require for the address the considerations in FAR
instruction of all students, veteran or Sec.
832.006 Reduction or suspension of 32.006–4(d).
nonveteran, pursuing the same or contract payments upon finding of fraud. (b) The DSPE shall carry out the
comparable course or courses when: 832.006–1 General. responsibilities of the Secretary or
(1) The supplies are entirely 832.006–2 Definitions. designee in FAR 32.006–4(e) to notify
consumed in the fabrication of a 832.006–3 Responsibilities. the contractor of proposed action under
required project; or 832.006–4 Procedures.
(2) The supplies are not consumed but FAR 32.006. The notice of proposed
are of such a nature that they cannot be
Subpart 832.1—Non-Commercial Item action will be sent to the last known
Purchase Financing address of the contractor, the
salvaged from the end product for reuse
by disassembling or dismantling the end 832.111 Contract clauses for non- contractor’s counsel, or agent for service
commercial purchases. of process, by certified mail, return
product.
(b) VA will not provide Subpart 832.2—Commercial Item Purchase receipt requested, or any other method
reimbursement for consumable Financing that provides signed evidence of receipt.
instructional supplies if any of the 832.201 Statutory authority. In the case of a business, the notice of
following apply: 832.202 General. proposed action may be sent to any
(1) The supplies can be salvaged for 832.202–1 Policy. partner, principal, officer, director,
reuse. 832.202–4 Security for Government owner or co-owner, or joint venture. The
(2) The supplies are used in a project financing. contractor will be afforded an
that the student has elected as an Subpart 832.4—Advance Payments for Non- opportunity to appear before the DSPE
alternate class project to produce an end Commercial Items to present information or argument in
product of greater value than that 832.402 General. person or through a representative. The
normally required to learn the skills of 832.404 Exclusions. contractor may supplement the oral
the occupation and the end product will presentation with written information
Subpart 832.5—Progress Payments Based and argument. The proceedings will be
become the veteran’s property upon
on Costs
completion. conducted in an informal manner and
(3) The supplies are used in a project 832.502 Preaward matters. without the requirement for a transcript.
that the institution has selected to 832.502–2 Contract finance office clearance. If the DSPE does not receive a reply
provide the student with a more Subpart 832.8—Assignment of Claims from the contractor within 30 calendar
elaborate end product than is required 832.805 Procedure. days, the DSPE will base his or her
to provide adequate instruction as an 832.805–70 Distribution/notification of recommendations on the information
inducement to the veteran to elect a assignment of claims. available. Any recommendation of the
particular course of study. DSPE under paragraph (a) of this section
Subpart 832.9—Prompt Payment
(4) The sale value of the end product must address the results of this
is equal to or greater than the cost of 832.904 Determining payment due dates.
notification and the information, if any,
supplies plus assembly, and the Subpart 832.11—Electronic Funds Transfer provided by the contractor.
supplies have not been reasonably used 832.1106 EFT mechanisms. (c) The SPE must provide a copy of
so that the supplies are not readily each final determination and the
salvaged from the end product to be Authority: 40 U.S.C. 121(c) and 48 CFR
1.301–1.304. supporting documentation to the
reused for instructional purposes. contractor, the DSPE and the contracting
(5) The end product is of permanent 832.006 Reduction or suspension of officer. The contracting officer will
value and retained by the institution. contract payments upon finding of fraud. place a copy of the determination and
(6) A third party loans the articles or the supporting documentation in the
equipment for repair or improvement 832.006–1 General.
contract file.
and the third party would otherwise pay The SPE is authorized to make
a commercial price for the repair or determinations that there is substantial Subpart 832.1—Non-Commercial Item
improvement. evidence that contractors’ requests for
Purchase Financing
(7) The number of projects resulting advance, partial, or progress payments
in end products exceeds the number are based on fraud and may direct that 832.111 Contract clauses for non-
normally required to teach the further payments to the contractors be commercial purchases.
recognized job operations and processes reduced or suspended, as provided in In solicitations and contracts for
of the occupation stipulated in the FAR 32.006. This authority may not be construction that include the FAR
approved course of study. redelegated. clause at 52.232–5, Payments under
Fixed-Price Construction Contracts, the (a) A current year interim balance (c) Under 5 U.S.C. 4109, VA allows
contracting officer must insert the sheet and income statement and balance advance payment for all or any part of
following clauses: sheets and income statements for the the necessary expenses for training
(a) If the solicitation or contract does two preceding fiscal years. The Government employees in Government
not contain a section entitled ‘‘Network statements should be prepared in or non-Government facilities, including
Analysis System (NAS),’’ the accordance with generally accepted the purchase or rental of books,
contracting officer must insert the accounting principles and must be materials, and supplies or services
clause at 852.236–82, Payments under audited and certified by an independent directly related to the training of a
Fixed-Price Construction Contracts public accountant or an appropriate Government employee.
(Without NAS). When the solicitation or officer of the firm.
contract includes guarantee period (b) A cash flow forecast for the Subpart 832.5—Progress Payments
services, the contracting officer must remainder of the contract term showing Based on Costs
use the clause with its Alternate I. the planned origin and use of cash 832.502 Preaward matters.
(b) If the solicitation or contract within the firm or branch performing
contains a section entitled ‘‘Network the contract. 832.502–2 Contract finance office
Analysis System (NAS),’’ the (c) Information on financing clearance.
contracting officer must insert the arrangements disclosing the availability Contracting officers must obtain
clause at 852.236–83, Payments under of cash to finance contract performance, approval from the DSPE before taking
Fixed-Price Construction Contracts the contractor’s exposure to financial the actions listed in FAR 32.502–2. Full
(Including NAS). When the solicitation crisis, and credit arrangements. justification and the recommendations
or contract includes guarantee period (d) A statement of the status of all of the contracting officer must
services, the contracting officer must State, local, and Federal tax accounts, accompany requests for approval.
use the clause with its Alternate I. including any special mandatory
contributions. Subpart 832.8—Assignment of Claims
Subpart 832.2—Commercial Item (e) A description and explanation of
832.805 Procedure.
Purchase Financing the financial effects of any leases,
deferred purchase arrangements, patent 832.805–70 Distribution/notification of
832.201 Statutory authority. or royalty arrangements, insurance, assignment of claims.
The contracting officer may make the planned capital expenditures, pending (a) The contracting officer must:
determination that terms and conditions claims, contingent liabilities, and other (1) File the retained copy of the notice
for payment for commercial items are financial aspects of the business. of assignment and the certified copy of
appropriate and customary in the (f) Any other financial information the original instrument of assignment
commercial marketplace and are in the deemed necessary. with the Government Accountability
best interest of the Government, (g) A Dun and Bradstreet Report on Office copy of the contract; and
provided the terms and conditions for the company. (2) Forward a copy of the notice of
payment do not conflict with FAR assignment and instrument of
Subpart 32.2. Subpart 832.4—Advance Payments for assignment to the local finance office
Non-Commercial Items and to the payment office cited in the
832.202 General. contract.
832.402 General.
832.202–1 Policy. (b) Contracting officers must notify
Authority to make the determination field facilities of any recognized
As provided in FAR 32.202–1(d), required by FAR 32.402(c)(1)(iii) and to assignment of payments for contracts
contracting officers must obtain the approve contract terms, as provided by under which payment for articles and
approval of the DSPE before awarding a FAR 32.402(e)(1), is delegated to the services is certified and approved for
contract that includes unusual contract SPE and is further delegated to the payment in the field.
financing. The contracting officer must DSPE. Before award, contracting officers
fully support the request with the must submit a request for approval to Subpart 832.9—Prompt Payment
reasons why the proposed unusual use advance payment to the DSPE. The
contract financing is in the best interest request must include the information § 832.904 Determining payment due dates.
of the Government. In addition, required by FAR 32.409–1 and must (a) When preparing specification
contracting officers must not use address the standards for advance packages, contracting officers must give
commercial interim payment or payment in FAR 32.402(c)(2). full consideration to the time reasonably
commercial advance payment terms in required for constructive acceptance or
solicitations or contracts without the 832.404 Exclusions. approval of the goods or services and for
approval of the DSPE. (a) Under 31 U.S.C. 3324(d)(2), VA making invoice payments. Based on this
allows advance payment for analysis, contracting officers may, when
832.202–4 Security for Government subscriptions or other charges for authorized by FAR 32.904, modify the
financing. newspapers, magazines, periodicals, number of days allowed for notifying
An offeror’s financial condition may and other publications for official use, contractors of defects in invoices or, for
be considered adequate security to notwithstanding the provisions of 31 construction solicitations, the number of
protect the Government’s interest when U.S.C. 3324(a). The term ‘‘other days allowed for payment of invoices
the Government provides contract publications’’ includes any publication specified in the applicable prompt
financing. In assessing the offeror’s printed, microfilmed, photocopied or payment clause. Changes, if any, should
financial condition, the contracting magnetically or otherwise recorded for be made before issuing the solicitation.
officer may obtain, to the extent auditory or visual use. (b)(1) For construction solicitations,
required, the following information to (b) Under 31 U.S.C. 1535, VA allows the analysis specified in paragraph (a) of
establish the offeror’s financial advance payment for services and this section may routinely take more
capability and to determine the offeror’s supplies obtained from another than the 7 days provided in paragraph
financial condition: Government agency. (a)(2) of the FAR clause at 52.232–27,
Prompt Payment for Construction Subpart 833.1—Protests Administration. (15 U.S.C. 637(b)(6); 13
Contracts, to evaluate and return CFR 121.1002).
defective progress payment invoices. 833.102 General. (iii) Small business certificate of
(2) It also may take more than the 14 Solicitations must instruct interested competency program. A protest made
days provided in paragraph (a)(1)(i)(A) parties (see FAR provision 52.233–2) to under section 8(b)(7) of the Small
of the prompt payment clause to send a copy of any protest filed with the Business Act, or in regard to any
adequately inspect the work, determine Government Accountability Office issuance of a certificate of competency
the adequacy of the contractor’s (GAO) to the contracting officer and the or refusal to issue a certificate under
performance, approve, and pay progress appropriate VA Central Office activity that section, is not reviewed in
payment invoices. as follows: accordance with bid protest procedures
(3) Contracting officers should (a) For contracts to be awarded by the unless there is a showing of possible
consider the following and, if necessary, Office of Facilities Management: Chief fraud or bad faith on the part of
revise the number of days stated in Facilities Management Officer, Office of Government officials.
paragraphs (a)(2) and (a)(1)(i)(A) of the Facilities Management, Department of (iv) Protests under section 8(a) of the
prompt payment clause before issuing Veterans Affairs, 810 Vermont Avenue, Small Business Act. The decision to
construction solicitations (see FAR NW., Washington, DC 20420. place or not to place a procurement
32.904(d)(1)(i)): (b) For all other contracts: Deputy under the 8(a) program is not subject to
(i) Recent interest payment history. Assistant Secretary for Acquisition and review unless there is a showing of
(ii) The complexity of the project. Materiel Management, Department of possible fraud or bad faith on the part
(iii) Workload. Veterans Affairs, 810 Vermont Avenue, of Government officials or that
(iv) Work site location. NW., Washington, DC 20420. regulations may have been violated. (15
(4) In no event may the number of U.S.C. 637(a)).
days be set in excess of 14 days for 833.103 Protests to VA. (v) Affirmative determination of
return of a defective progress payment (a) Filing of protests. (1) An interested responsibility by the Contracting Officer.
invoice or 30 days for payment of the party may protest to the contracting An affirmative determination of
invoice. officer or, as an alternative, may request responsibility will not be reviewed
an independent review by filing a unless there is a showing that such
Subpart 832.11—Electronic Funds protest with the DAS for A&MM, or for
Transfer determination was made fraudulently or
solicitations issued by the Office of in bad faith or that definitive
832.1106 EFT mechanisms. Facilities Management, the Chief responsibility criteria in the solicitation
(a) The Assistant Secretary for Facilities Management Officer, Office of were not met.
Management may, with the concurrence Facilities Management. A protest filed (vi) Walsh-Healey Public Contract
of the Department of the Treasury office with the DAS for A&MM or the Chief Act. Challenges of the legal status of a
responsible for making payment, Facilities Management Officer will not firm as a regular dealer or manufacturer
authorize the use of EFT mechanisms be considered if the interested party has within the meaning of the Walsh-Healey
other than those authorized under FAR a protest on the same or similar issues Act is determined solely by the
32.1106(a). pending with the contracting officer. procuring agency, the Small Business
(b) The Assistant Secretary for (2) Protests to the contracting officer Administration (if a small business is
Management may, with the concurrence must be in writing and addressed where involved), and the Secretary of Labor.
of the Department of the Treasury office offer/bid is to be submitted. (41 U.S.C. 35–45).
responsible for making payment, (3) Protests requesting an independent (vii) Subcontractor protests. The
authorize the use of EFT for payments review must be in writing and contracting agency will not consider
to be received by or on behalf of a addressed to the Deputy Assistant subcontractor protests except where the
contractor outside the United States or Secretary for Acquisition and Materiel subcontract is by or for the Government.
Puerto Rico or for contracts paid in Management, Department of Veterans (viii) Judicial proceedings. The
other than United States currency, as Affairs, 810 Vermont Avenue, NW., contracting agency will not consider
provided in FAR 32.1106(b). Washington, DC 20420; or, for protests where the matter involved is
solicitations issued by the Office of the subject of litigation before a court of
PART 833—PROTESTS, DISPUTES, Facilities Management, to the Chief competent jurisdiction.
AND APPEALS Facilities Management Officer, Office of (b) Alternative dispute resolution.
Facilities Management, Department of Bidders/offerors and VA contracting
Subpart 833.1—Protests
Veterans Affairs, 810 Vermont Avenue, officers are encouraged to use
Sec. NW., Washington, DC 20420. alternative dispute resolution (ADR)
833.102 General. (4) The following types of protests procedures to resolve protests at any
833.103 Protests to VA.
833.104 Protests to GAO. may be dismissed by VA without stage in the protest process. The VA
833.106 Solicitation provision and contract consideration of the merits or forwarded Board of Contract Appeals (VABCA) is
clause. to another agency for appropriate action. an independent and neutral entity
(i) Contract administration. Disputes within VA and is available to serve as
Subpart 833.2—Disputes and Appeals
between a contractor and VA are the third-party neutral (Neutral) for bid
833.209 Suspected fraudulent claims. resolved under the disputes clause of protests. If ADR is used, VA will not
833.211 Contracting officer’s decision. the contract and the Contract Disputes furnish any documentation in an ADR
833.212 Contracting officer’s duties upon
appeal. Act of 1978. (41 U.S.C. 601–613). proceeding beyond what is allowed by
(ii) Small business size standards and the FAR.
833.213 Obligation to continue

performance. standard industrial classification. (c) Action upon receipt of protest. For
833.214 Alternative dispute resolution Challenges of established size standards protests filed with the contracting
(ADR). or the size status of particular firms, and officer, the HCA will be the approving
833.215 Contract clause. challenges of the selected standard official for the determinations identified
Authority: 40 U.S.C. 121(c) and 48 CFR industrial classification are for review in FAR 33.103(f)(1) and (f)(3). If the
1.301–1.304. solely by the Small Business HCA is also the contracting officer, the
approving official will be the DAS for officer of the appropriate action to take, FAR 33.104(b)(1) and GAO has been
A&MM. For protests filed with the DAS or submit the case to the Comptroller notified as provided by FAR
for A&MM or the Chief Facilities General, through the Assistant Secretary 33.104(b)(2). The Director, Acquisition
Management Officer, Office of Facilities for Management, for a decision. The Resources Service, or the Chief
Management, those individuals will be contracting officer will provide Facilities Management Officer, as
the approving officials for the interested parties with a copy of the appropriate, is responsible for notifying
determinations identified in FAR final decision. GAO.
33.103(f)(1) and (f)(3). (f) Agency appellate review of the (c) Protests after award. When, after
(d) Requests for GAO advance contracting officer’s protest decision. An award of a contract, VA receives notice
decisions. When a written protest has interested party may request an from GAO of a protest filed directly
been filed with the contracting officer independent review of a contracting with GAO, the contracting officer must,
and the contracting officer considers it officer’s protest decision by filing an if required to do so by FAR 33.104(c)(1),
desirable to do so, the contracting appeal with the DAS for A&MM or, for immediately suspend performance.
officer may request an advance decision solicitations issued by the Office of However, contract performance need
from the Comptroller General. The Facilities Management, with the Chief not be suspended, despite the protest, if
contracting officer must send the Facilities Management Officer, Office of the SPE approves the HCA’s findings
submission to the Comptroller General Facilities Management. To be required by FAR 33.104(c)(2) and GAO
through the DAS for A&MM or the Chief considered timely, the appeal must be has been notified under FAR
Facilities Management Officer, Office of received by the appropriate officer 33.104(c)(3). Authority to approve the
Facilities Management, as appropriate, named in this paragraph within 10 HCA’s findings is further delegated to
and must include the material listed in calendar days of the date the interested the DSPE and, for solicitations issued by
FAR 33.104(a). The contracting officer party knew, or should have known, the Officer of Facilities Management,
must promptly notify the protesting whichever is earlier, of the basis for the the Chief Facilities Management Officer.
individual or firm in writing of the appeal. Appeals must be addressed as The Director, Acquisition Resources
decision of the Comptroller General. provided in paragraph (a)(2) of this Service, or the Chief Facilities
(e) Protest after award. When a section. Appeals do not extend GAO’s Management Officer, as appropriate, is
written protest is filed with the timeliness requirements for appeals to responsible for notifying GAO.
contracting officer after contract award, GAO. By filing an appeal as provided in
the following requirements apply: this paragraph, an interested party may 833.106 Solicitation provisions.
(1) If FAR 33.103(f)(3) requires waive its rights to further appeal to the (a) The contracting officer will insert
suspension of contract performance, the Comptroller General at a later date. the provision at 852.233–70, Protest
contracting officer must seek to obtain a Agency responses to appeals submitted Content/Alternative Disputes
mutual agreement with the contractor to to the agency shall be reviewed and Resolution, in each solicitation expected
suspend performance on a no-cost basis. concurred in by OGC (025). to exceed the simplified acquisition
If unsuccessful, the contracting officer threshold.
must issue a stop-work order in 833.104 Protests to GAO.
(b) The contracting officer must insert
accordance with contract clause FAR (a) General procedures. (1) Procedures the provision at 852.233–71, Alternative
52.233–3, Protest after Award. for protests to the Government Protest Procedure, in solicitations
(2) If suspension of contract Accountability Office (GAO) are at 4 expected to exceed the simplified
performance is not required by FAR CFR Part 21 (GAO Bid Protest acquisition threshold.
33.103(f)(3) and if the contracting officer Regulations). If guidance concerning
determines that the award was proper, GAO procedure in this section differs Subpart 833.2—Disputes and Appeals
the contracting officer must furnish the from 4 CFR Part 21, 4 CFR Part 21
protester a written explanation of the applies. 833.209 Suspected fraudulent claims.
basis for the award that is responsive to (2) When a protest before or after The contracting officer must refer
the allegations of the protest. The award has been filed with GAO, the matters relating to suspected fraudulent
contracting officer will advise the contracting officer must submit a report claims to the Office of Inspector General
protester that the protester may appeal to the DAS for A&MM, or the Chief for investigation and referral to the
the determination to one of the Facilities Management Officer, Office of Department of Justice. The contracting
following: Facilities Management, as appropriate, officer may not initiate any collection,
(i) The DAS for A&MM. within 5 workdays after receipt of verbal recovery, or other settlement action
(ii) The Chief Facilities Management or written notice of the protest, while the matter is in the hands of the
Officer, Office of Facilities Management, whichever occurs first. The report must Department of Justice without first
in the case of a contract awarded by the include a copy of the documentation obtaining the concurrence of the U.S.
Office of Facilities Management. indicated in FAR 33.104(a)(3). Attorney concerned, through the Office
(iii) The Comptroller General. (3) Contracting officers are of Inspector General.
(3) If suspension of contract responsible for the notification
performance is not required by FAR procedures outlined in FAR 833.211 Contracting officer’s decision.
33.103(f)(3) but the contracting officer 33.104(a)(4). (a) When a dispute cannot be settled
determines that the award is (b) Protests before award. When VA by agreement and a final decision under
questionable, the contracting officer, receives notice from GAO of a pre- the Disputes clause of the contract is
after consulting with OGC, will advise award protest filed directly with GAO, necessary, the contracting officer must
the contractor of the protest and invite award will normally not be made until furnish the contractor the contracting
the contractor to submit comments and the matter is resolved. However, award officer’s final decision in the matter.
relevant information. The contracting may be made despite the protest if the (b) The contracting officer must
officer must submit the case promptly to DAS for A&MM, or the Chief Facilities identify the decision, in writing, as a
the DAS for A&MM, for advice. The Management Officer, Office of Facilities final decision and include a statement
DAS for A&MM may consult with OGC Management, as appropriate, approves of facts in sufficient detail to enable the
and will either advise the contracting the findings of the HCA required by contractor to fully understand the
decision and the basis on which it was 833.213 Obligation to continue Subchapter F—Special Categories of
made. The decision must set forth those performance. Contracting
facts relevant to the dispute with which (a) As provided in FAR 33.213,
the contractor and the contracting PART 836—CONSTRUCTION AND
contracting officers shall use FAR clause ARCHITECT-ENGINEER CONTRACTS
officer are in agreement, and as clearly 52.233–1, Disputes, with its Alternate I.
as possible, the area of disagreement. Clause 52.233–1 requires the contractor Subpart 836.2—Special Aspects of
(c) The decision shall, in addition to to continue performance in accordance Contracting for Construction
the material required by FAR with the contracting officer’s decision in Sec.
33.211(a)(4), contain the following the event of a claim arising under a 836.202 Specifications.
statement: contract. Alternate I expands this 836.203 Government estimate of
authority, adding a requirement for the construction costs.
The VA Board of Contract Appeals
836.204 Disclosure of the magnitude of
(VABCA) is the authorized representative of contractor to continue performance in
construction projects.
the Secretary for hearing and determining the event of a claim relating to the 836.206 Liquidated damages.
such disputes. The rules of the VABCA are contract. 836.209 Construction contracts with
published in section 1.783 of title 38, Code architect-engineer firms.
of Federal Regulations. The address of the
(b) In the event of a dispute not
arising under, but relating to, the 836.213 Special procedures for sealed
Board is: VA Board of Contract Appeals (09), bidding in construction contracting.
810 Vermont Avenue, NW., Washington, DC contract, if the contracting officer
836.213–4 Notice of award.
20420. directs continued performance, the
836.213–70 Notice to proceed.
contracting officer may consider
833.212 Contracting officer’s duties upon providing financing for the continued Subpart 836.5—Contract Clauses
appeal. performance, provided, that the 836.500 Scope of subpart.
(a) When a contracting officer receives Government’s interests are properly 836.501 Performance of work by the
notice of appeal in any form, the secured. The contracting officer will contractor.
contracting officer must do the contact the DAS for A&MM and OGC for 836.513 Accident prevention.
following: 836.521 Specifications and drawings for
advice prior to authorizing such
construction.
(1) Annotate the appeal with the date financing. 836.570 Correspondence.
of mailing (or date of receipt, if 836.571 Reference to ‘‘standards.’’
otherwise conveyed). 833.214 Alternative dispute resolution
(ADR). 836.572 Government supervision.
(2) Within 10 days, forward the 836.573 Daily report of workers and
original notice of appeal and a copy of (a) Contracting officers and materials.
the contracting officer’s final decision contractors are encouraged to use 836.574 Subcontracts and work
letter to the VABCA. alternative dispute resolution (ADR) coordination.
procedures, by using VA’s ADR 836.575 Schedule of work progress.
(3) Concurrently transmit copies of 836.576 Supplementary labor standards
the notice of appeal and the final Program, to resolve contract disputes provisions.
decision letter to the DAS for A&MM before they become appealable disputes. 836.577 Worker’s compensation.
and OGC. (In cases of construction (b) Under VA’s ADR Program, the 836.578 Changes—supplement.
contracts administered by the Office of Chair of the VA Board of Contract 836.579 Special notes.
Facilities Management, copies of the Appeals (VABCA or Board), who is VA’s Subpart 836.6—Architect-Engineer Services
appeal and the final decision letter need Dispute Resolution Specialist, will
836.602 Selection of firms for architect-
not be transmitted to the DAS for appoint a Board member (at no cost to engineer contracts.
A&MM but instead should be sent to the either party) to serve as a Neutral to aid 836.602–1 Selection criteria.
Chief Facilities Management Officer.) in resolving matters before the matters 836.602–2 Evaluation boards.
(b) Within 20 days of receipt of an become appealable disputes. The 836.602–4 Selection authority.
appeal, or advice that an appeal has administrative judges are trained 836.602–5 Short selection process for
been filed, the contracting officer must Neutrals and are available to assist in contracts not to exceed the simplified
assemble and transmit to the VABCA, ADR proceedings. acquisition threshold.
836.603 Collecting data on and appraising
through OGC, an appeal file consisting (c) In the event a Board member firms qualifications.
of all documents pertinent to the appeal, serves as a Neutral in a matter that is not 836.606 Negotiations.
including all of the following: resolved using ADR, that Board member 836.606–70 General.
(1) The decision and findings of fact will keep all discussions confidential 836.606–71 Architect-engineer’s proposal.
that are being appealed. until the matter is finally resolved and 836.606–72 Contract price.
(2) The contract, including may, at the request of either party 836.606–73 Application of 6 percent
specifications and pertinent involved, have no further input or architect-engineer fee limitation.
amendments, plans and drawings. contact with the parties or other Board Authority: 40 U.S.C. 121(c) and 48 CFR
(3) All correspondence between the members in subsequent Board activities 1.301–1.304.
parties pertinent to the appeal, relating to the dispute (ref. the
Administrative Dispute Resolution Act, Subpart 836.2—Special Aspects of
including the letter or letters of claim in
5 U.S.C. 571–583; and FAR 33.214). Contracting for Construction
response to which the decision was
issued. (d) Contracting officers and 836.202 Specifications.
(4) Transcripts of any testimony taken contractors are also encouraged to use (a) The procedures described in Part
during the course of proceedings and ADR in disputes that have already been 811 are applicable to construction
affidavits or statements of any witnesses appealed to the VABCA. specifications.

on the matter in dispute made prior to (b) During the design stage, contract
the filing of the notice of appeal with 833.215 Contract clause.
architect-engineers must not use ‘‘brand
the VABCA. The contracting officer must use the name or equal’’ or other restrictive
(5) Any additional information clause at 52.233–1, Disputes, with its specifications without the prior written
considered pertinent. Alternate I (see 833.213). approval of the contracting officer. The
contracting officer must inform Damages, in addition to the clause set the post office or on the proof of
prospective architect-engineers of this forth in FAR 52.211–12. delivery provided by the delivery
requirement during the negotiation service.
phase, prior to award of a contract for 836.209 Construction contracts with
architect-engineer firms. (c) If the contract does not provide for
design. liquidated damages, certified mail is not
(c) If VA has determined that only one (a) When the contracting officer
required. In notices to proceed for these
product will meet the Government’s considers it necessary or advantageous
contracts, the contracting officer must
minimum needs and VA will not allow to award a contract for construction of
establish a date for completion that
the submission of ‘‘equal’’ products, the a design-bid-build project, as defined at
takes into consideration the time
contracting officer must include the FAR 36.102, to a firm or person that
required for the notice to arrive by
clause found at 852.236–90, Restriction designed the project, the contracting
regular mail.
on Submission and Use of Equal officer must request prior approval from
one of the following: (d) At the time the notice to proceed
Products, in the solicitation and is sent to the contractor, the contracting
(1) The facility or VISN director, as
complete the clause by listing the items officer must furnish a copy to the
appropriate, or, for National Cemetery
to which the clause applies. This clause resident engineer or the Chief,
Administration contracts, the Director,
places bidders on notice that the ‘‘brand Engineering Service.
Technical Support Service, for contracts
name or equal’’ provisions of the clause (e) The contracting officer must file a
involving nonrecurring maintenance
found at FAR 52.236–5, Materials and copy of the notice to proceed with copy
(NRM) funds.
Workmanship, and any other provision A of the contract. When certified mail
(2) The Chief Facilities Management
that may authorize the submission of an or other method of certified delivery is
Officer, Office of Facilities Management,
‘‘equal’’ product, will not apply to the used, the contracting officer must attach
for contracts involving construction
specific items listed. the certified mail receipt card returned
funds.
836.203 Government estimate of (b) The contracting officer must by the post office or the proof of
construction costs. furnish complete justification in the delivery provided by the delivery
The overall amount of the request. service to the copy of the notice to
Government estimate must not be (c) This section does not apply to proceed. The contracting officer must
disclosed until after award of the design-build contracts, as defined at file copies of the notice to proceed with
contract. After award, the contracting FAR 36.102. copies C and D of the contract after the
officer may disclose the overall amount date of receipt has been established and
836.213 Special procedures for sealed
upon request. bidding in construction contracting.
indicated on the notice to proceed.
836.204 Disclosure of the magnitude of 836.213–4 Notice of award. Subpart 836.5—Contract Clauses
construction projects. The contracting officer must provide 836.500 Scope of subpart.
In lieu of the estimated price ranges to the contractor a notice of award
described in FAR 36.204, the (letter of acceptance) for any contract (a) The clauses and provisions
contracting officer must identify the award in excess of $25,000. prescribed in this subpart are set forth
magnitude of a VA project in advance for use in fixed-price construction
notices and solicitations in terms of one 836.213–70 Notice to proceed. contracts in addition to those in FAR
of the following price ranges: (a) The contracting officer must Subpart 52.2.
(a) Less than $25,000. provide construction contractors with a (b) Additional clauses and provisions
(b) Between $25,000 and $100,000. written notice to proceed with the work. not inconsistent with those in FAR
(c) Between $100,000 and $250,000. A notice to proceed will normally be Subparts 36.5 and 52.2 and those
(d) Between $250,000 and $500,000. sent only after the contractor has prescribed in this subpart are authorized
(e) Between $500,000 and $1,000,000. provided performance and payment when determined necessary or desirable
(f) Between $1,000,000 and bonds or payment protection and the by the contracting officer, and when
$2,000,000. completed contract forms, where approved as provided in Subpart 801.4.
(g) Between $2,000,000 and applicable, and the contracting officer (c) Clauses and provisions that differ
$5,000,000. has accepted them. If the urgency of the from those contained in FAR Subparts
(h) Between $5,000,000 and work or other proper reason requires the 36.5 and 52.2 and this subpart, but
$10,000,000. contractor to begin work immediately, considered essential to the procurement
(i) Between $10,000,000 and the contracting officer may include in of VA requirements, shall not be used
$20,000,000. the award letter a notice to proceed, unless the deviation procedure set forth
(j) Between $20,000,000 and with the reservation that payments are in Subpart 801.4 has been complied
$50,000,000. contingent upon receipt and approval of with.
(k) Between $50,000,000 and the required bonds or payment
protection. 836.501 Performance of work by the
$100,000,000.
(b) If the contract provides for contractor.
(l) More than $100,000,000
liquidated damages, the contracting The contracting officer must insert the
836.206 Liquidated damages. officer must send the notice to proceed clause at 852.236–72, Performance of
The contracting officer may include a by certified mail, return receipt Work by the Contractor, in solicitations
liquidated damages provision in a requested, or any other method that and contracts for construction that
construction contract when the criteria provides signed evidence of receipt. The contain the FAR clause at 52.236–1,
of FAR 11.501 and 811.501 are met. If notice to proceed will advise the Performance of Work by the Contractor.
partial performance may be accepted contractor that the work must be When the solicitations or contracts
and used to the advantage of the completed withinlll (insert contract include a section entitled ‘‘Network
Government, the contracting officer time for completion) calendar days from Analysis System (NAS),’’ the
must include the clause substantially as the date of receipt shown on the contracting officer must use the clause
set forth in 852.211–74, Liquidated certified mail receipt card returned by with its Alternate I.
836.513 Accident prevention. 836.575 Schedule of work progress. Subpart 836.6—Architect-Engineer

The contracting officer must insert the The contracting officer must insert the Services
clause at 852.236–87, Accident clause at 852.236–84, Schedule of Work 836.602 Selection of firms for architect-
Prevention, in solicitations and Progress, in solicitations and contracts engineer contracts.
contracts for construction that contain for construction that are expected to
the clause at FAR 52.236–13, Accident exceed the micro-purchase threshold for 836.602–1 Selection criteria.
Prevention. construction and that do not contain a (a) In addition to the evaluation
836.521 Specifications and drawings for section entitled ‘‘Network Analysis criteria set forth in FAR 36.602–1, the
construction. System (NAS).’’ evaluation board must consider the
factors set forth in paragraph (b) of this
The contracting officer must insert the 836.576 Supplementary labor standards section as they apply to the project or
clause at 852.236–71, Specifications and provisions. purpose of the selection. Values must be
Drawings for Construction, in assigned to each factor in determining
solicitations and contracts for The contracting officer must insert the
clause at 852.236–85, Supplementary the relative qualifications of the firms
construction that include the FAR identified as qualified through the pre-
clause at 52.236–21, Specifications and Labor Standards Provisions, in
solicitations and contracts for selection process. The board may adjust
Drawings for Construction. the assigned values after its discussions.
construction that are expected to exceed
836.570 Correspondence. the micro-purchase threshold for (b) The following factors must be
construction. considered:
The contracting officer must insert the
(1) Reputation and standing of the
clause at 852.236–76, Correspondence,
836.577 Worker’s compensation. firm and its principal officials with
in solicitations and contracts for
respect to professional performance,
construction expected to exceed the The contracting officer must insert the
general management, and
micro-purchase threshold for clause at 852.236–86, Worker’s
cooperativeness.
construction (currently $2,000). Compensation, in solicitations and
(2) Record of significant claims
contracts for construction that are
836.571 Reference to ‘‘standards.’’ against the firm because of improper or
expected to exceed the micro-purchase
The contracting officer must insert the incomplete architectural and
threshold for construction.
clause at 852.236–77, Reference to engineering services.
‘‘Standards,’’ in solicitations and 836.578 Changes—supplement. (3) Specific experience and
contracts for construction expected to qualifications of personnel proposed for
(a) The contracting officer must insert assignment to the project and their
exceed the micro-purchase threshold for the clause at 852.236–88, Contract
construction. record of working together as a team.
Changes—Supplement, in solicitations
836.572 Government supervision. and contracts for construction that are 836.602–2 Evaluation boards.
expected to exceed the micro-purchase (a) The Chief Facilities Management
The contracting officer must insert the
threshold for construction. (This section Officer, Office of Facilities Management,
clause at 852.236–78, Government
has been promulgated as a deviation shall appoint an evaluation board to
Supervision, in solicitations and
from the FAR as provided in 801.4.) select architect-engineer contractors for
contracts for construction expected to
exceed the micro-purchase threshold for (b) When negotiated changes exceed Office of Facilities Management
construction. $500,000, paragraph (a) of the clause at projects. The Director, Office of
852.236–88 will apply. Because Construction Management, shall
836.573 Daily report of workers and paragraph (a) does not provide ceiling appoint an evaluation board to select
materials. rates for indirect expenses, the architect-engineer contractors for
The contracting officer must insert the contractor must furnish cost National Cemetery Administration
clause at 852.236–79, Daily Report of breakdowns and other supporting data projects. The facility or VISN director,
Workers and Materials, in solicitations on its rates for indirect expenses as part as appropriate, shall appoint an
and contracts for construction expected of its price proposal. The contracting evaluation board to select architect-
to exceed the simplified acquisition officer must negotiate the rates for engineer contractors for field facility
threshold. The contracting officer may, indirect expenses with the contractor projects.
when in the best interest of the and may request an audit in accordance (b) The Director, A/E Evaluation and
Government, insert the clause in with FAR 15.404–2. Program Support Service, will chair the
solicitations and contracts for evaluation board for Office of Facilities
(c) When the negotiated change will Management architect-engineer
construction when the contract amount
be $500,000 or less, paragraph (b) of the contracts. The Chair may designate the
is expected to be at or below the
clause at 852.236–88 will apply. Project Director or Project Manager to
simplified acquisition threshold.
Because the indirect cost rates in act as Chair when necessary. When
836.574 Subcontracts and work paragraph (b) of the clause at 852.236– appointing the board’s members, the
coordination. 88 are ceiling rates, the contracting Chief Facilities Management Officer,
The contracting officer must insert the officer must negotiate indirect expense Office of Facilities Management, must
clause at 852.236–80, Subcontracts and rates within the ceiling limitations. include the appropriate Project Manager
Work Coordination, in solicitations and and as many qualified professional
836.579 Special notes.
contracts for construction expected to architects or engineers from the Office
exceed the micro-purchase threshold for The contracting officer must insert the of Facilities Management technical
construction. When the solicitations or clause at 852.236–91, Special Notes, in services as may be considered
contracts are for new construction work solicitations and contracts for appropriate for the particular project.
with complex mechanical-electrical construction that are expected to exceed The Chief Facilities Management Officer
work, the contracting officer may use the micro-purchase threshold for may designate additional members from
the clause with its Alternate I. construction. the Office of Facilities Management or
from other Department administrations contracting officer must use VA Form (iii) Preparation of measured drawings
and staff offices when appropriate. 10–6298, Architect-Engineer Fee of existing facility;
(c) The Director, Office of Proposal, to obtain the proposal and (iv) Subsurface investigation;
Construction Management, shall ensure supporting cost data from the contractor (v) Structural, electrical, and
that the board consists of no fewer than and subcontractor in the negotiation of mechanical investigation of existing
three members, one of whom must be a architect-engineer contracts for design facility; and
National Cemetery Administration services. (vi) Surveys: topographic, boundary,
senior level contracting officer. The (b) In obtaining architect-engineer utilities, etc.
Director shall designate one of the board services for research study, seismic (2) Special consultant services that are
members as the Chair. study, master planning study, not normally available in organizations
(d) The evaluation board for a VA construction management and other of architects or engineers and that are
field facility must consist of no fewer related services contracts, the not specifically applied to the actual
than two members, one of whom will be contracting officer must use VA Form preparation of working drawings or
the HCA (or the senior contracting 10–6298 supplemented or modified as specifications of the project for which
officer at the facility if there is no HCA needed for the particular project type. the services are required.
on site) and the other will be the Chief, (3) Other:
Engineering Service, or their alternates. 836.606–72 Contract price.
(i) Reproduction of approved designs
Where a facility has two or more (a) Where negotiations with the top-
through models, color renderings,
engineers on its staff, the facility or rated firm are unsuccessful, the
photographs, or other presentation
VISN director must appoint an contracting officer shall, after
media;
additional engineer to the board. The authorization by the Chief Facilities
(ii) Travel and per diem allowances
Chair of the board will be the senior Management Officer, Office of Facilities
Management, the Director, Office of other than those required for the
engineer. development and review of working
Construction Management, or the
836.602–4 Selection authority. facility or VISN director, as appropriate, drawings and specifications;
The Chief Facilities Management terminate the negotiations and (iii) Supervision or inspection of
Officer, Office of Facilities Management undertake negotiations with the firm construction, review of shop drawings
(for Central Office contracts), the next in order of preference. or samples, and other services
Director, Office of Construction (b) The contracting officer shall performed during the construction
Management (for National Cemetery submit a recommendation for award of phase; and
Administration contracts), and the the contract at the negotiated fee to the (iv) All other services that are not an
facility or VISN director (for field Chief Facilities Management Officer, integral part of the production and
facility contracts), or persons acting in Office of Facilities Management, the delivery of plans, designs, and
those capacities, are designated as the Director, Office of Construction specifications.
approving officials for the Management, or the facility or VISN (4) The cost of reproducing drawings
recommendations of the respective director, as appropriate. A copy of the and specifications for bidding and their
evaluation boards. negotiation memorandum prepared in distribution to prospective bidders and
accordance with FAR 15.406–3 and, plan file rooms.
836.602–5 Short selection process for whenever a field pricing report has been
contracts not to exceed the simplified PART 837—SERVICE CONTRACTING
acquisition threshold. received, a copy of the report must
accompany the recommendation. Subpart 837.1—Service Contracts—General
Either of the procedures provided in Sec.
FAR 36.602–5 may be used to select 836.606–73 Application of 6 percent 837.103 Contracting officer responsibility.
firms for architect-engineer contracts architect-engineer fee limitation. 837.110 Solicitation provisions and
that are not expected to exceed the (a) The total cost of the architect or contract clauses.
simplified acquisition threshold. engineer services contracted for must 837.110–70 Services provided to eligible
not exceed 6 percent of the estimated beneficiaries.
836.603 Collecting data on and appraising
firms qualifications. cost of the construction project plus any Subpart 837.2—Advisory and Assistance
fees for related services and activities Services
The Chief Facilities Management
such as those shown in paragraph (c) of 837.203 Policy.
Officer, Office of Facilities Management,
this section.
for Central Office; the Director, Office of (b) To support project submissions, Subpart 837.4—Nonpersonal Health Care
Construction Management, for National the engineering officer or project Services
Cemetery Administration; and the Chief, engineer must use VA Form 10–1193, 837.403 Contract clause.
Engineering Service, for field facilities, Application for Health Care Facility
are responsible for collecting Standard Subpart 837.70—Mortuary Services
Project, and Form 10–6238, EMIS
Forms 330 and maintaining a data file 837.7001 General.
Construction Program Estimate 837.7002 List of qualified funeral directors.
on architect-engineer qualifications. Worksheet, and must show the 837.7003 Funeral authorization.
836.606 Negotiations. proposed technical services where 837.7004 Administrative necessity.
necessary and applicable. 837.7005 Unclaimed remains—all other
836.606–70 General. (c) The 6-percent fee limitation does cases.
To assure that the fee limitation is not not apply to the following architect or Authority: 38 U.S.C. 501; 40 U.S.C. 121(c);
violated, the contracting officer must engineer services: and 48 CFR 1.301–1.304.
(1) Investigative services including
maintain suitable records to be able to

isolate the amount in the total fee to but not limited to: Subpart 837.1—Service Contracts—
which the 6-percent limitation applies. (i) Determination of program General
requirements, including schematic or
836.606–71 Architect-engineer’s proposal. preliminary plans and estimates; 837.103 Contracting officer responsibility.
(a) When the contract price is (ii) Determination of feasibility of When the contracting officer
estimated to be $50,000 or more, the proposed project; determines that legal assistance is
necessary in determining whether a these services within the statutory person designated by the facility
proposed service contract is for personal limitation of $300 (see 38 U.S.C. 2302). director to perform these functions, to
or non-personal services, the contracting Each funeral director must be fully be responsible for the medical
officer will request a legal opinion from licensed in the jurisdiction in which the inspection of the mortuary services
the appropriate Regional Counsel. business operates. If there has been no performed and inspection of the
prior experience with the funeral merchandise furnished. This designee
837.110 Solicitation provisions and will also be responsible for certifying
contract clauses.
director that would ensure the adequacy
of the funeral director’s services and receipt on the receiving report.
The contracting officer shall insert the casket, arrangements will be made (e) The HCA will assist the Chief,
clause at 852.237–70 Contractor MAS, or the person designated by the
before contract negotiation to inspect
Responsibilities, in solicitations and facility director to perform these
the premises and the casket to be
contracts for services. functions, in developing the local
provided, as well as to check with the
837.110–70 Services provided to eligible local business bureau and/or Chamber procedures specified in M–1, Part I,
beneficiaries. of Commerce. (38 U.S.C. 2302) paragraph 14.37c. (38 U.S.C. 2302, 2303,
Contracting officers shall include the and 2308)
837.7003 Funeral authorization.
clause at 852.271–70, 837.7004 Administrative necessity.
Nondiscrimination in Services Provided (a) When a veteran dies while
receiving care in a VA health care (a) VA may make arrangements and
to Beneficiaries, in all solicitations and assume expenses for local burial under
contracts covering services provided to facility or in a non-VA institution at
VA’s expense, and the decedent’s separate contractual agreement when:
eligible beneficiaries. (1) A person dies under VA care who
remains are unclaimed, the Chief, MAS,
or the person designated by the facility is not legally entitled to such care at
Subpart 837.2—Advisory and
director to perform these functions, will VA’s expense;
Assistance Services (2) No relatives or friends claim the
forward to the HCA a properly executed
837.203 Policy. VA form 10–2065, Funeral remains; and
The definition of advisory and (3) The municipal, county, or State
Arrangements, requesting that funeral
assistance services includes, in addition officials refuse to provide for final
and burial services for the deceased be
to examples listed in FAR 37.203, disposition.
procured. (b) When the contracting officer
services to obtain peer review of (b) The contracting officer will enter cannot obtain a full and complete
research proposals. into negotiations with local funeral funeral and burial service as prescribed
directors to procure a complete funeral in 837.7003 within the statutory
Subpart 837.4—Nonpersonal Health and burial service within the statutory
Care Services allowance, before taking any further
allowance of $300. The purchase order action, the contracting officer will
837.403 Contract clause. must list the specific services to be secure from the facility or VISN
The contracting officer shall insert the provided. The services must consist of director, as appropriate, a written
clause at 852.237–7, Indemnification the following: determination that VA must accomplish
and Medical Liability Insurance, in lieu (1) Preparation of the body, the disposition of the remains as an
of FAR Clause 52.237–7, in solicitations embalming. administrative necessity. The facility
(2) Clothing.
and contracts for nonpersonal health- director will also authorize in writing
(3) Casket. (The casket, at a minimum,
care services, including contracts the expenditure of such additional
must be constructed from thick, strong
awarded under the authority of 38 funds as may be necessary for this
particle board and must be of sufficient
U.S.C. 7409, 38 U.S.C. 8151–8153, and purpose.
strength to support the weight of an (c) The contracting officer will make
part 873. The contracting officer may adult human body. Cardboard or press
include the clause in bilateral purchase the facility director’s determination and
paper or similar materials are not authorization a part of the contract file.
orders for nonpersonal health-care acceptable.)
services awarded under the procedures (38 U.S.C. 2302)
(4) The securing of all necessary
in FAR Part 13 and Part 813. permits. 837.7005 Unclaimed remains—all other
(5) Ensuring that a United States flag cases.
Subpart 837.70—Mortuary Services
(provided the funeral director in Requests for information on the
837.7001 General. accordance with M–1, Part I, paragraph disposition of the unclaimed remains of
This subpart establishes the policies 14.40) accompanies the casket to place a veteran whose death occurs while not
and procedures governing the of burial. under the direct care or treatment of VA
procurement of funeral and burial (c) An additional allowance for will be referred to the Veterans Services
services for deceased beneficiaries of transportation of the body to the place Officer for processing in accordance
VA, as provided in 38 U.S.C. 2302, of burial is provided in 38 U.S.C. 2308. with M27–1, Part II.
2303, and 2308. This allowance will cover the
transportation cost of shipment of the PART 841—ACQUISITION OF UTILITY
837.7002 List of qualified funeral directors. body by common carrier or by hearse SERVICES
Contracting officers will establish, in from the VA facility to the funeral home
coordination with cognizant Chief, Subpart 841.1—General
and to the place of burial, any charges
Medical Administration Service (MAS) for an outside shipping box, and the Sec.
personnel or other personnel designated charges for securing all necessary 841.100 Scope of part.
841.103 Statutory and delegated authority.

by the facility director to perform these permits for removal or shipment of the
functions, a list of funeral directors body. These costs are not chargeable Subpart 841.2—Acquiring Utility Services
capable of performing the burial against the $300 allowance.
841.201 Policy.
services specified in 837.7003. The (d) In accordance with M–1, Part I,
contracting officer will attempt to paragraph 14.37, the contracting officer Authority: 40 U.S.C. 121(c) and (d); and 48
establish a commitment to perform will designate the Chief, MAS, or the CFR 1.301–1.304.
Subpart 841.1—General Subpart 842.12—Novation and Change-of- authority of 38 U.S.C. 7409 or 8153,
Name Agreements and;
841.100 Scope of part. 842.1203 Processing agreements. (3) Claims involving such contracts.
This part prescribes procedures for Authority: 40 U.S.C. 121(c) and 48 CFR (b) Contracting officers may request
obtaining delegations of authority to 1.301–1.304. the assistance of either the VA OIG
award contracts for utility connection Contract Review and Evaluation
charges and provides guidance on 842.000 Scope of part. Division or the Defense Contract Audit
review requirements for such proposed This part applies to all contracts, Agency (DCAA) to provide pre- and
contracts. whether awarded through sealed post-award audit, review, and advisory
bidding or negotiation. services associated with other types of
841.103 Statutory and delegated authority.
contracts or claims.
(a) The Assistant Commissioner for 842.070 Definitions.
Procurement, General Services Contract administration is the Subpart 842.7—Indirect Cost Rates
Administration (GSA), has delegated the coordination of actions required for the
Secretary of Veterans Affairs authority 842.705 Final indirect cost rates.
performance of a contract. This includes
to enter into public utility contracts for the contracting officer’s guidance and (a) Except when the quick-closeout
connection charges for utility services. supervision necessary to assure that the procedures described in FAR 42.708 are
(b) Except as provided in paragraph contractor fulfills all contractual used, contracting officers must request
(a) of this section, the authority to award obligations. audits on proposed final indirect cost
all other contracts for utility services, as rates and billing rates for use in cost
defined in FAR 41.101, is vested in GSA Subpart 842.1—Contract Audit reimbursement, fixed-price incentive,
(see FAR 41.103). VA contracting Services and fixed-price redeterminable contracts
officers who wish to award local as prescribed in FAR Subpart 42.7.
842.101 Contract audit responsibilities. (b) When the quick closeout
contracts for utility services, other than
for connection charges, must first obtain (a) Contracting officers must use the procedures are used, the contracting
a delegation of authority to award such support services of other agencies to the officers must perform a review and
contracts from GSA. Contracting officers extent feasible. Examples of such validation of the contractor’s data for
shall submit requests for delegation of services include: pre-award surveys; accuracy and reasonableness of the
authority directly to GSA. quality assurance and technical proposed rates for negotiating the
(c) Any authority described in inspection of contract items; and review settlement of indirect costs for a specific
paragraphs (a) or (b) of this section of contractors’ procurement systems. contract.
delegated to the Secretary is further Contracting officers obtaining support
delegated to the SPE and is further services from any other Government Subpart 842.8—Disallowance of Costs
delegated to the DSPE and to VA department or agency must do so on the 842.801 Notice of intent to disallow costs.
contracting officers within the limits of basis of an approved negotiated
their warrants. interagency support agreement. 842.801–70 Audit assistance prior to
(b) An interagency support agreement disallowing costs.
Subpart 841.2—Acquiring Utility is a written instrument of understanding If a contracting officer determines that
Services between the parties to the agreement. costs should be disallowed during the
The agreement should clearly state the performance of a cost reimbursement,
841.201 Policy. following: fixed-price incentive, or fixed-price
As required by 801.602–71, (1) The accord reached between the redetermination contract exceeding the
contracting officers must submit two parties involved, especially the thresholds specified in FAR 15.403–4,
solicitations and proposed agreements obligations assumed and the rights the contracting officer must request
for utility services exceeding $50,000 in granted each party. audit assistance. The VA Office of
total costs to the appropriate (2) The resources that both the Inspector General shall conduct audits
Acquisition Resources Service office for supplying and receiving parties will of contracts for health care resources
technical and legal review. provide. and contracting officers shall request
Subchapter G—Contract Management (3) The funding and reimbursement such audits directly from that office. For
arrangements. all other types of contracts, the
PART 842—CONTRACT (4) Clauses permitting revisions, contracting officer must obtain an audit
ADMINISTRATION AND AUDIT modifications, or cancellation of the control number from Acquisition
SERVICES agreement. Resources Service and send a formal
request to conduct the audit directly to
Sec. 842.102 Assignment of contract audit
the nearest Defense Contract Audit
842.000 Scope of part. services.
842.070 Definitions. Agency (DCAA) office, referencing the
(a) When required, contracting audit control number and the project
Subpart 842.1—Contract Audit Services officers shall request the assistance of number (if any).
842.101 Contract audit responsibilities. the VA Office of the Inspector General
842.102 Assignment of contract audit (OIG), Contract Review and Evaluation 842.803 Disallowing costs after
services. Division, to provide pre- and post-award incurrence.
audit, review, and advisory services Contracting officers may approve or
Subpart 842.7—Indirect Cost Rates
associated with the award or disapprove contractors’ vouchers for
842.705 Final indirect cost rates. modification of: payment and process them to the
Subpart 842.8—Disallowance of Costs (1) Federal Supply Schedule and servicing fiscal office. Such approval or
842.801 Notice of intent to disallow costs. other contracts awarded by the VA disapproval must be within the
842.801–70 Audit assistance prior to National Acquisition Center; limitations of the contracting officer,
disallowing costs. (2) Scarce medical specialist or and the contract for which the voucher
842.803 Disallowing costs after incurrence. sharing contracts awarded under the is submitted must be within the
contracting officer’s delegation of the Alternate I clause at 852.246–71, (4) The pre-qualifying of the
contracting authority. Inspection. suppliers’ quality assurance systems
and subsequently waiving inspections
Subpart 842.12—Novation and 846.302–72 Frozen processed foods. and certifications for future
Change-of-Name Agreements The contracting officer shall insert the solicitations.
clause at 852.246–72, Frozen Processed (5) The cost of the inspections.
842.1203 Processing agreements. Foods, in solicitations and contracts for (d) When the contracting officer
Before execution of novation and frozen processed foods. indicates that either the USDA or the
change-of-name agreements, contracting Department of Commerce will conduct
officers must submit all supporting 846.302–73 Noncompliance with
the inspection, the contracting officer
agreements and documentation to the packaging, packing and/or marking
requirements. must also provide in the solicitation that
OGC for review as to legal sufficiency. the contractor is responsible for all of
The contracting officer shall insert the the following:
PART 846—QUALITY ASSURANCE clause at 852.246–73, Noncompliance (1) Arranging and paying for
with Packaging, Packing and/or Marking inspection services.
Subpart 846.3—Contract Clauses Requirements, in non-commercial item (2) Obtaining from the inspectors a
Sec. solicitations and contracts for supplies certificate indicating that the product
846.302 Fixed-price supply contracts. or equipment where there are special
846.302–70 Guarantee clause. complies with specifications.
packaging, packing and/or marking (3) Assuring that the certificate, or
846.302–71 Inspection.
846.302–72 Frozen processed foods.
requirements. The clause may be used copy, accompanies the shipment or is
846.302–73 Noncompliance with in commercial item acquisitions if a furnished to the receiving installation
packaging, packing and/or marking waiver is approved in accordance with before shipment, or notifying the
requirements. FAR 12.302(c) and 812.302. installation when the certificate is not
846.312 Construction contracts. immediately available.
846.312 Construction contracts.
Subpart 846.4—Government Contract (4) Seeing that acceptable products
The contracting officer shall insert the are covered by an inspection agency
Quality Assurance
clause at 852.236–74, Inspection of checkloading certificate or stamped by
846.408 Single-agency assignments of Construction, in solicitations and
Government contract quality assurance. the inspector as prescribed by the
contracts for construction that include contracting officer.
846.408–70 Inspection of subsistence.
846.408–71 Waiver of USDA inspection and
the FAR clause at 52.246–12, Inspection (5) Furnishing samples for inspection
specifications. of Construction. at the contractor’s expense.
846.470 Use of commercial organizations (6) Indicating the address where
for inspections and grading services. Subpart 846.4—Government Contract inspection will occur.
846.471 Determination authority. Quality Assurance (e) The contracting officer must
846.472 Inspection of repairs for properties furnish a copy of the purchase
846.408 Single-agency assignments of
under the Loan Guaranty and Direct document to the inspecting activity.
Government contract quality assurance.
Loan Programs.
846.472–1 Repairs of $1,000 or less. 846.408–70 Inspection of subsistence. 846.408–71 Waiver of USDA inspection
846.472–2 Repairs in excess of $1,000. and specifications.
(a) Before issuing a solicitation for
Subpart 846.7—Warranties subsistence, the contracting officer must (a) When the amount of an item to be
determine whether: purchased will not exceed 500 pounds
846.710 Contract clauses.
846.710–70 Special warranties. (1) Representatives of the U.S. per delivery, the contracting officer may
846.710–71 Warranty for construction— Department of Agriculture (USDA) or purchase the following without
guarantee period services. the Department of Commerce will reference to the specifications in Part IV
inspect for specification compliance of the Federal Supply Catalog, Stock
and 48 CFR 1.301–1.304. before shipment; or List, FSC Group 89, Subsistence,
(2) Personnel of the purchasing Publication No. C8900–SL, and the
Subpart 846.3—Contract Clauses activity will inspect for specification USDA inspection requirements:
(1) Butter.
846.302 Fixed-price supply contracts. compliance at the time of delivery. (2) Cheese (except cottage cheese).
(b) The contracting officer must (3) Sausage.
846.302–70 Guarantee clause. indicate the time and place of (4) Meat food products*.
The contracting officer shall insert the inspection in the solicitation. (5) Bacon, smoked.
clause at 852.246–70, Guarantee, in (c) Because the requirement for USDA (6) Bacon, Canadian style.
solicitations for the acquisition of or Department of Commerce inspections (b) When the items listed in paragraph
equipment. and certifications result in additional (a) of this section are procured together
contractor costs that may be ultimately with items that are not exempt, the
846.302–71 Inspection. reflected in bid prices, the contracting contracting officer must include the
The contracting officer shall include a officer, in consultation with the Chief, following in the solicitation:
‘‘Rejected Goods’’ contract clause in Nutrition and Food Service, must Items * * * are not required to be in
solicitations and contracts as follows: evaluate the need for such inspections. accordance with the specifications
(a) Except as provided in paragraph The evaluation must include the contained in Part IV of the Federal
(b) of this section, insert the clause at following: Supply Catalog, Stock List, FSC Group
852.246–71, Inspection, in solicitations (1) The quality assurance already 89, Subsistence, Publication No. C8900–
and contracts for the acquisition of provided by other mandatory inspection SL, and the special USDA inspection is
supplies or equipment. systems. not required. VA will inspect for quality
(b) In solicitations and contracts for (2) The proposed suppliers’ own and condition upon delivery at
packing house and dairy products, quality control system. destination. These items are, however,
bread and bakery products, and for fresh (3) Experience with the proposed subject to the quality controls stated
and frozen fruits and vegetables, insert suppliers. herein.
(c) As appropriate, the contracting (a) The Chief Facilities Management accordance with the terms of the
officer must include the following Officer, Office of Facilities Management, contract. The inspector must itemize
statements in each invitation for bid, for those items and services for which any deficiencies and explain the
request for proposal, quotation, or purchase authority has been assigned to deficiencies in detail.
purchase order: the Office of Facilities.
(1) Butter. This product must be (b) The Director, Veterans Canteen Subpart 846.7—Warranties
graded by the USDA and labeled ‘‘Grade Service, for those items and services 846.710 Contract clauses.
A’’ or the grade specified herein. purchased, or contracted for, by the
(2) Sausage and meat food products.* The contracting officer shall insert the
Veterans Canteen Service (except those
(i) This product must be a high clause at FAR 52.246–21, Warranty of
items purchased from VA supply
commercial product and must have Construction, in solicitations and
sources).
been prepared in a federally inspected contracts for construction that are
(c) The DSPE for all other supplies,
plant and bear the USDA establishment expected to exceed the micro-purchase
equipment, and services.
number stamp evidencing that it is threshold.
sound, healthful, wholesome, and fit for 846.472 Inspection of repairs for
properties under the Loan Guaranty and 846.710–70 Special warranties.
human consumption; and The contracting officer shall insert the
Direct Loan Programs.
(ii) This product must bear a label clause at 852.246–74, Special
complying with the Federal Food, Drug As provided in 846.472–1 and
846.472–2, management brokers or Warranties, in solicitations and
and Cosmetic Act that requires the contracts for construction that include
listing of all ingredients in the order of qualified fee or staff inspectors must
conduct a final inspection of all repair the FAR clause at 52.246–21, Warranty
their predominance. of Construction.
(3) Bacon, smoked; and bacon, programs upon completion. In addition,
Canadian style. This product must be a the broker or inspector must conduct 846.710–71 Warranty for construction—
high commercial product and must have intermediate or progress inspections on guarantee period services.
been prepared in a federally inspected extensive or technical jobs as specified The contracting officer shall insert the
plant and bear the USDA establishment in the contract. clause at 852.246–75, Warranty of
number stamp evidencing that it is 846.472–1 Repairs of $1,000 or less. Construction ‘‘ Guarantee Period
sound, healthful, wholesome, and fit for Services, in solicitations and contracts
(a) Generally, the management broker
human consumption. for construction that include the FAR
(d) When using a ‘‘brand name or must make any required inspections for
clause at 52.246–21, Warranty of
equal’’ purchase description, the repairs of $1,000 or less. A qualified fee
Construction, and that also include
contracting officer must list every brand or staff inspector must make any
guarantee period services.
name item that is known to be required inspection for repairs of $1,000
acceptable and available in the area. or less if the contracting officer: PART 847—TRANSPORTATION
*‘‘Meat food products’’ means (1) Has not assigned the property to a
management broker; or, Subpart 847.3—Transportation in Supply
processed foods containing meat in Contracts
substantial proportion and other listed (2) Has determined that the nature of
ingredients including seasoning, e.g., the repairs requires supervision by a Sec.
technician. 847.303 Standard delivery terms and
frankfurters, coldcuts. Whole or contract clauses.
prefabricated meats, e.g., pork chops, (b) There is no form prescribed for
inspection of repairs of $1,000 or less, 847.303–1 F.o.b. origin.
hamburger, are considered meats, not 847.303–70 F.o.b. origin, freight prepaid,
meat food products. but the inspector may use VA Form 26–
transportation charges to be included on
1839, Compliance Inspection Report. the invoice.
846.470 Use of commercial organizations Regardless of the form in which the 847.305 Solicitation provisions, contract
for inspections and grading services. report is submitted, the inspector must clauses, and transportation factors.
The contracting officer may use a identify the contractor, property, and 847.305–70 Potential destinations known
commercial organization for inspection the repair program and provide but quantities unknown.
and grading services when the sufficient detail to enable the 847.306 Transportation factors in the
contracting officer determines that all of contracting officer to make a evaluation of offers.
determination that the work is being 847.306–70 Transportation payment and
the following conditions exist:
audit.
(a) The results of a technical performed satisfactorily or completed in
inspection or grading are dependent accordance with the terms of the Authority: 40 U.S.C. 121(c) and 48 CFR
upon the application of scientific contract. 1.301–1.304.
principles or specialized techniques.
846.472–2 Repairs in excess of $1,000. Subpart 847.3—Transportation in
(b) VA is unable to employ the
(a) A qualified fee or staff inspector Supply Contracts
personnel qualified to properly perform
the services and is unable to locate must make the final inspection and any 847.303 Standard delivery terms and
another Federal agency capable of intermediate or progress inspections on contract clauses.
providing the service. repairs exceeding $1,000.
(c) The inspection or grading results (b) The inspector must make the 847.303–1 F.o.b. origin.
issued by a private organization are report of inspection on VA Form 26– Shipments falling within this category
essential to verify the acceptance of 1839, Compliance Inspection Report. must be shipped on a Bill of Lading,
rejection of a special commodity. The inspector must identify the except as provided in 41 CFR 102–
(d) The services may be performed property, contractor, and repair program 118.40. Contracting officers must
without direct Government supervision. and provide sufficient detailed comply with 41 CFR parts 102–117 and
information to enable the contracting 102–118. Contact the Traffic Manager
846.471 Determination authority. officer to make a determination that the for assistance in determining when to
The following must make the work is being performed satisfactorily or issue the applicable bill of lading (VA
determinations required in 846.470: that it has been completed in Commercial Bill of Lading for domestic
use or Government Bill of Lading for (1) Obtaining the most accurate (1) Immediately discontinue all
international shipments and domestic estimate possible of transportation negotiations.
off-shore shipments) and for all freight charges. (2) Submit all of the pertinent facts
estimates. (2) Using the authority in paragraph necessary to support the suspicions to
(a) of this section only when consistent either of the following:
847.303–70 F.o.b. origin, freight prepaid, with the circumstances in that (i) The DSPE.
transportation charges to be included on (ii) The Chief Facilities Management
the invoice.
paragraph.
(d) When, in accordance with FAR Officer, in the case of contracting
(a) The delivery terms will be stated Subpart 28.3 and FAR 47.102, a officers from the Office of Facilities
as ‘‘f.o.b. origin, transportation prepaid, shipment must be insured or the value Management.
with transportation charges to be declared, the contracting officer will (3) Follow procedures as provided in
included on the invoice,’’ under any of specifically instruct the vendor to do so 809.406–3 and 809.407–3.
the following circumstances: on the order when a written order is (b) The DSPE or the Chief Facilities
(1) When it is determined that an used. If the order is oral, the vendor Management Officer, Office of Facilities
f.o.b. origin purchase or delivery order must annotate all copies of the purchase Management, must review the
will have transportation charges that do request to show that the insurance/ submission and fully develop the facts.
not exceed $250 and the occasional (c) If the evidence indicates fraud or
declared value was specifically
exception does not exceed that amount other criminal conduct, the DSPE or the
requested.
by more than $50. Chief Facilities Management Officer,
(2) Single parcel shipments via 847.305 Solicitation provisions, contract Office of Facilities Management, must
express, courier, small package, or clauses, and transportation factors. forward the submission with
similar carriers, regardless of shipping recommendations through channels (to
847.305–70 Potential destinations known include OGC, if appropriate), to the
cost, if the shipped parcel weighs 70 but quantities unknown.
pounds or less and does not exceed 108 Office of the Inspector General for
When the National Acquisition Center referral to the Department of Justice.
inches in length and girth combined. contracts with multiple bidders who (d) The DSPE or the Chief Facilities
(3) Multi-parcel shipments via will provide procured items directly to Management Officer, Office of Facilities
express, courier small package, or VA field installations, the evaluation of Management, will advise the contracting
similar carriers for which transportation bids must follow specific procedures. officer as to any further action to be
charges do not exceed $250 per To place each bid on an equal basis, taken. Pending receipt of this advice, no
shipment. even though specific quantities required VA employee may discuss the matter
(b) Orders issued on VA Form 90– by each facility cannot be with the contractor.
2138, Orders for Supplies or Services, predetermined, the contracting officer (e) VA will not initiate a collection,
must identify shipping instructions on must use an anticipated demand factor recovery or other settlement action
the reverse side of the form. When VA in proportion to the number of hospital while the matter is in the hands of the
Form 90–2138 is not used, the vendor beds or patient workload. The clause Department of Justice without first
must do the following: prescribed in 852.247–70 must be used obtaining the concurrence of the U.S.
(1) Consistent with the terms of the in these instances. Attorney concerned, through the Office
contract, pack, mark, and prepare of the Inspector General.
shipment in conformance with carrier 847.306 Transportation factors in the (f) If the contractor makes an inquiry,
requirements to protect the personal evaluation of offers. the contracting officer will advise only
property and assure the lowest 847.306–70 Transportation payment and that the proposal has been forwarded to
applicable transportation charge. Follow audit. higher authority.
package specifications found in the Transportation payments are audited 849.111 Review of proposed settlements.
National Motor Freight Classification by the Traffic Manager to ensure that
100 Series. payment and payment mechanisms for 849.111–70 Required review.
(2) Add transportation charges as a agency transportation are uniform and (a) FAR 49.111 requires each agency
separate item on the invoice. The appropriate in accordance with 41 CFR to establish procedures, when
invoice must include the following part 102–118. necessary, for the administrative review
certification: ‘‘The invoiced of proposed termination settlements.
transportation charges have been paid PART 849—TERMINATION OF Contracting officers shall submit
and evidence of such payment will be CONTRACTS proposed termination settlements or
furnished upon the Government’s determinations of amounts due the
request.’’ Subpart 849.1—General Principles
contractor under a terminated contract
(3) Not include charges for insurance Sec. that involve the expenditure of $100,000
or valuation on the invoice unless the 849.106 Fraud or other criminal conduct.
849.111 Review of proposed settlements.
or more of Government funds to the
order specifically requires that the Director, Acquisition Program
849.111–70 Required review.
shipment be insured or the value be 849.111–71 Submission of information. Management Division, or the Director,
declared. Acquisition Assistance Team, as
(4) Not prepay transportation charges Authority: 40 U.S.C. 121(c) and 48 CFR
1.301–1.304.
appropriate, for technical and legal
on the order if such charges are review (see 801.602–72(i)). Contracting
expected to exceed $250. Ship collect Subpart 849.1—General Principles officers shall not execute the settlement
and annotate the commercial bill of agreement or determination prior to
lading, ‘‘To be converted to VA 849.106 Fraud or other criminal conduct. receipt of the technical and legal review.
Commercial Bill of Lading.’’ Contact (a) If the contracting officer suspects The legal review of contracts awarded
Traffic Manager for routing instructions fraud or other criminal conduct related by or on behalf of the VA Office of
and freight estimate. to the settlement of a terminated Inspector General (OIG) will be
(c) Each contracting officer is contract, the contracting officer must do conducted by the Counselor to the
responsible for: the following: Inspector General.
(b) If the contracting officer declines 852.207–70 Report of employment under 852.270–2 Bread and bakery products—
to implement one or more of the commercial activities. quantities.
recommendations or comments 852.209–70 Organizational conflicts of 852.270–3 Purchase of shellfish.
interest. 852.271–70 Nondiscrimination in services
contained in the review memorandum, 852.211–70 Service data manuals. provided to beneficiaries.
the contracting officer shall submit a 852.211–71 Special notice. 852.271–71 [Reserved].
written response to the Director, 852.211–72 Technical industry standards. 852.271–72 Time spent by counselee in
Acquisition Program Management 852.211–73 Brand name or equal. counseling process.
Division, or the Director, Acquisition 852.211–74 Liquidated damages. 852.271–73 Use and publication of
Assistance Team, as appropriate, 852.211–75 Product specifications. counseling results.
explaining why the recommendations or 852.214–70 Caution to bidders ‘‘ bid 852.271–74 Inspection.
comments were not followed. For envelopes. 852.271–75 Extension of contract period.
852.214–71 Restrictions on alternate 852.273–70 Late offers.
contracts awarded by or on behalf of the item(s).
VA OIG, the response shall be submitted 852.273–71 Alternative negotiation
852.214–72 Alternate item(s). techniques.
to the Counselor to the Inspector 852.214–73 Alternate packaging and 852.273–72 Alternative evaluation.
General. packing. 852.273–73 Evaluation ‘‘ health-care
852.214–74 Bid samples. resources.
849.111–71 Submission of information. 852.216–70 Estimated quantities. 852.273–74 Award without exchanges.
(a) The contracting officer shall 852.222–70 Contract Work Hours and
submit to the appropriate Acquisition Safety Standards Act ‘‘ nursing home Authority: 38 U.S.C. 501 and 8151–8153;
Program Management Division or care contract supplement. 40 U.S.C. 121(c); and 48 CFR 1.301–1.304.
Acquisition Assistance Team office a 852.228–70 Bond premium adjustment.
852.228–71 Indemnification and insurance. Subpart 852.1—Instructions for Using
copy of the proposed settlement
852.229–70 Sales or use taxes. Provisions and Clauses
agreement or determination, supported 852.229–71 [Reserved].
by such detailed information as is 852.233–70 Protest Content/Alternative 852.101 Using Part 852.
required for an adequate review. This Disputes Resolution. Part 852 prescribes supplemental
information should normally include 852.233–71 Alternate Protest Procedure. provisions and clauses to the FAR.
copies of: 852.236–70 [Reserved]. Provision and clause numbering are as
(1) The contractor’s or subcontractor’s 852.236–71 Specifications and drawings for
construction.
prescribed in FAR 52.101 (e.g.,
settlement proposal. supplementary construction clauses
(2) The audit report. 852.236–72 Performance of work by the
contractor. under Part 836 are numbered 852.236–
(3) The property disposed report and
852.236–73 [Reserved]. 71, 852.236–72, etc.).
any required approvals in connection
852.236–74 Inspection of construction.
therewith, 852.236–75 [Reserved]. 852.102 Incorporating provisions and
(4) The contracting officer’s 852.236–76 Correspondence. clauses.
memorandum explaining the settlement, 852.236–77 Reference to ‘‘standards.’’ (a) As authorized by FAR 52.102(c),
and 852.236–78 Government supervision. any 48 CFR Chapter 8 (VAAR) provision
(5) Any other relevant material that 852.236–79 Daily report of workers and or clause may be incorporated in a
will assist the procurement analyst in material. quotation, solicitation, or contract by
the review. The procurement analyst 852.236–80 Subcontracts and work
reference, provided the contracting
may, at his or her discretion, require the coordination.
852.236–81 [Reserved]. officer complies with the requirements
submission of additional information. stated in FAR 52.102(c)(1), (c)(2), and
(b) The Director, Acquisition Program 852.236–82 Payments under fixed-price
construction contracts (without NAS). (c)(3). To ensure compliance with FAR
Management Division, or the Director,
852.236–83 Payments under fixed-price 52.102(c)(1) and (c)(2), contracting
Acquisition Assistance Team, will construction contracts (including NAS). officers shall insert the provision found
obtain the concurrence or comments of 852.236–84 Schedule of work progress. at 852.252–70, Solicitation Provisions or
OGC prior to forwarding the review to 852.236–85 Supplementary labor standards Clauses Incorporated by Reference, in
the contracting officer, except that the provisions.
full text in a quotation, solicitation, or
concurrence or comments will be 852.236–86 Worker’s compensation.
852.236–87 Accident prevention. contract if the quotation, solicitation, or
obtained from the Counselor to the
852.236–88 Contract changes—supplement. contract incorporates by reference a
Inspector General for contracts awarded
852.236–89 Buy American Act. FAR or 48 CFR Chapter 8 (VAAR)
by or on behalf of the VA Office of
852.236–90 Restriction on submission and provision or clause that requires
Inspector General.
use of equal products. completion by the offeror or prospective
SUBCHAPTER H—CLAUSES AND FORMS 852.236–91 Special notes. contractor and submittal with the
852.237–7 Indemnification and Medical quotation or offer.
PART 852—SOLICITATION Liability Insurance. (b) For any FAR or 48 CFR Chapter 8
PROVISIONS AND CONTRACT 852.237–70 Contractor responsibilities.
(VAAR) provision or clause that
CLAUSES 852.246–70 Guarantee.
852.246–71 Inspection. requires completion by the contracting
852.246–72 Frozen processed foods. officer, the contracting officer shall, as
Subpart 852.1—Instructions for Using
852.246–73 Noncompliance with a minimum, insert the title of the
Provisions and Clauses
packaging, packing and/or marking provision or clause and the paragraph
Sec. requirements. that requires completion in full text in
852.101 Using Part 852. 852.246–74 Special warranties. the quotation, solicitation, or contract.
852.102 Incorporating provisions and 852.246–75 Warranties for construction— The balance of the provision or clause
clauses. guarantee period services.

may be incorporated by reference.
852.247–70 Determining transportation
Subpart 852.2—Text of Provisions and costs for bid evaluation.
(c) When one or more FAR or 48 CFR
Clauses 852.252–70 Solicitation provisions or Chapter 8 (VAAR) provisions, or
852.203–70 Commercial advertising. clauses incorporated by reference. portions thereof, are incorporated in a
852.203–71 Display of Department of 852.270–1 Representatives of contracting quotation or solicitation by reference,
Veterans Affairs hotline poster. officers. the contracting officer shall insert in the
quotation or solicitation the provision Box 34647, Washington, DC 20043– (2) The contractor may select any
found at FAR 52.252–1, Solicitation 4647. person for an employment opening
Provisions Incorporated by Reference. (c) The Contractor need not comply when there are no qualified adversely
(d) When one or more FAR or 48 CFR with paragraph (a) above, if the affected Federal personnel on the latest
Chapter 8 (VAAR) clauses, or portions Contractor has established a current listing provided by the
thereof, are incorporated in a quotation, mechanism, such as a hotline, by which contracting officer.
solicitation, or contract by reference, the employees may report suspected (d) Contracting reporting
contracting officer shall insert in the instances of improper conduct, and requirements. (1) No later than 5
quotation, solicitation, or contract the instructions that encourage employees working days after contract award, the
clause found at FAR 52.252–2, Clauses to make such reports. contractor shall furnish the contracting
Incorporated by Reference. (End of Clause) officer with the following:
(e) If one or more FAR provisions or (i) A list of employment openings
clauses, or portions thereof, are 852.207–70 Report of employment under including salaries and benefits,
incorporated in a quotation, solicitation, commercial activities. (ii) Sufficient job application forms
or contract by reference, the contracting As prescribed in 807.304–77 and for adversely affected Federal personnel.
officer shall insert in the FAR provision 873.110, the following clause will be (2) By the contract start date, the
or clause required by paragraph (c) or included in A–76 cost comparison contractor shall provide the contracting
(d) of this section the following Internet solicitations and solicitations issued officer with the following:
address: http://www.arnet.gov/far/. under the authority of 38 U.S.C. 8151– (i) The names of adversely affected
(f) If one or more 48 CFR Chapter 8 8153 which may result in conversion, Federal personnel offered an
(VAAR) provisions or clauses, or from in-house to contract performance, employment opening,
portions thereof, are incorporated in a of work currently being performed by (ii) The date the offer was made,
quotation, solicitation, or contract by VA personnel: (iii) A brief description of the
reference, the contracting officer shall position,
Report of Employment Under (iv) The date of acceptance of the offer
insert in the FAR provision or clause
Commercial Activities (Date) and the effective date of employment,
required by paragraph (c) or (d) of this
section the following Internet address: (a) Consistent with the Government (v) The date of rejection of the offer,
http://www1.va.gov/oamm/vaar/ post-employment conflict of interest if applicable, and the salary and benefits
vaarpdf.htm. regulations, the contractor shall give contained in the rejected offer, and
adversely affected Federal personnel the (vi) The names of any adversely
Subpart 852.2—Texts of Provisions right of first refusal for all employment affected Federal personnel who applied
and Clauses openings under this contract for which but were not offered employment and
they are qualified. the reason(s) for withholding an offer.
852.203–70 Commercial advertising. (b) Definitions. (3) For the first 90 calendar days after
As prescribed in 803.570–2, insert the (1) Adversely affected Federal the contract start date, the contractor
following clause: personnel means: shall provide the contracting officer
(i) Permanent Federal personnel who with the names of all persons hired or
Commercial Advertising (Date) terminated under the contract within 5
are assigned to the government
The bidder or offeror agrees that if a commercial activity, or working days of such hiring or
contract is awarded to him/her, as a (ii) Federal personnel who are termination.
result of this solicitation, he/she will identified for release from their (e) Information provided to the
not advertise the award of the contract competitive levels or separated as a contractor. (1) No later than 10 calendar
in his/her commercial advertising in result of the contract. days after the contract award, the
such a manner as to state or imply that (2) Employment openings means contracting officer shall furnish the
the Department of Veterans Affairs position vacancies created by this contractor a current list of adversely
endorses a product, project or contract that the contractor is unable to affected Federal personnel exercising
commercial line of endeavor. fill with personnel in the contractor’s the right of first refusal, along with their
(End of Clause) employ at the time of the contract completed job application forms.
award. The term includes positions (2) Between the contract award and
852.203–71 Display of Department of within a 50-mile radius of the start dates, the contracting officer shall
Veterans Affairs hotline poster. commercial activity that indirectly arise inform the contractor of any
As prescribed in 803.7001, insert the in the contractor’s organization as a reassignment or transfer of adversely
following clause: result of the contractor’s reassignment of affected Federal personnel to other
employees due to the award of this Federal positions.
Display of Department of Veterans (3) For a period of up to 90 calendar
contract.
Affairs Hotline Poster (Dec 1992) (3) Contract start date means the first days after the contract start date, the
(a) Except as provided in paragraph day of contractor performance. contracting officer will periodically
(c) below, the Contractor shall display (c) Filling employment openings. (1) provide the contractor with an updated
prominently in common work areas For a period beginning with contract listing of adversely affected Federal
within business segments performing award and ending 90 calendar days after personnel reflecting personnel who
work under Department of Veterans the contract start date, no person other were recently released from their
Affairs contracts, Department of than adversely affected Federal competitive levels or separated as a
Veterans Affairs Hotline posters personnel on the current listing result of the contract award.
prepared by the Department of Veterans provided by the contracting officer shall (f) Qualifications determination. The
Affairs Office of Inspector General. be offered an employment opening until contractor has a right under this clause
(b) Department of Veterans Affairs all adversely affected and qualified to determine adequacy of the
Hotline posters may be obtained from Federal personnel identified by the qualifications of adversely affected
the Department of Veterans Affairs contracting officer have been offered the Federal personnel for any employment
Office of Inspector General (53E), P.O. job and refused it. openings. However, adversely affected
Federal personnel who held jobs in the actual or potential organizational (c) Section I, General Description.
Government commercial activity that conflicts of interest. This section shall provide a generalized
directly correspond to an employment (c) Based on this information and any description of the equipment or devices
opening shall be considered qualified other information solicited or obtained and shall describe its purpose or
for the job. Questions concerning the by the contracting officer, the intended use. Included in this section
qualifications of adversely affected contracting officer may determine that will be a table listing all pertinent
Federal personnel for specific an organizational conflicts of interest equipment specifications, power
employment openings shall be referred exists which would warrant requirements, environmental limitations
to the contracting officer for disqualifying the contractor for award of and physical dimensions.
determination. The contracting officer’s the contract unless the organizational (d) Section II, Installation. Section II
determination shall be final and binding conflicts of interest can be mitigated to shall provide pertinent installation
on all parties. the contracting officer’s satisfaction by information. It shall list all input and
(g) Relating to other statutes, negotiating terms and conditions of the output connectors using applicable
regulations and employment policies. contract to that effect. If the conflict of reference designators and functional
The requirements of this clause shall interest cannot be mitigated and if the names as they appear on the equipment.
not modify or alter the contractor’s contracting officer finds that it is in the Included in this listing will be a brief
responsibilities under statutes, best interest of the United States to description of the function of each
regulations or other contract clauses award the contract, the contracting connector along with the connector
pertaining to the hiring of veterans, officer shall request a waiver in type. Instructions shall be provided as
minorities, or persons with disabilities. accordance with FAR 9.503 and 48 CFR to the recommended method of
(h) Penalty for noncompliance. 809.503. repacking the equipment for shipment
Failure of the contractor to comply with (d) Nondisclosure or (packing material, labeling, etc.).
any provision of the clause may be misrepresentation of actual or potential (e) Section III, Operation. Section III
organizational conflicts of interest at the will fully describe the operation of the
grounds for termination for default.
time of the offer, or arising as a result equipment and shall include a listing of
(End of Clause) each control with a brief description of
of a modification to the contract, may
result in the termination of the contract its function and step-by-step procedures
852.209–70 Organizational conflicts of
interest. at no expense to the Government. for each operating mode. Procedures
will use the control(s) nomenclature as
As prescribed in 809.507–1(b), insert (End of Provision) it appears on the equipment and will be
the following provision: keyed to one or more illustrations of the
852.211–70 Service data manuals.
Organizational Conflicts of Interest equipment. Operating procedures will
(a) As prescribed in 811.107(a), insert include any preoperational checks,
(Date)
the following clause: calibration adjustments and operation
(a) It is in the best interest of the tests. Notes, cautions and warnings shall
Government to avoid situations which Service Data Manuals (Nov 1984)
be set off from the text body so they may
might create an organizational conflict (a) The successful bidder will supply easily be recognizable and will draw the
of interest or where the offeror’s operation/maintenance (service data) attention of the reader. Illustrations
performance of work under the contract manuals with each piece of equipment should be used wherever possible
may provide the contractor with an in the quantity specified in the depicting equipment connections for
unfair competitive advantage. The term solicitation and resulting purchase test, calibration, patient monitoring and
‘‘organizational conflict of interest’’ order. As a minimum, the manual(s) measurements. For large, complex and/
means that because of other activities or shall be bound and equivalent to the or highly versatile equipment capable of
relationships with other persons, a manual(s) provided the manufacturer’s many operating modes and in other
person is unable to render impartial designated field service representative instances where the Operation Section
assistance or advice to the Government, as well as comply with all the is quite large, operational information
or the person’s objectivity in performing requirements in paragraphs (b) through may be bound separately in the form of
the contract work is or might be (i) of this clause. Sections, headings and an Operators Manual. The providing of
otherwise impaired, or person has an section sequence identified in (b) a separate Operators manual does not
unfair competitive advantage. through (i) of this clause are typical and relieve the supplier of his responsibility
(b) The offeror shall provide a may vary between manufacturers. for providing the minimum acceptable
statement with its offer which describes, Variances in the sections, headings and maintenance data specified herein.
in a concise manner, all relevant facts section sequence, however, do not When applicable, flow charts and
concerning any past, present, or relieve the manufacturer of his/her narrative descriptions of software shall
currently planned interest (financial, responsibility in supplying the technical be provided. If programming is either
contractual, organizational, or data called for therein. built-in and/or user modifiable, a
otherwise) or actual or potential (b) Title Page and Front Matter. The complete software listing shall be
organizational conflicts of interest title page shall include the equipment supplied. Equipment items with
relating to the services to be provided nomenclature, model number, effective software packages shall also include
under this solicitation. The offeror shall date of the manual and the diagnostic routines and sample outputs.
also provide statements with its offer manufacturer’s name and address. If the Submission information shall be given
containing the same information for any manual applies to a particular version of in the Maintenance Section to identify
consultants and subcontractors the equipment only, the title page shall equipment malfunctions that are
identified in its proposal and which will also list that equipment’s serial number. software related.
provide services under the solicitation. Front matter shall consist of the Table (f) Section IV, Principles of Operation.
The offeror may also provide relevant of Contents, List of Tables, List of This section shall describe in narrative
facts that show how its organizational Illustrations and a frontispiece form the principles of operation of the
and/or management system or other (photograph or line drawing) depicting equipment. Circuitry shall be discussed
actions would avoid or mitigate any the equipment. in sufficient detail to be understood by
technicians and engineers who possess location of printed circuit board descriptive literature that qualifies the
a working knowledge of electronics and mounted components. offer will require rejection of the offer.
a general familiarity with the overall (h) Section VI, Replacement Parts List. However, within 5 days after award of
application of the devices. The circuit The replacement parts list shall list, in contract, the contractor will submit to
descriptions should start at the overall alphanumeric order, all electrical/ the contracting officer literature
equipment level and proceed to more electronic, mechanical and pneumatic describing the equipment he/she
detailed circuit descriptions. The components, their description, value intends to furnish and indicating strict
overall description shall be keyed to a and tolerance, true manufacturer and compliance with the specification
functional block diagram of the manufacturers’ part number. requirements. The contracting officer
equipment. Circuit descriptions shall be (i) Section VII, Drawings. Wiring and will, by written notice to the contractor
keyed to schematic diagrams discussed schematic diagrams shall be included. within 20 calendar days after receipt of
in paragraph (i) below. It is The drawings will depict the circuitry the literature, approve, conditionally
recommended that for complex or using standard symbols and shall approve, or disapprove the equipment
special circuits, simplified schematics include the reference designations and being proposed. The notice of approval
should be included in this section. component values or type designators. or conditional approval will not relieve
(g) Section V, Maintenance. The Drawings shall be clear and legible and the contractor from complying with all
maintenance section shall contain a list shall not be engineering or productions requirements of the specifications and
of recommended test equipment, special sketches. all other terms and conditions of this
tools, preventive maintenance contract. A notice of conditional
(End of Clause)
instructions and corrective information. approval will state any further action
Alternate I (Date). If the bid or required of the contractor. A notice of
The list of test equipment shall be that proposal will result in the initial
recommended by the manufacturer and disapproval will cite reasons therefore.
purchase (including each make and If the equipment is disapproved by the
shall be designated by manufacturer and model) of a centrally procured item,
model number. Special tools are those Government, the contractor will be
insert the following paragraph: subject to action under the Default or
items not commercially available or (j) Initial purchase. The contractor
those that are designed specifically for Termination for Cause provision of this
agrees, when requested by the contract. However, prior to default or
the equipment being supplied. contracting officer, to furnish not more
Sufficient data will be provided to termination for cause action the
than three copies of the technical contractor will be permitted a period (at
enable their purchase by the Department documentation required by paragraph
of Veterans Affairs. Preventive least 10 days) under that clause to
852.211–70(a) to the Service and submit additional descriptive literature
maintenance instructions shall consist Reclamation Division, Hines, IL. In
of those recommended by the on equipment originally offered or
addition, the contractor agrees to descriptive literature on other
manufacturer to preclude unnecessary furnish two additional copies of the
failures. Procedures and the equipment. The Government reserves
technical documentation required by the right to require an equitable
recommended frequency of performance 852.211–70(a) with each piece of
shall be included for visual inspection, adjustment of the contract price for any
equipment sold as a result of the extension of the delivery schedule
cleaning, lubricating, mechanical invitation for bid or request for
adjustments and circuit calibration. necessitated by additional descriptive
proposal. literature evaluations.
Corrective maintenance shall consist of
the data necessary to troubleshoot and (End of Clause) (End of Provision)
rectify a problem and shall include (b) As prescribed in 811.107(b), insert
procedures for realigning and testing the the following clause: 852.211–72 Technical industry standards.
equipment. Troubleshooting shall As prescribed in 811.103–70, insert
Service Data Manuals, Mechanical the following provision:
include either a list of test points with
Equipment (Date)
the applicable voltage levels or Technical Industry Standards (Date)
waveforms that would be present under The contractor agrees to furnish two
a certain prescribed set of conditions, a hard copies of a manual, handbook or The supplies or equipment required
troubleshooting chart listing the brochure containing operating, by this invitation for bid or request for
symptom, probable cause and remedy, installation, and maintenance proposal must conform to the standards
or a narrative containing sufficient data instructions (including pictures or of the [ ]* and [ ]* as to [ ]**. The
to enable a test technician or electronics illustrations, schematics, and complete successful bidder or offeror will be
engineer to determine and locate the repair/test guides as necessary). Where required to submit proof that the item(s)
probable cause of malfunction. Data applicable, it will include electrical data he/she furnishes conforms to this
shall also be provided describing the and connection diagrams for all utilities. requirement. This proof may be in the
preferred method of repairing or The instructions shall also contain a form of a label or seal affixed to the
replacing discrete components mounted complete list of all replaceable parts equipment or supplies, warranting that
on printed circuit boards or located in showing part number, name, and they have been tested in accordance
areas where special steps must be quantity required. with and conform to the specified
followed to disassemble the equipment. standards. Proof may also be furnished
(End of Clause) in the form of a certificate from one of
Procedures shall be included to realign
and test the equipment at the 852.211–71 Special notice. the above listed organizations certifying
completion of repairs and to restore it to that the item(s) furnished have been
As prescribed in 870.112, insert the
its original operating condition. These tested in accordance with and conform
following provision:
procedures shall be supported by the to the specified standards.
necessary waveforms and voltage levels, Special Notice (Date) (End of Provision)
and data for selecting matched Descriptive literature. The submission *Insert name(s) of organization(s), the
components. Diagrams, either of descriptive literature with offers is standards of which are pertinent to the
photographic or line, shall show the not required and voluntarily submitted Government’s needs.
**Insert pertinent standards, i.e., fire specific references to information Caution to Bidders—Bid Envelopes
and casualty, safety and fire protection, previously furnished or to information (Date)
etc. otherwise available to the purchasing It is the responsibility of each bidder
activity. to take all necessary precautions,
852.211–73 Brand name or equal.
(2) If the bidder proposes to modify a including the use of proper mailing
As prescribed in 811.104–71, insert product so as to make it conform to the
the following clause: cover, to insure that the bid price cannot
requirements of the Invitation for Bids, be ascertained by anyone prior to bid
Brand Name or Equal (Date) he/she shall: opening. If a bid envelope is furnished
(i) Include in his/her bid a clear with this invitation, the bidder is
(Note: As used in this clause, the term description of such proposed requested to use this envelope in
‘‘brand name’’ includes identification of modifications, and submitting the bid. The bidder may,
products by make and model.)
(ii) Clearly mark any descriptive however, use any suitable envelope,
(a) If items called for by this invitation material to show the proposed identified by the invitation number and
for bids have been identified in the modifications. bid opening time and date. If an
schedule by a ‘‘brand name or equal’’ (3) Modifications proposed after bid Optional Form (OF) 17, Sealed Bid
description, such identification is opening to make a product conform to Label, is furnished with this invitation
intended to be descriptive, but not a brand name product referenced in the in lieu of a bid envelope, the bidder is
restrictive, and is to indicate the quality Invitation for Bids will not be advised to complete and affix the OF 17
and characteristics of products that will considered. to the lower left corner of the envelope
be satisfactory. Bids offering ‘‘equal’’ used in submitting the bid.
products (including products of the (End of Clause)
(End of Provision)
brand name manufacturer other than the
852.211–74 Liquidated damages.
one described by brand name) will be 852.214–71 Restrictions on alternate
considered for award if such products As prescribed in 811.503 and 836.206, item(s).
are clearly identified in the bids and are the contracting officer may insert the As prescribed in 814.201–6(b)(1),
determined by the Government to meet following clause when appropriate: insert the following provision:
fully the salient characteristics Liquidated Damages (Date)
requirements listed in the invitation. Restrictions on Alternate Item(s) (Date)
(b) Unless the bidder clearly indicates If any unit of the work contracted for Bids on [ ]* will be considered only
in his bid that he is offering an ‘‘equal’’ is accepted in advance of the whole, the if acceptable bids on [ ]** are not
product, his bid shall be considered as rate of liquidated damages assessed will received or do not satisfy the total
offering a brand name product be in the ratio that the value of the requirement.
referenced in the invitation for bids. unaccepted work bears to the total (End of Provision)
(c)(1) If the bidder proposes to furnish amount of the contract. If a separate
*Contracting officer will insert an
an ‘‘equal’’ product, the brand name, if price for unaccepted work has not been
alternate item that is considered
any, of the product to be furnished shall stated in the contractor’s bid,
acceptable.
be inserted in the space provided in the determination of the value thereof will **Contracting officer will insert the
Invitation or Bids, or such product shall be made from schedules of costs required item and item number.
be otherwise clearly identified in the furnished by the contractor and
bid. The evaluation of bids and the approved by the contracting officer, as 852–214–72 Alternate item(s).
determination as to equality of the specified elsewhere in the contract. As prescribed in 814.201–6(b)(2),
product offered shall be the insert the following provision:
responsibility of the Government and (End of Clause)
will be based on information furnished Alternate Item(s) (Date)
852.211–75 Product specifications.
by the bidder or identified in his/her bid Bids on [ ]* will be given equal
As prescribed in 811.204, insert the
as well as other information reasonably consideration along with bids on [ ]**
following the following clause:
available to the purchasing activity. and any such bids received may be
CAUTION TO BIDDERS. The Product Specifications (Date) accepted if to the advantage of the
purchasing activity is not responsible Government. Tie bids will be decided in
for locating or securing any information The products offered under this favor of [ ].**
that is not identified in the bid and solicitation shall be type
llllllll, grade (End of Provision)
reasonably available to the purchasing
activity. Accordingly, to insure that llllllll, in accordance with *Contracting officer will insert an
[type of specification] No. alternate item that is considered
sufficient information is available, the
bidder must furnish as a part of his/her llllllll, dated acceptable.
bid all descriptive material (such as llllllll and amendment **Contracting officer will insert the
cuts, illustrations, drawings or other llllllll dated required item and item number.
information) necessary for the llllllll, except for paragraphs
852.214–73 Alternate packaging and
purchasing activity to: llllllll and llllllll packing.
(i) Determine whether the product which are amended as follows: [List any
amendments to the specifications] As prescribed in 814.201–6(b)(3),
offered meets the salient characteristics insert the following provision:
requirement of the Invitation for Bids, (End of Clause)
and Alternate Packaging and Packing (Date)

(ii) Establish exactly what the bidder 852.214–70 Caution to bidders—bid The bidders offer must clearly
proposes to furnish and what the envelopes. indicate the quantity, package size, unit,
Government would be binding itself to As provided in 814.201–6(a), the or other different feature upon which
purchase by making an award. The following provision will be included in the quote is made. Evaluation of the
information furnished may include all invitations for bid: alternate or multiple alternates will be
made on a common denominator such requirements for the entire contract workweek, which would otherwise be a
as per ounce, per pound, etc., basis. period. It is understood and agreed that violation of the Contract Work Hours
(End of Provision) during the period of this contract the and Safety Standards Act (40 U.S.C.
Government may order and the 3701–3708), provided:
852.214–74 Bid samples. contractor will haul such coal as may, (a) The contractor or subcontractor is
As prescribed in 814.201–6(c), insert in the opinion of the Government, be primarily engaged in the care of nursing
the following provision: required, except that in the public home patients residing on the
exigency procurement may be made contractor’s or subcontractor’s premises;
Bid Samples (Date) without regard to this contract. (b) There is an agreement or
Any bid sample(s) furnished must be (End of Clause) understanding between the contractor or
in the quantities specified in the subcontractor and their employees,
Alternate II (APR 1984). As prescribed
solicitation and plainly marked with the before performance of work, that a work
in 816.504(c), insert the following
complete lettering/numbering and period of 14 consecutive days is
clause:
description of the related bid item(s); acceptable in lieu of a work period of 7
the number of the Invitation for Bids; Estimated Quantities (Apr 1984) consecutive days for the purpose of
and the name of the bidder submitting The supplies and/or services listed in overtime compensation;
the bid sample(s). Cases or packages the attached schedule will be furnished (c) Employees receive overtime
containing any bid sample(s) must be at such time and in such quantities as compensation at a rate no less than 11⁄2
plainly marked ‘‘Bid Sample(s)’’ and all they are required. times the employees’ regular hourly rate
changes pertaining to the preparation of pay for work in excess of 80 hours in
and transportation of bid sample(s) must (End of Clause) any 14 day period; and
be prepaid by the bidder. Bid sample(s) Alternate III (JUL 1989). As prescribed (d) Pay is otherwise computed in
must be received at the location in 816.504(a), insert the following accordance with the requirements of the
specified in the solicitation by the time clause: Fair Labor Standards Act of 1938, as
and date for receipt of bids. Estimated Quantities (Jul 1989) amended.
(End of Provision) As it is impossible to determine the (End of Clause)
852.216–70 Estimated quantities. exact quantities that will be required 852.228–70 Bond premium adjustment.
As prescribed in 816.504(a), insert the during the contract term, each bidder
whose bid is accepted wholly or in part As prescribed in 828.106–70, insert
following clause: the following clause:
will be required to deliver all articles
Estimated Quantities (Apr 1984) that may be ordered during the contract Bond Premium Adjustment (Apr 1984)
As it is impossible to determine the term, except as he or she otherwise
When net changes in original contract
exact quantities that will be required indicates in his or her bid and except as
price affect the premium of a Corporate
during the contract term, each bidder otherwise provided herein. Bids will be
Surety Bond by $5 or more, the
whose bid is accepted wholly or in part considered if made with the proviso that
Government in determining basis for
will be required to deliver all articles or the total quantities delivered shall not
final settlement, will provide for bond
services that may be ordered during the exceed a certain specified quantity. The
premium adjustment computed at the
contract term, except as he/she fact that quantities are estimated shall
rate shown in the bond.
otherwise indicates in his/her bid and not relieve the contractor from filling all
except as otherwise provided herein. orders placed under this contract to the (End of Clause)
Bids will be considered if made with the extent of his/her obligation. Also, the
852.228–71 Indemnification and insurance.
proviso that the total quantities Department of Veterans Affairs shall not
be relieved of its obligation to order As prescribed in 828.306, insert the
delivered shall not exceed a certain
from the contractor all articles that may, following clause:
specified quantity. Bids offering less
than 75 percent of the estimated in the judgment of the ordering officer, Indemnification and Insurance (Date)
requirement or which provide that the be needed except that in the public
exigency procurement may be made (a) Indemnification. The contractor
Government shall guarantee any definite expressly agrees to indemnify and save
quantity, will not be considered. The without regard to this contract.
the Government, its officers, agents,
fact that quantities are estimated shall (End of Clause) servants, and employees harmless from
not relieve the contractor from filling all and against any and all claims, loss,
orders placed under this contract to the 852.222–70 Contract Work-Hours and
Safety Standards Act—nursing home care damage, injury, and liability, however
extent of his/her obligation. Also, the caused, resulting from, arising out of, or
contract supplement.
Department of Veterans Affairs shall not in any way connected with the
be relieved of its obligation to order As prescribed in 822.305, for nursing
home care requirements, insert the performance of work under this
from the contractor all articles or agreement. Further, it is agreed that any
services that may, in the judgment of the following clause:
negligence or alleged negligence of the
ordering officer, be needed except that Contract Work Hours and Safety Government, its officers, agents,
in the public exigency procurement may Standard Act—Nursing Home Care servants, and employees, shall not be a
be made without regard to this contract. Contract Supplement (Date) bar to a claim for indemnification unless
(End of Clause) The following exemption to FAR the act or omission of the Government,
Alternate I (APR 1984). As prescribed clause 52.222–4, Contract Work Hours its officers, agents, servant, and
in 816.504(b), insert the following and Safety Standards Act—Overtime employees is the sole, competent, and
clause: Compensation, applies to this contract: producing cause of such claims, loss,
A Contractor and subcontractor under damage, injury, and liability. At the
Estimated Quantities (Apr 1984) this contract will not be required to pay option of the contractor, and subject to
The estimated requirements shown in overtime wages to their employees for the approval by the contracting officer
this invitation for bids cover the work in excess of 40 hours in any of the sources, insurance coverage may
be employed as guaranty of 852.229–71 [Reserved]. Office of Facilities Management, 810

indemnification. Vermont Avenue, NW., Washington, DC
852.233–70 Protest Content/Alternative
(b) Insurance. Satisfactory insurance Dispute Resolution.
20420. The protest will not be
coverage is a condition precedent to considered if the interested party has a
As prescribed in 833.106, insert the protest on the same or similar issues
award of a contract. In general, a following provision:
successful bidder must present pending with the contracting officer.
satisfactory evidence of full compliance Protest Content/Alternative Dispute (End of Provision)
with State and local requirements, or Resolution (Date)
852.236–70 [Reserved].
those below stipulated, whichever are (a) Any protest filed by an interested
the greater. More specifically, party shall: 852.236–71 Specifications and drawings
workmen’s compensation and (1) Include the name, address, fax for construction.
employer’s liability coverage will number, and telephone number of the As prescribed in 836.521, insert the
conform to applicable State law protester; following clause:
requirements for the service (2) Identify the solicitation and/or
contract number; Specifications and Drawings for
contemplated, whereas general liability
(3) Include an original signed by the Construction (Jul 2002)
and automobile liability of
comprehensive type, shall in the protester or the protester’s The clause entitled ‘‘Specifications
absence of higher statutory minimums, representative and at least one copy; and Drawings for Construction’’ in FAR
be required in the amounts per vehicle (4) Set forth a detailed statement of 52.236–21 is supplemented as follows:
used of not less than $200,000 per the legal and factual grounds of the (a) The contracting officer’s
person and $500,000 per occurrence for protest, including a description of interpretation of the drawings and
bodily injury and $20,000 per resulting prejudice to the protester, and specifications will be final, subject to
occurrence for property damage. State provide copies of relevant documents; the disputes clause.
(5) Specifically request a ruling of the (b) Large scale drawings supersede
approved sources of insurance coverage
individual upon whom the protest is small scale drawings.
ordinarily will be deemed acceptable to
served; (c) Dimensions govern in all cases.
the Department of Veterans Affairs
(6) State the form of relief requested; Scaling of drawings may be done only
installation, subject to timely and for general location and general size of
certifications by such sources of the (7) Provide all information items.
types and limits of the coverages establishing the timeliness of the (d) Dimensions shown of existing
afforded by the sources to the bidder. (In protest. work and all dimensions required for
those instances where airplane service (b) Failure to comply with the above work that is to connect with existing
is to be used, substitute the word may result in dismissal of the protest work shall be verified by the contractor
‘‘aircraft’’ for ‘‘automobile’’ and without further consideration. by actual measurement of the existing
‘‘vehicle’’ and modify coverage to (c) Bidders/offerors and contracting work. Any work at variance with that
require aircraft public and passenger officers are encouraged to use specified or shown in the drawings shall
liability insurance of at least $200,000 alternative dispute resolution (ADR) not be performed by the contractor until
per passenger and $500,000 per procedures to resolve protests at any approved in writing by the contracting
occurrence for bodily injury, other than stage in the protest process. The officer.
passenger liability, and $200,000 per Department of Veterans Affairs Board of
occurrence for property damage. (End of Clause)
Contract Appeals (VABCA) is an
Coverage for passenger liability bodily independent and neutral entity within 852.236–72 Performance of work by the
injury shall be at least $200,000 the Department of Veterans Affairs and contractor.
multiplied by the number of seats or is available to serve as the third party As prescribed in 836.501, insert the
passengers, whichever is greater.) neutral (Neutral) for bid protests. If ADR following clause:
is used, the Department of Veterans
(End of Clause) Affairs will not furnish any Performance of Work by the Contractor
documentation in an ADR proceeding (Jul 2002)
852.229–70 Sales or use taxes.
beyond what is allowed by the Federal The clause entitled ‘‘Performance of
As prescribed in 829.302–70, insert Acquisition Regulation. Work by the Contractor’’ in FAR
the following provision: 52.236–1 is supplemented as follows:
(End of Provision)
Sales Or Use Taxes (Date) (a) Contract work accomplished on
852.233–71 Alternate Protest Procedure. the site by laborers, mechanics, and
This clause replaces paragraph (k) of As prescribed in 833.106, insert the foremen/forewomen on the contractor’s
Federal Acquisition Regulation clause following provision: payroll and under his/her direct
52.212–4, Contract Terms and supervision shall be included in
Alternate Protest Procedure (Jan 1998) establishing the percent of work to be
Conditions—Commercial Items. The
articles listed in this solicitation will be As an alternative to filing a protest performed by the contractor. Cost of
purchased from the personal funds of with the contracting officer, an material and equipment installed by
patients and prices submitted herein interested party may file a protest with such labor may be included. The work
include any sales or use tax heretofore the Deputy Assistant Secretary for by the contractor’s executive,
imposed by any State, or by any duly Acquisition and Materiel Management, supervisory and clerical forces shall be
constituted taxing authority therein, Acquisition Administration Team, excluded in establishing compliance
having jurisdiction to levy such a tax, Department of Veterans Affairs, 810 with the requirements of this clause.
applicable to the material in this Vermont Avenue, NW., Washington, DC (b) The contractor shall submit,
solicitation. 20420, or for solicitations issued by the simultaneously with the schedule of
Office of Facilities Management, the costs required by the Payments Under
(End of Clause) Chief Facilities Management Officer, Fixed-Price Construction Contracts
clause of the contract, a statement 852.236–73 [Reserved]. resident engineer at the construction
designating the branch or branches of site.
852.236–74 Inspection of construction.
contract work to be performed with his (b) Except as provided below, the
/her forces. The approved schedule of As prescribed in 846.312, insert the resident engineer’s directions will not
costs will be used in determining the following clause: conflict with or change contract
value of a branch or branches, or Inspection of Construction (Jul 2002) requirements.
portions thereof, of the work for the (c) Within the limits of any specific
The clause entitled ‘‘Inspection of authority delegated by the contracting
purpose of this article.
Construction’’ in FAR 52.246–12 is officer, the resident engineer may, by
(c) If, during the progress of work supplemented as follows:
hereunder, the contractor requests a written direction, make changes in the
(a) Inspection of materials and articles work. The contractor shall be advised of
change in the branch or branches of the furnished under this contract will be
work to be performed by his/her forces the extent of such authority prior to
made at the site by the resident execution of any work under the
and the contracting officer determines it engineer, unless otherwise provided for
to be in the best interest of the contract.
in the specifications.
Government, the contracting officer (b) Final inspection will not be made (End of Clause)
may, at his/her discretion, authorize a until the contract work is ready for
change in such branch or branches of 852.236–79 Daily report of workers and
beneficial use or occupancy. The material.
said work. Nothing contained herein contractor shall notify the contracting
shall permit a reduction in the As prescribed in 836.573, insert the
officer, through the resident engineer, following clause:
percentage of work to be performed by fifteen (15) days prior to the date on
the contractor with his/her forces, it which the work will be ready for final Daily Report of Workers and Material
being expressly understood that this is inspection. (Apr 1984)
a contract requirement without right or
(End of Clause) The contractor shall furnish to the
privilege of reduction.
resident engineer each day a
(d) In the event the contractor fails or 852.236–75 [Reserved]. consolidated report for the preceding
refuses to meet the requirement of the work day in which is shown the number
FAR clause at 52.236–1, it is expressly 852.236–76 Correspondence.
of laborers, mechanics, foremen/
agreed that the contract price will be As prescribed in 836.570, insert the forewomen and pieces of heavy
reduced by 15 percent of the value of following clause: equipment used or employed by the
that portion of the percentage contractor and subcontractors. The
Correspondence (Apr 1984)
requirement that is accomplished by report shall bear the name of the firm,
others. For the purpose of this clause, it All correspondence relative to this
the branch of work that they perform,
is agreed that 15 percent is an contract shall bear the Specification
such as concrete, plastering, masonry,
acceptable estimate of the contractor’s Number, Project Number, Department of
plumbing, sheet metal work, etc. The
overhead and profit, or mark-up, on that Veterans Affairs Contract Number, title
report shall give a breakdown of
portion of the work which the of project and name of facility.
employees by crafts, location where
contractor fails or refuses to perform, (End of Clause) employed, and work performed. The
with his/her own forces, in accordance report shall also list materials delivered
with the FAR clause at 52.236–1. 852.236–77 Reference to ‘‘standards’’.
to the site on the date covered by the
(End of Clause) As prescribed in 836.571, insert the report.
following clause:
Alternate I (Date). For requirements (End of Clause)
which include Network Analysis Reference to ‘‘Standards’’ (Jul 2002)
852.236–80 Subcontracts and work
System (NAS), substitute the following Any materials, equipment, or coordination.
paragraphs (b) and (c) for paragraphs (b) workmanship specified by references to As prescribed in 836.574, insert the
and (c) of the basic clause: number, symbol, or title of any specific following clause:
(b) The contractor shall submit, Federal, Industry or Government
simultaneously with the cost per Agency Standard Specification shall Subcontracts and Work Coordination
activity of the construction schedule comply with all applicable provisions of (Apr 1984)
required by Section 01310 or 01311, such standard specifications, except as (a) Nothing contained in this contract
NETWORK ANALYSIS SYSTEM, a limited to type, class or grade, or shall be construed as creating any
responsibility code for all activities of modified in contract specifications. contractual relationship between any
the network for which the contractor’s Reference to ‘‘Standards’’ referred to in subcontractor and the Government.
forces will perform the work. The cost the contract specifications, except as Divisions or sections of specifications
of these activities will be used in modified, shall have full force and effect are not intended to control the
determining the portions of the total as though printed in detail in the contractor in dividing work among
contract work to be executed by the specifications. subcontractors, or to limit work
contractor’s forces for the purpose of (End of Clause) performed by any trade.
this article. (b) The contractor shall be responsible
(c) If, during progress of work 852.236–78 Government supervision. to the Government for acts and
hereunder, the contractor requests a As prescribed in 836.572, insert the omissions of his/her own employees,
change in activities of work to be following clause: and of the subcontractors and their
performed by the contractor’s forces and employees. The contractor shall also be
the contracting officer determines it to Government Supervision (Apr 1984)
responsible for coordination of the work
be in the best interest of the (a) The work will be under the of the trades, subcontractors, and
Government, the contracting officer direction of the Department of Veterans material suppliers.
may, at his or her discretion, authorize Affairs contracting officer, who may (c) The Government or its
a change in such activities of said work. designate another VA employee to act as representatives will not undertake to
settle any differences between the in order to assure the expeditious (iii) Failure to present submittals in a
contractor and subcontractors or solutions of problems and the timely manner; or
between subcontractors. installation of lines and equipment as (iv) Failure to comply in good faith
(d) The Government reserves the right contemplated by the contract with approved subcontracting plans,
to refuse to permit employment on the documents while avoiding or certifications, or contract requirements.
work or require dismissal from the work minimizing additional costs to the
of any subcontractor who, by reason of contractor and to the Government. In (3) Any level of retention shall not
previous unsatisfactory work on the event the contractor, in coordinating exceed 10 percent either where there is
Department of Veterans Affairs projects the various installations and in planning determined to be unsatisfactory
or for any other reason, is considered by the method of installation, finds a performance, or when the retainage is to
the contracting officer to be incompetent conflict in location or elevation of any ensure satisfactory completion. Retained
or otherwise objectionable. of the utilities with themselves, with amounts shall be paid promptly upon
structural items or with other completion of all contract requirements,
(End of Clause) but nothing contained in this
Alternate I (JUL 2002). For new construction items, he/she shall bring
this conflict to the attention of the subparagraph shall be construed as
construction work with complex limiting the contracting officer’s right to
mechanical-electrical work, the contracting officer immediately. In
doing so, the contractor shall explain withhold funds under other provisions
following paragraph relating to work of the contract or in accordance with the
the proposed method of solving the
coordination may be substituted for general law and regulations regarding
problem or shall request instructions as
paragraph (b) of the basic clause: the administration of Government
(b) The contractor shall be responsible to how to proceed if adjustments
beyond those of usual trades contracts.
to the Government for acts and
omissions of his/her own employees, coordination are necessary. Utilities (b) The contractor shall submit a
and subcontractors and their employees. installation work will not proceed in schedule of cost to the contracting
The contractor shall also be responsible any area prior to the submission and officer for approval within 30 calendar
for coordination of the work of the completion of the Government review of days after date of receipt of notice to
trades, subcontractors, and material the coordinated drawings for that area, proceed. Such schedule will be signed
suppliers. The contractor shall, in nor in any area in which conflicts are and submitted in triplicate. The
advance of the work, prepare disclosed by the coordination drawings, approved cost schedule will be one of
coordination drawings showing the until the conflicts have been corrected the bases for determining progress
location of openings through slabs, the to the satisfaction of the contracting payments to the contractor for work
pipe sleeves and hanger inserts, as well officer. It is the responsibility of the completed. This schedule shall show
as the location and elevation of utility contractor to submit the required cost by the branches of work for each
lines, including, but not limited to, drawings in a timely manner consistent building or unit of the contract, as
conveyor systems, pneumatic tubes, with the requirements to complete the instructed by the resident engineer.
ducts, and conduits and pipes 2 inches work covered by this contract within the (1) The branches shall be subdivided
and larger in diameter. These drawings, prescribed contract time. into as many sub-branches as are
including plans, elevations, and 852.236–81 [Reserved]. necessary to cover all component parts
sections as appropriate, shall clearly of the contract work.
show the manner in which the utilities 852.236–82 Payments under fixed-price
(2) Costs as shown on this schedule
fit into the available space and relate to construction contracts (without NAS).
must be true costs and, should the
each other and to existing building As prescribed in 832.111, insert the resident engineer so desire, he/she may
elements. Drawings shall be of following clause in contracts that do not require the contractor to submit the
appropriate scale to satisfy the contain a section entitled ‘‘Network original estimate sheets or other
previously stated purposes, but not Analysis System (NAS).’’ information to substantiate the detailed
smaller than 3⁄8-inch scale. Drawings Payments Under Fixed-Price makeup of the schedule.
may be composite (with distinctive Construction Contracts (Apr 1984) (3) The sum of the sub-branches, as
colors for the various trades) or may be
The clause entitled ‘‘Payments Under applied to each branch, shall equal the
separate but fully coordinated drawings
Fixed-Price Construction Contracts’’ in total cost of such branch. The total cost
(such as sepias or photographic paper
FAR 52.232–5 is implemented as of all branches shall equal the contract
reproducibles) of the same scale.
follows: price.
Separate drawings shall depict identical
(a) Retainage: (4) Insurance and similar items shall
building areas or sections and shall be (1) The contracting officer may retain
capable of being overlaid in any be prorated and included in the cost of
funds: each branch of the work.
combination. The submitted drawings (i) Where performance under the
for a given area of the project shall show contract has been determined to be (5) The cost schedule shall include
the work of all trades that will be deficient or the contractor has separate cost information for the
involved in that particular area. Six performed in an unsatisfactory manner systems listed in the table in this
complete composite drawings or six in the past; or paragraph (b)(5). The percentages listed
complete sets of separate reproducible (ii) As the contract nears completion, below are proportions of the cost listed
drawings shall be received by the to ensure that deficiencies will be in the contractor’s cost schedule and
Government not less than 20 days prior corrected and that completion is timely. identify, for payment purposes, the
to the scheduled start of the work in the (2) Examples of deficient performance value of the work to adjust, correct and
area illustrated by the drawings, for the justifying a retention of funds include, test systems after the material has been
purpose of showing the contractor’s but are not restricted to, the following: installed. Payment of the listed
planned methods of installation. The (i) Unsatisfactory progress as percentages will be made only after the
objectives of such drawings are to determined by the contracting officer; contractor has demonstrated that each of
promote carefully planned work (ii) Failure to meet schedule in the systems is substantially complete
sequence and proper trade coordination, Schedule of Work Progress; and operates as required by the contract.
VALUE OF ADJUSTING, CORRECTING, (6) A supplemental agreement will be 852.236–83 Payments under fixed-price
executed between the Government and construction contracts (including NAS).
AND TESTING SYSTEM
the contractor with the consent of the As prescribed in 832.111, insert the
System Percent contractor’s surety for off-site storage. following clause in contracts that
(e) The contractor, prior to receiving contain a section entitled ‘‘Network
Pneumatic tube system ................ 10 Analysis System (NAS).’’
Incinerators (medical waste and a progress or final payment under this
trash) ......................................... 5 contract, shall submit to the contracting Payments Under Fixed-Price
Sewage treatment plant equip- officer a certification that the contractor Construction Contracts (Jul 2002)
ment .......................................... 5 has made payment from proceeds of The clause entitled ‘‘Payments Under
Water treatment plant equipment 5 prior payments, or that timely payment
Washers (dish, cage, glass, etc.) 5
Fixed-Price Construction Contracts’’ in
will be made from the proceeds of the FAR 52.232–5 is implemented as
Sterilizing equipment .................... 5 progress or final payment then due, to
Water distilling equipment ............ 5 follows:
Prefab temperature rooms (cold, subcontractors and suppliers in (a) Retainage:
constant temperature) ............... 5 accordance with the contractual (1) The contracting officer may retain
Entire air-conditioning system arrangements with them. funds:
(Specified under 600 Sections) 5 (f) The Government reserves the right (i) Where the performance under the
Entire boiler plant system (Speci- to withhold payment until samples, contract has been determined to be
fied under 700 Sections) ........... 5 deficient or the contractor has
General supply conveyors ............ 10
shop drawings, engineer’s certificates,
additional bonds, payrolls, weekly performed in an unsatisfactory manner
Food service conveyors ............... 10
statements of compliance, proof of title, in the past; or
Pneumatic soiled linen and trash
system ....................................... 10 nondiscrimination compliance reports, (ii) As the contract nears completion,
Elevators and dumbwaiters .......... 10 or any other things required by this to ensure that deficiencies will be
Materials transport system ........... 10 contract, have been submitted to the corrected and that completion is timely.
Engine-generator system ............. 5 satisfaction of the contracting officer. (2) Examples of deficient performance
Primary switchgear ....................... 5 justifying a retention of funds include,
Secondary switchgear .................. 5 (End of Clause) but are not restricted to, the following:
Fire alarm system ......................... 5 (i) Unsatisfactory progress as
Nurse call system ......................... 5 Alternate I (JUL 2002). If the determined by the contracting officer;
Intercom system ........................... 5 specifications include guarantee period (ii) Failure either to meet schedules in
Radio system ................................ 5 services, the contracting officer shall Section Network Analysis System
TV (entertainment) system ........... 5 include the following paragraphs as (NAS), or to process the Interim Arrow
additions to paragraph (b) of the basic Diagram/Complete Project Arrow
(c) In addition to this cost schedule, clause: Diagram;
the contractor shall submit such unit (iii) Failure to present submittals in a
(6)(i) The contractor shall at the time
costs as may be specifically requested. timely manner; or
The unit costs shall be those used by the of contract award furnish the total cost
of the guarantee period services in (iv) Failure to comply in good faith
contractor in preparing his/her bid and with approved subcontracting plans,
will not be binding as pertaining to any accordance with specification section(s)
covering guarantee period services. The certifications, or contract requirements.
contract changes. (3) Any level of retention shall not
(d) The contracting officer will contractor shall submit, within 15
calendar days of receipt of the notice to exceed 10 percent either where there is
consider for monthly progress payments determined to be unsatisfactory
material and/or equipment procured by proceed, a guarantee period
performance program that shall include performance, or when the retainage is to
the contractor and stored on the ensure satisfactory completion. Retained
construction site, as space is available, an itemized accounting of the number of
work-hours required to perform the amounts shall be paid promptly upon
or at a local approved location off the completion of all contract requirements,
site, under such terms and conditions as guarantee period service on each piece
of equipment. The contractor shall also but nothing contained in this
such officer approves, including but not subparagraph shall be construed as
limited to the following: submit the established salary costs,
including employee fringe benefits, and limiting the contracting officer’s right to
(1) The material or equipment is in withhold funds under other provisions
accordance with the contract what the contractor reasonably expects
to pay over the guarantee period, all of of the contract or in accordance with the
requirements and/or approved samples general law and regulations regarding
and shop drawings. which will be subject to the contracting
officer’s approval. the administration of Government
(2) Only those materials and/or contracts.
equipment as are approved by the (ii) The cost of the guarantee period (b) The contractor shall submit a
resident engineer for storage will be service shall be prorated on an annual schedule of costs in accordance with the
included. basis and paid in equal monthly requirements of Section Network
(3) Such materials and/or equipment payments by VA during the period of Analysis System (NAS) to the
will be stored separately and will be guarantee. In the event the installer does contracting officer for approval within
readily available for inspection and not perform satisfactorily during this 90 calendar days after date of receipt of
inventory by the resident engineer. period, all payments may be withheld notice to proceed. The approved cost
(4) Such materials and/or equipment and the contracting officer shall inform schedule will be one of the bases for
will be protected against weather, theft the contractor of the unsatisfactory determining progress payments to the
and other hazards and will not be performance, allowing the contractor 10 contractor for work completed.
subjected to deterioration. days to correct deficiencies and comply (1) Costs as shown on this schedule
(5) All of the other terms, provisions, with the contract. The guarantee period must be true costs and, should the
conditions and covenants contained in service is subject to those provisions as resident engineer so desire, he/she may
the contract shall be and remain in full set forth in the Payments and Default require the contractor to submit his/her
force and effect as therein provided. clauses. original estimate sheets or other
information to substantiate the detailed site, under such terms and conditions as performance program which shall
makeup of the cost schedule. such officer approves, including but not include an itemized accounting of the
(2) The total costs of all activities limited to the following: number of work-hours required to
shall equal the contract price. (1) The material or equipment is in perform the guarantee period service on
(3) Insurance and similar items shall accordance with the contract each piece of equipment. The contractor
be prorated and included in each requirements and/or approved samples shall also submit the established salary
activity cost of the critical path method and shop drawings. costs, including employee fringe
(CPM) network. (2) Only those materials and/or benefits, and what the contractor
(4) The CPM network shall include a equipment as are approved by the reasonably expects to pay over the
separate cost loaded activity for resident engineer for storage will be guarantee period, all of which will be
adjusting and testing of the systems included. subject to the contracting officer’s
listed in the table in paragraph (b)(5) of (3) Such materials and/or equipment approval.
this section. The percentages listed will be protected against weather, theft (iii) The cost of the guarantee period
below will be used to determine the cost and other hazards and will not be service shall be prorated on an annual
of adjust and test activities and identify, subjected to deterioration. basis and paid in equal monthly
for payment purposes, the value of the (4) Such materials and/or equipment payments by VA during the period of
work to adjust, correct and test systems will be protected against weather, theft guarantee. In the event the installer does
after the material has been installed. and other hazards and will not be not perform satisfactorily during this
(5) Payment for adjust and test subjected to deterioration. period, all payments may be withheld
activities will be made only after the (5) All of the other terms, provisions, and the contracting officer shall inform
contractor has demonstrated that each of conditions and covenants contained in the contractor of the unsatisfactory
the systems is substantially complete the contract shall be and remain in full performance, allowing the contractor 10
and operates as required by the contract. force and effect as therein provided. days to correct and comply with the
(6) A supplemental agreement will be contract. The guarantee period service is
VALUE OF ADJUSTING, CORRECTING, executed between the Government and subject to those provisions as set forth
AND TESTING SYSTEM the contractor with the consent of the in the Payments and Default clauses.
contractor’s surety for off-site storage.
System Percent (e) The contractor, prior to receiving 852.236–84 Schedule of work progress.
a progress or final payment under this As prescribed in 836.575, insert the
Pneumatic tube system ................ 10 contract, shall submit to the contracting
Incinerators (medical waste and following clause:
trash) ......................................... 5
officer a certification that the contractor
has made payment from proceeds of Schedule of Work Progress (Nov 1984)
Sewage treatment plant equip-
ment .......................................... 5 prior payments, or that timely payment (a) The contractor shall submit with
Water treatment plant equipment 5 will be made from the proceeds of the the schedule of costs, a progress
Washers (dish, cage, glass, etc.) 5 progress or final payment then due, to schedule that indicates the anticipated
Sterilizing equipment .................... 5 subcontractors and suppliers in installation of work versus the elapsed
Water distilling equipment ............ 5 accordance with the contractual
Prefab temperature rooms (cold, contract time, for the approval of the
arrangements with them. contracting officer. The progress
constant temperature) ............... 5
(f) The Government reserves the right schedule time shall be represented in
Entire air-conditioning system
(Specified under 600 Sections) 5 to withhold payment until samples, the form of a bar graph with the contract
Entire boiler plant system (Speci- shop drawings, engineer’s certificates, time plotted along the horizontal axis.
fied under 700 Sections) ........... 5 additional bonds, payrolls, weekly The starting date of the schedule shall
General supply conveyors ............ 10 statements of compliance, proof of title, be the date the contractor receives the
Food service conveyors ............... 10 nondiscrimination compliance reports, ‘‘Notice to Proceed.’’ The ending date
Pneumatic soiled linen and trash or any other things required by this shall be the original contract completion
system ....................................... 10 contract, have been submitted to the
Elevators and dumbwaiters .......... 10 date. At a minimum, both dates shall be
satisfaction of the contracting officer. indicated on the progress schedule. The
Materials transport system ........... 10
Engine-generator system ............. 5 (End of Clause) specific item of work, i.e., ‘‘Excavation’’,
Primary switchgear ....................... 5 Alternate I (JUL 2002). If the ‘‘Floor Tile’’, ‘‘Finish Carpentry’’, etc.,
Secondary switchgear .................. 5 specifications include guarantee period should be plotted along the vertical axis
Fire alarm system ......................... 5 and indicated by a line or bar at which
Nurse call system ......................... 5
services, the contracting officer shall
include the following paragraphs as time(s) during the contract this work is
Intercom system ........................... 5
additions to paragraph (b) of the basic scheduled to take place. The schedule
Radio system ................................ 5
TV (entertainment) system ........... 5 clause: shall be submitted in triplicate and
(6)(i) The contractor shall show on the signed by the contractor.
(c) In addition to this cost schedule, critical path method (CPM) network the (b) The actual percent completion will
the contractor shall submit such unit total cost of the guarantee period be based on the value of installed work
costs as may be specifically requested. services in accordance with the divided by the current contract amount.
The unit costs shall be those used by the guarantee period service section(s) of The actual completion percentage will
contractor in preparing his/her bid and the specifications. This cost shall be be indicated on the monthly progress
will not be binding as pertaining to any priced out when submitting the CMP report.
contract changes. cost loaded network. The cost submitted (c) The progress schedule will be
(d) The contracting officer will shall be subject to the approval of the revised when individual or cumulative
consider for monthly progress payments contracting officer. The activity on the time extensions of 15 calendar days or
material and/or equipment procured by CPM shall have money only and not more are granted for any reason. The
the contractor and stored on the activity time. revised schedule should indicate the
construction site, as space is available, (ii) The contractor shall submit with new contract completion date and
or at a local approved location off the the CPM a guarantee period should reflect any changes to the
installation time(s) of the items of work employee if designated in writing by the contractor’s proposal required by
affected. Contracting Officer, shall serve as Safety paragraphs (a)(1) or (a)(2) of this clause
(d) The revised progress schedule will Officer and as such has authority, on is not received within 30 calendar days
be used for reporting future scheduled behalf of the Contracting Officer, to or if agreement has not been reached.
percentage completion. monitor and enforce Contractor (4) Bond premium adjustment,
compliance with FAR 52.236–13, consequent upon changes ordered, will
(End of Clause)
Accident Prevention. However, only the be made as elsewhere specified at the
852.236–85 Supplementary labor Contracting Officer may issue an order time of final settlement under the
standards provisions. to stop all or part of the work while contract and will not be included in the
As prescribed in 836.576, insert the requiring satisfactory or corrective individual change.
following clause: action to be taken by the Contractor. (b) Paragraphs (b)(1) through (b)(11)
apply to proposed contract changes
Supplementary Labor Standards (End of Clause)
costing $500,000 or less:
Provisions (Apr 1984) 852.236–88 Contract changes— (1) When requested by the contracting
(a) The wage determination decision supplement. officer, the contractor shall submit
of the Secretary of Labor is set forth in As prescribed in 836.578, insert the proposals for changes in work to the
section GR, General Requirements, of following clause: resident engineer. Proposals, to be
this contract. It is the result of a study submitted as expeditiously as possible
Contract Changes—Supplement (Jul but within 30 calendar days after receipt
of wage conditions in the locality and 2002)
establishes the minimum hourly rates of of request, shall be in legible form,
wages and fringe benefits for the The clauses entitled ‘‘Changes’’ in original and two copies, with an
described classes of labor in accordance FAR 52.243–4 and ‘‘Differing Site itemized breakdown that will include
with applicable law. No increase in the Conditions’’ in FAR 52.236–2 are material, quantities, unit prices, labor
contract price will be allowed or supplemented as follows: costs (separated into trades),
(a) Paragraphs (a)(1) through (a)(4) construction equipment, etc. (Labor
authorized because of payment of wage
apply to proposed contract changes costs are to be identified with specific
rates in excess of those listed.
costing over $500,000. material placed or operation performed.)
(b) The contractor shall submit the (1) When requested by the contracting The contractor must obtain and furnish
required copies of payrolls to the officer, the contractor shall submit with a proposal an itemized breakdown
contracting officer through the resident proposals for changes in work to the as described above, signed by each
engineer or engineer officer, when resident engineer. Proposals, to be subcontractor participating in the
acting in that capacity. Department of submitted as expeditiously as possible change regardless of tier. When certified
Labor Form WH–347, Payroll, available but within 30 calendar days after receipt cost or pricing data or information other
from the Superintendent of Documents, of request, shall be in legible form, than cost or pricing data are required
Government Printing Office, original and two copies, with an under FAR 15.403, the data shall be
Washington, DC 20402, may be used for itemized breakdown that will include submitted in accordance with FAR
this purpose. If, however, the contractor material, quantities, unit prices, labor 15.403–5. No itemized breakdown will
or subcontractor elects to use an costs (separated into trades), be required for proposals amounting to
individually composed payroll form, it construction equipment, etc. (Labor less than $1,000.
shall contain the same information costs are to be identified with specific (2) When the necessity to proceed
shown on Form WH–347, and in material placed or operation performed.) with a change does not allow sufficient
addition be accompanied by Department The contractor must obtain and furnish time to negotiate a modification or
of Labor Form WH–348, Statement of with a proposal an itemized breakdown because of failure to reach an agreement,
Compliance, or any other form as described above, signed by each the contracting officer may issue a
containing the exact wording of this subcontractor participating in the change order instructing the contractor
form. change regardless of tier. When certified to proceed on the basis of a tentative
(End of Clause) cost or pricing data are required under price based on the best estimate
FAR Subpart 15.403, the cost or pricing available at the time, with the firm price
852.236–86 Worker’s Compensation. data shall be submitted in accordance to be determined later. Furthermore,
As prescribed in 836.577, insert the with FAR 15.403–5. when the change order is issued, the
following clause: (2) When the necessity to proceed contractor shall submit within 30
Worker’s Compensation (Date) with a change does not allow sufficient calendar days a proposal, which
time to negotiate a modification or includes the information required by
Public Law 107–217 (40 U.S.C. 3172) because of failure to reach an agreement, paragraph (b)(1), for the cost of the
authorizes the constituted authority of the contracting officer may issue a changes in work.
States to apply their worker’s change order instructing the contractor (3) The contracting officer will
compensation laws to all lands and to proceed on the basis of a tentative consider issuing a settlement by
premises owned or held by the United price based on the best estimate determination to the contract if the
States. available at the time, with the firm price contractor’s proposal required by
(End of Clause) to be determined later. Furthermore, paragraphs (b)(1) or (b)(2) of this clause
when the change order is issued, the is not received within 30 calendar days,
852.236–87 Accident prevention. contractor shall submit a proposal, or if agreement has not been reached.
As prescribed in 836.513, insert the which includes the information (4) Allowances not to exceed 10
following clause: required by paragraph (a)(1), for cost of percent each for overhead and profit for
changes in work within 30 calendar the party performing the work will be
Accident Prevention (Sep 1993) based on the value of labor, material,
days.
The Resident Engineer on all assigned (3) The contracting officer will and use of construction equipment
construction projects, or other consider issuing a settlement by required to accomplish the change. As
Department of Veterans Affairs determination to the contract if the the value of the change increases, a
declining scale will be used in not necessarily limited to, office Alternate I (Date). As prescribed in
negotiating the percentage of overhead equipment and supplies, temporary Table 825.1102, substitute the following
and profit. Allowable percentages on toilets, telephone and conformance to paragraphs for paragraphs (a) and (b) of
changes will not exceed the following: OSHA requirements. Items such as, but the basic clause:
10 percent overhead and 10 percent not necessarily limited to, review and (a) Reference is made to the clause
profit on the first $20,000; 71⁄2 percent coordination, estimating and expediting entitled ‘‘Buy American Act—
overhead and 71⁄2 percent profit on the relative to contract changes are Construction Materials under Trade
next $30,000; 5 percent overhead and 5 associated with field and office Agreements,’’ FAR 52.225–11.
percent profit on balance over $50,000. supervision and are considered to be (b) The restrictions contained in this
Profit shall be computed by multiplying included in the contractor’s overhead clause 852.236–89 are waived for
the profit percentage by the sum of the and/or fee percentage. designated country construction
direct costs and computed overhead (11) Bond premium adjustment, material as defined in FAR 52.225–11.
costs. consequent upon changes ordered, will Notwithstanding a bidder’s right to offer
(5) The prime contractor’s or upper- be made as elsewhere specified at the identifiable foreign construction
tier subcontractor’s fee on work time of final settlement under the material in its bid pursuant to FAR
performed by lower-tier subcontractors contract and will not be included in the 52.225–11, VA does not anticipate
will be based on the net increased cost individual change. accepting an offer that includes foreign
to the prime contractor or upper-tier construction material, other than
subcontractor, as applicable. Allowable (End of Clause) designated country construction
fee on changes will not exceed the 852.236–89 Buy American Act. material.
following: 10 percent fee on the first Alternate II (Date). As prescribed in
$20,000; 71⁄2 percent fee on the next As prescribed in Table 825.1102, Table 825.1102, substitute the following
$30,000; and 5 percent fee on balance insert the following clause: paragraphs for paragraphs (a) and (b) of
over $50,000. Buy American Act (Date) the basic clause:
(6) Not more than four percentages, (a) Reference is made to the clause
none of which exceed the percentages (a) Reference is made to the clause entitled ‘‘Buy American Act—
shown above, will be allowed regardless entitled ‘‘Buy American Act— Construction Materials under Trade
of the number of tiers of subcontractors. Construction Materials,’’ FAR 52.225–9. Agreements,’’ FAR 52.225–11 and its
(7) Where the contractor’s or (b) Notwithstanding a bidder’s right to Alternate I.
subcontractor’s portion of a change offer identifiable foreign construction (b) The restrictions contained in this
involves credit items, such items must material in its bid pursuant to FAR clause 852.236–89 are waived for World
be deducted prior to adding overhead 52.225–9, VA does not anticipate Trade Organization (WTO) Government
and profit for the party performing the accepting an offer that includes foreign Procurement Agreement (GPO) country,
work. The contractor’s fee is limited to construction material. Australian, Chilean, least developed
the net increase to contractor of (c) If a bidder chooses to submit a bid country, or Caribbean Basin country
subcontractors’ portions cost computed that includes foreign construction construction material, as defined in FAR
in accordance herewith. material, that bidder must provide a 52.225–11 and its Alternate I.
(8) Where a change involves credit listing of the specific foreign Notwithstanding a bidder’s right to offer
items only, a proper measure of the construction material he/she intends to identifiable foreign construction
amount of downward adjustment in the use and a price for said material. material in its bid pursuant to FAR
contract price is the reasonable cost to Bidders must include bid prices for 52.225–11, VA does not anticipate
the contractor if he/she had performed comparable domestic construction accepting an offer that includes foreign
the deleted work. A reasonable material. If VA determines not to accept construction material, other than WTO
allowance for overhead and profit are foreign construction material and no GPO country, Australian, Chilean, least
properly includable as part of the comparable domestic construction developed country, or Caribbean Basin
downward adjustment for a deductive material is provided, the entire bid will country construction material.
change. The amount of such allowance be rejected.
is subject to negotiation. (d) Any foreign construction material 852.236–90 Restriction on submission and
(9) Cost of Federal Old Age Benefit proposed after award will be rejected use of equal products.
(Social Security) tax and of Worker’s unless the bidder proves to VA’s As prescribed in 836.202(c), the
Compensation and Public Liability satisfaction: (1) It was impossible to following clause shall be included in
insurance appertaining to changes are request the exemption prior to award, the solicitation if it is determined that
allowable. While no percentage will be and (2) said domestic construction only one product will meet the
allowed thereon for overhead or profit, material is no longer available, or (3) Government’s minimum needs and the
prime contractor’s fee will be allowed where the price has escalated so Department of Veterans Affairs will not
on such items in subcontractors’ dramatically after the contract has been allow the submission of ‘‘equal’’
proposals. awarded that it would be products:
(10) Overhead and contractor’s fee
unconscionable to require performance Restriction on Submission and Use of
percentages shall be considered to
at that price. The determinations Equal Products (Nov 1986)
include insurance other than mentioned
required by (1), (2), and (3) of this
herein, field and office supervisors and The clause applies to the following
paragraph shall be made in accordance
assistants, security police, use of small items:
with Subpart 825.2 and FAR 25.2.
tools, incidental job burdens, and lllllllllllllllllllll
(e) By signing this bid, the bidder

general home office expenses and no lllllllllllllllllllll
declares that all articles, materials and
separate allowance will be made lllllllllllllllllllll
supplies for use on the project shall be
therefore. Assistants to office
domestic unless specifically set forth on
supervisors include all clerical, Notwithstanding the ‘‘Material and
the Bid Form or addendum thereto.
stenographic and general office help. Workmanship’’ clause of this contract,
Incidental job burdens include, but are (End of Cause) FAR 52.236–5(a), nor any other
contractual provision, ‘‘equal’’ products services and connections necessary to of this contract shall be fulfilled by
will not be considered by the produce systems or equipment which incorporating the provisions of the
Department of Veterans Affairs and may are completely installed, functional, and applicable State law.
not be used. ready for operation by facility personnel (b) An apparently successful offeror,
(End of Clause) in accordance with their intended use. upon request of the Contracting Officer,
(e) Claims by the contractor for delay shall, prior to contract award, furnish
852.236–91 Special notes. attributed to unusually severe weather evidence of the insurability of the
As prescribed in 836.579, insert the must be supported by climatological offeror and/or of all health-care
following clause: data covering the period and the same providers who will perform under this
period for the 10 preceding years. When contract. The submission shall provide
Special Notes (Jul 2002)
the weather in question exceeds in evidence of insurability concerning the
(a) Signing of the bid shall be deemed intensity or frequency the 10-year medical liability insurance required by
to be a representation by the bidder that: average, the excess experienced shall be paragraph (a) of this clause or the
(1) Bidder is a construction contractor considered ‘‘unusually severe.’’ provisions of State law as to self-
who owns, operates, or maintains a Comparison shall be on a monthly basis. insurance, or limitations on liability or
place of business, regularly engaged in Whether or not unusually severe insurance.
construction, alteration, or repair of weather in fact delays the work will (c) The Contractor shall, prior to
buildings, structures, and depend upon the effect of weather on commencement of services under the
communications facilities, or other the branches of work being performed contract, provide to the Contracting
engineering projects, including during the time under consideration. Officer Certificates of Insurance or
furnishing and installing of necessary insurance policies evidencing the
(End of Clause)
equipment; or required insurance coverage and an
(2) If newly entering into a 852.237–7 Indemnification and Medical endorsement stating that any
construction activity, bidder has made Liability Insurance. cancellation or material change
all necessary arrangements for As prescribed in 837.403, insert the adversely affecting the Government’s
personnel, construction equipment, and following clause: interest shall not be effective until 30
required licenses to perform days after the insurer or the Contractor
construction work; and Indemnification and Medical Liability
gives written notice to the Contracting
(3) Upon request, prior to award, Insurance (Oct 1996)
Officer. Certificates or policies shall be
bidder will promptly furnish to the (a) It is expressly agreed and provided for the Contractor and/or each
Government a statement of facts in understood that this is a non-personal health-care provider who will perform
detail as to bidder’s previous experience services contract, as defined in Federal under this contract.
(including recent and current contracts), Acquisition Regulation (FAR) 37.101, (d) The Contractor shall notify the
organization (including company under which the professional services Contracting Officer if it, or any of the
officers), technical qualifications, rendered by the Contractor or its health- health-care providers performing under
financial resources and facilities care providers are rendered in its this contract, change insurance
available to perform the contemplated capacity as an independent contractor. providers during the performance
work. The Government may evaluate the period of this contract. The notification
(b) Unless otherwise provided in this quality of professional and shall provide evidence that the
contract, where the use of optional administrative services provided but Contractor and/or health-care providers
materials or construction is permitted, retains no control over professional will meet all the requirements of this
the same standard of workmanship, aspects of the services rendered, clause, including those concerning
fabrication and installation shall be including by example, the Contractor’s liability insurance and endorsements.
required irrespective of which option is or its health-care providers’ professional These requirements may be met either
selected. The contractor shall make any medical judgment, diagnosis, or specific under the new policy, or a combination
change or adjustment in connecting medical treatments. The Contractor and of old and new policies, if applicable.
work or otherwise necessitated by the its health-care providers shall be liable (e) The Contractor shall insert the
use of such optional material or for their liability-producing acts or substance of this clause, including this
construction, without additional cost to omissions. The Contractor shall paragraph (e), in all subcontracts for
the Government. maintain or require all health-care health-care services under this contract.
(c) When approval is given for a providers performing under this The Contractor shall be responsible for
system component having functional or contract to maintain, during the term of compliance by any subcontractor or
physical characteristics different from this contract, professional liability lower-tier subcontractor with the
those indicated or specified, it is the insurance issued by a responsible provisions set forth in paragraph (a) of
responsibility of the contractor to insurance carrier of not less than the this clause.
furnish and install related components following amount(s) per specialty per
(End of Clause)
with characteristics and capacities occurrence: Contracting Officer insert
compatible with the approved substitute the dollar amount value(s) of standard 852.237–70 Contractor responsibilities.
component as required for systems to coverage(s) prevailing within the local As prescribed in 837.110, insert the
function as noted on drawings and community as to the specific medical following clause:
specifications. There shall be no specialty, or specialties, concerned, or
additional cost to the Government. such higher amount as the Contracting Contractor Responsibilities (Apr 1984)
(d) In some instances it may have Officer deems necessary to protect the The contractor shall obtain all
been impracticable to detail all items in Government’s interests. However, if the necessary licenses and/or permits
specifications or on drawings because of Contractor is an entity or a subdivision required to perform this work. He/she
variances in manufacturers’ methods of of a State that either provides for self- shall take all reasonable precautions
achieving specified results. In such insurance or limits the liability or the necessary to protect persons and
instances the contractor will be required amount of insurance purchased by State property from injury or damage during
to furnish all labor, materials, drawings, entities, then the insurance requirement the performance of this contract. He/she
shall be responsible for any injury to parts; the clause used will be revised to reserves the right, without obtaining
himself/herself, his/her employees, as be compatible with such policy. authority from the contractor, to
well as for any damage to personal or perform the required repackaging,
public property that occurs during the 852.246–71 Inspection. repacking, and/or marking services and
performance of this contract that is As prescribed in 846.302–71(a), insert charge the contractor at the actual cost
caused by his/her employees’ fault or the following clause: to the Government for the same or have
negligence, and shall maintain personal Inspection (Date) the required repackaging, repacking,
liability and property damage insurance and/or marking services performed
having coverage for a limit as required Rejected goods will be held subject to commercially under Government order
by the laws of the State of [ ]. Further, contractors order for not more than 15 and charge the contractor at the invoice
it is agreed that any negligence of the days, after which the rejected rate. In connection with any discount
Government, its officers, agents, merchandise will be returned to the offered, time will be computed from the
servants and employees, shall not be the contractor’s address at his/her risk and date of completion of such repackaging,
responsibility of the contractor expense. Expenses incident to the repacking and/or marking services.
hereunder with the regard to any claims, examination and testing of materials or
supplies that have been rejected will be (End of Clause)
loss, damage, injury, and liability
resulting therefrom. charged to the contractor’s account. 852.246–74 Special warranties.
(End of Clause) (End of Clause) As prescribed in 846.710–70, insert
Alternate I (Date). As provided in the following clause:
852.246–70 Guarantee. 846.302–71(b), insert the following Special Warranties (Date)
As prescribed in 846.302–70, insert clause:
the following clause: The clause entitled ‘‘Warranty of
Inspection (Date) Construction’’ in FAR 52.246–21 is
Guarantee (Date) The contractor shall remove rejected supplemented as follows:
The contractor guarantees the supplies within 48 hours after notice of Any special warranties that may be
equipment against defective material, rejection. Supplies determined to be required under the contract shall be
workmanship and performance for a unfit for human consumption will not subject to the elections set forth in the
period of [ ],1 said guarantee to run be removed without permission of the FAR clause at 52.246–21, Warranty of
from date of acceptance of the local health authorities. Supplies not Construction, unless otherwise provided
equipment by the Government. The removed within the allowed time may for in such special warranties.
contractor agrees to furnish, without be destroyed. The Department of (End of Clause)
cost to the Government, replacement of Veterans Affairs will not be responsible
all parts and material that are found to for nor pay for products rejected. The 852.246–75 Warranty for construction—
be defective during the guarantee contractor will be liable for costs guarantee period services.
period. Replacement of material and incident to examination of rejected As prescribed in 846.710–71, insert
parts will be furnished to the products. the following clause:
Government at the point of installation, (End of Clause) Warranty for Construction—Guarantee
if installation is within the continental
Period Services (Date)
United States, or f.o.b. the continental 852.246–72 Frozen processed foods.
U.S. port to be designated by the As prescribed in 846.302–72, insert The clause entitled ‘‘Warranty of
contracting officer if installation is the following clause: Construction’’ in FAR 52.246–21 is
outside of the continental United States. supplemented as follows:
Cost of installation of replacement Frozen Processed Foods (Date) Should the contractor fail to prosecute
material and parts shall be borne by the The products delivered under this the work or fail to proceed promptly to
contractor.2 contract shall be in excellent condition, provide guarantee period services after
(End of Clause) shall not show evidence of defrosting, notification by the contracting officer,
refreezing, or freezer burn and shall be the Government may, subject to the
Alternate I (Date). If it is industry
transported and delivered to the default clause contained at FAR 52.249–
policy to furnish, but not install,
consignee at a temperature of 0 degrees 10, Default (Fixed-Price Construction),
replacement material and parts at the
Fahrenheit or lower. and after allowing the contractor 10
contractor’s expense, the last sentence
days to correct and comply with the
will be changed to indicate that cost of (End of Clause)
contract, terminate the right to proceed
installation shall be borne by the
852.246–73 Noncompliance with with the work (or the separable part of
Government. Where it is industry policy
packaging, packing, and/or marking the work) that has been delayed or
to: requirements. unsatisfactorily performed. In this
(1) Guarantee components for the life event, the Government may take over
As prescribed in 846.302–73, insert
of the equipment (i.e., crystals in the work and complete it by contract or
the following clause:
transmitters and receivers in radio otherwise, and may take possession of
communications systems); or Noncompliance With Packaging, and use any materials, appliance, and
(2) Require that highly technical Packing and/or Marking Requirements plant on the work site necessary for
equipment be returned to the factory (at (Date) completing the work. The contractor
contractor’s or Government’s expense) Failure to comply with the packaging, and its sureties shall be liable for any
for replacement of defective materials or packing and/or marking requirements damages to the Government resulting
indicated herein, or incorporated herein from the contractor’s refusal or failure to
1 Normally, insert one year. If industry policy
by reference, may result in rejection of complete the work within this specified
covers a shorter or longer period, i.e., 90 days or
for the life of the equipment, insert such period. the merchandise and request for time, whether or not the contractor’s
2 The above clause will be modified to conform replacement or repackaging, repacking, right to proceed with the work is
to standards of the industry involved. and/or marking. The Government terminated. This liability includes any
increased costs incurred by the reference that must be completed by the 852.271–70 Nondiscrimination in services
Government in completing the work. offeror or prospective contractor and provided to beneficiaries.
(End of Clause) submitted with the quotation or offer.] As prescribed in 837.110–70 and
871.212, insert the following provision:
852.247–70 Determining transportation (End of Provision)
costs for bid evaluation. Nondiscrimination in Services
852.270–1 Representatives of contracting Provided to Beneficiaries (Date)
As prescribed in 847.305–70, insert officers.
the following provision: The contractor agrees to provide all
As prescribed in 801.603–70(d), insert services specified in this contract for
Determining Transportation Costs for the following provision: any person determined eligible by the
Bid Evaluation (Apr 1984) Department of Veterans Affairs,
Representatives of Contracting Officers
For the purpose of evaluating bids (Date) regardless of the race, color, religion,
and for no other purpose, the delivered sex, or national origin of the person for
price per unit will be determined by The contracting officer reserves the whom such services are ordered. The
adding the nationwide average right to designate representatives to act contractor further warrants that he/she
transportation charge to the f.o.b. origin for him/her in furnishing technical will not resort to subcontracting as a
bid prices. The nationwide average guidance and advice or generally means of circumventing this provision.
transportation charge will be monitor the work to be performed under
this contract. Such designation will be (End of Provision)
determined by applying the following
formula: Multiply the guaranteed in writing and will define the scope and 852.271–71 [Reserved].
shipping weight by the freight, parcel limitation of the designee’s authority. A
post, or express rate, whichever is copy of the designation shall be 852.271–72 Time spent by counselee in
furnished the contractor. counseling process.
proper, to each destination shown
below and then multiply the resulting As prescribed in 871.212, insert the
(End of Provision) following clause:
transportation charges by the
anticipated demand factor shown for 852.270–2 Bread and bakery products— Time Spent by Counselee in Counseling
each destination. Total the resulting quantities. Process (Apr 1984)
weighted transportation charges for all As prescribed in 870.111–3, insert the
destinations and divide the total by 20 The contractor agrees that no
following clause: counselee referred under the provisions
to give the nationwide average
transportation charge. Bread and Bakery Products—Quantities of this agreement will be required to
(Date) give any extra time in connection with
ANTICIPATED DEMAND the counseling process to supply test
The bidder agrees to furnish up to 25 results or other information for purposes
percent more or 25 percent less than the other than those specified in this
Area destination Factor
quantities awarded when ordered by the contract.
Oakland, California ....................... 3 Department of Veterans Affairs. (End of Clause)
Dallas, Texas ................................ 2 (End of Clause)
Omaha, Nebraska ........................ 3 852.271–73 Use and publication of
Fort Wayne, Indiana ..................... 4 852.270–3 Purchase of shellfish. counseling results.
Atlanta, Georgia ............................ 3
As prescribed in 870.111–3, insert the As prescribed in 871.212, insert the
New York, New York .................... 5
following clause: following clause:
Total of factors ...................... 20 Use and Publication of Counseling
Purchase of Shellfish (Apr 1984)
Results (Date)
(End of Provision) The bidder certifies that oysters,
clams, and mussels will be furnished The contractor agrees that none of the
852.252–70 Solicitation provisions or only from plants approved by and information or data gathered in
clauses incorporated by reference. operated under the supervision of connection with the services specified
As prescribed in 852.102(a), insert the shellfish authorities of States whose in this contract or studies or materials
following provision: certifications are endorsed currently by based thereon or relating thereto will be
the U.S. Public Health Service, and the publicized without the prior approval of
Solicitation Provisions or Clauses the Under Secretary for Benefits or his/
Incorporated by Reference (Date) names and certificate numbers of those
shellfish dealers must appear on current her designee.
The following provisions or clauses lists published by the U.S. Public Health (End of Clause)
incorporated by reference in this Service. These items shall be packed
solicitation must be completed by the and delivered in approved containers,
852.271–74 Inspection.
offeror or prospective contractor and sealed in such manner that tampering is As prescribed in 871.212, insert the
submitted with the quotation or offer. easily discernible, and marked with following clause:
Copies of these provisions or clauses are packer’s certificate number impressed or
available on the Internet at the web sites Inspection (Date)
embossed on the side of such containers
provided in the provision at FAR and preceded by the State abbreviation. The contractor will permit the duly
52.252–1, Solicitation Provisions Containers shall be tagged or labeled to authorized representative of the
Incorporated by Reference, or the clause Department of Veterans Affairs to visit
show the name and address of the

at FAR 52.252–2, Clauses Incorporated approved producer or shipper, the name the place of instruction or the
by Reference. Copies may also be of the State of origin, and the certificate counseling and testing operations as
obtained from the contracting officer. number of the approved producer or may be necessary and examine the
[Contracting officer shall list all FAR training facilities, the work of the
shipper.
and 48 CFR Chapter 8 (VAAR) veterans in training under this contract,
provisions and clauses incorporated by (End of Clause) and the records of these operations.
(End of Clause) lowest priced offer that conforms to the (c) If this solicitation is a request for
solicitation. During the specified period proposals (RFP), a written notice of
852.271–75 Extension of contract period. for receipt of offers, the amount of the award or acceptance of an offer, mailed
As prescribed in 871.212, insert the lowest offer will be posted and may be or otherwise furnished to the successful
following clause: viewed by—[Contracting officer insert offeror within the time for acceptance
Extension of Contract Period (Apr 1984) description of how the information specified in the offer, shall result in a
may be viewed electronically or binding contract without further action
This contract may be extended from otherwise]—. Offerors may revise offers by either party. Before the offer’s
year to year if agreeable to both parties anytime during the specified period. At specified expiration time, the
provided the agreement for extension is the end of the specified time period for Government may accept an offer (or part
consummated 30 days prior to the receipt of offers, the responsible offeror of an offer), whether or not there are
expiration date, and further provided submitting the lowest priced offer will negotiations after its receipt, unless a
that there is no change in the be in line for award. written notice of withdrawal is received
provisions, terms, conditions, or rate of (b) Except when it is determined not before award.
payment. Any extension made to be in the Government’s best interest,
hereunder is subject to the availability (End of provision)
the Government will evaluate offers for
of funds during the period covered by award purposes by adding the total 852.273–74 Award without exchanges.
the extension. price for all options to the total price for As prescribed in 873.110(e), insert the
(End of Clause) the basic requirement. The Government following provision:
may determine that an offer is
852.273–70 Late offers. unacceptable if the option prices are Award Without Exchanges (Jan 2003)
As prescribed in 873.110(a), insert the materially unbalanced. Evaluation of The Government intends to evaluate
following provision: options shall not obligate the proposals and award a contract without
Late Offers (Jan 2003) Government to exercise the option(s). exchanges with offerors. Therefore, each
(End of provision) initial offer should contain the offeror’s
This provision replaces paragraph (f) best terms from a cost or price and
of FAR provision 52.212–1. Offers or 852.273–73 Evaluation—health-care technical standpoint. However, the
modifications of offers received after the resources. Government reserves the right to
time set forth in a request for quotations As prescribed in 873.110(d), in lieu of conduct exchanges if later determined
or request for proposals may be FAR provision 52.212–2, the contracting by the contracting officer to be
considered, at the discretion of the officer may insert a provision necessary.
contracting officer, if determined to be substantially as follows:
in the best interest of the Government. (End of provision)
Late bids submitted in response to an Evaluation—Health-Care Resources
(Jan 2003) PART 853—FORMS
invitation for bid (IFB) will not be
considered. (a) The Government will award a Sec.
(End of Provision) contract resulting from this solicitation 853.000 Scope of part.
to the responsible offeror whose offer,
Subpart 853.1—General
852.273–71 Alternative negotiation conforming to the solicitation, will be
techniques. most advantageous to the Government, 853.107 Obtaining forms.
As prescribed in 873.110(b), insert the price and other factors considered. The Subpart 853.2—Prescription of Forms
following provision: following information or factors shall be 853.201 Federal acquisition system.
used to evaluate offers: —[Contracting 853.201–1 Contracting authority and
Alternative Negotiation Techniques officer insert evaluation information or responsibilities (SF 1402).
(Jan 2003) factors, such as technical capability to 853.213 Simplified acquisition procedures
The contracting officer may elect to meet the Government’s requirements, (SF’s 18, 30, 44, 1165, 1449, and OF’s
use the alternative negotiation past performance, or such other 336, 347, and 348).
techniques described in section evaluation information or factors as the 853.215 Contracting by negotiation.
853.215–70 VA Form 10–1170, Application
873.111(e) of 48 Code of Federal contracting officer deems necessary to
for Furnishing Nursing Home Care to
Regulations Chapter 8 in conducting evaluate offers. Price must be evaluated Beneficiaries of VA.
this procurement. If used, offerors may in every acquisition. The contracting 853.236 Construction and architect-
respond by maintaining offers as officer may include the evaluation engineer contracts.
originally submitted, revising offers, or information or factors in their relative 853.236–70 VA Form 10–6298, Architect-
submitting an alternative offer. The order of importance, such as in Engineer Fee Proposal.
Government may consider initial offers descending order of importance. The 853.271 Loan Guaranty, Education and
unless revised or withdrawn, revised relative importance of any evaluation Vocational Rehabilitation and
offers, and alternative offers in making information must be stated in the Employment Service.
the award. Revising an offer does not solicitation.]— 853.271–1 Loan Guaranty Program (VA
Forms 26–6724 and 26–1839).
guarantee an offeror an award. (b) Except when it is determined not
853.271–2 Education Programs.
(End of provision) to be in the Government’s best interest,
the Government will evaluate offers for Subpart 853.3—Illustration of Forms
852.273–72 Alternative evaluation. award purposes by adding the total 853.300 Scope of subpart.
As prescribed in 873.110(c), insert the price for all options to the total price for

following provision: the basic requirement. The Government and 48 CFR 1.301–1.304.
may determine that an offer is
Alternative Evaluation (Jan 2003) unacceptable if the option prices are 853.000 Scope of part.
(a) The Government will award a materially unbalanced. Evaluation of This part prescribes VA forms for use
contract resulting from this solicitation options shall not obligate the in the acquisition of goods and services.
to the responsible offeror submitting the Government to exercise the option(s). It only identifies forms that are used
between VA and its contractors or the 853.215 Contracting by negotiation. Subpart 870.1—Controls
general public. It does not identify
853.215–70 VA Form 10–1170, Application 870.111 Subsistence.
forms for uses internal to VA or between for Furnishing Nursing Home Care to
VA and another Federal agency. Beneficiaries of VA. 870.111–3 Contract clauses.
Subpart 853.1—General VA Form 10–1170, Application for (a) The contracting officer shall
Furnishing Nursing Home Care to include the clause at 852.270–2, Bread
853.107 Obtaining forms. Beneficiaries of VA, will be used for and Bakery Products—Quantities, in
The VA forms may be obtained from establishing contract nursing home care solicitations and contracts for bread and
any VA contracting office or by for VA beneficiaries. bakery products.
requesting such forms from the Deputy (b) The contracting officer shall
853.236 Construction and architect- include the clause at 852.270–3,
Assistant Secretary for Acquisition and engineer contracts.
Material Management, Department of Purchase of Shellfish, in solicitations
Veterans Affairs, 810 Vermont Avenue, 853.236–70 VA Form 10–6298, Architect- and contracts for shellfish.
NW., Washington, DC 20420. Engineer Fee Proposal.
870.111–5 Frozen processed food
VA Form 10–6298, Architect-Engineer products.
Subpart 853.2—Prescription of Forms Fee Proposal, shall be used as (a) The following frozen processed
853.201 Federal acquisition system. prescribed in 836.606–71. food products must have a label
853.271 Loan Guaranty, Education and complying with the Federal Food, Drug
853.201–1 Contracting authority and
responsibilities (SF 1402). Vocational Rehabilitation and Counseling and Cosmetic Act (21 U.S.C. 301 et
Programs. seq.), which requires that all ingredients
Standard Form (SF) 1402, Certificate be listed according to the order of their
of Appointment, is used in accordance 853.271–1 Loan Guaranty Program (VA predominance:
with FAR 1.603–3, Appointment, to Forms 26–6724 and 26–1839).
(1) Frozen processed food products
appoint VA contracting officers under (a) VA Form 26–6724, Invitation, Bid, that contain meat, poultry, or a
VA’s Contracting Officer Certification and/or Acceptance or Authorization, significant proportion of eggs.
Program (see 801.690–6). will be used in obtaining services (2) Frozen, processed food products
853.213 Simplified acquisition procedures
specified in Subpart 871.1. that contain fish or fish products.
(SF’s 18, 30, 44, 1165, 1449, and OF’s 336, (b) VA Form 26–1839, Compliance (3) Frozen bakery products.
347, and 348). Inspection Report, will be used for (b) All procured frozen processed
The following forms are prescribed as inspection of repairs for properties food products that contain meat, poultry
stated in this section for use in under the Loan Guaranty Program as or a significant proportion of eggs must
simplified acquisition procedures, specified in 846.472. meet the following requirements:
orders under existing contracts or (1) The products must be processed or
853.271–2 Education Programs.
agreements, orders from required prepared in plants operating under the
To obtain education or rehabilitation supervision of the U.S. Department of
sources of supplies and services, and
services, contracting officers may use an Agriculture (USDA).
orders for other supplies or services:
individual written contract or VA Form (2) The product must be inspected
(a) VA Forms 90–2138, Order for 28–1905, Authorization and and approved in accordance with USDA
Supplies or Services, or 90–2138–ADP, Certification of Entrance or Reentrance regulations governing meat, poultry, or
Purchase Order for Supplies or Service, into Rehabilitation and Certification of egg inspection. A label or seal that
shall be used as indicated in 813.307. Status. indicates compliance with USDA
They will be used in lieu of but similar
regulations, affixed to the container,
to OF 347, Order of Supplies and Subpart 853.3—Illustration of Forms will be accepted as evidence of
Services, or Standard Form 1449,
853.300 Scope of subpart. compliance.
Solicitation/Contract/Order for
(c) All procured frozen, processed
Commercial Items. VA Forms will not be illustrated in
food products that contain fish or fish
(b) The following forms are for use for this VAAR. Persons wishing to obtain
products must meet the following
obtaining indicated medical and dental copies of VA forms prescribed in the
requirements:
services within the limitations VAAR may do so in accordance with
(1) The product must be processed or
prescribed in 813.307: 853.107. VA forms may also be available
prepared in plants operated under the
(1) VA Form 10–7078, Authorization on the Web at http://www.va.gov/
supervision of the U.S. Department of
and Invoice for Medical and Hospital vaforms/.
Commerce (DOC). The products listed
Services. SUBCHAPTER I—DEPARTMENT in DOC’s publication, ‘‘Approved List of
(2) VA Form 10–7079, Request for SUPPLEMENTARY REGULATIONS Sanitarily Inspected Fish
Outpatient Medical Services. Establishments’’ are processed in plants
(3) VA Form 10–2570d, Dental Record PART 870—SPECIAL PROCUREMENT under Federal inspection of the National
Authorization and Invoice for CONTROLS Marine Fisheries Service, National
Outpatient Service. Subpart 870.1—Controls Oceanic and Atmospheric
(c) VA Form 10–2511, Authority and Administration, DOC. The inspected
Sec.
Invoice for Travel by Ambulance or 870.111 Subsistence. products packed under various labels
Other Hired Vehicle, will be used as bearing the brand names are produced
870.111–3 Contract Clauses.

prescribed in 813.307. 870.111–5 Frozen processed food products. in accordance with current U.S. Grade
(d) VA Form 10–2421, Prosthetics 870.112 Telecommunications equipment. Standards or official product
Authorization and Items and Services, 870.113 Paid use of conference facilities. specifications, packed under optimum
will be used for indicated procurements 870.115 Food service equipment. hygienic conditions, and must meet
not to exceed $300 as prescribed in Authority: 38 U.S.C. 501; 40 U.S.C. 121(c); Federal, State, and city sanitation and
813.307. and 48 CFR 1.301–1.304. health regulations. Such brand label or
DOC seal indicating compliance with therein, including documentation of loans guaranteed, insured, or made
DOC regulations, affixed to a container, efforts to locate Government-owned under Title 38, U.S.C.
will be accepted as evidence of space and efforts to reduce costs.
compliance. 871.101 Policy.
(2) If the condition in paragraph (c)(1) 870.115 Food service equipment. All acquisitions for the repair and
of this section was not met (no seal), the (a) All new food service equipment maintenance of VA property acquired
shipment may be lot inspected by the purchased for Dietetic Service through under 38 U.S.C. Chapter 37 must be
DOC and containers stamped to indicate other than Defense General Supply made in accordance with FAR Parts 14,
acceptance or a Certification of Center sources must meet requirements 15, and 16, Parts 814, 815, and 816 of
Inspection issued to accompany the set forth by the National Sanitation this chapter, and this subpart.
shipment. Foundation.
(d) Producers of frozen bakery (b) The contracting officer will accept 871.102 Authorization for repairs to
an affixed National Sanitation properties.
products that ship products in interstate
commerce are required to comply with Foundation label and/or documentation (a) Except as provided in this subpart,
the Federal Food, Drug and Cosmetic of the certification by National Directors, Loan Guaranty Officers, and
Act. Therefore, the product must be Sanitation Foundation from the Assistant Loan Guaranty Officers, VA
verified as shipped interstate or that the contractor as evidence that the subject Regional Offices, are authorized to
producer ships products to other equipment meets sanitation standards approve a repair program for any VA
purchasers interstate. issued by the National Sanitation property acquired under Chapter 37,
Foundation. Title 38, U.S.C., if the cost does not
870.112 Telecommunications equipment. exceed $25,000. A repair program
(a) The contracting officer must PART 871—LOAN GUARANTY AND means the aggregate amount of the
include the clause at 852.211–71, VOCATIONAL REHABILITATION AND proposed contracts that are
Special Notice, in solicitations, EMPLOYMENT PROGRAMS contemplated in a property analysis by
including those for construction, that Subpart 871.1—Loan Guaranty and Direct the Loan Guaranty activity.
are based on detailed purchase Loan Programs (b) In cases where the expenditure is
descriptions or formal specifications for Sec. known or estimated to exceed $25,000,
telecommunications equipment, as 871.100 Scope of subpart. the Loan Guaranty Officer, or his or her
defined in VA manual MP–6, Part VIII, 871.101 Policy. designee, must forward the request,
(available at any VA facility). 871.102 Authorization for repairs to together with the loan guaranty folder,
(b) The Telecommunications Support properties. to the Under Secretary for Benefits for
Service must review and approve the 871.104 Qualification of bidders. approval.
descriptive literature required by the 871.106 Lien waivers.
871.107 Stipulations against liens. (c) During the period when VA has
clause in 852.211–71, Special Notice, assumed custody of the property from a
furnished by the contractor after award, Subpart 871.2—Vocational Rehabilitation holder and before its conveyance to VA
before delivery or installation by the and Employment Service
under 38 CFR 36.4320, repairs not in
contractor. Promptly upon receipt of the 871.200 Scope of subpart. excess of $3,500 are authorized, when
descriptive literature, contracting 871.201 General. appropriate to make the property ready
officers will forward it, together with a 871.201–1 Requirements for the use of
contracts.
for sale at an earlier date than would
copy of the contract, the formal otherwise be possible if the repair
specification, or the detailed purchase 871.201–2 Requirements when contracts are
not required. program was delayed until VA acquired
description, to the DSPE. absolute title. In cases where the
871.201–3 Medical services.
(c) Solicitations, including those for 871.201–4 Letter contracts. expenditure is known or estimated to
construction, for telecommunications 871.202 Marking and release of supplies. exceed $3,500, the Loan Guaranty
equipment based on ‘‘brand name or 871.203 Renewals or supplements to Officer, or his or her designee, must
equal’’ purchase description are subject contracts. forward the request, together with the
to the following: 871.204 Guaranteed payment.
loan guarantee folder, to the Under
(1) Before award, contracting officers 871.205 Proration of charges.
871.206 Other fees and charges. Secretary for Benefits for approval.
will forward to the DSPE the abstract of
bids, one copy of each offer received, 871.207 Payment of tuition or fees. (d) The holder must not make repairs
including descriptive literature and 871.208 Rehabilitation facilities. to a property when it has continued
871.209 Records and reports. custody, except for emergency repairs
pertinent letters, and the comments and 871.210 Correspondence courses.
recommendations of the contracting not in excess of $500, unless the holder
871.211 Information concerning gives adequate notice to the Director,
officer. correspondence courses.
(2) No commitments are to be made to 871.212 Contract clauses.
Regional Office. Emergency repairs
contractors before receiving Central means immediate action to preserve the
Authority: 38 U.S.C. 501; 40 U.S.C. 121(c); property from serious damage or to
Office’s response. and 48 CFR 1.301–1.304.
(3) The solicitation must allow at least correct a situation imminently
30 calendar days for acceptance to allow Subpart 871.1—Loan Guaranty and dangerous to life or limb, including the
sufficient time for the review required Direct Loan Programs initial cleanup of the property to
by this paragraph. (See FAR 52.214–16.) prevent the risk of damage by fire or
871.100 Scope of subpart. vandalism.
870.113 Paid use of conference facilities. This subpart sets forth policy and (e) An approved management broker
When contracting for the use of procedures with respect to the loan may be authorized, when the property is
conference facilities, contracting officers guaranty and direct loan programs as assigned, to incur expenses for fuel and
shall follow and comply with the they pertain to property management, utilities or other recurring items that VA
Federal Travel Regulation, 41 CFR Part including the acquisition, management, is required to furnish to its tenants or
301–74, Conference Planning, and shall and disposition of property, real, are required to maintain the property if
document the contract file as specified personal, or mixed, that were secured by the following conditions are met:
(1) Advance blanket authorization to 871.107 Stipulations against liens. (b) Special services or special courses
a management broker must be limited to (a) In a contract for an amount less that are furnished at the request of the
repairs not in excess of $500 in any than $2,500, when determined VA. Special services or courses are those
transaction. necessary by the Director, Regional services or courses that VA requests that
(2) The management broker must Office, the contracting officer may are over and above those the institution
either submit receipts with an invoice or include the following: customarily provides for similarly
maintain receipts for inspection. The contractor expressly waives any circumstanced non-veterans and that
(3) Expenditures in excess of $500 and all rights to file or maintain any the contracting officer considers to be
require prior approval of the Director, mechanics lien or claim against the necessary for the rehabilitation of the
Regional Office, having jurisdiction of aforesaid premises. trainee.
the property. (b) In a contract for $2,500 or more
when there is doubt that the final 871.201–2 Requirements when contracts
(4) The management broker must responsibility of the contractor will
are not required.
aggregate the costs of repairs when provide maximum protection to the (a) For the purpose of this section a
determining whether prior approval is Government, the contracting officer contract is not required when all tuition,
required. must include any requirements that are fees, and charges for books, supplies, or
available under local law. The services necessary to train or educate an
871.104 Qualification of bidders.
contracting officer must obtain advice eligible veteran under 38 U.S.C. Chapter
(a) Bidders must be qualified in 31 are published in the school catalog
and approval of any contract stipulation
accordance with procedures outlined in or other published document.
or legal stipulations against liens from
FAR Subpart 9.1 and Subpart 809.1 of (b) When a contract is not required,
the District Counsel.
this chapter. the Vocational Rehabilitation and
(b) Management brokers are not Subpart 871.2—Vocational Employment Officer must obtain a
acceptable bidders for a repair contract Rehabilitation and Employment signed statement of charges from the
due to their close association on a fee Service educational institution or training
basis with VA. This restriction also establishment for courses to be offered,
applies to any contracting firm in which 871.200 Scope of subpart. including the rate of tuition, fees, and
the management broker has an interest This subpart establishes policy and separate charges, if any, for books,
and in which it could be presumed that procedures for the vocational supplies, and equipment handling
the firm would have an advantage over rehabilitation and employment services charges, refund policy, and other
the other bidders. This does not as it pertains to the following: provisions as are required to determine
preclude the management broker from (a) Contracts for training and proper payment. The statement of
performing routine recurring rehabilitation services. charges may be in the form of a
maintenance or minor repairs. When (b) Approval of institutions (including statement on VA Form 28–1905,
seeking payment for maintenance or rehabilitation facilities), training Authorization and Certification of
repairs, the management broker must establishments, and employers under 38 Entrance or Reentrance Into
establish that any charges are not in U.S.C. Chapter 31. Rehabilitation and Certification Status,
excess of the prevailing fees for similar (c) Contracts for counseling services that charges will be in accordance with
services in the area. under 38 U.S.C. Chapters 30, 31, 32, 35, catalog or other published document
and 36 and 10 U.S.C. Chapters 106, 107, (identify publication). The statement of
871.106 Lien waivers. and 1606. charges may not exceed those charges
(a) In a contract for $2,500 or more, nonveterans pay or that are published in
871.201 General.
the contracting officer must include the the school catalog or other published
following requirements: 871.201–1 Requirements for the use of document.
contracts.
(1) The contractor must sign a formal 871.201–3 Medical services.
release in full or a lien waiver before The VA negotiates contracts for
tuition, fees, books, supplies, and other The medical services provided
payment may be made. trainees under vocational rehabilitation
allowable expenses incurred by an
(2) The contractor must notify the and education contracts, agreements, or
institution, training establishment, or
Director, Regional Office, of any arrangements are separate and distinct
employer for the training and
subcontracts for services or materials in from any other medical service under
rehabilitation of eligible veterans under
excess of $2,500. Each subcontractor the jurisdiction of the Veterans Health
38 U.S.C. Chapter 31 when the
must sign the release or waiver jointly Administration to which the veteran
following services are provided:
with the prime contractor or exercise a (a) Courses of instruction by may be entitled. No certificate of
release or waiver in the subcontractor’s correspondence means a course of eligibility is required from the Veterans
own name. education or training conducted by mail Health Administration before the
(b) The contracting officer must not consisting of regular lessons or reading veteran may be provided such services.
pay the contractor unless the release or assignments, the preparation of required 871.201–4 Letter contracts.
waiver accompanies the contractor’s written work that involves the
invoice. Letter contracts are authorized for use
application of principles studied in each in accordance with the provision of FAR
(c) Before any authorized partial lesson, the correction of assigned work 16.603 and in those cases in which it is
payment, the contractor must execute a with such suggestions or not possible to complete a formal
release or waiver. recommendation as may be necessary to
contract with an approved educational

(d) Due to the variations of local law, instruct the student, the keeping of institution before the enrollment of
no standard release or waiver is student achievement records, and eligible veterans for training.
prescribed. Each release or waiver must issuance of a diploma, certificate, or
be prepared in accordance with local other evidence to the student upon 871.202 Marking and release of supplies.
law and must be in a form acceptable to satisfactorily completing the The educational institution or training
the District Counsel. requirements of the course. establishment is not required to mark
supplies to indicate ownership by the installments over the school year or the 871.208 Rehabilitation facilities.
United States. Supplies are considered length of the course. Charges by rehabilitation facilities for
to be the property of the trainee at the (2) An institution may be paid in the rehabilitation services provided
time they are furnished. accordance with paragraph (b) of this under 38 U.S.C. Chapter 31 are paid in
871.203 Renewals or supplements to section, if the institution operates on a the same manner as charges for
contracts. regular term, quarter, or semester basis educational and vocational services
and normally accepts students only at through contract, agreement, or other
Except for contracts for educational arrangement.
the beginning of the term, quarter, or
and vocational counseling, the
semester and if the institution is one of
contracting office may renew contracts 871.209 Records and reports.
the following:
from year to year by completing a Contracts, agreements, or
renewal agreement no later than 30 days (i) An institution of higher learning
that uses a standard unit of credit arrangements must provide for the
before the expiration of the contract. number and frequency of reports,
There must be no change in the recognized by accrediting associations.
Such institutions include those that are adequate financial records to support
schedule of provisions in the original payment for each trainee, and
contract. members of recognized national or
regional educational accrediting maintenance of attendance and progress
(a) Supplements may be negotiated at records. Such records must be preserved
any time during the contract period associations, and those that, although
not members of such accrediting for a period of three years.
upon the completion of the
supplemental agreement. associations, grant standard units of 871.210 Correspondence courses.
(b) Contracts for educational and credit acceptable at full value without Contracts with institutions for
vocational counseling may provide for examination by collegiate institutions correspondence courses must provide
automatic extension from year to year. that are members of national or regional for the following:
accrediting associations.
(a) Major changes in courses or course
871.204 Guaranteed payment. (ii) A public tax-supported institution. material are not binding on the VA until
A contracting officer may not award a (iii) An institution operated and a supplemental agreement to the
contract or agreement to any institution controlled by a State, county, or local contract is negotiated.
or training establishment that requires board of education. (b) Minor changes in course or course
VA to pay a minimum charge, or to (b) An institution that meets the material not affecting the length of the
enroll a minimum number of exceptions of paragraph (a)(2) of this course or number of lessons and not
participants per quarter, semester, term, section and that has a refund policy lowering the educational value of the
course, or other period. providing for a graduated scale of course or the quality of the course
871.205 Proration of charges. charges for purposes of determining material, such as revision of text, the
refunds may be paid part or all such substitution of a newer lesson for an
A contract must include the exact
tuitions or fees for a term, quarter, or older one, or the substitution of
formula agreed on for the proration of
other period of enrollment immediately equipment of equal or greater value, are
charges in the event that the veteran’s
following the date on which the refund permitted without supplemental
program is interrupted or discontinued
expires. agreements. The institution must place
before the end of the term, semester,
(c) Proration of charges does not apply such minor changes and revisions on
quarter, or other period, or the program
to a fee for noncontinuing service, such file with the contracting officer at the
is completed in less time than stated in
as registration fee, etc. time of the change or revision.
the contract.
(c) Trainees must be provided with
(d) The period for which payment of
871.206 Other fees and charges. prompt and adequate lessons service
charges may be made is the period of
VA may pay fees and other charges and, unless otherwise specified in the
actual enrollment and is subject to the
that are not prescribed by law but are contract, must be furnished the same
following:
required by nongovernmental texts, lessons service, diplomas, and
(1) The effective date is the date of the other services as are normally provided
organizations, such as initiation fees trainee’s entrance into training status,
required to become a member of a labor for regularly enrolled non-veteran
except that payment may be made for an students.
union and the dues necessary to entire semester, quarter, or term in
maintain membership incidental to (d) That all lessons must be
institutions operating on that basis if the adequately serviced on an individual
training on the job or to obtaining trainee enters no later than the final date
employment during a period in which basis. Grouping of lessons into units or
set by the institution for enrolling for partial servicing does not meet this
the veteran is a chapter 31 participant, full credit.
provided there are no facilities feasibly requirement.
available where the necessary training (2) In those cases where the (e) Each lesson must have a separate
can be feasibly accomplished or institution has not set a final date for examination that is adequate in terms of
employment obtained without paying enrolling for full credit or does not set lesson content.
such charges. Payment for such fees a date acceptable to VA, payment may (f) The training of persons under a VA
must be made in accordance with Part be prorated on the basis of attendance, contract or the fact that the United
813. regardless of the refund policy. States is using the facilities of the
(3) If an institution customarily institution for training veterans must
871.207 Payment of tuition or fees. charges for the amount of credit or not be used in any way to advertise the
(a) Contracts, agreements, or number of hours of attendance for institution. References in the advertising
arrangements requiring the payment of which a trainee enrolls, payment may be media or correspondence of the
tuition or fees must provide either of the made on that basis when a trainee institution shall be limited to a list of
following: enrolls after the final date permitted for courses under 38 U.S.C. Chapter 31 and
(1) Payment for tuition or fees must be carrying full credit for the semester or must not be directed or pointed
made in arrears and must be prorated in term. specifically to veterans.
(g) The rates, fees, and charges must 873.101 Policy. institutions), or from blood banks, organ
not be in excess of those charged The simplified acquisition procedures banks, or research centers, the resource
nonveterans. set forth in this Department of Veterans may be acquired on a sole source basis.
(h) Payment must be made on a Affairs Acquisition Regulation (VAAR) (38 U.S.C. 8153)
lesson-completed basis in areas for part apply to the acquisition of health- (b) Acquisition of health-care
assignments sent in by trainees and care resources consisting of commercial resources identified in paragraph (a) of
serviced during a pay period as services or the use of medical this section are not required to be
established by the contract. equipment or space. These procedures publicized as otherwise required by
(i) Payment must be made only once shall be used in conjunction with the 873.108 or FAR 5.101. In addition,
for each lesson even though it is Federal Acquisition Regulation (FAR) written justification, as otherwise set
and other parts of VAAR. However, forth in section 303(f) of the Federal
necessary to service a lesson more than
when a policy or procedure in FAR or Property and Administration Services
once.
another part of VAAR differs from the Act of 1949 (41 U.S.C. 253(f)) and FAR
871.211 Information concerning procedures contained in this part, this Part 6, is not required. (38 U.S.C. 8153)
correspondence courses. part shall apply. These procedures (c) Without regard to FAR 6.101, if the
Specific questions on correspondence contain more flexibility than provided health-care resource required is a
courses as to the content of courses, in FAR or elsewhere in VAAR. (38 commercial service or the use of
academic credit, and entrance U.S.C. 8153) medical equipment or space, and is to
requirements for courses included in be acquired from an entity not described
873.102 Definitions. in paragraph (a) of this section,
VA contracts may be directed to the
Commercial service means a service, contracting officers must seek
institutions offering the courses.
except construction exceeding $2,000 competition to the maximum extent
871.212 Contract clauses. and architect-engineer services, that is practicable and must permit all
Contracting officers must use the offered and sold competitively in the responsible sources, as appropriate
following clauses, as appropriate, in commercial marketplace, is performed under the provisions of this part, to
solicitations and contracts for vocational under standard commercial terms and submit a bid, proposal or quotation (as
rehabilitation and employment services conditions, and is procured using firm- appropriate) for the resources to be
as they pertain to training and fixed price contracts. (38 U.S.C. 8153) procured and provide for the
rehabilitation services and contracts for Health-care providers includes consideration by the Department of
counseling services: health-care plans and insurers and any bids, proposals, or quotations so
organizations, institutions, or other submitted. (38 U.S.C. 8153)
(a) 852.271–70 Nondiscrimination in (d) Without regard to FAR 5.101,
Services Provided to Beneficiaries. entities or individuals who furnish
health-care resources. (38 U.S.C. 8152) acquisition of health-care resources
(b) 852.271–72 Time Spent by Health-care resource includes identified in paragraph (c) of this
Counselee in Counseling Process. hospital care and medical services (as section shall be publicized as otherwise
(c) 852.271–73 Use and Publication those terms are defined in section 1701 required by 873.108. Moreover, for any
of Counseling Results. of title 38 United States Code (U.S.C.), such acquisition described in paragraph
(d) 852.271–74 Inspection. any other health-care service, and any (c) of this section to be conducted on a
(e) 852.271–75 Extension of Contract health-care support or administrative sole source basis, the contracting officer
Period. resource, including the use of medical must prepare a justification that
equipment or space. (38 U.S.C. 8152) includes the information and is
PART 872—[RESERVED] approved at the levels prescribed in
873.103 Priority sources. section 303(f) of the Federal Property
PART 873—SIMPLIFIED ACQUISITION Without regard to FAR 8.002(a)(2), and Administration Services Act of
PROCEDURES FOR HEALTH-CARE except for the acquisition of services 1949 (41 U.S.C. 253(f)) and FAR Part 6.
RESOURCES available from the Committee for (38 U.S.C. 8153)
Purchase From People Who Are Blind
Sec. or Severely Disabled, pursuant to the 873.105 Acquisition planning.
873.101 Policy. (a) Acquisition planning is an
Javits-Wagner-O’Day Act (41 U.S.C. 46–
873.102 Definitions. indispensable component of the total
873.103 Priority sources. 48c) and FAR Subpart 8.7, there are no
873.104 Competition requirements. priority sources for the acquisition of acquisition process.
873.105 Acquisition planning. health-care resources consisting of (b) For the acquisition of health-care
873.106 Presolicitation exchanges with commercial services or the use of resources consisting of commercial
industry. medical equipment or space. (38 U.S.C. services or the use of medical
873.107 Socioeconomic programs. 8153) equipment or space, where the
873.108 Publicizing contract actions. acquisition is expected to exceed the
873.109 General requirements for 873.104 Competition requirements. simplified acquisition threshold (SAT),
acquisition of health-care resources. (a) Without regard to FAR Part 6, if an acquisition team must be assembled.
873.110 Solicitation provisions. the health-care resource required is a The team shall be tailored by the
873.111 Acquisition strategies for health- commercial service, the use of medical contracting officer for each particular
care resources.
873.112 Evaluation information.
equipment or space, or research, and is acquisition expected to exceed the SAT.
873.113 Exchanges with offerors. to be acquired from an institution The team should consist of a mix of
affiliated with the Department in staff, appropriate to the complexity of
873.114 Best value pool.

873.115 Proposal revisions. accordance with section 7302 of title 38 the acquisition, and may include
873.116 Source selection decision. U.S.C., including medical practice contracting, fiscal, legal, administrative,
873.117 Award to successful offeror. groups and other approved entities and technical personnel, and such other
873.118 Debriefings. associated with affiliated institutions expertise as necessary to assure a
Authority: 38 U.S.C. 501 and 8151–8153; (entities will be approved if determined comprehensive acquisition plan. The
40 U.S.C. 121(c); and 48 CFR 1.301–1.304. legally to be associated with affiliated team should include the small business
advocate representing the contracting provisions therein would provide officer makes a determination in writing
activity or a higher level designee and relevant information; that proceeding to contract award and
the SBA Procurement Center (4) One-on-one meetings with performance is in the public interest.
Representative (PRC), if available. As a potential offerors; The contracting officer must promptly
minimum, the team must include the (5) Presolicitation notices; notify SBA of the determination to
contracting officer and a representative (6) Draft Requests for proposals proceed with the solicitation and/or
of the requesting service. (38 U.S.C. (RFPs); contract award and must provide a copy
8153) (7) Requests for information (RFIs); of the written determination to SBA.
(c) Prior to determining whether a (8) Presolicitation or preproposal (3) SBA shall be allowed 10 working
requirement is suitable for acquisition conferences; days after receiving the rejection notice
using these simplified acquisition (9) Site visits; from the contracting officer (or the HCA,
procedures, the contracting officer or (10) Electronic notices (e.g., Internet);
if a waiver has been approved) for
the acquisition team, as appropriate, and
acquisitions not exceeding $5 million,
must conduct market research to (11) Use of the Central Contractor
or 15 working days after receiving the
identify interested businesses. It is the Registration (CCR) (https://
rejection notice for acquisitions
responsibility of the contracting officer www.bpn.gov/ccrinq/scripts/search.asp)
exceeding $5 million, to file an appeal.
to ensure the requirement is and the ‘‘Advanced Search’’ feature on
SBA must notify the contracting officer
appropriately publicized and VetBiz Vendor Information Pages
within this 10 or 15 day period whether
information about the procurement (http://vip.vetbiz.gov/search/
an appeal has, in fact, been taken. If
opportunity is adequately disseminated default.asp) to search for vendors. (38
notification is not received by the
as set forth in 873.108. (38 U.S.C. 8153) U.S.C. 8153)
contracting officer within the applicable
(d) In lieu of the requirements of FAR 873.107 Socioeconomic programs. period, it shall be deemed that an
Part 7 addressing documentation of the appeal was not taken.
(a) Implementation. This section
acquisition plan, the contracting officer (4) SBA shall submit appeals to the
provides additional authority, over and
may conduct an acquisition strategy Secretary. Decisions shall be made by
above that found at FAR 19.502, to
meeting with cognizant offices to seek the Procurement Executive, whose
waive small business set-asides. For
approval for the proposed acquisition decisions shall be final. (38 U.S.C. 8153)
acquisitions above the micro-purchase
approach. If a meeting is conducted, (c) Contracting with the Small
threshold, if, through market research,
briefing materials shall be presented to Business Administration (the 8(a)
the contracting officer determines that
address the acquisition plan topics and Program). The procedures of FAR 19.8
there is reasonable expectation that
structure in FAR 7.105. Formal written shall be followed where a responsible
reasonably priced bids, proposals, or
minutes shall be prepared to summarize 8(a) contractor has been identified.
quotations will be received from two or
decisions, actions, and conclusions and (d) Certificates of Competency and
more responsible small businesses, a
included in the contract file, along with determinations of responsibility. The
requirement for health-care resources
a copy of the briefing materials. (38 Director, Office of Small and
must be reserved for small business
U.S.C. 8153) Disadvantaged Business Utilization
participation. Without regard to FAR
873.106 Presolicitation exchanges with 13.003(b)(1), 19.502–2, and 19.502–3, (OSDBU), Department of Veterans
industry. the head of the contracting activity Affairs (VA), and the Assistant
(a) This section shall be used in lieu (HCA) may approve a waiver from the Administrator, Office of Industrial
of FAR Part 10, except as provided in requirement for any set-aside for small Assistance, Small Business
paragraph (b)(3) of this section. In business participation when a waiver is Administration (SBA), shall serve as
conducting market research, exchange determined to be in the best interest of ombudsmen to assist VA contracting
of information by all interested parties the Government. (38 U.S.C. 8153) officers on any issues relating to
involved in an acquisition, from the (b) Rejecting Small Business Certificates of Competency (COC).
earliest identification of a requirement Administration (SBA) Copies of all COC referrals to SBA shall
through release of the solicitation, is recommendations. (1) The contracting be submitted to the Director, OSDBU
encouraged. Interested parties include officer (or, if a waiver has been (00SB).
potential offerors, end users, approved in accordance with paragraph
(a) of this section, the HCA) must 873.108 Publicizing contract actions.
Government acquisition and support
personnel, and others involved in the consider and respond to a (a) Without regard to FAR 5.101, all
conduct or outcome of the acquisition. recommendation from an SBA acquisitions under this part 873, except
The nature and extent of presolicitation representative to set a procurement as provided in paragraph (b) of this
exchanges between the Government and aside for small business within 5 section, for dollar amounts in excess of
industry shall be a matter of the working days. If the recommendation is the simplified acquisition threshold
contracting officer’s discretion (for rejected by the contracting officer (or, if (SAT), as set forth in FAR Part 13, shall
acquisitions not exceeding the a waiver has been approved, by the be publicly announced utilizing a
simplified acquisition threshold) or the HCA) and if SBA intends to appeal that medium designed to obtain competition
acquisition team’s discretion, as determination, SBA must, within 2 to the maximum extent practicable and
coordinated by the contracting officer. working days after receipt of the to permit all responsible sources, as
(38 U.S.C. 8153) determination, notify the contracting appropriate under the provisions of this
(b) Techniques to promote early officer involved of SBA’s intention to part, to submit a bid, proposal, or
exchange of information include— appeal. quotation (as appropriate).
(1) Industry or small business (2) Upon receipt of the notification of (1) The publication medium may
conferences; SBA’s intention to appeal and pending include the Internet, including the
(2) Public hearings; issuance of a final Department appeal Governmentwide point of entry (GPE),
(3) Market research in accordance decision to SBA, the contracting officer and local, regional or national
with FAR 10.002(b), which shall be involved must suspend action on the publications or journals, as appropriate,
followed to the extent that the acquisition unless the contracting at the discretion of the contracting
officer, depending on the complexity of commercial services or the use of the micro-purchase threshold. (38
the acquisition. medical equipment or space, utilizing U.S.C. 8153)
(2) Without regard to FAR 5.203, the guidance contained in this part 873. (b) The contracting officer shall insert
notice shall be published for a (38 U.S.C. 8153) a provision in RFQs and solicitations,
reasonable time prior to issuance of a (b) Statement of work/Specifications. substantially the same as the provision
request for quotations (RFQ) or a Statements of work or specifications at 852.273–71, Alternative Negotiation
solicitation, depending on the must define the requirement and Techniques, when either of the
complexity or urgency of the should, in most instances, include alternative negotiation techniques
acquisition, in order to afford potential qualifications or limitations such as described in 873.111(e)(1) will be used.
offerors a reasonable opportunity to time limits for delivery of service, (38 U.S.C. 8153)
respond. If the notice includes a medical certification or credentialing (c) The contracting officer shall insert
complete copy of the RFQ or restrictions, and small business or other the provision at 852.273–72, Alternative
solicitation, a prior notice is not socio-economic preferences. The Evaluation, in lieu of the provision at
required, and the RFQ or solicitation contracting officer may include any 52.212–2, Evaluation—Commercial
shall be considered to be announced other such terms as the contracting Items, when the alternative negotiation
and issued at the same time. officer deems appropriate for each technique described in 873.111(e)(1)(ii)
(3) The notice may include contractor specific acquisition. (38 U.S.C. 8153) will be used. (38 U.S.C. 8153)
qualification parameters, such as time (c) Documentation. Without regard to (d) When evaluation information, as
for delivery of service, credentialing or FAR 13.106–3(b), 13.501(b), or 15.406– described in 873.112, is to be used to
medical certification requirements, 3, the contract file must include: select a contractor under an RFQ or RFP
small business or other socio-economic (1) A brief written description of the for health-care resources consisting of
preferences, the appropriate small procedures used in awarding the commercial services or the use of
business size standard, and such other contract; medical equipment or space, the
qualifications as the contracting officer (2) The market research, including the contracting officer may insert the
deems necessary to meet the needs of determination that the acquisition provision at 852.273–73, Evaluation—
the Government. (38 U.S.C. 8153) involves health-care resources; Health-Care Resources, in the RFQ or
(b) The requirement for public (3) The number of offers received; and RFP in lieu of FAR provision 52.212–2.
announcement does not apply to sole (38 U.S.C. 8153)
(4) An explanation, tailored to the size
source acquisitions, described in (e) As provided at 873.113(f), if award
and complexity of the acquisition, of the
873.104(a), from institutions affiliated may be made without exchange with
basis for the contract award decision.
with the Department in accordance with vendors, the contracting officer shall
(38 U.S.C. 8153)
section 7302 of title 38 U.S.C., including include the provision at 852.273–74,
(d) Time for receipt of quotations or Award Without Exchanges, in the RFQ
medical practice groups and other
offers. (1) Without regard to FAR 5.203, or RFP. (38 U.S.C. 8153)
approved entities associated with
contracting officers shall set a (f) The contracting officer shall insert
affiliated institutions (entities will be
reasonable time for receipt of quotations the clauses at FAR 52.207–3, Right of
approved if determined legally to be
or proposals in requests for quotations First Refusal of Employment, and at
associated with affiliated institutions),
(RFQs) and solicitations. 852.207–70, Report of Employment
or from blood banks, organ banks, or
research centers. In addition, the (2) Without regard to FAR 15.208 or Under Commercial Activities, in all
requirement for public announcement 52.212–1(f), quotations or proposals RFQs, solicitations, and contracts issued
does not apply to sole source received after the time set forth in an under the authority of 38 U.S.C. 8151–
acquisitions of hospital care and RFQ or request for proposals (RFP) may 8153 which may result in a conversion,
medical services (as those terms are be considered at the discretion of the from in-house performance to contract
defined in section 1701 of title 38 contracting officer if determined to be in performance, of work currently being
U.S.C.) or any other health-care services, the best interest of the Government. performed by Department of Veterans
including acquisitions for the mutual Contracting officers must document the Affairs employees. (38 U.S.C. 8153)
use or exchange of use of such services. rationale for accepting quotations or
However, as required by 38 U.S.C. proposals received after the time 873.111 Acquisition strategies for health-
specified in the RFQ or RFP. This care resources.
8153(a)(3)(D), acquisitions from non-
paragraph (d)(2) shall not apply to RFQs Without regard to FAR 13.003 or
affiliates, if conducted on a sole source
or RFPs if alternative evaluation 13.500(a), the following acquisition
basis, must still be justified and
techniques described in 873.111(e)(1)(ii) processes and techniques may be used,
approved (see 873.104(d)). (38 U.S.C.
are used. This paragraph (d)(2) does not singly or in combination with others, as
8153)
(c) For acquisitions below the SAT, a apply to invitations for bid (IFBs). (38 appropriate, to design acquisition
public announcement is optional. (38 U.S.C. 8153) strategies suitable for the complexity of
U.S.C. 8153) (e) Cancellation of procurements. the requirement and the amount of
(d) Each solicitation issued under Without regard to FAR 14.404–1, any resources available to conduct the
these procedures must prominently acquisition may be canceled by the acquisition. These strategies should be
identify that the requirement is being contracting officer at any time during considered during acquisition planning.
solicited under the authority of 38 the acquisition process if cancellation is The contracting officer shall select the
U.S.C. 8153 and part 873. (38 U.S.C. determined to be in the best interest of process most appropriate to the
8153) the Government. (38 U.S.C. 8153) particular acquisition. There is no
preference for sealed bid acquisitions.
873.109 General requirements for 873.110 Solicitation provisions. (38 U.S.C. 8153)
acquisition of health-care resources. (a) As provided in 873.109(d), (a) Request for quotations. (1) Without
(a) Source selection authority. contracting officers shall insert the regard to FAR 6.1 or 6.2, contracting
Contracting officers shall be the source provision at 852.273–70, Late Offers, in officers must solicit a sufficient number
selection authority for acquisitions of all requests for quotations (RFQs) and of sources to promote competition to the
health-care resources, consisting of requests for proposals (RFPs) exceeding maximum extent practicable and to
ensure that the purchase is (3) First phase responses. Offerors importance, are within the broad
advantageous to the Government, based, shall submit the information requested discretion of agency acquisition officials
as appropriate, on either price alone or in the notice described in paragraph as long as the evaluation information is
price and other factors (e.g., past (d)(2) of this section. Information sought determined to be in the best interest of
performance and quality). RFQs must in the first phase may be limited to a the Government. (38 U.S.C. 8153)
notify vendors of the basis upon which statement of qualifications and other (b) Price or cost to the Government
the award is to be made. appropriate information (e.g., proposed must be evaluated in every source
(2) For acquisitions in excess of the technical concept, past performance selection. Past performance shall be
SAT, the procedures set forth in FAR information, limited pricing evaluated in source selections for
Part 13 concerning RFQs may be information). negotiated competitive acquisitions
utilized without regard to the dollar (4) First phase evaluation and down- exceeding the SAT unless the
thresholds contained therein. (38 U.S.C. select. The Government shall evaluate contracting officer documents that past
8153) all offerors’ submissions in accordance performance is not an appropriate
(b) Sealed bidding. FAR Part 14 with the notice and make a down-select evaluation factor for the acquisition. (38
provides procedures for sealed bidding. decision. U.S.C. 8153)
(c) Negotiated acquisitions. If the (5) Subsequent phases. Additional (c) The quality of the product or
procedures of FAR Parts 12, 13, and 15 information shall be sought in the service may be addressed in source
differ from the procedures of this part, second phase so that a down-select can selection through consideration of
the procedures of this part shall govern. be performed or an award made without
(38 U.S.C. 8153) information such as past compliance
exchanges, if necessary. The contracting with solicitation requirements, technical
(d) Multiphase acquisition technique. officer may conduct exchanges with
(1) General. Without regard to FAR excellence, management capability,
remaining offeror(s), request proposal personnel qualifications, and prior
15.202, multiphase acquisitions may be revisions, or request best and final
appropriate when the submission of full experience. The information required
offers, as determined necessary by the from quoters, bidders, or offerors shall
proposals at the beginning of an contracting officer, in order to make an
acquisition would be burdensome for be included in notices or solicitations,
award decision. as appropriate. (38 U.S.C. 8153)
offerors to prepare and for Government (6) Debriefing. Without regard to FAR
personnel to evaluate. Using multiphase (d) The relative importance of any
15.505, contracting officers must debrief
techniques, the Government may seek evaluation information included in a
offerors as required by 873.118 when
limited information initially, make one solicitation must be set forth therein. (38
they have been excluded from the
or more down-selects, and request a full U.S.C. 8153)
competition. (38 U.S.C. 8153)
proposal from an individual offeror or (e) Alternative negotiation techniques. 873.113 Exchanges with offerors.
limited number of offerors. Provided (1) Contracting officers may utilize
that the notice notifies offerors, the (a) Without regard to FAR 15.201 or
alternative negotiation techniques for 15.306, negotiated acquisitions
contracting officer may limit the number the acquisition of health-care resources.
of proposals during any phase to the generally involve exchanges between
Alternative negotiation techniques may the Government and competing offerors.
number that will permit an efficient be used when award will be based on
competition among proposals offering Open exchanges support the goal of
either price or price and other factors. efficiency in Government by providing
the greatest likelihood of award. The Alternative negotiation techniques
contracting officer may indicate in the the Government with relevant
include but are not limited to: information (in addition to that
notice an estimate of the greatest (i) Indicating to offerors a price,
number of proposals that will be submitted in the offeror’s initial
contract term or condition,
included in the down-select phase. The proposal) needed to understand and
commercially available feature, and/or
contracting officer may down-select to a evaluate the offeror’s proposal. The
requirement (beyond any requirement or
single offeror. nature and extent of exchanges between
target specified in the solicitation) that
(2) First phase notice. In the first the Government and offerors is a matter
offerors will have to improve upon or
phase, the Government shall publish a of contracting officer judgment.
meet, as appropriate, in order to remain
notice (see 873.108) that solicits Clarifications, communications, and
competitive.
responses and that may provide, as (ii) Posting offered prices discussions, as provided for in the FAR,
appropriate, a general description of the electronically or otherwise (without are concepts not applicable to
scope or purpose of the acquisition and disclosing the identity of the offerors) acquisitions under this part 873. (38
the criteria that will be used to make the and permitting revisions of offers based U.S.C. 8153)
initial down-select decision. The notice on this information. (b) Exchanges with potential offerors
may also inform offerors of the (2) Except as otherwise permitted by may take place throughout the source
evaluation criteria or process that will law, contracting officers shall not selection process. Exchanges may start
be used in subsequent down-select conduct acquisitions under this section in the planning stages and continue
decisions. The notice must contain in a manner that reveals the identities through contract award. Exchanges
sufficient information to allow potential of offerors, releases proprietary should occur most often with offerors
offerors to make an informed decision information, or otherwise gives any determined to be in the best value pool
about whether to participate in the offeror a competitive advantage (see (see 873.114). The purpose of exchanges
acquisition. The notice must advise FAR 3.104). (38 U.S.C. 8153) is to ensure there is mutual
offerors that failure to participate in the understanding between the Government
first phase will make them ineligible to 873.112 Evaluation information. and the offerors on all aspects of the
participate in subsequent phases. The (a) Without regard to FAR 15.304 acquisition, including offerors’
notice may be in the form of a synopsis (except for 15.304(c)(1) and (c)(3), submittals/proposals. Information
in the Governmentwide point of entry which do apply to acquisitions under disclosed as a result of oral or written
(GPE) or a narrative letter or other this authority), the criteria, factors, or exchanges with an offeror may be
appropriate method that contains the other evaluation information that apply considered in the evaluation of an
information required by this paragraph. to an acquisition, and their relative offeror’s proposal. (38 U.S.C. 8153)
(c) Exchanges may be conducted, in efficient competition among the interest of the Government. (38 U.S.C.
part, to obtain information that explains proposals offering the greatest 8153)
or resolves ambiguities or other likelihood of award. The contracting (b) The source selection team, or
concerns (e.g., perceived errors, officer may indicate in the solicitation advisory boards or panels, may conduct
perceived omissions, or perceived the estimate of the greatest number of comparative analysis(es) of proposals
deficiencies) in an offeror’s proposal. proposals that will be included in the and make award recommendations, if
(38 U.S.C. 8153) best value pool. The contracting officer the contracting officer requests such
(d) Exchanges shall only be initiated may limit the best value pool to a single assistance. (38 U.S.C. 8153)
if authorized by the contracting officer offeror. (38 U.S.C. 8153) (c) The source selection decision must
and need not be conducted with all (c) If the contracting officer be documented in accordance with FAR
offerors. (38 U.S.C. 8153) determines that an offeror’s proposal is 15.308.
(e) Except for acquisitions based on no longer in the best value pool, the
alternative negotiation techniques proposal shall no longer be considered 873.117 Award to successful offeror.
contained in 873.111(e)(1), the for award. Written notice of this (a) The contracting officer shall award
contracting officer and other decision must be provided to a contract to the successful offeror by
Government personnel involved in the unsuccessful offerors at the earliest furnishing the contract or other notice of
acquisition shall not disclose practicable time. (38 U.S.C. 8153) the award to that offeror. (38 U.S.C.
information regarding one offeror’s 8153)
proposal to other offerors without 873.115 Proposal revisions.
(b) If a request for proposal (RFP)
consent of the offeror in accordance (a) Without regard to FAR 15.307, the process was used for the solicitation and
with FAR Parts 3 and 24. (38 U.S.C. contracting officer may request proposal if award is to be made without
8153) revisions as often as needed during the exchanges, the contracting officer may
(f) Award may be made on initial proposal evaluation process at any time award a contract without obtaining the
proposals without exchanges if the prior to award from vendors remaining offeror’s signature a second time. The
solicitation states that the Government in the best value pool. Proposal offeror’s signature on the offer
intends to evaluate proposals and make revisions shall be submitted in writing. constitutes the offeror’s agreement to be
award without exchanges, unless the The contracting officer may establish a bound by the offer. If a request for
contracting officer determines that common cutoff date for receipt of quotation (RFQ) process was used for
exchanges are considered necessary. (38 proposal revisions. Contracting officers the solicitation, and if the contracting
U.S.C. 8153) may request best and final offers. In any officer determines there is a need to
case, contracting officers and establish a binding contract prior to
873.114 Best value pool. acquisition team members must commencement of work, the contracting
(a) Without regard to FAR 15.306(c), safeguard proposals, and revisions officer should obtain the offeror’s
the contracting officer may determine thereto, to avoid unfair dissemination of acceptance signature on the contract to
the most highly rated proposals having an offeror’s proposal. (38 U.S.C. 8153) ensure formation of a binding contract.
the greatest likelihood of award based (b) If an offeror initially included in (38 U.S.C. 8153)
on the information or factors and the best value pool is no longer (c) If the award document includes
subfactors in the solicitation. These considered to be among those most information that is different than the
vendors constitute the best value pool. likely to receive award after submission latest signed offer, both the offeror and
This determination is within the sole of proposal revisions and subsequent the contracting officer must sign the
discretion of the contracting officer. evaluation thereof, the offeror may be contract award. (38 U.S.C. 8153)
Competitive range determinations, as eliminated from the best value pool
provided for in the FAR, are not (d) When an award is made to an
without being afforded an opportunity offeror for less than all of the items that
applicable to acquisitions under this to submit further proposal revisions. (38
part 873. (38 U.S.C. 8153) may be awarded and additional items
U.S.C. 8153) are being withheld for subsequent
(b) In planning an acquisition, the (c) Requesting and/or receiving
contracting officer may determine that award, each notice shall state that the
proposal revisions do not necessarily Government may make subsequent
the number of proposals that would conclude exchanges. However, requests
otherwise be included in the best value awards on those additional items within
for proposal revisions should advise the offer acceptance period. (38 U.S.C.
pool is expected to exceed the number offerors that the Government may make
at which an efficient, timely, and 8153)
award without obtaining further
economical competition can be revisions. (38 U.S.C. 8153) 873.118 Debriefings.
conducted. In reaching such a
873.116 Source selection decision. Offerors excluded from a request for
conclusion, the contracting officer may
proposals (RFP) may submit a written
consider such factors as the results of (a) An integrated comparative
request for a debriefing to the
market research, historical data from assessment of proposals should be
contracting officer. Without regard to
previous acquisitions for similar performed before source selection is
FAR 15.505, preaward debriefings may
services, and the resources available to made. The contracting officer shall
be conducted by the contracting officer
conduct the source selection. Provided independently determine which
when determined to be in the best
the solicitation notifies offerors that the proposal(s) represents the best value,
interest of the Government. Post-award
best value pool can be limited for consistent with the evaluation
debriefings shall be conducted in
purposes of making an efficient, timely, information or factors and subfactors in
accordance with FAR 15.506. (38 U.S.C.
and economical award, the contracting the solicitation, and that the prices are
8153)
officer may limit the number of fair and reasonable. The contracting
proposals in the best value pool to the officer may determine that all proposals [FR Doc. 06–215 Filed 1–12–06; 8:45 am]
greatest number that will permit an should be rejected if it is in the best BILLING CODE 8320–01–P

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Friday,

January 13, 2006

VAAR part Name Telephone No. and e-mail address

852.211–71, Guarantee ............................................................................ 852.246–70.

provisions. Summary of collection of information: technological collection techniques or

expected to be minimal. Therefore, Approved: May 10, 2005.

officers, in accordance with the COCP.

Termination means the revocation or

are charged with meeting Department- disposition of records through Office of

Contract Administration II .................................. ........................................................................... X.

801.695 VA’s Appointment of HCAs Subpart 802.1—Definitions PART 803—IMPROPER BUSINESS

803.104 Procurement integrity.

specified in FAR 6.304. Employment Under Commercial awarded by the VA National

emergency exists, as provided in FAR

811.202 Maintenance of standardization purchase descriptions.

commercial items are subject to the counselee in counseling process. contracts.

SUBCHAPTER C—CONTRACTING 813.307 Forms. Subpart 814.3—Submission of Bids

Subpart 813.1—Procedures Supplies or Services. Subpart 814.4—Opening of Bids and Award

must insert in the purchase order the 814.201–6 Solicitation provisions.

contracting officer may make no award

terms before awarding the contract.

contracting officer will notify SBA of

Contracts Involving Construction 825.202 Exceptions.

SUBCHAPTER E—GENERAL 828.106 Administration. Subpart 828.71—Indemnification of

828.203 Acceptability of individual

833.213 Obligation to continue

affidavits or statements of any witnesses appealed to the VABCA. specifications.

836.513 Accident prevention. 836.575 Schedule of work progress. Subpart 836.6—Architect-Engineer

maintain suitable records to be able to

841.103 Statutory and delegated authority.

clauses. guarantee period services.

and Alternate Packaging and Packing (Date)

be employed as guaranty of 852.229–71 [Reserved]. Office of Facilities Management, 810

(e) By signing this bid, the bidder

show the name and address of the

Authority: 38 U.S.C. 501; 40 U.S.C. 121(c);

870.111–3 Contract Clauses.

contract with an approved educational

873.114 Best value pool.

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